Question 1

How and why has the common law of misrepresentation been largely superseded by consumer protection legislation such as the Competition & Consumer Act (2010)(Cth)?

Accepted Answer

The common law of misrepresentation has been largely superseded by consumer protection legislation such as the Competition & Consumer Act (2010)(Cth) for several reasons.

Firstly, consumer protection legislation provides a more comprehensive and standardized framework for addressing misrepresentation in consumer transactions. The common law of misrepresentation relied on judicial decisions and precedent, which could lead to inconsistencies and uncertainty in the application of the law. In contrast, consumer protection legislation sets out clear and specific rules and regulations that govern misrepresentation, providing consumers with greater certainty and protection.

Secondly, consumer protection legislation is designed to address the power imbalance between consumers and businesses. The Competition & Consumer Act (2010)(Cth) includes provisions that prohibit misleading and deceptive conduct, false representations, and unfair contract terms, all of which are aimed at protecting consumers from being misled or exploited by businesses. These provisions reflect a recognition of the need to regulate and protect consumers in a way that the common law of misrepresentation did not adequately address.

Additionally, consumer protection legislation often provides more effective remedies for consumers who have been affected by misrepresentation. The Competition & Consumer Act (2010)(Cth) allows for a range of remedies, including damages, rescission of contracts, and injunctions, which may not have been readily available under the common law of misrepresentation.

Overall, the common law of misrepresentation has been largely superseded by consumer protection legislation because it provides a more comprehensive, standardized, and consumer-focused framework for addressing misrepresentation in consumer transactions. This shift reflects a recognition of the need to regulate and protect consumers in a more effective and consistent manner.

Question 2

Which of the following statements is the best description of 'duress'?

Accepted Answer

A) The improper use of fraudulent information. 
B) The improper use of a position of influence or power to induce a contract. 
C) The improper use of a superior bargaining position to induce a contract. 
D) The improper use of violence or of threats of violence to induce a contract. 
A) The improper use of fraudulent information. 
B) The improper use of a position of influence or power to induce a contract. 
C) The improper use of a superior bargaining position to induce a contract. 
D) The improper use of violence or of threats of violence to induce a contract. D

Question 3

Which of the following situations appears to involve 'unconscionability'?

Accepted Answer

A) A woman gave all of her property to the religious order of which she was a member. 
B) A man induced another to sign a contract by telling him that if he did not,he would report his son to the police for committing a criminal offence. 
C) A property developer promised their accountant a share in a business venture in return for a reduction in their bill. 
D) An elderly Italian couple sign a mortgage in favour of a bank guaranteeing their son's debts;the bank manager knows the couple are unaware of the son's financial difficulties. 
A) A woman gave all of her property to the religious order of which she was a member. 
B) A man induced another to sign a contract by telling him that if he did not,he would report his son to the police for committing a criminal offence. 
C) A property developer promised their accountant a share in a business venture in return for a reduction in their bill. 
D) An elderly Italian couple sign a mortgage in favour of a bank guaranteeing their son's debts;the bank manager knows the couple are unaware of the son's financial difficulties. D

Question 4

Which of the following situations will NOT give rise to a successful claim of unconscionability?

Accepted Answer

A) The language of the transaction was complex. 
B) The plaintiff sought independent expert advice. 
C) The plaintiff was elderly. 
D) The plaintiff was illiterate. 
A) The language of the transaction was complex. 
B) The plaintiff sought independent expert advice. 
C) The plaintiff was elderly. 
D) The plaintiff was illiterate.

Question 5

A contract can be rendered void solely by a mistake of law.

Accepted Answer

A) True 
 B)False

Question 6

A misrepresentation is a false statement of fact or opinion.

Accepted Answer

A) True 
 B)False

Question 7

Under the Australian Consumer Law,unconscionability is the same as misleading and deceptive conduct.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is the best description of 'common mistake'?

Accepted Answer

A) Both parties have made the same mistake about the existence or identity of the subject matter of the contract. 
B) One of the parties is mistaken as to the nature of the document which they have signed. 
C) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
D) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake. 
A) Both parties have made the same mistake about the existence or identity of the subject matter of the contract. 
B) One of the parties is mistaken as to the nature of the document which they have signed. 
C) Both parties are mistaken about a material fact that is important to the subject matter of the contract. 
D) One of the parties is mistaken about a material fact regarding the subject matter of the contract,and the other party takes advantage of this mistake.

Question 9

A contract induced by fraud is void.

Accepted Answer

A) True 
 B)False

Question 10

In which of the following cases was the plaintiff able to establish mistake so that the contract was found to be void?

Accepted Answer

A) Leaf v International Galleries [1950] 2 KB 86. 
B) McRae v Commonwealth Disposals Commission (1951)84 CLR 377. 
C) Lewis v Avery [1972] 1 QB 198. 
D) Cundy v Lindsay [1878] 3 App Cas 459. 
A) Leaf v International Galleries [1950] 2 KB 86. 
B) McRae v Commonwealth Disposals Commission (1951)84 CLR 377. 
C) Lewis v Avery [1972] 1 QB 198. 
D) Cundy v Lindsay [1878] 3 App Cas 459.

Question 11

Explain the difference between innocent and fraudulent misrepresentation.

Accepted Answer

An innocent misrepresentation is a misst

Question 12

Which of the following statements is the best description of 'undue influence'?

Accepted Answer

A) The improper use of a position of influence or power to induce a contract. 
B) The improper use of a superior bargaining position to induce a contract. 
C) The improper use of violence or of threats of violence to induce a contract. 
D) The improper use of fraudulent information. 
A) The improper use of a position of influence or power to induce a contract. 
B) The improper use of a superior bargaining position to induce a contract. 
C) The improper use of violence or of threats of violence to induce a contract. 
D) The improper use of fraudulent information.

Question 13

Why was the plaintiff in Allcard v Skinner (1887)36 Ch D 145 unsuccessful?

Accepted Answer

A) She could not establish duress. 
B) She could not prove unconscionability. 
C) She could not show that she was under undue influence when she gave away her money. 
D) She had lost the right to void the contract. 
A) She could not establish duress. 
B) She could not prove unconscionability. 
C) She could not show that she was under undue influence when she gave away her money. 
D) She had lost the right to void the contract.

Question 14

Which of the following statements is the best description of a 'fraudulent' misrepresentation?

Accepted Answer

A) Silence or non-disclosure about a fact which creates a false impression. 
B) A false statement of fact made with the belief that it is true,which the other person relies upon and suffers loss. 
C) A false statement of fact made knowingly,which the other person relies upon and suffers loss. 
D) A false statement of fact made carelessly,which the other person relies upon and suffers loss. 
A) Silence or non-disclosure about a fact which creates a false impression. 
B) A false statement of fact made with the belief that it is true,which the other person relies upon and suffers loss. 
C) A false statement of fact made knowingly,which the other person relies upon and suffers loss. 
D) A false statement of fact made carelessly,which the other person relies upon and suffers loss.

Question 15

Explain the difference between duress and undue influence.

Accepted Answer

Duress is the use of violence or illegal

Question 16

Where one of the parties is mistaken,and the other knows or ought to be aware of this,the contract may be void on the grounds of unilateral mistake.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following situations appears to involve non est factum?

Accepted Answer

A) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead. 
B) X purchased goods on credit from Y,believing Y to be Z and unaware that Y had purchased Z's business.Y was aware of X's mistake. 
C) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. 
D) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y. 
A) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead. 
B) X purchased goods on credit from Y,believing Y to be Z and unaware that Y had purchased Z's business.Y was aware of X's mistake. 
C) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. 
D) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y.

Question 18

Identify the scenario which qualifies as a 'common mistake'.

Accepted Answer

A) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead. 
B) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y. 
C) X purchased goods on credit from Y,believing Y to be Z.Y was aware of X's mistake. 
D) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship. 
A) A beneficiary and an insurance company negotiated a life insurance policy,both unaware that the subject of the life insurance policy was in fact already dead. 
B) X,who spoke little English,signed a document granting Y an option,believing it to be a receipt.This belief was encouraged by Y. 
C) X purchased goods on credit from Y,believing Y to be Z.Y was aware of X's mistake. 
D) Two parties agreed to send goods by a particular ship but there were two ships with that name and each party was thinking of a different ship.

Question 19

If there is no special relationship,a claim of undue influence will fail.

Accepted Answer

A) True 
 B)False

Question 20

The right of an innocent party to rescind may be lost if the parties cannot be substantially restored to their original positions.

Accepted Answer

A) True 
 B)False

Exam 11: Genuine Consent

How and why has the common law of misrepresentation been largely superseded by consumer protection legislation such as the Competition & Consumer Act (2010)(Cth)?

Which of the following statements is the best description of 'duress'?

Which of the following situations appears to involve 'unconscionability'?

Which of the following situations will NOT give rise to a successful claim of unconscionability?

A contract can be rendered void solely by a mistake of law.

A misrepresentation is a false statement of fact or opinion.

Under the Australian Consumer Law,unconscionability is the same as misleading and deceptive conduct.

Which of the following statements is the best description of 'common mistake'?

A contract induced by fraud is void.

In which of the following cases was the plaintiff able to establish mistake so that the contract was found to be void?

Explain the difference between innocent and fraudulent misrepresentation.

Which of the following statements is the best description of 'undue influence'?

Why was the plaintiff in Allcard v Skinner (1887)36 Ch D 145 unsuccessful?

Which of the following statements is the best description of a 'fraudulent' misrepresentation?

Explain the difference between duress and undue influence.

Where one of the parties is mistaken,and the other knows or ought to be aware of this,the contract may be void on the grounds of unilateral mistake.

Which of the following situations appears to involve non est factum?

Identify the scenario which qualifies as a 'common mistake'.

If there is no special relationship,a claim of undue influence will fail.

The right of an innocent party to rescind may be lost if the parties cannot be substantially restored to their original positions.

Legal Foundations

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Capacity of the Parties

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties,discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Introduction to Companies and Incorporated Associations

Agency

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goodsbusiness to Business

Property and Mortgages

Intellectual Property

Ethics and Business Practice

Criminal Law in a Business Context

Competition Law

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

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