Australian Consumer Law Case Study

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Pages: 7

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CLWM4000 Business and Corporations Law
Assessment 2

Prepared for
Indira Simanungkalit

Prepared by
Thi Thuong Nguyen
Student ID: 129069

10 September 2017

a) Is Chong a consumer under the Australian Consumer Law?
Issue:
Chong is claimed by Jason who sold a truck at $55,000 to him that he was not a consumer under the Australian Consumer Law (ACL) because the unit price was greater than $40,000.
Rule:
Who is a consumer? The ACL section 3 defines a consumer as person who acquires:
• goods or services where the purchase price was not more than $40,000.00; and
• goods or services of any amount where the goods are of a kind ordinarily acquired for personal, domestic or household use or consumption; or a vehicle or trailer used mainly …show more content…
Rule:
Under the ACL, when you buy products and services they come with automatic guarantees that they will work and do what you asked for. If you buy something that isn't right, you have consumer rights. Consumer guarantees for goods include:
- acceptable quality, see s.54 ACL
- correspondence with description: see s.56 ACL
Application:
The truck:
Was explained that the cardboard used to soak up leaks might have been removed before sales by a mechanic, and stopped working with a massive oil leaks one week after sales.
 Is not acceptable quality i.e not free from defect nor durable
Was descripted that it was almost new and in immaculate condition with no mechanical fault. Although Chong inspected the car, he did not find out it was used as well as the problem of oil leaks, he signed the agreement based on what Jason represented.
 Did not match that description by which were sold.

Conclusion:
Jason breached guarantee as to acceptable quality and guarantee that goods will correspond to description under ACL. Chong can sue him to obtain a

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