Question One- A carton of margarine is sold using the brand name ‘Buttercup'. The brand name is printed in large letters whilst the word ‘margarine' is fairly insignificant by comparison, although quite readable. A picture on the carton depicts a contented cow grazing in a meadow.
Has any law been breached?
Question Two- Do the following situations involve a possible infringement of any laws? Specify the particular laws that might be infringed:
(a) Ovaltree Sweets Ltd produces a packet of sweets which says on the packet ‘Average Contents 50 sweets'. A random test conducted by an independent authority revealed that only one packet contained 50 sweets. The average was actually 45.
(b) ‘Made In Australia' (where product manufactured in Korea, assembled and packaged in Australia).
Chapter 11 Selling Techniques
Question One- Do any of the following situations involve a possible infringement of Pt 3-1 of the Australian Consumer Law? Consider each claim separately and specify the particular sections of Part 3-1 that might be infringed.
(a) Flora Pty Ltd advertises as follows:
‘Black Roses, Long a dream. Now a reality Available for the first time. Next Monday at our Richmond store. Limited quantities Hurry. Hurry.'
Unfortunately, a fire at Flora's nursery over the weekend destroys the flowers which were to be sold on the Monday. Flora is most apologetic to its customers and takes the names and addresses of its disappointed clients with a promise that they will be supplied when the roses become available.
(b) ACDC Ltd advertises in a regional newspaper as follows:
‘Toshima Notebook Computers - $1995. This weekend only. Whilst stocks last.'
The company knew it only had 10 of the advertised computers in stock.
Question Two- A fitness centre runs a promotion in which it invites ‘participants to claim a free fully supervised two-hour workout'. Mary turns up to the centre in order to take advantage of the offer, but is told she must enter a six-month membership contract before she can participate in the workout.
Does the promotion breach any laws?