Fred, an accountant, was looking to buy a new car. He was fully aware of...
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Fred, an accountant, was looking to buy a new car. He was fully aware of the issues with petrol cars, but was unable to afford an electric car. He chose a particular car because its manufacturer, X Ltd, advertised that it used sustainable technology for a better environment, and this car was carbon neutral. It stated that in the first year of this particular car's purchase, the company would plant 18 native trees which would offset the carbon-dioxide emissions for the life of the car.
It turns out that 18 native trees may offset the carbon-dioxide emissions for the first year of the car, but certainly not for its life. Has X Ltd engaged in misleading or deceptive conduct?Explain your answer by reference to relevant legislation and case law.(8 marks)
Further discuss the consequences if a breach is found. (2 mark)
After five years Fred decides to sell his car, so advertises it on Malleetree, an online selling platform. He says it is a very fuel-efficient car as he got 20km per litre of fuel from it. Mary bought the car thinking that the car was an efficient car. She later discovers that for a car to qualify as fuel-efficient, it must have an average of 6 litres per 100 kilometres distance, which translates to 17 kilometres per litre of fuel.
Has Fred breached s 18 of the Australian Consumer Law? Fully explain your answer referring to relevant legislation and case law. (5 marks)
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