Question 1

Which is the Commonwealth organisation responsible for the joint

administration of the Australian Consumer law (ACL)?
a) Australian Competition & Consumer Commission
b) NSW Civil & Administrative Tribunal and Australian Securities &
investments Commission
c) NSW Consumer Affairs Department & Ombudsmans Office (Cth)
d) NSW Law Commission & Australian Prudential Regulatory Authority

Question 2
The ACL provides for certain statutory guarantees in contracts for supply
of both goods and services to consumers. Which one of the following
would be treated as a consumer sale?
a) Sale of goods that are acquired to resupply or consumed in the course
of production or repairs of other goods
b) Sale of goods that do not exceed $40,000
c) Sale of goods over $40,000 that are not ordinarily acquired for personal
or domestic use d) Purchase of a vehicle mainly for transport of members
of the public

Question 3
Which one of the following is NOT a guarantee implied into consumer
contracts for the sale of goods under the ACL:
a) goods are fit for any disclosed purpose
b) goods will correspond with description
c) a consumer has the right to pass ownership of the goods to the seller
d) goods are of an acceptable quality

Question 4
Under the ACL, there are various remedies and enforcement for unfair
practices. What is the maximum monetary penalty imposed for breach of
each unfair provision:
a) $1 million for a company & $200,000 for an individual
b) $220,000 for a company & $50,000 for an individual
c) $1.2 million for a company & $120,000 for an individual
d) $1.1 million for a company & $220,000 for an individual

Question 5
Section 18 of the ACL is perhaps the most litigated section due to its
wording. In general terms this important section provides:
a) a person must not engage in conduct that is misleading or deceptive or
is likely to mislead or deceive
b) a person must not ,in trade or commerce , engage in conduct that is
misleading or deceptive or is likely to mislead or deceive
c) a person must not ,in trade or commerce, engage in conduct that is
unfair or unconscionable
d) a person must not , in trade or commerce , make false representations
about goods or services

Question 6
Which one of the following is not a remedy under the ACL for breach of s
18?
a) injunction
b) compensation
c) cancellation of contracts
d) fines

Question 7
To which contracts do the unfair terms provisions in s 23 ACL apply:
a) all standard form consumer contracts
b) all consumer contracts
c) all standard form contracts
d) only formal contracts eg deeds

Question 8
Sometimes a contract has been made and later something occurs (without
fault of either party) that prevents the contract being performed or makes
the contract totally different from what was agreed. This situation is legally
recognised as:
a) mutual mistake
b) innocent misrepresentation
c) frustration
d) common mistake

Question 9
A contract may be discharged in which one of the following ways:
a) performance of all obligations by the parties
b) lack of writing
c) negligence or some misconduct by either party.
d) promissory estoppel

Question 10
Where a breach of a term in a contract allows the innocent party to
terminate and or claim damages this term would be identified as:
a) a warranty
b) an exclusion clause
c) an unfair term in a consumer contract
d) a condition

Question 11
Where a written contract does not specify a time for its completion, then
courts will:
a) treat the contract as discharged due to uncertainty
b) generally imply a term that it be performed within a reasonable time
c) rewrite the contract to include a specific period of time
d) disregard the time period as being trivial or insignificant

Question 12
What English case provided the basis for negligent misstatement?
1. a) Hedley Byrne v Heller & Partners
2. b) Shaddock v Parramatta City Council
3. c) Caparo Industries Pty Ltd v Dickman
4. d) Esanda Finance Corporation Ltd v Peat Marwick Hungerfords
(Reg)

Question 13
In negligence, the law limits the liability of a defendant to pay damages
only for such losses or injuries that are:
1. a) not reasonably foreseeable
2. b) unpredictable
3. c) not too excessive ie capable of being paid for by the defendant
4. d) not too remote