The Nature of Consumer Law

The Nature of Consumer Law

13.3 Contracts

• Contracts - Warranties:

According to the Australian Consumer Law fact sheet of Guarantees, dated 5th March 2012, a warranty is a term that is applicable to all goods and services with a value of up to $40,000; that is apart of a contract, and is not fundamental. If a warranty is breached, the contract still exists. Whilst warranties provide statutory protection against defective products and misconduct, in relation to technology, the following media article published in Sydney Morning Herald, entitled “Apple keeps warranty under wraps”, published on the 18th of March 2013, illustrates the way many companies, such as Apple, ignored the statutory rights of customers contained under the Australian Consumer Law. However, it is due to new concepts in justice, largely promoted by the ACCC Warranties and Refunds Guide, that Apple has extended the warranty of its’ products from 12-months to 24-months. Apple is continually developing whilst adhering to Australian Consumer law standards.

Furthermore, the article illustrates the way that many consumers, who were aware of the updated policy and their statutory rights, had been dismissed by Apple and their rights as consumers had been denied. Under breaches, consumers may make a complaint to the Office of Fair Trading under the Fair Trading Act 1987 (NSW). The Office of Fair Trading, encourages cooperation and resolves conflict in relation to consumers and companies, under the Sales of Goods Act 1923 (NSW) when there is a breach of warranty by the seller, as the buyer is entitled to reject the goods and may also maintain action against the seller for damages as a result of the breach of warranty.

13.4 Unjust Contracts

• Common Law Protection – Misrepresentation:

Misrepresentation refers to a false statement, oral or written, proposed by one party designed to induce the other party to enter the contract. In Australia, the issue is classified under several bodies of legislation, especially, section 52 of the Competition and Consumer Act 2010, and Section 18 of the Australian Consumer Law. In addition to the legislation, the ACCC acts to promote and protect the rights of consumers from deceptive conduct along with resolving conflict and encouraging cooperation. This is exemplified in a marketing innovations issue highlighted in a Sydney Morning Herald article entitled “ACCC Acts on Dell Warranty Misrepresentations”. This media article discusses Dell’s false advice that complaints for repairs, replacements or credits for faulty products must be lodged within 15 days of the invoice date. This statement goes against current legislation, in particular, the Competition and Consumer Act 2010 - Guarantees