Question

Banko Tanaka, a Japanese martial artist, migrated to Australia in 2018 and now lives in Nundah. He decides that this is the ideal location to fulfil his dream and open his own dojo, where he will teach karate classes. A studio is available for lease at a local shopping centre, which is owned by Mosman Management Pty Ltd. Banko meets with Jason, the manager of Mosman Management, to discuss renting the studio as a karate dojo. During the meeting, Jason notices that Banko is not fluent in English and has a limited understanding of business and financial matters. Jason advises Banko that there are many people interested in renting the studio, and if he wants to secure the lease of the studio, he will need to sign a 20 pgs lease agreement within 24 hours. Banko has trouble reading and understanding the complex lease agreement, however he signs the agreement and returns it to Mosman Management. Unbeknown to him, a clause was inserted into his lease agreement stating that his rent would be $3,500 per month, which is 25% higher than what the other tenants in the centre are charged. Advise Banko as to whether Mosman Management Pty Ltd has breached any provisions of the Australian Consumer Law (ACL) 2010 and the supporting common law with respect to the lease of the studio. What remedies (if any) are available to Banko and ACCC under the ACL?

Answer 1

as per australian law:

It is unlawful for a business to make statements in trade or commerce that: • are misleading or deceptive; or • are likely to mislead or deceive. Failing to disclose relevant information, promises, opinions and predictions can also be misleading or deceptive. In most cases, businesses cannot rely on small print and disclaimers as an excuse for misleading or deceptive conduct. A limited exemption applies to businesses (mostly media outlets) who make representations in certain circumstances in the course of carrying on a business of providing information.

as in the above case Banko has trouble reading and understanding the complex lease agreement, however he signs the agreement and returns it to Mosman Management. Unbeknown to him, a clause was inserted into his lease agreement stating that his rent would be $3,500 per month, which is 25% higher than what the other tenants in the centre are charged.

asper australian law it comes under Unconscionable conduct,Examples of unconscionable conduct by a business may, depending on the circumstances, include:

• not properly explaining the conditions of a contract to a person they know does not speak English or has a learning disability,the way Mosman Management Pty Ltd.didnt explain to BANKO.
• not allowing a person sufficient time to read an agreement, ask questions or get advice,the ways they gave only 24 hrs to him to get gthe paper signed.
• failing to disclose key contractual terms.

If the court determines that unconscionable conduct has occurred, a variety of remedies may be ordered including:

• compensation for loss or damage
• financial penalties
• having the contract declared void in whole or in part
• having the contract or arrangement varied
• a refund or performance of specified services.