Assignment 2 Essay

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Assignment 2 Total Marks 100 Part A This part relates to The Australian Consumer Law or ACL. Question 1 (25 marks) I. What is the Australian Consumer Law or ACL? [3 marks] II. The federal parliament has no specific powers to make laws to protect consumers. What sections of the Commonwealth Constitution were relied upon by the federal government to pass the ACL and the earlier Trade Practices Act 1974? [5 marks] III. Briefly explain the rationale or justification for using those sections to pass the ACL. [5 marks] IV. Briefly outline the benefits to consumers and business of the ACL. [3 marks] V. Which government agencies administer the ACL? [3 marks] VI. Identify the main functions of the Australian Competition and Consumer Commission [the ACCC]. [3 marks] VII. Set out the definition of “consumer‟ from the ACL. [3 marks] Question 2 (20 marks) Penny bought three pairs of very expensive shoes from Angioletto’s Shoes & Accessories in Sydney. The shoes were advertised as being „Made in Italy‟ of „the very finest quality Italian leather‟. When Penny unwrapped the shoes at home, she discovered small stickers on the shoes indicating they were „Made in China‟ of „imitation leather‟. Penny returned the shoes to Angioletto’s Shoes & Accessories and asked for a refund of her money. The store manager apologised for the mistake, and offered to replace the shoes with real leather Italian made shoes. However, he refused to refund Penny‟s money and pointed to a sign in the store which stated: WE EXCHANGE BUT DO NOT GIVE REFUNDS. In relation to this scenario, answer the following questions: 1. Does the advertisement of the shoes “Made in Italy‟ of „the very finest quality Italian leather‟ and the no refunds sign breach the Australian Consumer Law. Explain. 2. Outline the available remedies and penalties for breach of the

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