Client Information

Brett, Daniel and Cathy are about to start up a retail business called 'Future -Trons' (FT) selling electronic products both from a retail store and online. They have all worked in the electronics industry for some time, but have never run their own business before and have come to your firm seeking financial and business advice to facilitate their success and ensure that they comply with any necessary legal requirements.

Requirements

Your supervisor has asked you to draft responses to the following matters, in preparation for a report to be presented to FT. In your report ensure that you identify the relevant legislation and the relevant sections of that legislation.

1. Brett, Daniel and Cathy have noted that during their employment in the retail industry they have had to comply with various consumer laws, but as traders and employers, they will now bear prime responsibility for compliance. They have the following queries.
   1. Who must comply with the Australian Consumer Law? What regulatory body are they answerable to?
   2. Who is protected by the Consumer Guarantees under the Australian Consumer Law (ACL)? In your answer identify who is not protected.
   3. Would FT be complying with the ACL if it exhibits signs at point of sale and on its website which state 'Choose carefully, we do not refund or exchange'? Explain your answer identifying relevant sections of the legislation, if any.
   4. Would FT be complying with the ACL if a customer ordered goods after seeing them displayed on the FT website, but the goods provided were a little different than those displayed, (e.g. a different model or size)? Explain your answer identifying relevant sections of the legislation, if any.
   5. Cathy is very impressed by a famous singer and thinks it would be good for business if customers thought there was an association between FT and the singer. So far, the singer has not replied to any of Cathy's emails and so she has decided she will simply add pictures of the singer to promotional material for FT, and a testimonial supposedly by the singer to the FT website. Would this conduct comply with the ACL? Explain your answer identifying relevant sections of the legislation, if any.
   6. Can the manufacturer of a product refuse to supply FT if they charge less than the recommended retail price? Explain your answer identifying relevant sections of the legislation, if any.
   7. Can FT join together with other retail suppliers of electronic goods and agree to supply goods to consumers for no less than a certain price? Explain your answer identifying relevant sections of the legislation, if any.
   8. Brett is concerned that as FT, in dealing with its customers via electronic communications, will have some transactions that will not be considered valid. Identify for Brett the key requirements to form a valid electronic contract. In your answer consider the Electronic Transactions Act 1999 (Cwlth).