HSC LEGAL STUDIES - CONSUMER LAW

caveat emptor

let the buyer beware

Laissez-faire

Idea that government should play as small a role as possible in economic affairs.

Donoghue v Stevenson

recognised that manufacturers have a duty to consumers

Consumer

A person who purchases goods and services for personal use

Competition and Consumer Act 2010

A federal law that specifies what business behaviour is acceptable on a wide range of issues, from product safety and pricing to the way in which a business competes in the marketplace

contract

a binding agreement between two or more persons that is enforceable by law

simple contract

any contract other than a formal contract, whether written, oral or implied

Express Contract

A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.

Implied Contract

A contract formed in whole or in part from the conduct of the parties.

Bilateral Contract

A type of contract that arises when a promise is given in exchange for a return promise.

offer

initial suggestion/proposal to another party

Acceptance

both parties agree unconditionally to all parts of the contract

Consideration

something of value exchanged for something else of value

Intention

Both parties have to willingly enter into a legal relationship

capacity

An ability; potential

condition

fundamental or essential terms of the contract

warranty

A statement indicating the liability of the manufacturer for product deficiencies.

exclusion clause

a contractual term that seeks to protect one party from various sorts of legal liability

Standards implied by statutes

Standards implied into all consumer contracts that cannot be excluded

Voluntary Standards

Developed by Standards Australia as a body whose function is to write standards

Mandatory Standards

These are made compulsory by legislation

product recall

The removal from the marketplace of a product that is defective or hazardous to consumers.

Negligence

failure to take proper care in doing something

Duty of Care

the obligation people owe each other not to cause any unreasonable harm or risk of harm

Marketing

the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return

pyramid selling

A form of multi-level selling that is illegal under the Competition Act

Advertising Standards Authority

Regulatory body for Advertisement

occupational licensing

the laws of state or local governments that require that a worker satisfy certain specified requirements and obtain a license from a licensing board before engaging in a particular occupation

self-regulation

the exercise of voluntary control over the self to bring the self into line with preferred standards

State Regulation

-a type of regulatory agent

-no extensive policing powers

coregulation

a combination of self-regulation and state regulation

awareness

consumers are aware of their rights, being aware of faulty products

self-help

Going to the business that wronged the consumer and getting the remedy from them

express warranty

a written guarantee

implied guarantees

implied in statute e.g. that the product works

NSW Fair Trading

Can supply free written information about consumer rights and will answer inquiries over the phone

Community services commission

Statutory 'watchdog' body overseeing community services in NSW

NSW Legal Aid

Established under the Legal Aid Commission Act 1979 (NSW) and is an independent statutory body

Australian Competition and Consumer Commission (ACCC)

Independent statutory body that administers the federal consumer legislation

Australian Communications and Media Authority (ACMA)

Responsible for the regulation of broadcasting, the internet and telecommunications

Australian Securities and Investments Commission (ASIC)

Is responsible for enforcing laws regarding financial services

NSW Civil and Administrative Tribunal (NCAT)

Aims to resolve to disputes between tenants, landlords, traders and consumers in a timely and effective manner

class action

a lawsuit brought by one or more persons on behalf of a larger group

Choice Magazine

Monthly, provides members with an analysis of numerous products and their positives and negatives

Damages

A sum of money paid in compensation for loss or injury in a civil case

Recission of contract

cancellation of the contract and restoration of the parties to their original positions

injunction

An order which legally prevents something

Specific Performance

A legal action to compel a party to carry out the terms of a contract.

credit

An arrangement to receive cash, goods, or services now and pay for them in the future.

national credit code

aims to provide laws which apply equally to all forms of consumer lending and all credit providers in Australia

Product Certification

The process of providing documented assurance that goods or services have passed performance and quality tests before they are marketed

Marketing Innovation

the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing

Direct commerce

refers to practices where goods are advertised and bought by a consumer from their own home

cooling-off period

a specified period of time within which a consumer can back out of an agreement to buy something

product placement

Putting products into TV shows and movies where they will be seen

scam

an attempt to trick someone, usually with the intention of stealing money or private information