Question 1

Which of the following is not a means of enforcement of the ACL?

Accepted Answer

A) The business offering the ACCC an enforceable undertaking. 
B) The ACCC issuing a substantiation notice. 
C) The ACCC issuing a public warning notice. 
D) The business offering the ACCC a secret commission. 
A) The business offering the ACCC an enforceable undertaking. 
B) The ACCC issuing a substantiation notice. 
C) The ACCC issuing a public warning notice. 
D) The business offering the ACCC a secret commission. D

Question 2

Courts in the 17th and 18th century were far less willing than they are today to interfere with a bargain struck by two parties.There were a number of reasons for this.Which of the following is least likely to have been one of them?

Accepted Answer

A) The courts were not aware that this approach frequently led to injustice in particular cases. 
B) With fewer laws to regulate behaviour in those times, there was little but the contract from which they could draw guidance as to how to resolve a dispute. 
C) There was a real risk of social conflict and chaos if citizens, and the courts, could not be relied upon to uphold bargains. 
D) Contract terms in that era were more likely than in modern times to be individually negotiated and, in that sense, consumers had a more real chance of being able to protect their own interests. 
A) The courts were not aware that this approach frequently led to injustice in particular cases. 
B) With fewer laws to regulate behaviour in those times, there was little but the contract from which they could draw guidance as to how to resolve a dispute. 
C) There was a real risk of social conflict and chaos if citizens, and the courts, could not be relied upon to uphold bargains. 
D) Contract terms in that era were more likely than in modern times to be individually negotiated and, in that sense, consumers had a more real chance of being able to protect their own interests. A

Question 3

Section 23 of the Australian Consumer Law is concerned with the use of unfair terms in contracts.The section applies to:

Accepted Answer

A) All contracts. 
B) All written contracts. 
C) All consumer contracts. 
D) All standard form consumer contracts. 
A) All contracts. 
B) All written contracts. 
C) All consumer contracts. 
D) All standard form consumer contracts. D

Question 4

The Competition and Consumer Act 2010 (Cth) was previously called the:

Accepted Answer

A) Trade Practices Act . 
B) Sale of Goods Act. 
C) Consumer Protection Act. 
D) Australian Securities and Investment Commission Act. 
A) Trade Practices Act . 
B) Sale of Goods Act. 
C) Consumer Protection Act. 
D) Australian Securities and Investment Commission Act.

Question 5

An extraordinary number of people are keen to buy toilet brushes from Brunnings warehouse on Saturday morning when they are advertised at $1 each on television.Which of the people named below would be regarded as a consumer under the Australian Consumer Law (ACL)?

Accepted Answer

A) Pampered Patti, a rich Indonesian hotelier's daughter who purchases $3,000 worth of brushes for use in the many bathrooms of her Gold Coast apartments and resorts. 
B) Domestic Dora, who purchases 5 toilet brushes which she plans to use to scrub cobwebs and dust from inside of the pile of metal pipes and car bodies her husband has collected behind their shed. 
C) Flaky Flora who intends to spray-paint 200 of the toilet brushes (together with some ornate birdcages and live doves) in golf leaf and hang them, like foliage, from the ceiling of her wedding reception marquee. 
D) Entrepreneurial Eddie, who purchases $420 worth of toilet brushes to use in the automatic rotary toilet cleaning machine he has invented. 
A) Pampered Patti, a rich Indonesian hotelier's daughter who purchases $3,000 worth of brushes for use in the many bathrooms of her Gold Coast apartments and resorts. 
B) Domestic Dora, who purchases 5 toilet brushes which she plans to use to scrub cobwebs and dust from inside of the pile of metal pipes and car bodies her husband has collected behind their shed. 
C) Flaky Flora who intends to spray-paint 200 of the toilet brushes (together with some ornate birdcages and live doves) in golf leaf and hang them, like foliage, from the ceiling of her wedding reception marquee. 
D) Entrepreneurial Eddie, who purchases $420 worth of toilet brushes to use in the automatic rotary toilet cleaning machine he has invented.

Question 6

Which of the following is not true of the Privacy Act 1988 (Cth)?

Accepted Answer

A) It applies to all businesses with an annual turnover of 3 million or more. 
B) Activities relating to journalism are exempt from its provisions. 
C) Activities relating to a person's employment history are exempt from its provisions. 
D) It does not apply to businesses that provide a health service. 
A) It applies to all businesses with an annual turnover of 3 million or more. 
B) Activities relating to journalism are exempt from its provisions. 
C) Activities relating to a person's employment history are exempt from its provisions. 
D) It does not apply to businesses that provide a health service.

Question 7

Which of the following is not true about the Australian Privacy Principles?

Accepted Answer

A) They apply to most businesses in Australia. 
B) They protect both personal information and sensitive information. 
C) They are designed to ensure that businesses use information about individuals responsibly. 
D) It is not necessary for businesses covered by the Act to comply with them. 
A) They apply to most businesses in Australia. 
B) They protect both personal information and sensitive information. 
C) They are designed to ensure that businesses use information about individuals responsibly. 
D) It is not necessary for businesses covered by the Act to comply with them.

Question 8

Which of the following is most likely to be a pyramid scheme?

Accepted Answer

A) A scheme involving a single product and many distributors. 
B) A scheme involving a single product and a single distributor. 
C) A scheme involving many products and many distributors. 
D) A scheme involving many products and a single distributor. 
A) A scheme involving a single product and many distributors. 
B) A scheme involving a single product and a single distributor. 
C) A scheme involving many products and many distributors. 
D) A scheme involving many products and a single distributor.

Question 9

Thomas has noticed that his local drycleaner is placing advertisements promising 'Clothes so clean, you'll beam!' within an hour.However, every article of clothing he has sent to the drycleaner has been returned a week later with the same stains on them.Thomas' neighbours have the same complaints as well.Thomas is concerned about the conduct of the company.Which of the following is not an option available to Thomas?

Accepted Answer

A) Thomas can seek the help of an industry ombudsman. 
B) Thomas can prosecute the company under the ACL. 
C) Thomas can lodge a complaint with the ACCC. 
D) Thomas can commence civil proceedings against the company for breach of ACL s 18. 
A) Thomas can seek the help of an industry ombudsman. 
B) Thomas can prosecute the company under the ACL. 
C) Thomas can lodge a complaint with the ACCC. 
D) Thomas can commence civil proceedings against the company for breach of ACL s 18.

Question 10

Until the late 20th Century, consumers:

Accepted Answer

A) Had few special protections at law. 
B) Were a privileged group. 
C) Were well served by the common law. 
D) Had a wide range of useful and accessible common law remedies. 
A) Had few special protections at law. 
B) Were a privileged group. 
C) Were well served by the common law. 
D) Had a wide range of useful and accessible common law remedies.

Question 11

Dana runs Very Vintage, a dress shop that advertises itself as a shop that only sells elegant second-hand garments.A customer has discovered that Dana has been selling brand-new clothes imported from China.In breach of ACL s 29 Dana has made a false representation:

Accepted Answer

A) That her goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use. 
B) That her services are of a particular standard, quality, value or grade. 
C) That her goods are new. 
D) Concerning the place of origin of her goods. 
A) That her goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use. 
B) That her services are of a particular standard, quality, value or grade. 
C) That her goods are new. 
D) Concerning the place of origin of her goods.

Question 12

If a business has engaged in unconscionable conduct, a court will generally:

Accepted Answer

A) Order the business to pay damages to the consumer. 
B) Order the business to issue a formal apology and makes amends. 
C) Order that the business be dissolved. 
D) Order a fine or term of imprisonment. 
A) Order the business to pay damages to the consumer. 
B) Order the business to issue a formal apology and makes amends. 
C) Order that the business be dissolved. 
D) Order a fine or term of imprisonment.

Question 13

APP3 of the Privacy Amendment (Enhancing Privacy Protection)Act 2012 (Cth) concerns the security of personal or sensitive information held by a business about individuals.The obligation with respect to security does not extend to:

Accepted Answer

A) Destroying information once it is no longer required. 
B) Protecting information from unauthorised disclosure. 
C) Protecting computer systems from hacking and break in. 
D) Strict liability for all unauthorised accessing of the information. 
A) Destroying information once it is no longer required. 
B) Protecting information from unauthorised disclosure. 
C) Protecting computer systems from hacking and break in. 
D) Strict liability for all unauthorised accessing of the information.

Question 14

What made 'caveat emptor' a poor idea on which to base the law regulating consumer transactions in the 20th Century was the fact that true equality of bargaining power between buyers and businesses had become:

Accepted Answer

A) Commonplace. 
B) Rare. 
C) Unnecessary. 
D) Impossible to achieve unless both parties spoke Latin. 
A) Commonplace. 
B) Rare. 
C) Unnecessary. 
D) Impossible to achieve unless both parties spoke Latin.

Question 15

Cyril is a customer service officer at a mobile phone company.Jane is interested in a mobile plan.After Cyril explains the Super Value price plan to her, Jane exclaims, 'So I'll have unlimited text usage! I can message my friends all day, every day without paying a cent! I'll sign up right now!' Cyril knows that the plan only provides users with 50 free text messages a month but says nothing to Jane.One month later, Jane's phone bill is $2000.Has the mobile phone company, as a result of Cyril's actions, breached ACL s 18?

Accepted Answer

A) Yes, all three requirements of s 18 have been satisfied. 
B) No, Cyril has not 'engaged in conduct'. 
C) No, Cyril's conduct was not 'in trade or commerce'. 
D) No, Cyril's conduct was not 'misleading or deceptive'. 
A) Yes, all three requirements of s 18 have been satisfied. 
B) No, Cyril has not 'engaged in conduct'. 
C) No, Cyril's conduct was not 'in trade or commerce'. 
D) No, Cyril's conduct was not 'misleading or deceptive'.

Question 16

In considering whether a contract is unfair under s 24(2) of the ACL, the Court will consider the extent to which the term is:

Accepted Answer

A) Transparent. 
B) Latent. 
C) Unconscionable. 
D) Misleading or deceptive. 
A) Transparent. 
B) Latent. 
C) Unconscionable. 
D) Misleading or deceptive.

Question 17

A manufacturer is not liable for a 'safety defect' under ACL Part 3-5 if:

Accepted Answer

A) The safety defect relates to the packaging of goods. 
B) The safety defect relates to the way the goods are marketed. 
C) The safety defect did not exist at the time the goods were manufactured. 
D) The safety defect exists because the manufacturer failed to comply with a mandatory standard. 
A) The safety defect relates to the packaging of goods. 
B) The safety defect relates to the way the goods are marketed. 
C) The safety defect did not exist at the time the goods were manufactured. 
D) The safety defect exists because the manufacturer failed to comply with a mandatory standard.

Question 18

For conduct to be misleading and deceptive under s 18 of the Australian Consumer Law (ACL) it need not be conduct that is:

Accepted Answer

A) Likely to lead astray, lead into error or caused others to believe what is false. 
B) Misleading or deceptive based on an objective test. 
C) Misleading or deceptive to members of the target audience. 
D) Misleading or deceptive to the 'reasonable person'. 
A) Likely to lead astray, lead into error or caused others to believe what is false. 
B) Misleading or deceptive based on an objective test. 
C) Misleading or deceptive to members of the target audience. 
D) Misleading or deceptive to the 'reasonable person'.

Question 19

Which of the following is prohibited under the Australian Consumer Law?

Accepted Answer

A) Referral selling. 
B) Unsolicited consumer agreements. 
C) Pyramid schemes. 
D) Mail order sales. 
A) Referral selling. 
B) Unsolicited consumer agreements. 
C) Pyramid schemes. 
D) Mail order sales.

Question 20

Esther is an events promoter.She advertises that 'John Legend' will be performing at a concert.Tickets are sold out in a matter of hours.On the night of the concert, the famous singer John Legend does not perform.Instead, another man named John Legend sings for the crowd.Has Esther breached the ACL?

Accepted Answer

A) No, because Esther has told the truth. 
B) Yes, because Esther has engaged in unconscionable conduct. 
C) Yes, Esther has engaged in misleading or deceptive conduct. 
D) Yes, Esther has engaged in pyramid selling. 
A) No, because Esther has told the truth. 
B) Yes, because Esther has engaged in unconscionable conduct. 
C) Yes, Esther has engaged in misleading or deceptive conduct. 
D) Yes, Esther has engaged in pyramid selling.

Which of the following is not a means of enforcement of the ACL?

Courts in the 17th and 18th century were far less willing than they are today to interfere with a bargain struck by two parties.There were a number of reasons for this.Which of the following is least likely to have been one of them?

Section 23 of the Australian Consumer Law is concerned with the use of unfair terms in contracts.The section applies to:

The Competition and Consumer Act 2010 (Cth) was previously called the:

An extraordinary number of people are keen to buy toilet brushes from Brunnings warehouse on Saturday morning when they are advertised at $1 each on television.Which of the people named below would be regarded as a consumer under the Australian Consumer Law (ACL)?

Which of the following is not true of the Privacy Act 1988 (Cth)?

Which of the following is not true about the Australian Privacy Principles?

Which of the following is most likely to be a pyramid scheme?

Until the late 20th Century, consumers:

Dana runs Very Vintage, a dress shop that advertises itself as a shop that only sells elegant second-hand garments.A customer has discovered that Dana has been selling brand-new clothes imported from China.In breach of ACL s 29 Dana has made a false representation:

If a business has engaged in unconscionable conduct, a court will generally:

APP3 of the Privacy Amendment (Enhancing Privacy Protection)Act 2012 (Cth) concerns the security of personal or sensitive information held by a business about individuals.The obligation with respect to security does not extend to:

What made 'caveat emptor' a poor idea on which to base the law regulating consumer transactions in the 20th Century was the fact that true equality of bargaining power between buyers and businesses had become:

In considering whether a contract is unfair under s 24(2) of the ACL, the Court will consider the extent to which the term is:

A manufacturer is not liable for a 'safety defect' under ACL Part 3-5 if:

For conduct to be misleading and deceptive under s 18 of the Australian Consumer Law (ACL) it need not be conduct that is:

Which of the following is prohibited under the Australian Consumer Law?

Esther is an events promoter.She advertises that 'John Legend' will be performing at a concert.Tickets are sold out in a matter of hours.On the night of the concert, the famous singer John Legend does not perform.Instead, another man named John Legend sings for the crowd.Has Esther breached the ACL?

Business and the Law

Law in Australia 1: the Australian Legal System

Law in Australia 2: Politicians and Judges

Legal Skills: How to Find, Understand and Use the Law

Tort Law 1: Deliberate Harm

Tort Law 2: Careless Harm

Contract Law 1: Formation of the Contract

Contract Law 2: Terms of the Contract

Contract Law 3: Enforcement of the Contract

Contract Law 4: Working With Agents

Competition Law: Dealing With Other Businesses

Intellectual Property Law: Protecting Your Creation

Managing a Business 1: Start-Up

Managing a Business 2: Business Ownership

Managing a Business 3: Finance

Managing a Business 4: Making Payments and Recovering Debts

Managing a Business 5: Insurance and Taxes

Managing a Business 6: Employment

Managing a Business 7: Bankruptcy and Liquidation

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Exam 11: Consumer Protection and Privacy Law: Dealing With Customers

Which of the following is not a means of enforcement of the ACL?

Courts in the 17th and 18th century were far less willing than they are today to interfere with a bargain struck by two parties.There were a number of reasons for this.Which of the following is least likely to have been one of them?

Section 23 of the Australian Consumer Law is concerned with the use of unfair terms in contracts.The section applies to:

The Competition and Consumer Act 2010 (Cth) was previously called the:

An extraordinary number of people are keen to buy toilet brushes from Brunnings warehouse on Saturday morning when they are advertised at $1 each on television.Which of the people named below would be regarded as a consumer under the Australian Consumer Law (ACL)?

Which of the following is not true of the Privacy Act 1988 (Cth)?

Which of the following is not true about the Australian Privacy Principles?

Which of the following is most likely to be a pyramid scheme?

Until the late 20th Century, consumers:

Dana runs Very Vintage, a dress shop that advertises itself as a shop that only sells elegant second-hand garments.A customer has discovered that Dana has been selling brand-new clothes imported from China.In breach of ACL s 29 Dana has made a false representation:

If a business has engaged in unconscionable conduct, a court will generally:

APP3 of the Privacy Amendment (Enhancing Privacy Protection)Act 2012 (Cth) concerns the security of personal or sensitive information held by a business about individuals.The obligation with respect to security does not extend to:

What made 'caveat emptor' a poor idea on which to base the law regulating consumer transactions in the 20th Century was the fact that true equality of bargaining power between buyers and businesses had become:

In considering whether a contract is unfair under s 24(2) of the ACL, the Court will consider the extent to which the term is:

A manufacturer is not liable for a 'safety defect' under ACL Part 3-5 if:

For conduct to be misleading and deceptive under s 18 of the Australian Consumer Law (ACL) it need not be conduct that is:

Which of the following is prohibited under the Australian Consumer Law?

Business and the Law

Law in Australia 1: the Australian Legal System

Law in Australia 2: Politicians and Judges

Legal Skills: How to Find, Understand and Use the Law

Tort Law 1: Deliberate Harm

Tort Law 2: Careless Harm

Contract Law 1: Formation of the Contract

Contract Law 2: Terms of the Contract

Contract Law 3: Enforcement of the Contract

Contract Law 4: Working With Agents

Competition Law: Dealing With Other Businesses

Intellectual Property Law: Protecting Your Creation

Managing a Business 1: Start-Up

Managing a Business 2: Business Ownership

Managing a Business 3: Finance

Managing a Business 4: Making Payments and Recovering Debts

Managing a Business 5: Insurance and Taxes

Managing a Business 6: Employment

Managing a Business 7: Bankruptcy and Liquidation

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