The monumental changes in the last two centuries have rendered consumers especially vulnerable to unfair business conduct. In reaction to this the law has set out exactly what the rights of consumers are, and attempts to protect them through a number of ways.
Over the years, the courts have made numerous decisions in relation to consumers and businesses and the result has been a thorough body of common laws that regulate the formation of contracts. The courts recognize contracts to be legally binding on both parties and through this the law imposes obligations and responsibilities predominantly on the business, thus ensuring that the rights of consumers will be respected and protected.
The law protects the rights of consumers through legislation. Section 18 of the Australian Consumer Law makes it illegal for businesses to engage in any kind of misleading and deceptive conduct. For instance, in the case of Carlill v Carbolic Smoke Ball Co. (1893) QB 256, the court mandated that the company must return Ms. Carlill’s money because the cure that they advertised for influenza proved to be ineffective. Thus Ms. Carlill’s obligation to pay the company was negated due to being deceived by misrepresentation. In this case, the law ensured that Ms. Carlill’s right to refund will be upheld, because the law included a provision in the legislation that clarified that the intention of the company to deceive or not to deceive does not matter, only how the conduct affected the consumer.
The legislature and the courts of Australia observe the principle that certain standards must be upheld in contracts, even when the parties do not state them expressly. These are called implied terms, an instance would be the notion of merchantable quality, where the goods fit the description. Implied terms protect consumers who may not be especially savvy of their rights as consumers and thus the law here further ensures that consumer rights will be protected, even when they are not expressly agreed to.
The law recognizes that the more the scale of the contract is even, the more protected will consumer rights be. This is because businesses will not be given the upper hand in the bargain. Thus the law promotes cooperation and communication between the parties, in order to even the playing field. For example, for a contract to be valid, the law makes it a requirement that the parties reach consensus ad idem. This means that a contract is only valid if the consumers and businesses have agreed to the same things. Also, the Trade Practices Amendment Act 2009 (Cth) amended the Trade Practices Act 1974 (Cth) by inserting new provisions in relation to consumer contracts that made it a requirement for parties to cooperate and engage the other party in determining the terms of the contract. The effect of consensus ad idem and the aforementioned amendment is that the business will not be able to unilaterally introduce terms into the contract, possibly violating the rights of the consumer. The legislation further protects the rights of consumers by rendering unfair terms of standard form contracts void, these contracts that are entirely created by one side who holds excessive bargaining powers are now automatically discredited by the law.
And lastly, the law protects the right of the consumer to a safe and proper product by allowing him to terminate the contract unilaterally in case there is a fault with the product. This protection is further supplemented by the law when it strongly encourages the inclusion of warranties into a contract, thus further protecting the right of a consumer to receive a useful and proper product.
In conclusion, it is clear that consumers are at disadvantage when dealing with businesses. Therefore as evidenced in this essay, the law steps in the scene and provides protection for the rights of consumers through a number of ways that include legislation, court precedents and initiatives.
You May Also Find These Documents Helpful
-
Sixty years after the verdict on Donaghue’ case, Australia passed a statutory code that deals with defective goods. The only completed action brought under Part VA was the…
- 1029 Words
- 5 Pages
Good Essays -
Consumer protection is to protect buyer from the seller. Everyday of our lives we consume, use, or simply come into contact with countless different products. We should be able to assume that those products are safe. Not absolutely safe - that remains unattainable. The goods we buy have become increasingly more complex. Modern technology and mass-marketing techniques combined with high-pressure salesmanship and sharp advertising can confuse the consumer. It isn't always possible or practical to examine or test things before buying. This is a pre-packed, ready-processed age where the gap between producer and purchaser has widened enormously. Very few traders actually manufacture, pack, distribute and sell their own goods as there is usually a chain of other people involved…
- 648 Words
- 3 Pages
Satisfactory Essays -
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.…
- 1555 Words
- 7 Pages
Powerful Essays -
The United States Government has consumer protection laws are put into place to protect the consumer from fraudulent or unfair business practices. Consumers also have the responsibilities and their rights. There are six specific rights that consumers are guaranteed. Consumer rights are a relatively new development and did not come to be until the 1950’s. Until the 1950’s consumers were on their own if they bought goods that were faulty or unsafe. In 1962 President John F. Kennedy made it official announced the creation of the first four consumer rights which he called the bill of consumer rights. He told Congress that those four rights that consumers should have were the right to be heard, the right to be informed, the right to safety and the right to choose. Later in 1985 the UN backed the bill of consumer rights and added four of their own to the list including the right to a healthy environment, the right to redress, the right to satisfaction of basic needs and the right to consumer education. Each of these consumer rights is in place today and every consumer should be educated as to what their rights are.…
- 933 Words
- 3 Pages
Good Essays -
One mechanism that protects consumers is the development of the Trade Practices Act 1974 (cth). These acts ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace. In the case ACCC v Target Australia Pty Ltd (2001) FCA, the Australian Competition and Consumer Commission (ACCC) took action against Target for misleading deceptive conducts from their target advertisement. Target was breached under the Trade Practices Act 1974 (Cth) which prohibits misleading and deceptive conduct. The ACCC took target to court and enforced its penalties through the court. The ACCC helped to protect the need of consumers to have honest and non-deceptive advertising. The Court ordered Target to apologise to all consumers who were misled by the company’s deceptive advertising. This shows the effectiveness of the law from the ACCC and the Trade Practices Act 1974 (cth) through criteria of enforcement. It also shows the effectiveness of the law in relation to the protection of individual rights, as Target was required to redress its deceptive conduct so that the right of individuals…
- 1257 Words
- 4 Pages
Good Essays -
There are three problems that John has come across on his trip to Bildit Stores. The first problem is that John parked his car in the stores car park only to find on his return that the "park here at your own risk" sign had fallen and damaged his car. The next is that he bought a drill from another customer instead of in the store and it set fire when first used which resulted in losing valuable information on his PC and also damaging his ceiling at the cost of over £1000. The final problem is that John bought 10 boxes of sky blue tiles and had 20 more boxes ordered for delivery the next day, however, two weeks later only 15 boxes were delivered and only 5 of those were sky blue tiles and the rest were midnight blue.…
- 2434 Words
- 10 Pages
Better Essays -
Under Section 12 (1) in The Sale of Goods Act (1979) the seller has the right to sell the goods when he can pass the good’s title to the buyer (rights of ownership), looking at Rowland v Divall [1923] ALL ER REP 270, the court of appeal decided that Divall has breached S.12 of SOGA and that Rowland was entitled to a full refund, as he had paid £334 for the right of ownership of the car which he had not received. In the case of Matt 's football boots Nike did have the right to sell as he holds ownership of the products sold, so S.12(1) SOGA [1979] was not breached.…
- 4276 Words
- 18 Pages
Good Essays -
The Act envisages a three- tier quasi-judicial machinery at the National, State and District levels.…
- 1069 Words
- 5 Pages
Good Essays -
In Pakistan, the consumers are the most defenseless class of the society, partially due to lack of proper understanding of their rights and legal remedies and partially due to disparity in consumer protection laws in the federal capital and the four provinces. Normally, there are two main goals of any consumer protection law. The 1st is access to justice and the 2nd is participation of the state. Pakistani consumer protection laws will be discussed under the both perspectives. Consumer protection laws in Pakistan specifically provide consumer grievance redressal forums and policy input with the potential of participation of consumer rights associations.…
- 3581 Words
- 15 Pages
Powerful Essays -
The earlier principle of “Caveat Emptor” or “let the buyer beware” which was prevalent has given way to the principle of “consumer is king”. The origins of this principle lie in the fact that in today’s mass production economy, where there is little contact between the producer and consumer, often sellers make exaggerated claims through advertisements, which they do not intend to fulfill. This leaves the consumer in a difficult position with very few opportunities for redressal. The need to recognize and enforce the rights of consumers is being understood and several laws have been made for this purpose. In India, we have the Indian Contract Act, the Sales of Goods Act, the Dangerous Drugs Act, the agricultural Produce (Grading and Marketing) Act, Prevention of Food Adulteration Act, the Standards of Weights and Measures Act, the Trade and Merchandise Marks Act, etc, which to some extent protect consumer interests. However, these laws require the consumer to initiate action by way of a civil suit, which involves lengthy legal process proving to be too expensive and time consuming for lay consumers. Therefore, the need for a simpler and quicker redressal to consumer grievances was felt and accordingly, it led to the legislation of the Consumer Protection Act, 1986.…
- 14292 Words
- 58 Pages
Powerful Essays -
The opportunity for a customer to countermand or stop electronic payment is unclear. If the…
- 1041 Words
- 5 Pages
Better Essays -
The influence will be different for each type of retail businesses, and an enumeration of all possible political factors beyond the scope of this book. However, it is important to understand that many of the legal setting are introduced in order to protect consumers and are a long stage of preliminary discussions. Listening to the political situation, we can provide undesirable…
- 2694 Words
- 10 Pages
Good Essays -
Education is a lifelong process of constantly acquiring relevant information, knowledge and skills. Consumer education is an important part of this process and is a basic consumer right that must be introduced at the School Level. Consumers by definition include all citizens who are by and large the biggest group who are affected by almost all governmental, public or private decisions. The most important step in consumer education is awareness of consumer rights. However consumer education is incomplete without the responsibilities and duties of consumers and this influences individual behavior to a great extant.…
- 14641 Words
- 59 Pages
Powerful Essays -
To be protected against the marketing of goods or services that are dangerous to the clients health…
- 1094 Words
- 5 Pages
Better Essays -
Financial consumer protection is one thing that everybody is vouching for. The laws pertaining to financial consumer protection were made in 1930s. So the time has come to pay a some attention to the old laws and modify them taking into account the problems and grievances of financial consumers of today’s era. This paper is an analysis of existing financial consumer protection and the proposed structure for consumer protection as per FSLRC.…
- 2071 Words
- 9 Pages
Best Essays