An agent advertises a property as 'walking distance to the beach' when it is actually 2.5 kilometers away. A consumer could potentially claim this as misleading conduct because:
Correct Answer
B) It could mislead a reasonable consumer about how close the beach really is
Under the Australian Consumer Law, conduct is misleading if it could mislead a reasonable consumer. The test is whether an ordinary consumer might be misled about the actual walking distance to amenities, not whether there are specific distance thresholds.
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An agency's trust account is found to be short $15,000 during an audit, with no clear explanation for the discrepancy. Which of the following represents the most serious potential consequence for the licensed agent in charge?
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An agent advertises a property as 'walking distance to the beach' when it requires a 45-minute walk. A buyer purchases based on this representation and later discovers the actual distance. Which legal principle under Australian Consumer Law would most likely apply?