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TRADE PRACTICES ACT 1974 - SECT 51AB

Unconscionable conduct

             (1)  A corporation shall not, in trade or commerce, in connection with the supply or possible supply of goods or services to a person, engage in conduct that is, in all the circumstances, unconscionable.

             (2)  Without in any way limiting the matters to which the Court may have regard for the purpose of determining whether a corporation has contravened subsection (1) in connection with the supply or possible supply of goods or services to a person (in this subsection referred to as the consumer ), the Court may have regard to:

                     (a)  the relative strengths of the bargaining positions of the corporation and the consumer;

                     (b)  whether, as a result of conduct engaged in by the corporation, the consumer was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the corporation;

                     (c)  whether the consumer was able to understand any documents relating to the supply or possible supply of the goods or services;

                     (d)  whether any undue influence or pressure was exerted on, or any unfair tactics were used against, the consumer or a person acting on behalf of the consumer by the corporation or a person acting on behalf of the corporation in relation to the supply or possible supply of the goods or services; and

                     (e)  the amount for which, and the circumstances under which, the consumer could have acquired identical or equivalent goods or services from a person other than the corporation.

             (3)  A corporation shall not be taken for the purposes of this section to engage in unconscionable conduct in connection with the supply or possible supply of goods or services to a person by reason only that the corporation institutes legal proceedings in relation to that supply or possible supply or refers a dispute or claim in relation to that supply or possible supply to arbitration.

             (4)  For the purpose of determining whether a corporation has contravened subsection (1) in connection with the supply or possible supply of goods or services to a person:

                     (a)  the Court shall not have regard to any circumstances that were not reasonably forseeable at the time of the alleged contravention; and

                     (b)  the Court may have regard to conduct engaged in, or circumstances existing, before the commencement of this section.

             (5)  A reference in this section to goods or services is a reference to goods or services of a kind ordinarily acquired for personal, domestic or household use or consumption.

             (6)  A reference in this section to the supply or possible supply of goods does not include a reference to the supply or possible supply of goods for the purpose of re‑supply or for the purpose of using them up or transforming them in trade or commerce.

             (7)  Section 51A applies for the purposes of this section in the same way as it applies for the purposes of Division 1 of Part V.



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