Can you restrict your opinion about the question?

with discussions of the Australian Consumer Law and associated case law.

Q1. Heath and Jill are looking to move interstate as Heath has accepted a new job. Owing to the inability to take large appliances on their journey, Heath and Jill decide that they will purchase a full suite of electrical appliances and then have them shipped to their new address. Heath, easily amused by catchy tunes on television commercials, remembers Narvey Horman Ltd is a market leader for electrical appliances. He also recalls seeing the owner and CEO, Perry Narvey on television being a caring person, and thinks Perry is trustworthy.

Jill and Heath step into their local Narvey Horman store and set about purchasing a microwave, toaster, fridge, and washing machine ('the electrical appliances'). Jill purchases a Narvey Horman branded toaster. She notes the sale price of $100, and that the pricing ticket shows a saving of $50. Heath thinks this is strange as he has seen similar models sell for between $90-110 at various outlets and even saw the same toaster being sold at full price for $100 at Narvey Horman 6 months ago. However, Jill is happy, so Heath says nothing. Jill was set on purchasing a particular fridge, noting the good reviews online, but instead Heath persuades Jill to buy a Terminator T800 fridge, noting that it is made in Australia and endorsed by famous Australian sportsperson, Park Taylor. Heath and Jill select their other appliances without incident and proceed to the counter.

Heath and Jill are interested in Narvey Horman's '6000 month interest free loan' offer on electrical appliances and ask about their eligibility. To Heath and Jill's dismay, the couple find out they are ineligible due to their temporary lack of income and therefore will need someone to provide a guarantee. Heath calls his parents, Peter and Daphne, to see if they would be willing to guarantee the loan provided. Being good parents, Peter and Daphne agree. Heath and Jill sign some paperwork on the day, but the transaction to purchase the electrical appliances will not be finalised until the guarantee is signed.

The following week, Peter and Daphne visit their local Narvey Horman store to speak to the finance department. Even though the couple have lived in Australia for more than sixty years, the couple still speak only basic English and with Peter now aged 81 and Daphne, 78, they have difficulty with memory and following conversations. Because the couple are entering into a relatively small loan guarantee, the finance representative at Narvey Horman provides only a basic explanation of the terms and hands over the documents to be signed. Daphne reads over the document and seems a bit confused. Daphne asks the representative if the reference to $5,000 (i.e the cost price of the goods and initial loan amount) is the maximum amount they are guaranteeing. Peter interjects and says 'of course that's what it means'. The finance representative hears the question, but as Peter has already answered, the representative says nothing further. As it turns out, the guarantee is for $5,000 plus any fees accruing over the lifetime of the loan. The couple also ask whether they should speak to a lawyer, but the finance representative is pushy, noting that it would be difficult to deliver the electrical appliances to Heath and Jill by their preferred delivery date unless the guarantee is signed today.

All is well for the first six months. However, the monthly repayments increase significantly after the first six months, and when Heath refers back to the documents that he signed, he notices that in very small font, a reference to additional interest charges and fees that he didn't see before he signed the documents. He thought that the loan was "interest free", as advertised. He remembers commenting to the staff member at the time of purchase that he was "very impressed by the interest free loan", and the employee said nothing to correct him.

With the increase in the monthly repayments, the couple can no longer afford the repayments and default on the loan. Narvey Horman's finance arm sends a letter to Heath's parents stating they will enforce the guarantee that they signed. After calculating all the fees payable over the lifetime of the loan, Peter and Daphne are liable for a $25,000 payment, something they cannot afford and could cost them their home. Heath, Jill, Peter, and Daphne are irate and report Narvey Horman's behaviour to the ACCC. They are also considering suing Narvey Horman. Advise Heath & Jill, Peter & Daphne as to what actions they may take, or that the ACCC might take on their behalf.