CONSUMER PROTECTION

Question 5 (10 marks)

RR Jimmys (RRJ) has been in the recycling business for just over twenty years and is one of the leading recycling businesses in Australia, specializing in green waste recycling. RRJ has contracts with a very large number of small businesses across the country. RRJ's standard form contracts (in very complex language) provide terms with the following effect:

• automatic renewal clause, binding customers to subsequent contracts unless they cancel the contract within 14 days before the preceding contract;
• allowing RRJ to increase its prices without notice;
• allowing RRJ to sue for any breach but limiting the right for its business customers to sue;
• granting RRJ exclusive rights to remove recycling from a customer's premises.

Taylors Gardening Ltd is a small business that has been engaging the services of RRJs for several years but recently when the contract with RRJs was renewed, the significant price increase became unaffordable for Taylors. Taylors is now desperate to avoid the contract. Imagine that you work for the ACCC.

Advise Taylors.

Please use statutory provisions and/or cases to support your answer.

Use IRAC format.