Legal Problem

Aliceis the Manager of Country Fresh Eggs Pty Ltd.Country Fresh Eggsis a supplier of eggs to Adelaide supermarkets. This small family business is located in the Adelaide Hills and prides itself on the free-range conditions provided for the egg-laying hens. Their hens are able to move about freely within the fenced chicken field every day during the hours of 6am and 9pm. Given the hours the egg-laying hens spend outside of their cages at Country Fresh Eggs, the company can refer to their eggs as being 'free-range' as per the relevant national Industry Code.

Alice is very concerned about the conduct of acompetitoregg supplier -Eggcellent Eggs PtyLtd. Eggcellent Eggs is a Victorian company based in Melbourne which supplies eggs to various supermarkets in Melbourne and Adelaide. Eggcellent Eggs have printed the following statements on their egg cartons: 'Eggcellent Eggs hens roam outdoors' and 'Eggcellent Eggs are thebest eggs you will ever eat'.Alice thinksthat the label which indicates that Eggcellent Eggs hens 'roam outdoors'misleads customers into thinking that the eggs are produced in free-range conditions. She knows that Eggcellent Eggsonly allowtheir hens to move about freely to lay eggson Saturdays and Sundays.Thisdoes not meet national Industry Code requirements for free-range conditions. Alice also thinks that theyhave lied about Eggcellent Eggs being 'the best'.

Alice is very concerned that Country Fresh Eggsare placed at a disadvantage in the market by the representations made by Eggcellent Eggs. Sheinforms Eggcellent Eggs that they may be in breach of s 18of the Australian Consumer Law (ACL). Eggcellent Eggs states 'we are not in breach of s 18 of the ACL as our egg-laying hens enjoy walking freely outside of their cages every weekend'.

Using IRAC method, answer the following question which represents the 'Issue':

Do Country Fresh Eggs have a legitimate claim against Eggcellent Eggs for breaching s 18 of the Australian Consumer Law?