Part C: Consumer Protection Law question(10 marks)

Read the questions below on Consumer Law.

In 400 words (+/- 10% is allowed), answer the chosen given question.

A minimum of 3 genuine and relevant Australian legal references are required for this part of the report. Examples of relevant references for this question include theAustralian Consumer Law(Schedule 2 of theCompetition and Consumer Act 2010[Cth]); Australian Government consumer websites such aswww.consumer.gov.auandwww.ACCC.gov.au) and Australian commercial law textbooks.

The full citations for all sources cited in your answer must be listed in a Reference list at the end of your report.

In addition, any online sources cited in your answer and listed in your Reference List must include a valid hyperlink that allows access to the full text of the source.

Carefully read the following news article:

ACCC takes Harvey Norman franchisees to court

ABC Updated November 21, 2012, 8:51 am

The competition watchdog is taking 11 Harvey Norman franchisees to the Federal Court for allegedly misrepresenting consumer rights.

The ACCC alleges the franchisees of the stores misled and deceived customers by making false claims about warranties and refunds.

As part of the action, the ACCC is seeking penalties, declarations, injunctions and costs.

It is part of the commission's campaign on consumer guarantees and it says it is investigating other large companies for similar breaches.

ACCC chairman Rod Sims said in a statement that consumers had the right to certain remedies when goods were not of acceptable quality or fit for the purpose for which they were sold.

"These rights cannot be excluded, restricted or modified," he said.

"For example, if an item purchased breaks down within a short time of being purchased, the consumer may be entitled to a refund or a replacement item."

The ACCC says in some cases the franchisees said they had no obligation to provide remedies unless the store was notified within a specific period of time on particular items such as large appliances or items priced below a certain amount, or if the goods were still covered by the manufacturer's warranty.

The ACCC also alleges some consumers were told they must pay a fee for the repair and return of faulty products.

The Harvey Norman franchisees that are being taken to court are: Avitalb Pty Limited, located in Albany, Western Australia Bunavit Pty Limited, located in Bundall, Queensland Camavit Pty Limited, located in Campbelltown, New South Wales Gordon Superstore Pty Limited, located in Gordon, New South Wales HP Superstore Pty Limited, located in Hoppers Crossing, Victoria Ipavit Pty Limited, located in Ipswich, Queensland Launceston Superstore Pty Limited, located in Launceston, Tasmania Mandurvit Pty Limited, located in Mandurah, Western Australia Moonah Superstore Pty Limited, located in Moonah, Tasmania Oxteha Pty Limited, located in Oxley, Queensland, and Salecomp Pty Limited, located in Sale, Victoria.

Your group have been asked by Mr Sims to prepare a report that the ACCC can take against the Harvey Norman Franchisees.

In your report, you must provide the following:

- The relevant section/s of theCompetition and Consumer Act (Cth) 2010;

- The relevant case laws that can be referred to in support of arguing the matter at the Federal Court of Australia;

- What are the maximum penalties that the court can award against the Harvey Norman Franchisees?