Ingrid manages WineStores Australia Corp, a chain of bottle shops with franchises around Australia. One of the franchises, Middleton WineStore, is owned by Valentine.

Ingrid's husband Phil wants to take over the franchise owned by Valentine. Phil approaches Valentine about possibly purchasing the Middleton WineStore, but Valentine she says she loves the store, she runs it for her own enjoyment, and she is not interested in selling. Phil tells Ingrid that Valentine won't sell. Ingrid could provide notice to Valentine to terminate the contract. But doing so will take 12 months, and Phil doesn't want to wait that long.

Ingrid sends an email to Valentine, but makes it look like she has sent it to all the WineStore franchisees. It says that a sponsorship deal has been created with Chef Jones, a popular celebrity chef, in relation to a select range of wines. As a result, Valentine creates a store display, with a large picture of Chef Jones and a sign stating 'Chef Jones' favourite wine!'. In fact, Chef Jones had never officially endorsed this or any other WineStore product, as there is no sponsorship deal.

Ingrid sends an anonymous note to Chef Jones telling him about the sign in Valentine's store. As a result, Chef Jones plans to take Valentine to court. Under the contract between WineStores Australia Corp and Middleton WineStore, if any franchisee is found guilty of a violation of the Australian Consumer Law, their franchise agreement can be terminated with only one month's notice.

 

1.Is Ingrid/WineStores Australia Corp guilty of misleading or deceptive conduct under section 18 of the Australian Consumer Law?

 

2. Has Valentine/Middleton WineStore engaged in misleading or deceptive conduct as prohibited under section 18 of the Australian Consumer Law?

 

3.Has Ingrid/WineStores Australia Corp engaged in unconscionable conduct under the Australian Consumer Law?

 

4.Does section 23 of the Australian Consumer Law render the term in the franchise agreement void?

 

5.Have Valentine/Middleton WineStore contravened any other sections of the ACL?