To promote the integrity of its welding machines, PowerMachines Pty Ltd intends advertising that its machines have been endorsed and approved for use by the State Electricity Commission. In fact, they have not. The company believes sales will take off once the advertising has commenced, but unfortunately their senior technical engineer, who can answer the expected inquiries, is going on leave. The company advertised the position in the Canberra Times and Lorraine applied for the job. The job advertisement stated that the position was "permanent" and "ongoing" when in fact it was a maternity leave position available for 12 months only. Lorraine quit her current job after receiving the job offer and is now distressed that the position is not permanent.

Advise PowerMachines Pty Ltd and its directors under Australian Consumer Law, as to their likely liability for all the above advertising activities.