Question

Course:Business Law

On 15 September 2020, Tammy purchased from CC two tickets to the Ed Shearer concert in Brisbane on 07 January 2021. The reality is that as at 15 September 2020, due to the current COVID – 19 pandemic, it was highly unlikely that the Ed Shearer concert would proceed.

Jane purchased 3 tickets to the same concert as Tammy however unlike Tammy, Jane purchased her tickets in January of 2020, at a time when there was every

expectation that the Ed Shearer concert would proceed as expected as at that time, the future impact of the pandemic had not been fully realised.

Has CC acted in breach of the ACL by selling Tammy and/or Jane tickets to the Ed Shearer concert?
Explain your answer

Answer 1

ANSWER:-

In the given case, Jane purchased tickets in January 2020 and Tammy on 15 September 2020.

Pandemic of Novel Coronavirus (Covid-19) symptoms were seen in close of the Year 2019 i.e. in December, firstly in China. World Health Organization (WHO) started monitoring the situation and requested further information on the laboratory tests performed. In January 2020, Thailand officials confirmed few cases on Novel Coronavirus in their country and thereafter in various other countries of the World. WHO started monitoring this and convened an emergency meeting with China to outbreak the novel Coronavirus in China, all other countries like Thailand, Singapore etc. contacted with the disease.

Coronavirus disease is a contagious respiratory and vascular blood disease and caused by infection with severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). SARS-CoV-2 is the strain of coronavirus that causes coronavirus disease 2019 (COVID-19), the respiratory illness responsible for the COVID-19 pandemic. The common symptoms are fever, cough, fatigue, shortness of breath or breathing difficulties, and loss of smell and taste. It spreads mostly when people are physically close. It spreads very easily and sustainably through the air, primarily via small droplets and sometimes in aerosols, as an infected person breaths, coughs, sneezes or talks. It may also be transmitted via contaminated surfaces.

To prevent this infection, recommended measures include frequent hand washing, social distancing, quarantine, use of face masks or cloth face coverings, covering coughs and sneezes, and keeping unwashed hands away from the face (specially eyes and mouth).

By 31^st January 2020, the cases have been reported in five WHO regions in one month, the Emergency Committee noted that the early detection, isolating and treating cases, contact tracing and social distancing measures in line with the level of risk, could all work to interrupt virus spread.

In the given case, the tickets are related to a concert. In a concert, there is a live music performance by a singer or singers or musical group in front of the huge number of audience. Keeping the precautions to be taken in the case of pandemic Covid- 19, there would be huge risk of the audience getting infected by the Coronavirus disease if the vaccine is not found by the date of the concert.

On January 2020, the disease spread was only around in 5 countries. Therefore the businessmen may assume (if acknowledged of the disease) that this is a mild disease. But as on September 2020, undoubtedly, patients are getting recovered but there found no vaccine of this disease. Government of the countries had announced lockdown to stop from spreading this disease and Department of Health of various countries had set various guidelines with respect to social distancing etc to the Public.

Australian Consumer Law (ACL) contains the provisions which are designed to provide the consumers with protection against certain business practices. The Australian Competition & Consumer Commission has provided a detailed guidance with respect to rights and obligations of businesses in response to events caused by the COVID-19 pandemic. Among such businesses, it has provided the guidelines on the functions and events as well, with respect to cancellation etc.

As per ACL, the businessmen must not accept payment for goods or services if they know, or should have known, that they would not be able to supply the goods or services in a timely manner.

This part of the law is not intended to affect businesses who genuinely try to meet supply agreements, for example, if the failure to supply was due to something beyond their control and the businessmen exercised due diligence and took reasonable precautions.

From March 2020, the government disallowed various sporting events, concerts, public events etc. being non essential activities.

Keeping all above in mind, we can conclude that:

1) In Australia, the first confirmed case of Covid was found on 25^th January 2020 which grew to 350 per day around March 2020.

In January 2020, assuming that CC had exercised proper due diligence and had expected that the concert would be conducted as per the scheduled time i.e. in January 2021.

Therefore, we can say that CC has not breached the ACL with Jane by selling the Ed Shearer Concert to Jane in January 2020.

2) But as on 15 September 2020, since still the vaccine has not been found, there is a huge probability that the Department of Health of the country in the given case might not allow the conduct of the concert in January 2021. The Government has released few guidelines for conduct of businesses in various sectors and other social functions like , the reopening of outdoor pools and playgrounds, enabling for religious services to be conducted outside with a maximum of five people. Besides that various events had been cancelled after March 2020. Before selling the tickets to Tammy, CC should have carried out the detailed analysis of the pandemic and about the expected date of the vaccine being coming out. CC should not have sold the tickets to Tammy or anyone else atleast after March/ April 2020 when the disease got spread in various countries of the world and knowing the fact that Government has disallowed the public events at various places.

As per ACL, the businessmen must not accept payment for the services if they know, or should have known, that they would not be able to supply them in a timely manner.

Accordingly, we are of the view that, this sale to Jammy by CC has led to a breach of ACL by CC.