...What you need to know about: Competition issues in franchising supplier arrangements Franchisors often require franchisees to purchase goods or services from particular suppliers. This guide helps franchisors and franchisees understand the ACCC’s role in reviewing these arrangements. Franchise supplier arrangements and the Act Franchising supplier arrangements that limit the suppliers from whom franchisees may purchase the goods and services required to operate their businesses may raise competition issues under the Competition and Consumer Act (the Act). A franchisor that requires franchisees to purchase goods or services only from a particular supplier or a list of nominated suppliers may be engaging in ‘third line forcing’. Third line forcing will breach the Act even if the conduct will not harm competition. What is third line forcing?Third line forcing occurs where a supplier (e.g. a franchisor) supplies goods or services (e.g. franchising services or the right to become a franchisee) on condition that the customer also acquires goods or services from another person or business (unrelated to the supplier). | Some franchisors also: set objective quality standards and allow individual franchisees to source goods or services from any supplier that meets those standards, or require franchisees to purchase goods or services from the franchisor or a related company. These arrangements will only raise concerns under the Act if they have the purpose or likely effect...
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...Essay Australian Competition Consumer Commission (ACCC) has taken Federal Court action against Apple for misleading claims about the connectivity speed of the latest iPad. Apple had advertised on there website as an iPad with WIFI+ 4G capabilities, the tablet is unable to use the 1800MHz frequency which is Australia’s existing 4G network. The ACCC is a part of government that aims to encourage competition in a stable environment and to look after the consumer so the consumers do not believe that they are being taken advantaged of by the misleading claims. This misleading claims or a consumer being feeling cheated allows the Australian Competition Consumer Competition to intervene in behalf for the consumer. ACCC had to intervene in behalf of the consumer when apple had made misleading statements about their latest product the iPad. Australian Competition and Consumer Commission believed that apple had made misleading statements about their connectivity speed of the iPad. The basis for this intervention is to maintain or enforce competition within Australia and by the misleading claims the company apple was misleading the consumer by the reference to 4G capabilities. To maintain or even enforce competition ACCC has to intervene to allow the consumer the choice of choosing the product and to have the information about the product before making a decision on the product to purchase. ACCC intervenes to monitor or foster competition so no single market participant has enough...
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...Australia, recalled about 6000 units of its products due to safety concerns. The company may bear financial distress of cost of recall, suffer from damage to brand and customer goodwill, therefore audit risk exists as Maxi-Cosi would exaggerate and misstate the financial statements. Additionally, after Maxi-Cosi Australia has illegally selling 5000 of its Euro A4 model without having safety and standard certification, the company officially guaranteed the safety through Facebook, unfortunately, followed by a formal recall. The ACCC watchdog will consider whether the company engaged in misleading practices for creating a false or misleading impression through media or online (Taylor and Branley 2015). The ACCC rules if the company claims that goods meet specific standards, those claims must be true, and could not make false claim about quality (ACCC 2015). Because Maxi-Cosi Australia made claims that may engaging in misleading practice and face potential ACCC lawsuit by contravening the Customer Act. Maxi-Cosi Australia may underestimate their provision for Litigation where auditor has to notice. Key account 1 : Sales returns As mentioned above, the risk related to the car seats recall could directly affected and cause misstatement in the sales return account because the recalled models have safety issues which is the most concerned prospective for parents. Therefore a large scale of parents will return the products and Maxi-Cosi would record in sales return account and this...
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...1-Police have charged people with a string of offences after an early morning fight outside a Kalgoorlie bar. Officers were called out after reports of people fighting outside the Maritana Street bar about 2.30pm. Police arrived to find an injured man lying on the ground. He had suffered minor injuries and was treated at the scene. "While police were attending to the man, it is alleged another male entered an unlocked police car and drove off," a police spokeswoman said. "It is further alleged the man drove the stolen police car along Boulder Road before stopping and collecting a 15-year-old female passenger." It is alleged that the occupants of the stolen police car drove through the streets of Boulder and ran down street signs and street furniture. Police found the car on Keegan Street and it was followed until the offenders abandoned it on York Street, police allege. The alleged driver and passenger were apprehended nearby. A 35-year-old Piccadilly man has been charged with stealing a motor vehicle, reckless driving, failing to stop and having no authority to drive. He has been remanded in custody and is due to appear in Kalgoorlie Magistrate's Court on March 3. A 15-year-old Somerville girl has been charged with stealing a motor vehicle. She is due to appear in Kalgoorlie Children's Court next month. Four men aged between 22 and 28 years of age have been charged with disorderly behaviour in public and are due to appear in Kalgoorlie Magistrate's Court on March...
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...QUESTION 1 Jean and her mother have formed an agreement which must meet the six prerequisites for a valid contract before we can determine if Jean can claim a breach of contract. (1. p291) From the information provided, I do not believe that there is a valid contract or that Jean can claim breach of contract. For a contract to be formed, it must meet all of the six prerequisites for a valid contract. The first requirement is ‘Intention to create legal relations’. As noted by Latimer, agreements between parents and children “do not usually give rise to contracts”. (1. p353, ¶5-520) For legal relations to be established, we would need to undertake an objective assessment regarding the agreement. If there is a precedent of Jean’s mother offering and paying money to Jean for completing work around the house or if Jean works in her own business as a Domestic Engineer, then this may be taken into consideration when determining the intentions of both parties. A reasonable person may accept that parents and children make exaggerated statements when trying to achieve a desired outcome – for example, a child may offer a parent $1M if they take them to the circus. Was the statement by Jean’s mother mere puffery? If it was determined that there was an intention to create legal relations, we would then need to ascertain if the remaining requirements have been met. The second is Agreement. There is clearly an agreement as there has been an offer and the offer was accepted. ...
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...Discuss the issues of compliance and non-‐compliance within consumer law. Unjust contracts – common law and statutory clauses A contract is an agreement involving two or more parties in which legal obligations are created that are legally enforceable. It does not have to be in writing but some form to be in order to have legal recognition. Moreover, contracts have a significance role is promoting compliance and restricting non compliance. Thus both common law and statue protection exists to improve protection against. unjust contracts. Common has evolved signfianctly and two of it’s more fundamental aspects in promoting just contracts include Duress and unconscionable dealing. Duress – actual or threatened violence if they do not sign. CASE LAW – Barton v Armstrong (1975), whereby Barton was forced to sell shares, however was overturned at Privy Council. Moreover, creating precedent of duress as a clause to make a contract invalid. Furthermore, unconscionable dealings are also banned under CASE LAW - Commercial Bank of Australia Ltd v. Amadio (1983). Whereby, defining it as “Unconscientious use of a superior position or bargaining power to the detriment of a party who suffers from a special disability”. While the common law provides mechanisms for remedying injustice, they were fairly limited and were often difficult to prove in court. Additionally, Statutory protection for consumers...
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...Executive Summary This report explores the possibility of a merger between Visy and HP. I will show in this essay that the merging of the two companies is highly benefical socially and economically. I will then state that when all stakeholders are considered, the merging of these two companies would be in everyone’s interest. The overall benefit would be a net reduction in cost to the consumer. Introduction Recently, Visy Industries Australia Pty Ltd seeks clearance from Australian Competition and Consumer Commission (ACCC)to acquire certain business and assets of HP Industries Pty Ltd. It raises concerns socially and economically as to whether the merged entity will substantially lessen customers in each of NSW and/or Victoria. This report will identify and justify the type of market for the Australian packaging industry. It will then consider the stakeholders and their interests regarding this issue. Finally, it will assess the social and economic consenquences if the merge take place. Nature of the packaging industry The Australian packaging industry is a Oligopoly in which natural barriers prevent the entry of new firms. The new entrants could experience a significant start- up cost involved in establishing a manufacturing plant on the quantity produced and low marginal cost. Visy, HP and Pact are the three major firms dominate the market. Such firms are interdependent.The kinked demand curve model is applied to this market which indicates that if one of the...
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...competitors advances the objective of the CCA by strengthening its safe guards against anti-competitive conduct, recognising that competitive markets enhance the welfare of Australians. Several commentators from the business and legal community however challenged this suggestion. They argue that amendments to this end would be futile as such conduct is already regulated by the existing provisions in the CCA. Others have even argued that such regulation has the potential to impede to legitimate and pro-competitive commercial behaviour. Nonetheless, the Australian Consumer and Competition Commission (ACCC) has maintained its position in support of laws that specifically target anti-competitive communication between competitors. Recent public disclosures regarding factors such as price and capacity by airline and telecommunications giants have generated some controversy. ACCC Chairman Rod Sims has made several comments in response, publicly expressing his opinion that the current price signalling laws ought to be extended beyond the banking industry. This paper will first examine the legal landscape of ‘Price Signalling’ and...
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...SLMB100 Marketing Concepts Assignment 1 Marketing Mix Report INTRODUCTION Organisations today operate in a dynamic and uncertain economy within a greater competitive environment. To remain profitable, organisations must implement a marketing orientation strategy whereby all business decisions are centered on delivering customer satisfaction. This strategy emphasizes the importance of understanding the identified key audience, their needs, wants and desires to effectively create and position an offer of value to both the customer and the organisation. A useful tool to aid marketers in successfully positioning their offer is the Marketing Mix, more commonly referred to as the 4P’s – Product, Price, Promotion and Place. By adjusting these four elements, organisations are able to satisfy customer needs in their chosen target market/s whilst maximising their return. This model can be used for new offers entering the market, analysing existing offers or optimizing growth in a target market/s. This report provides an overview of each element of the Marketing Mix and how they are applied to retail petrol outlets. THE MARKETING MIX PRODUCT A product is defined as a good or service that offers a value to customers by satisfying their needs or wants. Products can be tangible, that is physically touched, or intangible such as services. A product consists of three layers. The inner core is the benefits it delivers to customers, the middle layer the actual physical product/service...
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...Subject Code ECON90015 Subject Name Examining the Australian Supermarket Industry under Porter’s Five-Force Model comprising of: 1. 2. 3. 4. 5. Internal Rivalry Entry Substitutes and Complements Supplier Power Buyer Power And their impact on the profitability and welfare of different stakeholders in the market. In the big bad world of inflation, “Cheap Cheap” and “Everyday lower prices” have been the only words of solace. For the past 3 generations, Australians have relied on the consistent comfort of competitively low prices at supermarkets. It is no wonder then, that the supermarket industry has caught the eye of everyone in the spectrum – economists, global retailers (like ALDI, Lidl, Walmart, etc.) and (inspections by) the regulators alike. Even though the market life cycle is developed, the outlook for the market looks positive, propelled by external factors population growth (1.6% YoY in 2014) and rise in average weekly earnings1. But the long-run duopoly in the market is witnessing a change in landscape with international competitors (like Aldi) swelling their market share in the subcontinent. This makes the supermarket industry in Australia interesting to analyse under Porter’s 5 Force Model Analysis. Defining the Market This analysis set geographic boundaries for the supermarket or grocery retail industry over the Australian subcontinent. Given their large population size and concentrated pockets of inhabitancy, supermarkets...
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...Business Law and Ethics The Australian Consumer Law Act (Cth) Table Of Contents Page 3 - Topic & Introduction Page 4 - The Old Consumer Law System Page 5 – The New Consumer Law System Page 6 – Comparing the two Systems &The Empowerment of Consumers Page 7 – The Empowerment of Consumers cont’ & Guidance for the both the Consumer and Traders and Legal Practitioners Page 8 - Guidance for the both the Consumer and Traders and Legal Practitioners cont’ Page 9 – The Constitutional Problems & Conclusion Page 10 – Bibliography Topic To compare and evaluate the new and the old. Make comparisons and conclusions regarding changes made and what these changes will mean to both the consumer and business alike. The Australian Consumer Law Act (Cth) came into force in January 2011. Commentators have claimed that the Act will have significant impact on the rights of Australian consumers. The reality is that it will have very little positive impact on the rights of Australian consumers, for much the same reason that the previous consumer regime was largely ineffective.” “Discuss this statement. Introduction The purpose of this paper intends to explain the main differences between the old and the new Australian Consumer Law Act. There have been some major changes and some minor tweaks. There has also been a lot of debate as to whether there was any need for the changes and how exactly these changes implemented will be advantageous to the consumer. ...
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...conditions that the parties are indulged to follow and monitor, for instance, when the buyer pays the money, the seller is indebted to deliver the right product. A term that is described with consumer contracts, it may be such that it is protected by a consumer guarantee. It is important to take into account both express and consumer guarantees when disagreements about consumer contracts arise. If you buy any good or services from a supplier, whatever the supplier claims and make promise about the product and services must be accurate and honest. If the good or services are not what it is portrayed to be, you may exercise your consumer rights under consumer guarantee and can launch a complaint to Australian Competition and Consumer Commission (ACCC) or customer protection organization (agency) for misleading and creating a false (untrue) impression on the minds (thoughts) of the buyer. Australian Consumer Law (ACL) protects consumers contrary to the making of false or misleading...
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...ARTICLE 1 The article ‘Lawyer says Virgin Blue displayed ‘unhealthy work culture’ in city office’ by Anthony Marx was published in The Courier-Mail on 14 March 2011. The article details how Virgin Blue allegedly discriminated against two female employees by forcing them to take redundancies after confirming they were pregnant or returning from maternity leave (Marx 2011, p. 1). Subsequently, both employees have initiated legal action against Virgin Blue who ‘has denied any wrongdoing and vowed to fight the claims’ (Marx 2011, p. 2). The article raises three ethical issues. Firstly, it addresses the expectation that businesses should not discriminate against employees on the basis of gender (Ferrell, Fraedrich & Ferrell 2009, p. 70). Secondly, it highlights that abusive or intimidating behaviour is not acceptable in the workplace (Ferrell, Fraedrich & Ferrell 2009, p. 64). Thirdly, it identifies the role that an effective ethics program can play in avoiding ethical and legal problems (Ferrell, Fraedrich & Ferrell 2009, p. 212). Businesses should not discriminate against employees on the basis of gender. Discrimination refers to ‘the making of a difference in particular cases, as in favour of or against a person or thing, especially when arising from prejudice based on race, ethnicity, sex, religion, age etc’ (Discrimination 2011). Virgin Blue allegedly discriminated against Leonie Vandeven by forcing her to take a redundancy package after she confirmed that she was pregnant...
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...The economics of fuel discount vouchers and consumer behaviour Why is it that a rational person will spend extra money at the supermarket, to get a fuel discount voucher, then spend extra time driving to a specific service station to use that voucher. Fuel discount vouchers are provided when a customer at a supermarket, generally Woolworths or Coles, spends over $30. In the past this discount has been up to 30 cents per litre discount but the ACCC in 2014 will limit these discounts to 4 cents per litre only (King 2014:1). The fuel stations and supermarkets are ‘bundling’ their products to attract more customers however there are fears that this may cause ‘price discrimination’ (Gans & King 2004:313), although bundling can help some consumers (King 2014:2 & ACCC 2004). In economics products are talked about as being elastic or inelastic in their demand. Gans TEXT yr:56) identify that ‘necessities tend to have inelastic demands, whereas goods that are luxuries have elastic demands’. In the long term fuel is elastic (Sterner 2007:3194, Graham & Gleister 2002:23 & Brons et al 2007:2105), because people change their travel habits or the type of car they drive. We will focus on the short term where fuel demand is inelastic (Sterner 2007:3194, Graham & Glaister 2002:21 & Brons et al 2007:2105). The fact that fuel demand is inelastic means that purchasing behaviour is not determined by the price. So if the price of petrol goes up or down people will continue to drive, and there...
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...Introduction The variables in a marketers strategic tool box is the 4P’s which make up the elements of marketing mix. The numerous competitors that Caltex compete for market share are BP, Coles Express, Mobil, Shell Woolworths and United Petroleum in the retail environment, Product A product can be a physical object, services, persons, places organisations and ideas. The nature of a product can be tangible for instance a vehicle, and non tangible, a service. A product has the capability to satisfy a consumer’s wants and needs.2 (MAANZ Glossary) There are three distinct layers that make up a product with the first being the “core” product which is the intangible benefit or service received by the purchaser from using the product, The next layer is the actual product which is the product itself or the service being rendered. The actual product unique features supplies the core product benefit. The combination of the actual product and its other features of value the product has to offer is the augmented product layer. “A product is everything beneficial that a customer receives in an exchange”.3 (Solomon, et al. 2011, p.183). By determining the main product the retail petrol outlets sell, petrol, we can further classify petrol as a non-durable product as it provides a benefit over a short period. The frequency the consumer purchases petrol could also be in the category of convenience products. 4 (Solomon, et al. 2011, p. 186). The actual product is the physical product...
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