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Consumer ProtectionWAHARD

Under WA consumer protection law, how does the 'due diligence' defence apply when an agent is accused of misleading or deceptive conduct?

Correct Answer

B) There is no due diligence defence for misleading or deceptive conduct under section 18 of the ACL — it applies regardless of intent or reasonable precautions

Section 18 of the Australian Consumer Law (misleading or deceptive conduct) is a strict liability provision — there is no due diligence defence. Even if an agent took reasonable steps to verify information, they can still be liable if their conduct was misleading. However, due diligence may be relevant to penalty mitigation or as a defence to specific false representation provisions.

Answer Options
A
Due diligence is a complete defence to all misleading conduct claims
B
There is no due diligence defence for misleading or deceptive conduct under section 18 of the ACL — it applies regardless of intent or reasonable precautions
C
Due diligence only applies if the agent has professional indemnity insurance
D
Due diligence is only available to corporate agents, not individuals

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Related Topics & Key Terms

Key Terms:

due diligencesection 18strict liability
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