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Consumer ProtectionMisleading ConductMEDIUM

An agent advertises a property as 'waterfront' when it is actually 200 metres from the water with no water views. A buyer purchases based on this advertisement. What is the most likely outcome under Australian Consumer Law?

Correct Answer

A) The buyer may seek compensation for loss caused by the misleading claim

Describing a property as 'waterfront' when it lacks direct water access or views constitutes misleading conduct under the ACL. The buyer may seek remedies including compensation for any loss suffered due to relying on the false representation.

Answer Options
A
The buyer may seek compensation for loss caused by the misleading claim
B
No legal consequence, because buyers are expected to inspect before buying
C
A warning from the regulator, which is the main remedy for such claims
D
The sale contract becomes void automatically once the error is discovered

Why This Is the Correct Answer

A 'waterfront' claim for a property 200 metres from the water is misleading. A buyer who relied on it and suffered loss can seek compensation under the ACL.

Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

misleading conductAustralian Consumer LawSection 18waterfrontcompensation
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