Question 1

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

Cyril, as a customer service officer, has engaged in conduct in trade or commerce by explaining the Super Value price plan to Jane. By failing to correct Jane's mistaken belief that she had unlimited text usage, Cyril has engaged in misleading and deceptive conduct, which has resulted in Jane incurring a phone bill of $2000. Therefore, all three requirements of ACL s 18 have been satisfied.

Question 2

Which of the following is not a mandatory industry code of conduct established under Part IVB of the CCA?

Accepted Answer

The Agriculture Code is not a mandatory industry code of conduct under Part IVB of the Competition and Consumer Act (CCA). The Franchising Code, Oil Code, and Horticulture Code are mandatory codes.

Question 3

According to the decision in Taco Company v Taco Bell, which of the following will not be considered by the court in determining whether or not conduct is 'misleading or deceptive'?

Accepted Answer

The court considers the perspective of the relevant section of the public, including their level of education and intelligence, rather than applying a 'reasonable person' standard.

Question 4

Adam owns a second hand car yard.In which of the following transactions is Adam not a 'consumer' within the meaning of the ACL?

Accepted Answer

In this transaction, Adam is purchasing the Volvo for resale purposes in his second hand car yard, therefore he is not a 'consumer' within the meaning of the Australian Consumer Law. In all other transactions, Adam is either purchasing goods for his personal use (A, D) or for someone else's personal use (B), making him a 'consumer'.

Question 5

What are the 'Australian Privacy Principles'?

Accepted Answer

The Australian Privacy Principles (APPs) are Australia's minimum privacy standards which set out how personal and sensitive information must be collected, used, disclosed and stored by Australian government agencies and businesses. They were introduced in 2014 and replace the National Privacy Principles (NPPs) which were in place prior to that. The APPs are legally binding and must be followed by all entities covered by the Privacy Act 1988 (Cth).

Question 6

Which of the following penalties will result if a company deliberately breaches one of the specific prohibitions in the ACL?

Accepted Answer

If a company deliberately breaches one of the specific prohibitions in the ACL, the company can be fined up to $1.1 million. Therefore, option A is the correct answer. The other options are not correct as they do not align with the penalty for breaching prohibitions under the ACL.

Question 7

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

Accepted Answer

The answer of Which of the following is not true...

Question 8

Which of the following situations is most likely to be considered misleading or deceptive conduct in breach of ACL s18?

Accepted Answer

The advertisement for the Happiest Meal is likely to be considered misleading as it creates an impression that a toy comes with the burger when in fact it does not. This is a breach of ACL s18 which prohibits businesses from engaging in conduct that is misleading or deceptive. Choices B to D are also likely to be considered misleading, but A is the most clear-cut case.

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

Thomas cannot personally prosecute the company under the Australian Consumer Law (ACL); prosecution is typically carried out by regulatory bodies like the ACCC.

Question 10

A business is not prohibited by the ACL from supplying goods:

Accepted Answer

The ACL (Australian Consumer Law) prohibits the supply of goods that are unsafe, banned, or do not meet safety standards, but it does not specifically prohibit exaggerated advertising claims unless they are misleading or deceptive.

Question 11

Harley Roman Cookware advertises in the newspaper that its portable ovens are on sale for $10 each.The shop only has 3 such ovens in stock.This appears to be an example of:

Accepted Answer

This is an example of bait advertising, where a business advertises a product at a low price to attract customers, but has insufficient stock to meet demand.

Question 12

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

Accepted Answer

The Privacy Act 1988 (Cth) applies to all businesses, regardless of their annual turnover. However, it does have certain exemptions, such as activities relating to journalism and a person's employment history. It also has separate provisions for businesses that provide a health service.

Question 13

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

Esther has advertised that John Legend is performing at the concert, but another man with the same name performed instead. This can be seen as misleading or deceptive conduct because attendees likely purchased tickets based on the belief that the famous singer John Legend would be performing. Therefore, Esther may have breached the ACL.

Question 14

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

Accepted Answer

The manufacturer is not liable if the safety defect did not exist at the time the goods were manufactured, as liability under ACL Part 3-5 pertains to defects present at the time of manufacture.

Question 15

Bill runs a restaurant called 'Meat Lovers'.The following events occur on 27 May 2009.At which point has Bill acted 'unconscionably'?

Accepted Answer

Recommending the most expensive dish to a visually impaired customer who asked for the cheapest item is misleading and takes advantage of the customer's vulnerability, which can be considered unconscionable behavior.

Question 16

The right to privacy is described in the Universal Declaration of Human Rights as follows: "No one shall be subject to _____ interference with his privacy, family, home, or correspondence." What is the missing word?

Accepted Answer

The Universal Declaration of Human Rights states that "No one shall be subject to arbitrary interference with his privacy, family, home, or correspondence," emphasizing protection against random or unjustified intrusions.

Question 17

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

Dana falsely represented that the garments were second-hand when they were actually brand-new, which relates to the history or previous use of the goods.

Question 18

Which of the following activities are not exempted from the operation of the Privacy Act 1988 (Cth)?

Accepted Answer

Credit information handled by credit providers and credit reporting agencies is regulated under the Privacy Act 1988, and thus not exempted from its operation.

Question 19

If goods are defective under ACL Part 3-5, which of the following will result?

Accepted Answer

According to ACL Part 3-5, if goods are defective, the manufacturer is strictly liable for any injury to the consumer or damage caused to their property resulting from the defective goods. The manufacturer may be required to provide compensation to the consumer or repair/replace the defective goods, but there is no requirement for them to give a new set of goods or publicly apologise. Option D is incorrect as the manufacturer is liable under ACL Part 3-5.

Question 20

Fred convinces Greg and Harry to help him sell his homemade mango juice.Which of the following indicates that Fred has set up a pyramid scheme?

Accepted Answer

A pyramid scheme is a type of business model in which a person profits by recruiting others rather than by selling actual products or services. Choice B indicates that Fred is charging Greg and Harry to join the scheme, and promising them a commission for recruiting others. This matches the characteristics of a pyramid scheme. The other choices indicate that Fred is paying a commission for actual sales made, which is a legitimate business practice.

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