In a complex commercial property transaction, an agent provides a feasibility study that contains optimistic projections they know are based on unrealistic assumptions. The buyer relies on this information and suffers significant losses. Which aspect of Australian Consumer Law is most relevant?
Correct Answer
A) Misleading or deceptive conduct provisions, which apply between businesses too
The misleading or deceptive conduct provisions of the ACL apply to both consumer and business-to-business transactions. Providing information known to be based on unrealistic assumptions, when the recipient is likely to rely on it, constitutes misleading conduct regardless of whether the buyer is a consumer or business entity.
Why This Is the Correct Answer
Section 18 applies to any person in trade or commerce, so it protects business buyers as well as consumers. Supplying projections known to rest on unrealistic assumptions is misleading conduct.
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If a consumer has a complaint about a real estate agent's conduct, what is typically the first step they should take?
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In a complex misleading conduct case involving property investment advice, which of the following factors would be most relevant in determining liability under Section 18 of the Australian Consumer Law?