We have many laws that protect consumers from various business practices. These laws have developed over the last century due to the radical change in the economic structure of society over the last 200 years. There are many legal issues facing consumers in the modern world due to the complexity of society.
In evaluating the extent of the effectiveness of the remedies that have been introduced to achieve justice for consumers, a number of areas including equality, accessibility, enforceability, resource efficiency and recognition and protection of individual rights are addressed in order to view and question the law as being effective. The law must also be a reflection of society standards and expectations in order for it to be effective and of value to society. There must also be a balance between individual and consumer rights and values.
A contract is any agreement that is legally binding and enforceable against the parties who enter into it. For a contract to be complete, a benefit must flow from each party to the other. However, in some cases the rule relating to consideration may lead to injustice, which the courts have attempted to remedy. For that reason legislation came into place for contracts to be fair to both parties. Under the Contracts Review Act 1980 (NSW), Trade Practices Act 1974 (Cth) and common law, for a contract to be enforceable there needs to be:
• An offer and acceptance: A clear expression of willingness and acceptance by both parties to enter into a contract on specific terms and conditions. The offer can be written, oral or implied. The concept of privity states that only the parties to a contract may sue for damages under it. An exception to the doctrine of privity is the concept of negligence as seen in the case of Donoghue V Stevenson (1932) which determined the duty of manufacturers even though they are not a party in a contract of sale between a seller and buyer.
• Intention to enter legal relations: in...