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?
Correct Answer
B) Whether a reasonable consumer in the circumstances would likely be misled
Under Section 18 of the Australian Consumer Law, the test for misleading or deceptive conduct is objective - whether the conduct would likely mislead a reasonable consumer in the circumstances. Intent to deceive, actual reliance, and financial loss are not required elements, making this a strict liability provision focused on the likelihood of deception.
Why This Is the Correct Answer
Section 18 uses an objective test: would the conduct be likely to mislead or deceive ordinary members of the relevant audience in the circumstances? Intent, reliance and loss are not required for a contravention.
Why the Other Options Are Wrong
Deep Analysis of This Consumer Protection Question
Background Knowledge for Consumer Protection
Memory Technique
Exam Tip for Consumer Protection
Real World Application in Consumer Protection
Common Mistakes to Avoid on Consumer Protection Questions
Related Topics & Key Terms
Key Terms:
More Consumer Protection Questions
Which authority would typically handle a consumer complaint about misleading advertising by a real estate agent in NSW?
A NSW vendor accepted Priya's offer verbally, and Priya paid an expression of interest deposit and a building and pest report. Before exchange, the vendor signed with another buyer at a higher price. What can Priya recover?
While listing a home, the agent learns that three years ago it was the scene of a manslaughter. The vendor asks the agent not to mention it to buyers unless they ask. What must the agent do?
A property manager is choosing between rental applicants. Which reason for declining an applicant is lawful under NSW anti-discrimination rules?
A property manager scans and stores a colour copy of every rental applicant's passport and driver licence 'just in case'. What does the Fair Trading Commissioner's guidance recommend?
- → A vendor's solicitor adds a special condition saying the purchaser cannot claim damages for any misrepresentation about the land. How effective is that clause in NSW?
- → A landlord tells his property manager to reject every applicant who is pregnant or has young children. The manager says she is only following instructions. What is her legal position?
- → An agent's brochure for a Penrith unit says 'This unit will double in value within five years'. The agent has no data behind the claim. How is the statement treated?
- → A NSW agent's listing for a Wollongong house highlights 'quiet street', but leaves out that a freight rail line runs behind the back fence, which the photos crop out. How is this assessed?
- → The Australian Consumer Law (ACL), as applied in Queensland, prohibits real estate agents from engaging in:
- → In Queensland, which government body handles consumer complaints about real estate agents?
- → A Queensland real estate agent tells a buyer that a property has been 'fully renovated' when the agent knows the plumbing and electrical work was not completed by licensed tradespeople. This is an example of:
- → Under Queensland law, the cooling-off period for residential property purchases serves to protect consumers by:
- → Under Queensland consumer protection law, 'unconscionable conduct' by a real estate agent may include:
- → A Queensland agent advertises a property at a price well below what the seller has said they will accept, to draw in more buyers. Under consumer protection law, this practice:
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Related Study Resources
Previous Question
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?
Next Question
In a real estate transaction, an agent deliberately withholds information about a competing offer that would have influenced the vendor's decision to accept a lower offer from the agent's preferred buyer. This conduct is most likely to be characterized as: