Question

What is the relationship between the Australian Consumer Law and contract law in Australia? In your answer, refer to legislative provisions and cases discussed in the course this year to support your argument(s) (at least 150 words)

Answer 1

Contract law encompasses any laws or regulations directed toward enforcing certain promises. In Australia contract law is primarily regulated by the 'common law', but increasingly statutes are supplementing the common law of contract - particularly in relation to consumer protection.

Contract law is broadly divided into five categories:

• contractual formation
• scope and content of contracts
• avoidance of contractual obligations
• performance and termination of contracts and
• remedies for breach of contract.

In relation to consumer law current topics include the law relating to consumer guarantees, unfair terms in consumer contracts, unconscionable conduct and manufacturers' liability.

The Australian Consumer Law (ACL) includes:

• a national unfair contract terms law covering standard form consumer and small business contracts;
• a national law guaranteeing consumer rights when buying goods and services;
• a national product safety law and enforcement system;
• a national law for unsolicited consumer agreements covering door-to-door sales and telephone sales;
• simple national rules for lay-by agreements; and
• penalties, enforcement powers and consumer redress options.

The ACL applies nationally and in all States and Territories, and to all Australian businesses. For transactions that occurred prior to 1 January 2011, the previous national, State and Territory consumer laws continue to apply.

The ACL is administered by the ACCC and state and territory consumer protection agencies and is enforced by all Australian courts and tribunals, including the courts and tribunals of the States and Territories.