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Introduction to commercial law:Uni-Garage v Mechania College and Right Pay Employment Agency Pty. Ltd - Essay Example

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The law is a body of principles established by the parliament and by the courts which is legally enforceable and was developed to set standards of conduct between people, businesses and government.Business law is made up of the laws that set out rights,duties and obligations of people in business …
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Introduction to commercial law:Uni-Garage v Mechania College and Right Pay Employment Agency Pty. Ltd
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Download file to see previous pages The law is a body of principles established by the parliament and by the courts which is legally enforceable and was developed to set standards of conduct between people, businesses and government. Business law is made up of the laws that set out rights, duties and obligations of people in business balancing the interests of those involved in business which regulates the business under the law of contract, consumer law and trade practices act (Latimer, 2009)1. Australian business law is developed and intended to protect the rights of each and everyone involved in the business transactions. The present paper aims provide the most suitable suggestions to all the parties in the case of misleading and deceptive representations between ‘Uni-Garage v Mechania College and Right Pay Employment Agency Pty Ltd.’ Brief Facts It is observed that Wes, a final year part time student at Mechania College of TAFE registered with Right Pay Employment Agency Pty Ltd so as to get employed after clearing his examinations. Right Pay, after getting a placement suitable for Wes, the agency contacted Mechania College asking for their reference before inviting Wes for interview. The college responded stating that -- “proper records of part – time students are not kept; -- this college has no reason to believe that Wes would not make a trustworthy and diligent worker with any employer –“.Wes was introduced to Uni-Garage, second employer for Wes, who relied on the report submitted by Mechania College referring the candidacy of Wes rather than interviewing him. After few days, Uni-Garage reported that Wes had stolen $6000 from the canteen and is caught damaging the company equipment worth $12000. Uni-Garage – Suggestions The critical analysis of the case reveals that Mechania College has hidden the truth about Wes who was already a miscreant vandalizing school property witnessed by school teachers, maintenance staff and was threatened of expulsion by the Vice Principal which was not recorded in Wes’s School Record File. There were instances when Wes was handed over to police and was warned on various occasions. However, the report submitted by Mechania College on the insistence of Right Pay Employment Agency Pty Ltd., it stated that “this college has no reason to believe that Wes would not make a trustworthy and diligent worker with any employer”. According to Trade Practices Act 1974 of Consumer Protection under Part V – Div I of Section 53 of false or misleading representations, it is stated that “a corporation shall not in trade or commerce, in connection with the supply or possible supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services – shall not make false representations about the standard, quality, value of goods and services”. Mechania College, acting as a representative of Wes, referred him as trustworthy and diligent in its report to Right Pay Employment Agency notwithstanding his previous records and actions of vandalism in school and police warning. Business must not make false representations about goods and services and Mechania College was party to this agreement between Right Pay Employment Agency and Uni – Garage as their student was being hired for employment on the basis of report submitted to Right Pay. Misleading information provided by the college has cost the company Uni-Garage in monetary and machinery loss which is gross misconduct under section 53 and 53 A of Trade Practice Act 1974. Uni- Garage has the right to file a case against both the parties involved in hiring process i.e. Right Pay Employment Agency Pty Ltd and Mechania College for delivering incorrect information and this leads to civil action for damages set out at 8-780 for consumer offences, criminal action leading to fine of up to $1.1 million and a person who suffers damage because of breach of s.53 may ...Download file to see next pagesRead More
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