The Australian Consumer Law - the Basic Framework of Law Affecting Business Transaction - Case Study Example

Name: Topic: Business law assignment Institution: Date of submission: Instructor: Introduction The rights of the couple have been breached and this calls for an action. Their expectations were not met and, in addition, their properties were stolen from the business premises. The Australian constitution has several provisions when it comes to the breaching of the law. One of the commissions that have been formed by the Australian law is the Australian Security and Investment Commission (ASIC). The mandate of this commission is to regulate the Australian markets, financial services, and the corporate. Since the resort is firm within Australia, regulation of the firm’s activities will be under the commission1. The resort lacked transparency and, therefore, the couple will get help by reporting the incidence to the commission. For a long time now, the commission has been contributing to the reputation as well as the well-being of the Australian economy. In addition, the committee has been crucial in ensuring that there is fairness and transparency and equity in the financial markets of Australia supported by informed and confident consumers and investors2. The commission has been contributing to the law by: Ensuring that there is the availability of the information about companies as well as other bodies to the public as practicable and as soon as possible. Enforce as well as give the law the effect Ensure that there is efficacy in the administration of the law with minimal requirement procedures. Promote confidence as well as participation by consumers and investors in the systems of the finances. Maintain, improve, and facilitate the financial service performance as well as the entities in it. With this information, the couple can lodge a complaint with the commission. The committee has provided the code of practice entailing a set of enforceable rules that establishes the commitments of the industry to deliver a particular practice standard. The intention of the code of practice is to raise the standards of the industry, as well as complement the legislative requirements. It is essential to lodge a complaint through this commission because this will ensure that the confidence of the consumers will be encouraged4. Another law to protect the consumers is the Australian consumer law. The couple can complain about the services they receive in the resort to the court that has the mandate of protecting every citizen in Australia. The Australian consumer law (ACL) is a single nationwide law that has its application nationally as well as in each territory of Australia. Under this law, consumers are protected against exploitation by business firms. The law also stipulates that companies have a duty as well as responsibilities of protecting the rights of the consumer. It is clear that Bliss Island failed to protect its customers and therefore it is liable under the law to compensate the damages incurred by the two consumers4. From the look of the thing, the management of the Island did not care about the well-being of the customers as shown by the caretaker’s failure to lock the doors of the room where the couple was sleeping in. In addition, the resort gave wrong information regarding their services, and this is not legal according to the Australian consumer law. Under the ACL, the following are covered: Provisions on the consumer protection prohibiting deceptive or misleading conduct Specific safeguard against particular ‘unfair practices’, for instance, deceptive or misleading conduct. The couple was subjected to this treatment and can lodge complaint about the court. A national law for the safety of the consumer products. In this regard, the couple purchased a service that was substandard and that was below their expectation. Since ACL prohibits deceptively as well as misleading information in trade as well as commerce, the couple has an opportunity to report the incidence to the necessary authority. Through this, they will get the justice that they deserve. The Bliss Island result failed to disclose the information that the services were below standard they are thus liable to face the law. The resort management also made false promises to the clients1. The ACL prohibits business owners from engaging in unconscionable behaviour towards the enterprise or the consumers. The resort engaged in unfair tactics by lying about the services that they offer. In addition, the resort never acted in good faith as it fails to honour the promised services to the couple. The basic framework of law affecting business transaction ACL offers the protection to any corporation or person as goods or services consumer. According to ACL, a consumer is a person who purchases goods or services worth below $40,000. If the couple used an amount equivalent to or below $40,000, they are eligible to be protected by ACL. Chapter three’s part one, as well as chapter two of the Australian law, provides some specific protections against some business practices. In addition, the ACL’s chapter 2 deals with the protection of the consumer which has a general application and whose intention is to create a general standard of carrying out trade, as well as commerce. Part 2-1 has a provision for prohibition on deceptive or misleading conduct in commerce or trade. Part 2-2 has provision for unconscious conduct in business. ACL’s chapter 18 prohibits commerce, a person, or trade from engaging in deceptive or misleading conduct. The information provided by the resort was misleading since the couple did not receive the services they were expecting. The ACL’s chapter three prohibits certain conduct forms and at the same time regulates certain practices in consumer transactions. These provisions offer support to the ACL’s chapter two general prohibitions. In chapter three parts two, ACL has a provision on consumer transactions whereby it provides guaranteed user rights for services as well as for goods.2 In addition, the same section introduces national rule governing unsolicited transactions of sales. Part three –three has a provision for safety of the consumer products, goods, as well as services. Under this provision, the couple can lodge a claim for the loss properties within the resort premises. Part three-one is a section that gives a description of unfair practices3. The ACL prohibits certain unfair practices in commerce. Since the resort gave misleading information to the couple, it is liable under the law to compensate them for the damages they incurred plus the lost items in the premises of the resort. When buying goods or services, ACL has particular consumer guarantees (Peters, 2010). When a person buys services or goods, there is a provision by ACL of that guarantees of his or her protection against practices that are unfair. In addition, ACL also prohibits any business from conducting an activity that would mislead the consumer as to the nature, suitability, and characteristics of the quantity of the services or their purpose. Moreover, ACL prohibits misleading or false representations concerning the risk, profitability, or other business activities’ aspects. When a person breaches the ACL code of conduct, he or she is liable to criminal fines $220,000 for an individual or $1.1 million for a body corporate. Once the couple reports the incidence to the court, the resort will be liable to pay fines of not more than $1.1 million. Contraventions of the provisions of the unfair practices of the ECL have several remedies that include damages, compensatory orders, injunctions, as well as other remedies, for instance, the adverse publicity as well as none punitive orders. In addition, ACL also has a provision on the rights of the consumers when they are acquiring goods as well as services4. When a consumer purchases services or products, the ACL ensures that they have several rights including that of goods of high quality, goods that have a matching of their description, products and services are fitting the purpose that the client had informed the supplier about, and the services are acceptable. As a rule that can be applied, the drafting of ACL is such that it reflects the Commonwealth laws of each territory and state. Consequently, there has been the drafting of all the provisions to apply to the ‘person’s’ conduct instead of the ‘corporations’5. The essential principles governing the application of the commercial law The fundamental principle that governs the damages awards is that they can be compensated. In a case involving Commonwealth vs. Aviation Pty Ltd of 1991, Deane J stated that the general principle that governs the compensatory damages assessment in both tort and damages. It further stipulated that the plaintiff should obtain monetary sum that represents fair as well as adequate compensation for the injury or loss sustained by the grounds of the wrongful conduct of the defendant. With this provision, the couple is justified to present their partition to the court regarding the damages they incurred while in the resort. A point to note is that the damages awarding in tort and contract is not a subject to fast and hard rules. In some situations, for instance, our present case, it is not easy to determine the actual amount of damages that the claimants have suffered. In such a case, the court will ensure there is the application of precision in determining the amount to be compensated. There is a need to establish a rationale for the proper damages assessment2. There is a longer history of an action regarding a debt than an action regarding damages (Cook, 2014). There are several measures of contract damages, and they are as follows: Contract breach Causation, meaning that the violation of the defendant has caused a plaintiff to experience a loss. The plaintiff’s loss is not remote There is a reasonable action by the applicant in his or her loss mitigation The assessment of the damages took place at the date when the contract was breached although this is not a universal rule. Unless there is the establishment of the actual loss, the only damages that can be recovered are the nominal ones6. Conclusion Since the couple was affected by the bleaching of the ACL, it has a right to seek compensation for the loss of the properties or the psychological damages incurred. The psychological injury is common since the service was below their expectation. In addition, the couple also suffered psychologically after Ann’s Jewries were stolen (Pearson, 2010). Once the couple has reported the matter to the agency, the agency will be able to seek compensation on their behalf. ACL has developed laws that every person or business can clearly understand. In addition, there has been simplification of the compliance of the enterprise across Australia by ACL. 7The power to make law in response to the matters related to the protection issues of the consumer is in the parliament. Although the Commonwealth lacks the authority to make laws in Australia, it can, however, make laws with respect to the interstate trade or the corporation conduct8. Until recently, there was a common thought that the Australian common law governing the civil liability comprised of tort and contract and equitable claims, with quasi-contract as an appendix or an adjunct to the former4. Currently, the doctrinal quasi-contract basis is restitution that entails a response to the recognized unjust enrichment. Bibliography 1. Latimer, P. S. (2010). Australian business law. 2010 2010. North Ryde, N.S.W., CCH Australia. 2. Pathinayake, A. (2014). Commercial and corporations law. 3. Peters, M. K. (2010). Commercial principles and the law. Sydney, Law Press Asia. 4. Sims, A. (2014). Unfair contract terms: A new dawn in Australia and New Zealand? Monash University Law Review. 39, [739]-775. 5. Turner, C., & Trone, J. (2014). Australian commercial law. 6. Pearson, G. (2010). Commercial law: commentary and materials. Pyrmont, N.S.W., Thomson Reuters. 7. Cook, C., et al. (2014). Principles of Australian and commercial law. 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