Australian Consumer Law презентация

Trade Practices Act 1974 Competition and Consumer Act 2010 Schedule 2: Australian Consumer Law (“ACL”) Development of Australian consumer legislation

Слайд 1Australian Consumer Law
David Littlejohn
Special Counsel
21 March 2014


3350069v1


Слайд 2Trade Practices Act 1974

Competition and Consumer Act 2010

Schedule 2: Australian Consumer

Law (“ACL”)

Development of Australian consumer legislation


Слайд 3Protection

Fair trading

Consistency

Simple, clear and concise law
Purpose of the legislation


Слайд 4Freedom of contract
Equal footing/bargaining power
Free to walk away
Genuine negotiation
Literacy
Assumptions

in the current consumer market

Слайд 5Standard form contracts

Little opportunity for negotiation

“Take it or leave it”

Realities

of the consumer market

Слайд 6Information asymmetry

Opportunity to read

Literacy

Realities of the consumer market (continued


Слайд 7Goods
Services
Interest in land
Financial products or services
Personal, domestic or household use
Consumer

contracts

Слайд 8The elements of a standard form contract are generally considered to

consist of a pre-printed form offered on a “take it or leave it” basis to all consumers for that particular type of transaction.


Standard form contracts


Слайд 9Subject matter of contract

Upfront price

Terms required by law
Terms to which

section 23 does NOT apply

Слайд 10Under the ACL, a term is unfair if:
it would cause a

significant imbalance in the parties' rights and obligations arising under the contract; and
it is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term; and
it would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.31

When is a term unfair?


Слайд 11Significant imbalance in the parties’ rights and obligations arising under the

contract

Significant imbalance


Слайд 12“Reasonably necessary to protect the legitimate interests of the party who

would be advantaged by the term”

Reasonably necessary


Слайд 13Would the term cause detriment if it were to be applied

or relied upon?

It is not necessary that a term be enforced to be found that it is unfair.
The detriment caused by the term does not need to cause purely financial detriment.





Detriment


Слайд 14The effect of “unfairness” in a contract
The term once declared as

being ‘unfair’ is void. If the term is not a fundamental term of the contract and is severable from the contract the term will be void and the contract will continue to operate as if the unfair term did not exist.
 
If however, the term is an essential part of the contract and the contract is impossible to perform in the absence of the unfair term, the unfair term invalidates the entire contract.52 The assessment as to whether the contract can continue to operate without the term rests solely with the court.


Слайд 15Mobile phone contracts
Suppliers should ensure their contracts do not contain any

of the following unfair contract terms, which Consumer Affairs Victoria considers unfair.

These are terms that:

give suppliers the right to unilaterally vary prices and other terms and conditions
restrict the liability of the supplier or its employees or agents.
penalise the consumer for breach or termination of a contract.
prevent or restrict the consumer’s dispute resolution options.

Слайд 16Gym membership contracts
Suppliers should ensure their contracts do not contain any

of the following contract terms, which Consumer Affairs Victoria considers unfair.

These are terms that:

result in the automatic renewal of memberships
allow the health and fitness centre to vary any or all aspects of the services it provides
make it difficult for consumers to terminate memberships
penalise consumers for terminating memberships
- penalise consumers for breach of contract.


Слайд 17Unfair contract term:

Yes or No?


Слайд 18Questions?




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