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Consumer ProtectionMisleading ConductMEDIUM

Sarah is selling her home and the agent tells potential buyers that the property is in a 'quiet residential area' when it's actually located next to a busy highway. Under Australian Consumer Law, this scenario represents:

Correct Answer

B) Misleading or deceptive conduct that could result in penalties and claims

This constitutes misleading or deceptive conduct under the Australian Consumer Law because the statement about being in a 'quiet residential area' is factually incorrect and likely to influence purchasing decisions. The proximity to a busy highway is material information that affects the property's value and amenity.

Answer Options
A
Acceptable puffery, since 'quiet' is a matter of opinion for buyers to judge
B
Misleading or deceptive conduct that could result in penalties and claims
C
A breach of the agency agreement between agent and vendor
D
A licensing matter for the agent only, with no consumer law consequence

Why This Is the Correct Answer

Calling a property beside a busy highway 'quiet' is a false statement about its surroundings. It is misleading under the ACL and can lead to penalties and compensation claims.

Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

Australian Consumer Lawmisleading conductdeceptive conductmaterial misrepresentationconsumer protection
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