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Mr and Mrs Tannenbuam,who Had No Business or Catering Experience,inherited

Question 8

Multiple Choice

Mr and Mrs Tannenbuam,who had no business or catering experience,inherited some money and decided to open a cafe.They agreed to take out a long- term lease on a cafe in a new shopping centre after the landlord made false claims that they would make a profit of $14 000- $15 000 per week.The Tannenbuams took no steps to check the accuracy of these claims.They have had the cafe for two years and have never made more than $400 per week.They are facing bankruptcy.Which statement best sums up their legal rights against the landlord under s18 of the Australian Consumer Law which prohibits misleading or deceptive conduct?


A) They are likely to succeed.The developer breached s18 by making false claims about future profits.He cannot escape liability because they failed to check his claims.
B) They have no rights.They made a careless mistake and must suffer the consequences.
C) They have no rights.They were business people,not consumers,and are therefore unable to sue under s18.
D) B and C above.

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