Insider Trading Legislation for Australia - Case Study Example

Business Law Student’s Name: Instructor’s Name: Course Code: Date of Submission: Introduction Consumer protection is the Australian law that helps to safeguard the consumers from exploitation. However, consumer law is applicable when the consumer engages the products and services valued less than $40,000. Failing to implement the consumer laws in business can lead to breaching of the contractual terms and the consumers can be exploited (Adams 2006). In this effect, the Australian consumer law is the source of consumer protection in Australia. In this effect, this report will discuss the concepts of consumer law in Australia and the reasons why the consumers are protected and will also discuss the application of the consumer law both at state and federal state. What are consumer’s protections? The Australian consumer law protects the consumers from various exploitations. In the first place, the first consumer protection is the protection against unfair trade practices. this helps to e sure that the consumers should be protected against unfair trade practices like being issued with gifts which can lead to misinterpretation of the contractual terms. For instance, section 32 of the Australian consumer law prohibits an individual from giving a gift (Adams 2006). Furthermore, section 33 of the Australia consumer law prohibits from giving providing misleading information to the public. For instance, the information regarding the manufacturing process, quantity and manufacturing process should be correct and should not be misleading and this helps to protect the consumers. In addition, the Australian consumer law helps to provide safety and information standards that is required by the consumers. This is because the manufacturers may not be sincere if there are no laws regarding the safety and standard of information which is provided. In this context, the consumer law helps to ensure reliability of the safety of information provided so that the consumers cannot be misled to making inappropriate decisions (Dignam & Lowry 2012). The other protection of the consumers is the protection against misleading and deceptive conduct among the manufacturers. For instance, in the Trade Practices Act 1974, the consumers should be protected from misleading and deceptive practices. Providing misleading and deceptive trade practices then the consumer has the right to take a legal action against the manufacturer. In the case, Gillette Australia Pty Ltd v Energizer Australia Pty Ltd [2002] FCAFC 223, the court found Gillette guilty because of the comparative advertising because the company had engaged into deceptive advertising. The comparative advertisement indicated that the Duracell can last up to four times longer as compared to the competitors. This led to the court finding the Gillette guilty and it could be held responsible for the actions (Find Law Australia 2013). Why are consumers protected? The consumers are protected because of the various reasons. In the first place, the consumers are protected so that they cannot be exploited by the traders. If there are no laws that help to protect the consumers from exploitation, the traders will engage in unfair trade practices like exaggerated pricing and misleading quantity of the products and services. In addition, the consumers are protected so that their rights can be enhanced. This is because in market place there has to be rights of the consumers that should be upheld to ensure that they are not exploited. This helps to improve the trade practices between the traders and the consumers (Anisman 1986). Furthermore, the consumers are protected so that they can seek compensation when there is breach of the contractual terms of the contract. The Australian consumer protection laws provide the basis for the consumers to seek compensation when there is breach of the consumer law. For instance, when there is false and deceptive advertisement, the consumers should seek for court intervention and seek compensation in form of damages. History of the Australian Consumer Law The Australian law can trace its root back to the years of 1974 and the law that existed then was the Trade Practices Act of 1974. The trade practices amendment was the first of the Australian consumer laws which were developed. The Australia consumer law Act was passed by the act of parliament in the year 2010. During the enactment, the trade practices law was changed to Australian consumer law and it was in form of a bill. In the year 2011, the amendment was changed to Competition and Consumer Act of 2010 which became the Australian Consumer Law (Anisman 1986). In the current market, the Australia Consumer Law is being applicable in business and it helps to protect the consumers who were previously exploited by the consumers before the enactment of the consumer protection law. Explain how consumer laws operate in Australia The consumer laws in Australia are applicable at two levels which are at the state level and the federal level. At the state level, there are various laws which protect the consumers from exploitation. There are various laws which are formulated by each state so that they can help to protect the consumers from any form of unfair trade practices. For instance, the consumer laws which are applied at the state level include housing and accommodation (Taylor & Taylor 2011). This means that the conflicts regarding the housing and the accommodation in the various states like Tasmania and Queensland should be applicable to the state only. The housing and accommodation laws help to protect the consumers from being exploited in terms of the housing and accommodation especially when they are paying rent. In addition, the consumer rights are also protected at the state level. This means that the consumers have the right to access information and recommendations regarding the buying and selling of the products and services. This implies that at any state the consumers have the right to access the information which should not be deceitful so that they can make informed decisions. In addition, the licenses and registrations are provided at the state level so that the customers cannot be exploited due to lack of ownership (Bosch 1990). For instance, at the state of Queensland, the real estate agents are registered with the aim of protecting the consumers from unscrupulous agents who are out to exploit the consumers. Furthermore, the motor vehicle registration is also done at the state level. The aim is to register the owners of various motor vehicles as well registering qualified motor vehicle dealers at the state level so that the state can be able to protect the consumers from protection against unfair trade practices. This is because the registered individuals and companies must follow the federal laws regarding the business ethics. This helps to protect the consumers from exploitation at the state level. For instance, the consumers’ laws at the Queensland state include the Fair Trading ACT 1989. This law helps to protect the consumers from exploitation by ensuring that there is fair trade between the consumers and the traders (Bosch 1990). The consumers are protected from exploitation such as false labeling which can lead to under weights that can lead t conflicts between the consumers and the traders. On the contrary at the federal level, the consumer law is applied by various courts. However, the matters regarding the consumer protection, the court that is responsible for the application of the law is the federal court of Australia. The federal court hears matters regarding the consumer protection and ensures that the consumers are protected from exploitation (Thomas 2011). For instance, section 50 of the consumer law in Australia protects the consumers from any form of harassment regarding the possible supply of a product or service or even the payment for the goods and services. In addition, the application of the consumer law at the federal state is applicable whereby the consumers are protected from false representation like making false statements that lure the customer into making the irrational decisions. At the corporations, the consumer protection cases which are heard include the cases between organizations or multinational companies and or even the disputes that involve companies from different states (Thomas 2011). The best case that indicates the consumer protection against false labelling is the case between Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 19. The case involved labelling of products. Puxu Pty Ltd labelled its products almost the same as those of Parkdale customer built furniture. The federal court decided that Puxu had breached the consumer protection laws and decided that the damages should be paid for trying to imitate the intellectual property of another company. This case clearly indicates that the consumers are protected from unfair trade practises that might lead to customers buying products which they did not intend to buy. As a result, the consumers are protected effectively (Thomas 2011). In addition, the other consumer law which is applied at the federal level in Australia is the consumer rights act. Under the Consumer law 2011, the consumers ‘rights are protected. This means that the consumers have the right to access information and be provided with the guarantee so that in case the product does not perform up to the expected standards the consumer can be compensated. This is one way in which the consumers are protected from any form of exploitation since the remedy for breaching the contractual terms can be sought in the court of law (Taylor & Taylor 2011). The federal law also implements the consumer law by ensuring that there is no comparative advertising. This can be indicated by the case between Energizer Australia Pty Limited v Gillette Australia Pty Limited [2002] FCA 321. The case involved comparative advertising that involved Energizer Australia and Gillette. At the court of law, it was found that Gillette had engaged in comparative advertisement which can be misleading to consumers hence should pay the damages and stop the comparative advertising (Find Law Australia 2013). How a consumer can get relief through the court system and outside court system If a customer is not satisfied with a product or service, the court system can help to provide relief to the consumer. In the first place, the consumer can seek court intervention by making a formal complaint after realizing that the rights of the consumer have been breached. The consumer law will provide the basis for the consumer to make a formal complaint in the court system. For instance, the consumer can seek the court intervention after realizing that the products supplied do not meet the consumer prescription. Regarding the consumer law section 106 and 107, the consumer is protected and can reject the supplied products if they don’t meet the prescribed standards. In this effect, the consumer can seek the court intervention and seek for the damages quoting the consumer law and how it has been violated (MacIntyre 2013). According to liability, the consumer can reject the substandard goods and the manufacturer should accept liability and compensate the consumer. Outside the court system, the consumer can get relief by engaging the alternative dispute resolution techniques. In the first place, the consumer can seek relief by applying mediation process. This is the process that helps to select a neutral party to act as a mediator and discuss the conflict and finally get the solution by agreeing with the manufacturer (MacIntyre 2013). In addition, negotiation can also be applied by ensuring that the consumer and the manufacturer discuss without the third party and reach a consensus which can include compensation of the consumer. However, this can be achieved when the manufacturer accepts liability and be at a position to compensate the consumer. Conclusion The consumer law in Australia helps to protect the consumers from unfair trade practices and exploitation. The consumer protections include unfair trade practices, misleading information and consumer protection in terms of quantity. The consumers are protected because there are unscrupulous traders who are out to exploit them hence consumer protection aims to protect the rights of the consumers. In Australia, the consumer law is applied either at the state level or at the federal level. When a consumer is not satisfied with the product or service, the court intervention can be sought as well as alternative dispute resolution like negotiation and mediation. References Anisman, P 1986, Insider Trading Legislation for Australia: An Outline of the Issues and alternatives, AGPS, Canberra. Adams, A 2006, Law for business students, Harlow: Pearson Longman. Bosch, H 1990, "Corporate Practices and Conduct" public discussion paper, NCSC, Melbourne. Dignam, A. J & Lowry, J.P 2012, Company law, Oxford: Oxford University Press. Find Law Australia 2013, Consumer Law, retrieved on 6th August 2015 from www.findlaw.com.au/articles/834/comparative-advertising-saga-keeps-going-and going.aspx MacIntyre, E 2013, Essentials of Business Law with My Law Chamber Premium Pack, Harlow: Pearson/Education. Taylor, R.D & Taylor, D 2011, Contract law, Oxford: Oxford University Press. Thomas, L 2011, Business Organizations Law , West, Hornbook Series. Read More