Question
Referencing Wherever possible, relevant authorities (such as cases and/or legislation) should be included as part of your answers and referred to in support of your
Referencing
Wherever possible, relevant authorities (such as cases and/or legislation) should be included as part of
your answers and referred to in support of your statements and assertions. Appropriate referencing of
such authorities in your answer can contribute to the marks you receive for a question.
1
LAWS 1018 Business Law Assignment April 2021
Your written work should use the referencing styles set out in the Harvard Referencing Guide - user
friendly or the Australian Guide to Legal Citation, published by the Melbourne University Law Review
Association (for which there is a link on the Business Law Moodle course site). These are listed on the
Portal for Business Law.
Instructions
Read the following factual accounts and answer ALL of the questions with reference to the
principles of law covered in the following lectures:
Topic 6: Australian Consumer Law
Topic 7(1): Contract Law - Part 1
Question 1
Chan owns a popular Chinese restaurant called the Jade Palace located in a busy shopping area in
Adelaide. There are also some other competing Chinese restaurants in the same street. Chan's
restaurant had been operating for 12 months, and to attract more customers to his restaurant he
recently placed a large sign in the window of his restaurant advertising his food as follows:
Adelaide's Best Traditional Chinese Food
All Made with Locally Sourced Ingredients.
Lee, the proprietor of the Chinese restaurant called the Silver Dragon in the same street as the
Jade Palace, believes that Chan's sign contains inaccurate information, particularly where it
states 'locally sourced ingredients'. Lee says it was not possible to obtain many of the traditional
ingredients used in Chinese food from local sources. For example, many of the sauces and spices
are often imported. Also many dried foods such as mushrooms, prawns and other seafoods
cannot be obtained locally because there is no industry in Adelaide that makes them there.
Near Chan's restaurant is a wholesale business called "All Chinese Imports". Lee knows that Chan
often obtains many of the ingredients that he uses in his Chinese food from All Chinese Imports.
However, whenever possible, Chan also buys the vegetables he uses in the restaurant from local
growers. As far as Chan is concerned, if he tries to buy his vegetables from local growers he is
supporting local industry and therefore entitled to use the words 'locally sourced ingredients' in
his advertising.
2LAWS 1018 Business Law Assignment April 2021
3
Lee is threatening to report Chan to the 'consumer complaints watchdog' since he believes that
Chan's sign is false, and that Chan is trying to deceive members of the public and so is breaching
the Australian Consumer Law (ACL).
(1) Explain whether Lee and his Silver Dragon restaurant are entitled to take an action against
Chan and his Jade Palace restaurant for misleading or deceptive conduct.
[1 mark]
(2) In support of Lee's argument that Chan has engaged in misleading or deceptive conduct refer
to the specific wording of section 18 of the ACL and apply it to the actions of Chan and the Jade
Palace.
[3 marks]
(3)
With reference to the legal principles outlined by the Federal Court in Taco Company of
Australia v Taco Bell Pty Ltd [1982] ATPR 40-303 discuss whether or not Lee is correct in claiming
that Chan's advertisement is in breach of the ACL.
[2 marks]
(4)
If Lee succeeds in any legal action against Chan, what remedy or remedies will he seek?
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