Question 1

Offering a purchaser a commission to introduce new customers to the seller is an example of:

Accepted Answer

A)   Bait advertising.
B)   Unsolicited goods.
C)   Referral selling.
D)   Pyramid selling.E) A) and C)
F) B) and D)

Question 2

In relation to 'conduct' under s 18 of the ACL, Clark Equipment Australia Ltd v Covcat Pty Ltd (1987)  71 ALR 367 is authority for the principle that:

Accepted Answer

A)   Pre-contractual representations can constitute misleading and deceptive conduct.
B)   An advertisement which compared a competitor's products unfavourably with the advertiser's products can constitute misleading and deceptive conduct.
C)   Silence can constitute misleading and deceptive conduct where there is a duty to disclose relevant facts.
D)   The act of making a contract containing a false warranty is sufficient to constitute misleading and deceptive conduct.E) All of the above
F) C) and D) A

Question 3

Advertising a product at special prices only to tell the consumer the product is no longer available or is available but at a higher price is known as bait advertising.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements are true in relation to the liability of manufacturers for defective goods?

Accepted Answer

A)   Manufacturer's liability does not apply to commercial property.
B)   Manufacturer's liability is strict and there is no need to prove fault.
C)   Manufacturer's liability cannot be excluded or modified.
D)   All of the above.E) None of the above
F) A) and C) D

Question 5

Which of the following is NOT a remedy that may be sought by a person affected by a breach of the Australian Consumer Law?

Accepted Answer

A)   Damages to compensate for loss or damage caused by the breach.
B)   Undertaking to remedy the breach.
C)   Compensation to prevent or reduce loss or damage caused by the breach.
D)   Injunction to stop conduct in breach of the Act.E) B) and D)
F) None of the above

Question 6

The statutory prohibition of unconscionable conduct in s 21 of the Australian Consumer Law replaces the common law.

Accepted Answer

A) True 
 B)False

Question 7

Where a corporation or person in trade or commerce claims a right to payment from another person for unsolicited goods or services, it is known as inertia selling.

Accepted Answer

A) True 
 B)False

Question 8

What is the main purpose of the Australian Consumer Law?

Accepted Answer

The main purpose of the Australian Consu...

Question 9

Which of the following 'consumers' are NOT protected by s 22 of the unconscionability provisions of the Australian Consumer Law?

Accepted Answer

A)   A proprietary company.
B)   A listed public company.
C)   A partnership.
D)   An individual.E) A) and B)
F) A) and C)

Question 10

The consumer protection provisions of the Australian Consumer Law can only be enforced by the Commonwealth.

Accepted Answer

A) True 
 B)False  False

Question 11

In relation to 'conduct' under s 18 of the ACL, Henjo Investments Pty Ltd & Ors v Collins Marrickville Pty Ltd (1988)  79 ALR 83 is authority for the principal that:

Accepted Answer

A)   Silence can constitute misleading and deceptive conduct where there is a duty to disclose relevant facts.
B)   Pre-contractual representations can constitute misleading and deceptive conduct.
C)   An advertisement which compared a competitor's products unfavourably with the advertiser's products can constitute misleading and deceptive conduct.
D)   The act of making a contract containing a false warranty is sufficient to constitute misleading and deceptive conduct.E) A) and D)
F) None of the above

Question 12

Conduct that is misleading and deceptive under s 18 of the Australian Consumer Law can result in both civil and criminal penalties.

Accepted Answer

A) True 
 B)False

Question 13

What was the reason for the decision in Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982)  149 CLR 191?

Accepted Answer

A)   The target audience of the conduct would not be misled into thinking there was a connection between the two products.
B)   A purchaser could be misled if someone removed the labels without the manufacturer's knowledge.
C)   The products were clearly labelled so there was nothing more the manufacturer could do.
D)   The conduct could cause consumers to wonder if the products were made by the same manufacturer.E) All of the above
F) C) and D)

Question 14

Allegations of a breach of a specific unfair practices section of the Australian Consumer Law will often also involve a breach of the general prohibition in s 18 for misleading and deceptive conduct.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT a factor in deciding whether a corporation has engaged in unconscionable conduct, in breach of ss 21 or 22 of the Australian Consumer Law?

Accepted Answer

A)   Whether the consumer has fully complied with the terms of the contract.
B)   Whether any undue influence, pressure or unfair tactics were used by the corporation.
C)   Whether the terms of the contract were reasonably necessary to protect the legitimate interests of the corporation.
D)   Whether the form and wording of the contract was clear.E) B) and C)
F) A) and D)

Question 16

Which of the following is classified as 'conduct' within the meaning of s 18 of the Australian Consumer Law?

Accepted Answer

A)   Statements of opinion that are false or not reasonably held.
B)   Statements that are literally true but that create a false impression.
C)   Broken promises and false predictions.
D)   All of the above.E) All of the above
F) A) and B)

Question 17

Which of the following was considered by the court to be the most significant factor in determining the penalty in Miller v Fiona's Clothes Horse of Centrepoint Pty Ltd [1989] ATPR 40-963?

Accepted Answer

A)   That the company's business had suffered because of the adverse publicity.
B)   That the offence was not committed deliberately.
C)   That penalties for contravention of consumer protection legislation should be a deterrent to the defendant and to others.
D)   That the company had cooperated with the Trade Practices Commission.E) A) and B)
F) All of the above

Question 18

Advertising something at a special price and then telling customers that it is unavailable and offering them something else at a higher price is an example of:

Accepted Answer

A)   Unsolicited goods.
B)   Bait advertising.
C)   Pyramid selling.
D)   Referral selling.E) B) and C)
F) A) and B)

Question 19

Section 18 is often used by businesses to take action against competitors.

Accepted Answer

A) True 
 B)False

Question 20

The onus of proving that a transaction is a consumer sale is always on the consumer.

Accepted Answer

A) True 
 B)False

Exam 18: General and Specific Consumer Protections Under the Acl

Offering a purchaser a commission to introduce new customers to the seller is an example of:

Correct AnswerverifiedShow Answer

In relation to 'conduct' under s 18 of the ACL, Clark Equipment Australia Ltd v Covcat Pty Ltd (1987) 71 ALR 367 is authority for the principle that:

Correct AnswerverifiedA

Advertising a product at special prices only to tell the consumer the product is no longer available or is available but at a higher price is known as bait advertising.

Correct AnswerverifiedShow Answer

Which of the following statements are true in relation to the liability of manufacturers for defective goods?

Correct AnswerverifiedD

Which of the following is NOT a remedy that may be sought by a person affected by a breach of the Australian Consumer Law?

Correct AnswerverifiedShow Answer

The statutory prohibition of unconscionable conduct in s 21 of the Australian Consumer Law replaces the common law.

Correct AnswerverifiedShow Answer

Where a corporation or person in trade or commerce claims a right to payment from another person for unsolicited goods or services, it is known as inertia selling.

Correct AnswerverifiedShow Answer

What is the main purpose of the Australian Consumer Law?

Correct AnswerverifiedThe main purpose of the Australian Consu...View AnswerShow Answer

Which of the following 'consumers' are NOT protected by s 22 of the unconscionability provisions of the Australian Consumer Law?

Correct AnswerverifiedShow Answer

The consumer protection provisions of the Australian Consumer Law can only be enforced by the Commonwealth.

Correct AnswerverifiedFalse

In relation to 'conduct' under s 18 of the ACL, Henjo Investments Pty Ltd & Ors v Collins Marrickville Pty Ltd (1988) 79 ALR 83 is authority for the principal that:

Correct AnswerverifiedShow Answer

Conduct that is misleading and deceptive under s 18 of the Australian Consumer Law can result in both civil and criminal penalties.

Correct AnswerverifiedShow Answer

What was the reason for the decision in Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191?

Correct AnswerverifiedShow Answer

Allegations of a breach of a specific unfair practices section of the Australian Consumer Law will often also involve a breach of the general prohibition in s 18 for misleading and deceptive conduct.

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor in deciding whether a corporation has engaged in unconscionable conduct, in breach of ss 21 or 22 of the Australian Consumer Law?

Correct AnswerverifiedShow Answer

Which of the following is classified as 'conduct' within the meaning of s 18 of the Australian Consumer Law?

Correct AnswerverifiedShow Answer

Which of the following was considered by the court to be the most significant factor in determining the penalty in Miller v Fiona's Clothes Horse of Centrepoint Pty Ltd [1989] ATPR 40-963?

Correct AnswerverifiedShow Answer

Advertising something at a special price and then telling customers that it is unavailable and offering them something else at a higher price is an example of:

Correct AnswerverifiedShow Answer

Section 18 is often used by businesses to take action against competitors.

Correct AnswerverifiedShow Answer

The onus of proving that a transaction is a consumer sale is always on the consumer.

Correct AnswerverifiedShow Answer

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A

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The main purpose of the Australian Consu...
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False

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