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Which of the following statements is NOT correct? Select one: a. Under s 18 of the ACL, silence can constitute misleading and deceptive ‘conduct’ b. Section 18 of the ACL applies only to conduct which occurs in trade or commerce c. Under s 18 of the ACL, it is possible to rely on an exclusion clause to avoid liability provided the goods or services are of a commercial nature d. Under s 18 of the ACL, a plaintiff need not prove the defendant was at fault or intended to mislead or deceive

Question

Which of the following statements is NOT correct?

Select one:

a. Under s 18 of the ACL, silence can constitute misleading and deceptive ‘conduct’

b. Section 18 of the ACL applies only to conduct which occurs in trade or commerce

c. Under s 18 of the ACL, it is possible to rely on an exclusion clause to avoid liability provided the goods or services are of a commercial nature

d. Under s 18 of the ACL, a plaintiff need not prove the defendant was at fault or intended to mislead or deceive

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Solution

The correct answer is:

c. Under s 18 of the ACL, it is possible to rely on an exclusion clause to avoid liability provided the goods or services are of a commercial nature

Here's why:

Section 18 of the Australian Consumer Law (ACL) prohibits misleading or deceptive conduct in trade or commerce. However, it does not allow for the use of an exclusion clause to avoid liability, regardless of whether the goods or services are of a commercial nature. An exclusion clause is a term in a contract that seeks to restrict the rights of the parties to the contract. Under the ACL, such clauses are often considered unfair and therefore unenforceable.

The other statements are correct. Under s 18 of the ACL, silence can indeed constitute misleading and deceptive conduct (option a), the section applies only to conduct which occurs in trade or commerce (option b), and a plaintiff does not need to prove the defendant was at fault or intended to mislead or deceive (option d).

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