TUTORIAL - WEEK 9 (4 8 May)

Consumer protection law

Read the following questions and explain whether the supplier or manufacturer of
goods/services has breached any provisions of the Australian Consumer Law (ACL)
under the Competition and Consumer Act 2010(Cth).
(Note: Please answer Questions 1 and 2 under ILAC method. Questions 3, 4, and 5, are
short answer questions - the type of questions that may be in Part A of the final
exam.)

INSTRUCTIONS FOR QUESTIONS 3, 4, and 5

Apply the law and identify the relevant sections of the Australian Consumer Law (ACL)
and/or case law in your answer.
DO NOT use ILAC.
Maximum word limit is 150 words per question.
Provide a brief answer including the specific Sections and sub-sections that apply under
the Act. Discuss only the Application of Law and Conclusion parts of the answers.
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 understand 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 2 days to agree to the lease
renewal, but provided no reason for giving this limited time frame. Advise Mrs Tran as to
whether Studmaster Pty Ltd has breached the Australian Consumer Law and if so, her
available remedies.

QUESTION 2
Waverley Woollen Mills Pty Ltd sells jumpers under the Work Wear brand. WWM
labelled jumpers as a Product of Australia. Fibre for the jumpers was spun in Australia,
but the jumpers were designed and woven in Vietnam and imported into Australia. Advise
ACCC as to whether WWM has breached the Australian Consumer Law.
QUESTION 3
Cheap-as-chips Ltd sold blankets labelled All Wool for $50 each. The blankets, in fact,
were composed of only 25% wool, the remainder of the blanket being made from acrylic
fibre.
QUESTION 4
Rand Ltd sold calculators with a pamphlet stating that calculators carried a one-year
warranty. In actual fact the warranty period was only 90 days. Advise Rand as to
whether it has breached the ACL.

QUESTION 5
Barbara wanted to clean her driveway by removing dirt and oil stains. She obtained a
product called Eradicate manufactured by No Stains Ltd from her local hardware store.
The instructions on the Eradicate bottle did not warn against exposing the product to
direct sunlight. Barbara poured the product over her driveway. Exposure to the sunlight
caused a chemical reaction creating an acidic surface over the driveway. Barbaras feet
was injured badly. Advise No Stains as to whether it has breached the ACL.