Question 2

Scenario 1
a) Air BnB has a policy which relates to “Host cancellation.” Stating that they either allow a
refund or find a similar place to stay for the consumer.
“Every booking comes with Aircover for guests. If there’s a serious issue with your Airbnb
that your Host can't resolve, we’ll help you find a similar place, depending on availability at
comparable pricing.” (Airbnb, n.d.)
This may not always serve the best interests of the consumer as a ‘similar place to stay’ is not
confirmed. So, they might have to postpone or even cancel the trip.
In my opinion, Air BnB as a business has a satisfactory approach to this is in terms of
customer service.

b) According to research, we can state that “Business conduct is likely to breach the law if it
creates a misleading overall impression among the audience about (for example) the price,
value or quality of consumer goods or services.” (Commission, 2016)
In this case, the consumer has been misled and been provided false information. The supplier
was deceptive towards the consumer. Therefore, it was a breach of Australian Consumer Law
(Section 18).
Example: In another case of misleading conduct, Coles received a penalty for $2.5 Million
and corrective advertising. Therefore, the consumer in this case is also entitled to the remedy.
(Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty
Limited [2015] FCA 330)
According to the law, remedies in misleading conduct include in court-ordered civil remedies,
injunctions, compensation orders and even disqualification orders.

Scenario 2
c) According to Privity of Contract “only parties to a contract will have rights or obligations
under that contract.” (ACL)

Inference:
 A contract between A and B cannot impose obligations on C.
 A contract between A and B cannot be enforced by C, even if the contract is intended to
benefit C. (Commission, 2016)
Possibilities:
 Contract included only entry to concert Can not sue
Contract included entry and seat Can sue

Therefore, considering contract included both the seat and entry, only two parties are included in the
ticket sale. The buyer and the scalper. So according to privity of contract, only the scalper who sold
the ticket can be sued.

Scenario 3
d) Trademarks are a type of Intellectual Property and come under Intellectual Property Law
which ensures that no competitors can take advantage of the products or services that they
have invested time and resources into developing.
“Trademarks can be registered for corporate logos and product packaging, pictures, jingles,
and even smells (!) that you choose to associate with your business.” (ICL, n.d.)
Therefore, the sale of unauthorized merchandise by the seller is a breach of ‘Taylor Swift’
trademark. The condition for the license agreement signed states that “they will not sell any
unauthorized merchandise”.

e) According to “Australian Consumer Law (2016)” “It is unlawful for a business to make false
or misleading representations about goods or services when supplying, offering to supply, or
promoting those goods or services.”
In this case, the seller is using misleading representations about the products. Therefore, the
sale of both products is in breach of the Australian Consumer Law.

Scenario 4

f) According to “Australian Consumer Law (2016)” “It is unlawful for a business to make false
or misleading representations about goods or services when supplying, offering to supply, or
promoting those goods or services.”
In this case, the seller is using misleading representations about the products by stating that
the product is “Sun safe” whereas the truth is that it is not. The child gets sunburnt arms
within two hours. Therefore, the merchandise seller is in breach of the Australian Consumer
Law (ACL)

Question 3
a) Customers and Competitors

Local community and businesses