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Consumer ProtectionAustralian Consumer LawHARD

Under the Australian Consumer Law, in which situation is a buyer's claim for damages against an agent for misleading conduct most likely to fail?

Correct Answer

C) The buyer would have gone ahead with the purchase regardless of the statement

A damages claim under section 236 of the ACL requires the buyer to prove the misleading conduct caused their loss. The burden is on the buyer, not the agent. If the buyer would have bought on the same terms anyway, the statement did not cause the loss and the claim fails.

Answer Options
A
The buyer should have done more of their own checking before buying
B
The misleading statement was made by a junior member of the agency's sales staff
C
The buyer would have gone ahead with the purchase regardless of the statement
D
Settlement of the purchase took place more than 30 days before the claim

Why This Is the Correct Answer

The buyer must prove that the misleading conduct caused their loss. If they would have bought anyway, causation fails and so does the claim for damages.

Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

causationreliancemisleading conductAustralian Consumer Lawfinancial loss
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