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Millaneu signs a contract with Lectricitee, a new electricity supply company that supplies electricity to homes and apartments in Melbourne. Millaneu was very attracted to

Millaneu signs a contract with Lectricitee, a new electricity supply company that supplies electricity to homes and apartments in Melbourne. Millaneu was very attracted to Lectricitee's discount offer that gave students enrolled in a university 20% discount on their home electricity bill. Customers of Lectricitee signed up for an electricity account via the Lectricitee website. After entering his personal details, such as name and address, Millaneu was directed to the 'Lectricitee Terms and Conditions' web page and was required to tick a box at the bottom of the page to say that he had read and agreed to the terms and conditions. The terms and conditions include the following:

Clause 7. Lectricitee has the right to vary the discount given to any customer at any time.

Clause 15. Lectricitee has the right to vary the price of electricity supply at any time at its discretion by giving 24 hours' notice.

Clause 26.

If the customer wishes to terminate this contract for any reason

including any breach of contract by Lectricitee the customer must first give 12 months' notice that the customer intends to terminate the contract.

clause 29. LectrIcItee can terminate the contract WIth tne customer for any reason immediately at its discretion.

Lectricitee gave notice to all customers that:

  • electricity prices were to rise by 30% in 24 hours, and university student discounts would cease in 24 hours.
  • Millaneu is very unhappy with these changes and seeks your advice about the following issues:

  1. Is Millaneu a consumer for the purposes of the unfair contract terms rules under the Australian Consumer Law?
  2. a. Is the contract between Millaneu and Lectricitee a standard form contract
  3. a. Would a court regard the clauses above in the contract between Millaneu and Lectricitee unfair under the Australian Consumer Law? Explain why and include section numbers in your explanation.

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