Unit activities

Activity 11.1

What is unconscionable conduct (refer to the Act)

Activity 11.2
What is false or misleading representation (refer to the Act)

Activity 11.3
Green Luv is a medium sized nursery, run by two partners. Nearly three years ago, it entered into
a 36 month contract to supply Big B Ltd, a major supermarket, with large quantities of plants for
above-average wholesale prices. Before entering into the contract, the partners told Big B that the
deal meant they would have to close down their retail operation and become totally dependent on
the supermarket. Big B’s representative advised them in writing that Big B would make every
effort to renew the contract in 3 years for a similar price. Big B says it is happy with Green Luv’s
products but it will only renew the contract if Green Luv reduces its prices by 40%. Big B will
not negotiate with the partners. Is Green Luv likely to succeed against Big B under consumer
protection legislation?

The sales manager at John’s Pre-loved Cars Pty Ltd advertises a 2010 Toyota Camry in excellent
condition for $10 000. The advertisement also includes the statement that a number of good
quality cars from 2003 to 2007 are being sold for prices ranging from $8000 to $16000. In fact,
the camry that is advertised at $10,000 requires considerable body repairs and a complete paint
job, and the next car available in this range is selling for $14000.

a. Name and briefly explain what FCC Act provisions have been breached.
b. Who has the right to take legal action over these breaches?
c. What penalties, remedies and enforcement procedures are available?