Application of ACL
ACL’s application in Australia covers provision of consumer guarantees, avoiding unfair business practices, product safety, sales practices, unfair contract terms, and compliance and enforcement thus ACL includes:
• “a national unfair contract terms law covering standard form consumer contracts;
• a national law guaranteeing consumer rights when buying goods and services;
• a national product safety law and enforcement system;
• a national law for unsolicited consumer agreements covering door-to-door sales and telephone sales;
• simple national rules for lay-by agreements; and
• new penalties, enforcement powers and consumer redress options” .
The Australian Consumer Law (ACL) is a Legislation for the Commonwealth of Australia that applies to the entire nation, all States, all Territories of Australia, and all Australian businesses that have taken place after 1st January 2011 .
Application of State Law
As for businesses and transactions that were conducted before 1st January 2011, previously existing “national, state and territorial consumer laws” still applies. Trade Practices Act 1974 and State Fair Trading Acts are some of the consumer law that continue to apply to previous transactions. However efforts have been made to bring previous laws in compliance with ACL by repealing, modifying or altering inconsistent provisions in order to have complete effect of ACL.
Application of Common Law
Common law is “a body of unwritten laws based on precedents established by the courts”. Common law applies to all states, nations and territories. As ACL is a special/statute law that governs rights and duties of consumers and trade practices thereby it takes precedence over common law. However, the provisions of common law ...
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...ht for breach of this section are the ones available to the aggrieved person due to the harm caused by the transgressor. For example remedy is available to the buyer for defected product. While establishing a case for sale of defaulted/defected products, the buyer can rely on the fact that he was deceived into making an error. In this sense s. 18 is a directory provision while other provisions of ACL (like chapter 4) enlist pecuniary measures that will be taken against the responsible party. These remedies are civil in nature meaning thereby that the responsible party will not be granted punishment rather the party will be liable to pay damages or monetary compensation only. The remedies available in case of breach include injunction (temporary or permanent), Damages (special, nominal etc.) and any other form of monetary compensation as ordered by the court of law.
The role of law reform has responded rather effectively to a certain extent in protecting the rights of consumers. This is evident in the legal responses introduced to address issues of credit, marketing innovation and technology. These law amendments has effectively increase the protection of the rights of consumers to a certain extent, however loopholes still exist. Due to the increasing range of goods and services continues to grow and the failure of existing laws, the role of law reform has been significant in protecting the rights of consumers. Consumer laws were created to prevent deceitful activities, or unfair business practices, as well as serving a protection for weaker parties who are unable to protect themselves. However, laws were later reformed to enable customers to transact with confidence and protect suppliers, consumers from inappropriate business conduct and to reflect changed community values and circumstances.
In the case of Woolworths and Coles, both businesses are being investigated by the Australian Competition and Consumer Commission (ACCC) for abusing their market power by intimidating suppliers to reduce the price of products so they can buy them for cheap. Due to Woolworths and Coles
Legislation and the Common law are not separate and independent sources of law. They exist in a symbiotic relationship. Symbiotic relationship refers to the two different sources of legal norms that provide the sum of rules establish system as a whole. (Brodie v Singleton Shire Council (2001) 206 CLR 512, 532 [31])
Miller, R. L., and Cross, F. B. (2013). The legal environment today: Business in its ethical, regulatory, e-commerce, and global setting. (7 ed.). Mason, OH: South-Western Cengage Learning.
Common Law vs. Political Law vs. Scientific Law Americans are no longer aware that there are two kinds of legal systems, political and scientific. America was founded on principles of scientific law. But these principles have now been submerged in today's legal system. What is taught today as law is political law. To understand the difference between a scientific legal system and a political one, it is necessary to know that scientific law developed in the absence of any legislature or Congress or Parliament whatever.
Case law/Common law – body of law developed over time by higher courts. Laws are c...
Bohlman, H. M. (2005). The Legal Ethical and International Environment of Business. Thomson South Western .
Cross, Frank B., and Roger LeRoy Miller. "Ch. 13: Strict Liability and Product Liability." The legal environment of business: text and cases, 8th edition. Mason, Ohio: Cengage Learning Custom Solutions, 2012. 294-297. Print.
S.6(2) states that as against a person dealing as consumer, liability for breach of the obligations arising from ss.13, 14 or 15 of the Sale of Goods Act 1979 (seller's implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose) cannot be excluded or restricted by reference to any contract term.
Marketing is a system of business activates designed to plan, price, promote and distribute want-satisfying products, services and ideas to customers in order to achieve business objectives. Consumer law protects consumer’s rights in the marketplace as well as fair trading, competition and accurate information. On the other hand, ethical aspects of marketing are about making marketing decisions that are morally right. However, consumer law and ethical aspects of marketing have a lot of advantages and disadvantages in the marketplace, which impacts business 's sales and growth like it happened to: Harvey Norman, Nurofen, apple, etc.
Part of the grounds for arguing in favor of the common law system over the codified system is its characteristically equitable qualities. Since antecedents are pursued in all cases, everyone gets the same treatment. This same legal procedure is administered to everyone in spite of their position or creed. Therefore, this system of going by antecedents which had hitherto been set usually leads to equity and fairness. This system of law also has the advantage over the codified system by offering protection to persons via the law of tort.
Cheeseman, H., (2013). Business law: legal environment, online commerce, business ethics, and international issues. (8th ed.), (pp. 168-205). New Jersey: Pearson Education.
Every nation has their own set of legal strategies they use to guide them in making important decisions. Each nation has its traditions and policies they follow. Through the world, there are two main types of legal systems that are used; most nations follow either common or civil law. Both the common law system and the civil law system share similarities in having courts, judges, and comparing cases to laws. While both systems share similarities, they also contain many differences, making them two very divergent legal systems.
In the business world every business has its own set of laws and regulations to follow and adhere too. Some have very few laws and others have so many it is mind numbing but, each law is set up to protect every worker, customer or person associated with that business’s location. However, some of these laws are outdated or just plain unnecessary in today’s 21st century business environment.
Thus, consumer protection laws, prohibit unfair or defective acts from being practiced by companies.