2 (15 marks) Adam was recently made redundant by his employer due to a restructuring at his workplace. Given he is almost 45 years old, he decided to use the severance payment to invest in a house. He approached Jacob, a partner of KG Consultants, a firm specialising in commercial and home loans. Adam has never been good with numbers and had real difficulties managing his finances in the past. Jacob encouraged Adam to 'go bigger' even though Adam indicated his preference for a 'small house' so that he could manage monthly payments without a problem. KG Consultants arranged for Adam to take out a loan for $1 million on the condition that Adam mortgaged his house. Jacob did not bother to check whether Adam could make the mortgage repayments even though Adam informed him about his recent loss of employment. The loans to Adam were offered at interest rates of 20% p.a. In comparison, the standard industry rate was only 15% p.a. When one of Jacobs' associates questioned him about the higher interest rate, Jacob laughed and said, 'Adam is clueless ... He is completely lost and nave. We can put whatever numbers we like.' Jacob did not inform Adam of the risks of signing a contract like this and asked Adam to sign the contract as soon as possible if he wanted to secure the deal. Jacob also insisted that Adam signs a certificate confirming that he had received independent legal and financial advice even though he was never given a chance to get such advice. Adam was able to pay two instalments, and after that, he defaulted on his payment. KG Consultants claimed his house to pay the mortgage. Answer the following questions. 1. Does KG Consultants' conduct fall within the unconscionable conduct provisions of the ACL? Explain your answer with reference to relevant case law/statutory provisions. (8 marks) 2. Assume the answer to the above question is 'Yes', what remedies will be available to Adam? (4 marks) 3. List three things that KG Consultants could have done to avoid engaging in unconscionable conduct