Australian Consumer Law Tutorial Answers Essay

1566 Words Mar 17th, 2013 7 Pages
QUESTION 1

Studmaster Pty Ltd was a landlord that owned a shopping complex in Bourke Street, Melbourne. Mrs Tran operated the “Vietnamese Lunch Box” outlet in the food court. She had little ability to speak or read English, which the representatives for Studmaster knew about. Studmaster proposed a three year renewal of her lease at $48,000 per annum plus GST for the first year and CPI increments in the second and third years.

A representative for Studmaster told Mrs Tran that:

• “We believe the new rent is very reasonable and below the market value”; and • “The rent is lower than the rental paid by other tenants in the Food Court”

Both statements were incorrect. Studmaster gave Mrs Tran 7 days to agree to the lease
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Jack attended the home of Colin Farrell to promote New Roofs Ltd’s roof renovations. Colin was a 75 year old disability pensioner, suffering from severe arthritis and blindness in one eye due to his war service in Vietnam. Colin’s disabilities prevented him from writing, and he found it difficult to read. Jack was aware of Colin’s medical conditions. Jack filled in the roof renovation contract on behalf of Colin. Jack did not recommend that Colin get independent advice. Jack’s conduct towards Colin was overbearing as he wished to make the sale so that he would win “Salesperson of the Month”.

Issue: Did New Roofs Ltd engage in unconscionable conduct?

Law:

• Section 21 Australian Consumer Law

• ACCC v Lux Pty Ltd

Application:

• Explain why section 21 applies and not section 20

• Explain what the conduct was and why it was unconscionable with respect to the unconscionable factors in particular:

o Bargaining strengths of supplier and consumer:

o Understanding of any documents relating to the supply of services:

o Whether undue influence or pressure exerted or unfair tactics used against the consumer:

Issue: What are the remedies?

Law: Section 232 (injunction); Section 243 (other orders)

Application:

• Explain what an injunction would do in this case • Explain when Colin would want to void or

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