Stage 5 Commerce
Students learn about:
 the need for consumer
protection – scams and ripoffs
 features of a simple contract
 legal rights and protective
legislation for consumers
 organisations that provide
assistance for consumers
−government departments and
organisations
– state and federal
−independent organisations

the processes of consumer
redress
Students learn to:
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−remedies and their outcomes
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use the internet to research
scams and rip-offs
identify the methods used in
scams and rip-offs and
analyse the ethics involved
identify the features of a
simple contract using at least
one legal case study
investigate consumer laws and
appropriate processes for
consumer protection
work collaboratively to gather,
interpret and present
information on the protection
provided by consumer
protection agencies and
independent bodies
examine the processes
involved in achieving redress
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A contract is any written or spoken agreement to
buy or sell goods and services.
Both the buyer and seller have important rights
and responsibilities enforced by law.
Each person knows the other individual or
business involved in the contract will perform
their part of the agreement. For example when a
seller hands over a good the seller is responsible
for ensuring the good is of reasonable quality
and fit for the purpose for which it is sold.

Legal object – the purpose of the contract must be legal.

Possible to perform – it must be possible for both parties to carry out
the contract.

Consideration – both parties must benefit in some way from the
contract.

Legal right – people have a legal right to enter into a contract unless
they are under 18 or are mentally unfit at the time of signing.

Intention – both parties must have intended to enter a legally binding
contract.
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Offer and acceptance – there must be an offer by one party that is
unconditionally accepted by the other party.
A contract has three
elements:
1.an offer – This may be
made when you decide
to buy something and
offer to pay a price.
2.an acceptance – This
may be done by the
seller agreeing to supply
the goods or services.
The acceptance may be
in words or an action.
3.consideration – this is
the value (usually
money) that is given in
return for the goods or
services offered to be
supplied or acquired. It
may also be the promise
to pay at a later date.
Go to
www.dft.nsw.gov.
au/consumerhelp
What should
parties consider
before signing a
contract?

They come with a basic consumer guarantee.

Goods must comply with product information and safety standards.

It is illegal for retailers to mislead you about products or use high-pressure selling
tactics.

You are forming a contract. For example, when buying a car or TV.

Contracts may be in the form of a receipt, invoice or other document outlining
terms and conditions such as deposits, cancellation fees, warranties, delivery and
payment arrangements.

It is your responsibility to read and understand the terms and conditions of
contracts.

Keep a copy of receipts, dockets, invoices or contracts in a safe place in case you
want to return, repair or exchange the goods.

http://www.moneystuff.net.au/Default.aspx?t
abid=94
MoneyStuff competition
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1.
2.
Key federal government laws –
Trade Practices Act 1974. This act aims to improve the
wellbeing of Australians. It deals with issues like
anticompetitive and unfair practices, product safety,
conditions and warranties and actions against
manufacturers and importers.
The Prices Surveillance Act 1983. The ACT gives the ACCC
power to monitor and report on the prices, costs and profits
of companies and government authorities.
Select one of the laws above. Use the internet
perhaps (NSW Office of Fair Trading) to find out:
a) When and why the law was developed.
b) Which level of government is responsible for it.
c) The penalties for breaking this law.
d) The type of protection it provides for
consumers.

The NSW Office of Fair Trading outlines four
important consumer rights:
1. Goods and services should be safe and of
merchantable quality (fit for the purpose for which a
good is bought).
1. You have the right to be protected from misleading
and deceiving practices.
1. Information provided with goods and services should
be accurate and give details of price, content and
weight of package as well as care instructions.
1. Safety instructions should appear on dangerous
products.
Summarise these in
your own words.
Discuss the rights and
responsibilities of
consumers in the
following situation:
Jan purchased a new
sleeping bag. The
washing instructions
read ‘Hand wash in
mild detergent and
warm water’. When
the sleeping bag was
washed according to
these instructions it
appeared to shrink
and lose its colour.

Government departments and organisations
◦ State government authorities
 NSW Office of Fair Trading – advice about fair and ethical retail
practices.
◦ Federal government departments
 The Australian Competition and Consumer Commission handles
issues such as anticompetitive and unfair market practices,
mergers or takeovers of companies and product safety/liability.
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Australian Communications and Media Authority (ACMA)
www.acma.gov.au
Australian Competition and Consumer Commission (ACCC)
www.accc.gov.au
Consumer and Business Affairs Victoria
www.consumer.vic.gov.au
Consumer Affairs (NT)
http://www.nt.gov.au/justice/consaffairs/index.shtml
The Department of Broadband, Communications and the Digital Economy
(DBCDE)
www.dbcde.gov.au
Go to two of these
Fair Trading (ACT)
http://www.ors.act.gov.au/fairtrading/index.html
sites. Find out:
Fair Trading (NSW)
www.fairtrading.nsw.gov.au
1. What are the aims
Fair Trading (QLD)
of this government
www.fairtrading.qld.gov.au
organisation?
Fair Trading (WA)
www.docep.wa.gov.au
Office of Consumer and Business Affairs
1. What forms of
www.ocba.sa.gov.au
practical support
Office of Consumer Affairs and Fair Trading
does the authority
www.consumer.tas.gov.au
provide to
consumers?

If you experience problems in dealing with a
government department you can contact the
ombudsman – an independent official
appointed to deal with complaints against
government departments or private
businesses.
Define the
term
ombudsman
in your own
words.

Australian Consumers’ Association
◦ A non-profit organisation that aims to provide
consumers with information and guidance about
goods, services, health and personal finances
◦ Conduct tests on products and publishes the test
results in a monthly magazine, CHOICE
Access www.choice.com.au
1. Describe the range of product reports available on
the website.
2. What are the current consumer product alerts.
3. Draw a mind map showing the range of campaigns
that the ACA is currently involved in.
4. Make a list of the other consumer services provided
by CHOICE and the ACA.

Other organisations
◦ Kidsafe (the Child Accident Prevention Foundation
of Australia) A non-profit, non-government
organisation that provides information about the
safety of products in order to prevent the
unintentional injury or death of children.

Community organisations
◦ Citizens’ advice bureaus
◦ Financial counsellors
◦ Legal centres
Consumer protection
organisations
Federal
government/state
government/independ
ent
Office of Fair Trading
State Government
ACCC
Federal Government
ACA
Independent – non
profit organisation
Type of protection
provided to
consumers
Using these websites
www.lawstuff.org.au,
www.consumersonline.gov.au.
add two more rows to the above
table.
1. Identify the
problem. Gather
relevant documents.
6. Contact a
court or tribunal.
They can make a
legally binding
decision.
However, this is
costly.
2. Contact the
business without
delay. Write to or
phone the
person you had
a problem with
or the manager.
5.Contact a
mediation/conflict
resolution service.
A mediator can
hear both sides of
the dispute without
bias and suggest
an acceptable
solution.
3. Contact the
relevant industry
association or
ombudsman.
4. Contact the state
government’s
consumer affairs
department. They
can inform you of
your rights and
suggest further
action to take.
Use simple clear
language and attach
copies of relevant
paperwork. (para1)
Provide a clear
description of the
problem. (para2)
Be aware of your
rights and
communicate them
clearly in your letter.
(para3)
Propose a solution
(paragraph 5)
Using this
letter as a
guide write a
letter of
complaint to
the
Department of
Fair Trading
(DFT) about
faulty goods.
This can be
made up of
something you
have bought
that was
faulty.