Maggie, a real estate agent, was looking to buy a new car. She was fully aware of the issues with petrol cars, but was unable to afford an electric car. She chose a hybrid car because its manufacturer, Skose Ltd, advertised that this car was carbon neutral because in the first year of this particular car's purchase, the company would plant 20 native trees which would offset the carbon-dioxide emissions for the life of the car.


It turns out that 20 native trees may offset the carbon-dioxide emissions for the first year of the car, but certainly not for its life. Has Skose Ltd engaged in misleading or deceptive conduct? Explain your answer by reference to relevant legislation and case law.  (8 marks) Further, discuss the consequences if a breach is found. (2 mark)

2. After five years Maggie decides to sell her car, so advertises it on Highspace, an online selling platform. She says it is a very fuel-efficient car as she averaged 20km per litre of fuel from it. Geoff bought the car thinking that the car was an efficient car. He later discovers that for a car to qualify as fuel-efficient, it must have an average of 6 litres per 100 kilometres distance, which translates to 17 kilometres per litre of fuel.

Has Maggie breached s 18 of the Australian Consumer Law? Fully explain your answer referring to relevant legislation and case law.

Answer rating: 100% (QA)

1 Misleading or Deceptive Conduct by Skose Ltd Skose Ltd advertised that purchasing their hybrid car ... View the full answer