A real estate agent advertises a property as 'walking distance to the beach' when it is actually a 45-minute walk. A buyer purchases based on this representation. What remedy might be available under Australian Consumer Law?
Correct Answer
B) Orders to rescind the contract, and damages for loss caused by the conduct
Misleading conduct that induces a purchase can result in rescission (cancellation) of the contract and compensation for reasonably foreseeable losses under Australian Consumer Law. The misrepresentation about proximity to amenities could materially affect the buyer's decision.
Why This Is the Correct Answer
Where misleading conduct induced a contract, the ACL lets a court undo or vary the contract (sections 237 and 243) and award damages for loss caused by the conduct (section 236).
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