Question 1

In relation to the consumer guarantee of fitness for purpose, which of the following statements is NOT true?

Accepted Answer

A)  The goods must be supplied in trade of commerce. 
B)  The consumer must, either expressly or by implication, make known the intended purpose of the goods. 
C)  The consumer must rely on the skill and judgment of the supplier. 
D)  The consumer must request the goods under their trade name or patent. 
A)  The goods must be supplied in trade of commerce. 
B)  The consumer must, either expressly or by implication, make known the intended purpose of the goods. 
C)  The consumer must rely on the skill and judgment of the supplier. 
D)  The consumer must request the goods under their trade name or patent. D

Question 2

Do you consider that the remedies now available to consumers under the Australian Consumer Law are adequate?

Accepted Answer

The adequacy of remedies available to consumers under the Australian Consumer Law (ACL) can be assessed by considering the scope and effectiveness of the protections and redress mechanisms it provides. The ACL, which came into effect on January 1, 2011, is a national, generic law that aims to protect consumers and ensure fair trading across Australia.

The ACL offers a range of remedies for consumers when goods or services fail to meet one or more of the consumer guarantees. These guarantees include that goods must be of acceptable quality, fit for any disclosed purpose, and match descriptions or samples, while services must be provided with due care and skill, be fit for any specified purpose, and be delivered within a reasonable time when there is no agreed end date.

When a product or service fails to meet a consumer guarantee, the ACL provides remedies such as:

1. Repair, replacement, or refund: Consumers have the right to ask for a repair, replacement, or refund when goods are faulty, unsafe, look unacceptable, or do not perform as expected. For minor problems, the seller can choose between providing a repair or offering a replacement or refund. For major problems, the consumer can choose the remedy.

2. Compensation for damages and loss: Consumers can seek compensation for any loss or damage caused by a product or service if it is reasonably foreseeable.

3. Cancellation of service contracts: If a service does not meet a consumer guarantee, consumers can cancel the service contract and seek a refund for the unused portion, or compensation for the difference in value between the service delivered and what they paid.

4. Additional protections: The ACL also provides protections against unfair contract terms, unsolicited consumer agreements, and misleading or deceptive conduct.

While the ACL provides a comprehensive framework for consumer protection, there are ongoing discussions about whether these remedies are adequate. Some argue that the enforcement of the ACL could be strengthened, and that consumers may not always be aware of their rights or may find it difficult to exercise them. Others suggest that the law could be updated to address emerging issues such as digital products and services, and to ensure that it keeps pace with technological advancements and changes in consumer behavior.

In conclusion, the Australian Consumer Law offers a robust set of remedies that are designed to protect consumers and ensure fair trading. However, the adequacy of these remedies can be subject to debate, and there may be areas where the law could be enhanced to better serve the needs of consumers in a rapidly evolving marketplace. It is important for consumers to be aware of their rights and for businesses to comply with their obligations under the ACL to ensure that the remedies provided are effectively utilized.

Question 3

Why was the plaintiff successful in obtaining a full refund in the case of Rowland v Divall [1923] 2 KB 500?

Accepted Answer

A)  Because he had only had the car for four months. 
B)  Because the seller had no right to sell him the car. 
C)  Because the owner had no right to sell him the car. 
D)  Because the true owner had made a claim against him. 
A)  Because he had only had the car for four months. 
B)  Because the seller had no right to sell him the car. 
C)  Because the owner had no right to sell him the car. 
D)  Because the true owner had made a claim against him. B

Question 4

The test of acceptable quality of goods is an objective test of the reasonable consumer.

Accepted Answer

A) True 
 B)False

Question 5

For the Australian Consumer Law to apply, there must be a supply of goods or services to a consumer, by a supplier or manufacturer, in trade or commerce.

Accepted Answer

A) True 
 B)False

Question 6

When will a buyer of defective goods NOT be protected under the Australian Consumer Law?

Accepted Answer

A)  If the defect was brought to their attention by the supplier. 
B)  If the buyer caused the damage to the goods. 
C)  If the buyer examines the goods and fails to discover an obvious defect. 
D)  All of the above. 
A)  If the defect was brought to their attention by the supplier. 
B)  If the buyer caused the damage to the goods. 
C)  If the buyer examines the goods and fails to discover an obvious defect. 
D)  All of the above.

Question 7

In relation to the supply of goods, when will a failure to comply with a consumer guarantee be considered a major failure?

Accepted Answer

A)  If the goods are substantially unfit for the purpose for which goods of that nature are commonly supplied. 
B)  If the goods are significantly different from their description or sample. 
C)  If the goods are unfit for a disclosed purpose or unsafe. 
D)  All of the above. 
A)  If the goods are substantially unfit for the purpose for which goods of that nature are commonly supplied. 
B)  If the goods are significantly different from their description or sample. 
C)  If the goods are unfit for a disclosed purpose or unsafe. 
D)  All of the above.

Question 8

Which of the following factors have to be taken into account in determining 'acceptability'?

Accepted Answer

A)  Whether the purpose for the goods had been made known to the seller. 
B)  Price. 
C)  The description applied to the goods. 
D)  All of the above. 
A)  Whether the purpose for the goods had been made known to the seller. 
B)  Price. 
C)  The description applied to the goods. 
D)  All of the above.

Question 9

Which of the following is NOT a difference between the Sale of Goods Acts and the Australian Consumer Law?

Accepted Answer

A)  The remedy under the Sale of Goods Acts is for breach of contract whereas the Australian Consumer Law provides statutory remedies. 
B)  The Sale of Goods Acts apply to non consumer transactions whereas the Australian Consumer Law does not. 
C)  The implied conditions and warranties in the Sale of Goods Acts can be excluded, whereas the Australian Consumer Law guarantees can't. 
D)  The Sale of Goods Acts are administered by state and territory Departments of Fair Trading whereas the Australian Consumer Law is administered by the ACCC. 
A)  The remedy under the Sale of Goods Acts is for breach of contract whereas the Australian Consumer Law provides statutory remedies. 
B)  The Sale of Goods Acts apply to non consumer transactions whereas the Australian Consumer Law does not. 
C)  The implied conditions and warranties in the Sale of Goods Acts can be excluded, whereas the Australian Consumer Law guarantees can't. 
D)  The Sale of Goods Acts are administered by state and territory Departments of Fair Trading whereas the Australian Consumer Law is administered by the ACCC.

Question 10

In Grant v Australian Knitting Mills [1936] AC 85, why was Grant entitled to sue the retailer under Sale of Goods legislation?

Accepted Answer

Where goods have only one purpose, the d

Question 11

Why was the manufacturer found liable in the case of: Drummond v Van Ingen (1887) as App Cas 284?

Accepted Answer

A)  The defect was only minor and the quality was the same as the sample. 
B)  The cloth was equal to the sample but contained a defect that could not be discovered by reasonable inspection. 
C)  The cloth was equal to the sample but contained a defect that was discovered on inspection. 
D)  The cloth did not correspond with the sample. 
A)  The defect was only minor and the quality was the same as the sample. 
B)  The cloth was equal to the sample but contained a defect that could not be discovered by reasonable inspection. 
C)  The cloth was equal to the sample but contained a defect that was discovered on inspection. 
D)  The cloth did not correspond with the sample.

Question 12

Under the Australian Consumer Law, who is a consumer?

Accepted Answer

Under the Australian Consumer Law, a per

Question 13

The guarantee that spare parts and repair facilities must be reasonably available applies to the supplier as well as the manufacturer.

Accepted Answer

A) True 
 B)False

Question 14

When will a purchaser of goods NOT be considered a 'consumer' under the Australian Consumer Law?

Accepted Answer

A)  If they purchase a commercial road vehicle valued at more than $40,000. 
B)  If they purchase goods for personal or domestic use valued at more than $40,000. 
C)  If they purchase goods valued at less than $40,000 for use in the course of a small business. 
D)  If they purchase goods valued at less than $40,000. 
A)  If they purchase a commercial road vehicle valued at more than $40,000. 
B)  If they purchase goods for personal or domestic use valued at more than $40,000. 
C)  If they purchase goods valued at less than $40,000 for use in the course of a small business. 
D)  If they purchase goods valued at less than $40,000.

Question 15

Under the Australian Consumer Law goods supplied to a consumer in trade or commerce must be:

Accepted Answer

A)  Correspond with any description or sample. 
B)  Of acceptable quality. 
C)  Fit for any disclosed purpose. 
D)  All of the above. 
A)  Correspond with any description or sample. 
B)  Of acceptable quality. 
C)  Fit for any disclosed purpose. 
D)  All of the above.

Question 16

In relation to the consumer guarantee of acceptable quality, which of the following statements is NOT true?

Accepted Answer

A)  The guarantee imposes strict liability on the supplier. 
B)  Goods must remain acceptable for a reasonable time after sale. 
C)  'Acceptable' means they must be reasonable for the purpose described. 
D)  The test of acceptability is subjective based on the consumer's description. 
A)  The guarantee imposes strict liability on the supplier. 
B)  Goods must remain acceptable for a reasonable time after sale. 
C)  'Acceptable' means they must be reasonable for the purpose described. 
D)  The test of acceptability is subjective based on the consumer's description.

Question 17

If the supplier of goods fails to comply with a consumer guarantee which is not a major failure, a consumer may:

Accepted Answer

A)  Require the supplier to remedy the failure. 
B)  Immediately reject the goods. 
C)  Seek compensation. 
D)  Immediately have the failure remedied elsewhere. 
A)  Require the supplier to remedy the failure. 
B)  Immediately reject the goods. 
C)  Seek compensation. 
D)  Immediately have the failure remedied elsewhere.

Question 18

The Australian Consumer Law applies to all consumer transactions involving a sale of goods but not goods on exchange or lease.

Accepted Answer

A) True 
 B)False

Question 19

Why was the plaintiff unsuccessful in the case of: Southern Cross Homes (Broken Hill) Inc v Chapman (1999) SASC 491?

Accepted Answer

A)  The goods were not fit for the purpose but were made to the consumer's specifications. 
B)  The goods were made to the consumer's specifications. 
C)  The goods were fit for the purpose but not made to the consumer's specifications. 
D)  The goods were not fit for the purpose specified. 
A)  The goods were not fit for the purpose but were made to the consumer's specifications. 
B)  The goods were made to the consumer's specifications. 
C)  The goods were fit for the purpose but not made to the consumer's specifications. 
D)  The goods were not fit for the purpose specified.

Question 20

Which of the following services are NOT covered by the consumer guarantees in the Australian Consumer Law?

Accepted Answer

A)  Telecommunications. 
B)  Electricity. 
C)  Gas. 
D)  All of the above. 
A)  Telecommunications. 
B)  Electricity. 
C)  Gas. 
D)  All of the above.

Exam 17: Statutory Consumer Guarantees and the Australian Consumer Law

In relation to the consumer guarantee of fitness for purpose, which of the following statements is NOT true?

Do you consider that the remedies now available to consumers under the Australian Consumer Law are adequate?

Why was the plaintiff successful in obtaining a full refund in the case of Rowland v Divall [1923] 2 KB 500?

The test of acceptable quality of goods is an objective test of the reasonable consumer.

For the Australian Consumer Law to apply, there must be a supply of goods or services to a consumer, by a supplier or manufacturer, in trade or commerce.

When will a buyer of defective goods NOT be protected under the Australian Consumer Law?

In relation to the supply of goods, when will a failure to comply with a consumer guarantee be considered a major failure?

Which of the following factors have to be taken into account in determining 'acceptability'?

Which of the following is NOT a difference between the Sale of Goods Acts and the Australian Consumer Law?

In Grant v Australian Knitting Mills [1936] AC 85, why was Grant entitled to sue the retailer under Sale of Goods legislation?

Why was the manufacturer found liable in the case of: Drummond v Van Ingen (1887) as App Cas 284?

Under the Australian Consumer Law, who is a consumer?

The guarantee that spare parts and repair facilities must be reasonably available applies to the supplier as well as the manufacturer.

When will a purchaser of goods NOT be considered a 'consumer' under the Australian Consumer Law?

Under the Australian Consumer Law goods supplied to a consumer in trade or commerce must be:

In relation to the consumer guarantee of acceptable quality, which of the following statements is NOT true?

If the supplier of goods fails to comply with a consumer guarantee which is not a major failure, a consumer may:

The Australian Consumer Law applies to all consumer transactions involving a sale of goods but not goods on exchange or lease.

Why was the plaintiff unsuccessful in the case of: Southern Cross Homes (Broken Hill) Inc v Chapman (1999) SASC 491?

Which of the following services are NOT covered by the consumer guarantees in the Australian Consumer Law?

Legal Foundations

Origins of Australian Law

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: The Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties, Discharge and Remedies

Remedies in Contract

General and Specific Consumer Protections Under the Acl

Agency

Introduction to Companies and Incorporated Associations

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goods

Electronic commerce

Property and mortgages

Intellectual propert

Ethics and business practice

Criminal law in a business context

Restrictive trade practices

Negotiable instruments

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

Consumer Credit and Privacy

Ethics and Regulations in Marketing and Advertising

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