Question

QUESTION 4                       

Do the following contracts fall under the provisions of the Australian Consumer Law (ACL) relating to the four consumer guarantees (Ss 54-57)? For each part:

• Answer Yes or No and
• Explain your answer with reference to the relevant ACL section.

Each part is worth 2 marks

1. International Wheat Corporation (IWC) buys a Rolls Royce for $300,000 from Pure Luxury Autos P/L for its CEO, Kristy

2. Steel Fabricators P/L pays $39,000 for a container of tin and steel shipped from the USA with which it will build house frames for a new housing development

3. Charlotte buys a painting for $42,000 from a top-end art gallery

4. Jane purchases a second hand computer from a fellow student at her university residential college for $4,000

5. Mick buys a large trailer from Trailers R Us P/L for $15,000 to be used for political advertising signage in future election campaigns.

Answer 1

A contract to come under the purview of Australian Consumer Law(ACL), any of the following conditions must be satisfied to qualify as a "consumer"

1. If a person acquires Goods and services with a price of less than $40,000 is considered as "consumer"

2. If the person acquires goods for personal and domestic use or consumption, they can be priced at above $40,000 to come under the definition of contract in Australian Consumer Law(ACL)

3. A trailer or vehicle used in the transport of goods on public roads irrespective of price is considered as a contract under Australian Consumer Law

A) Yes, It falls under the provision of ACL.

Though the car Rolls Royce purchased is priced at more than $40,000, it is used for personal use and hence comes under the contract.

b)Yes, Steel fabricators come under the Consumer definition of ACL

As the contract price is less than $40,000, it is under ACL

c)Yes,

Because even though the price of the painting is greater than $40,000, it is used for personal/domestic use. Hence Charlotte is considered as a consumer as per ACL.

d)Yes. The purchase of Second-hand computer for $4000 comes under ACL

Because any good purchased for a price less than $40,000 is under the purview of ACL irrespective of it being second hand or first hand.

e)No, Mick is not a consumer as per ACL

It is because the trailer/vehicle is purchased for other than transportation purposes i.e., for a political party campaign and it is not under the provisions of the ACL consumer guarantee.