Mr Pinney,the owner of three restaurants,made a mistake when he inspected an exclusive restaurant he wanted to buy.He saw the restaurant had set tables and chairs for 126 customers and assumed,without checking council records,that it had a liquor licence for that many people.The owners of the restaurant never claimed that it could seat 126.After Pinney bought the restaurant for $700 000 he learnt that its liquor licence restricted the number of customers to 84.The contract of sale contained an exclusion clause,which stated Pinney had not relied on any representations made by the seller during the negotiations.Which statement best sums up Pinney's legal rights under s18 of the Australian Consumer Law which prohibits misleading or deceptive conduct?
A) He has no rights because he is barred by the exclusion clause from taking legal action.
B) He is likely to succeed.The seller breached s18 by creating a misleading impression about the seating capacity and keeping silent about the true situation.
C) He has no rights.He was a businessperson,not a consumer,and is therefore unable to sue under s18.
D) He has no rights.He made a mistake,which an experienced businessperson should never have made and must suffer the consequences.
E) B and C above.
Correct Answer:
Verified
Q6: Which of the following statements are most
Q7: Prior to the passing of the federal
Q8: Mr and Mrs Tannenbuam,who had no business
Q9: Unfair terms in standard form contracts have
Q10: Section 22 of the Australian Consumer Law
Q12: You wish to take action against a
Q13: Under s18 of the Australian Consumer Law
Q14: Which of the following statements is not
Q15: According to the Australian Consumer Law,a consumer
Q16: Standard form consumer contracts must not include
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents