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:
Correct Answer
B) Misleading or deceptive conduct by omission under the Australian Consumer Law
Deliberately withholding material information that would influence a client's decision constitutes misleading or deceptive conduct under Australian Consumer Law. The conduct creates a false impression by omission, which can be just as misleading as providing false information, and breaches the agent's duty to act in the client's best interests.
Why This Is the Correct Answer
By hiding a competing offer, the agent leads the vendor to accept a lower price believing it is the best available. That is misleading conduct by omission, and also a breach of the agent's duty to the vendor.
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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?
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In a situation where a real estate agent makes a representation about a property that is technically true but creates a misleading overall impression, this could still constitute a breach of the Australian Consumer Law because: