LAW4196 Study Guide - Final Guide: Kuringgai, The Strongest, Standard Form Contract
Document Summary
The question is whether this arrangement amounts to a franchise. Competition and consumer act which deals with industry codes applies. A contravention does not give rise to criminal liability. It may constitute unconscionable conduct under section 22 australian consumer law (acl) which appears in schedule 2 of the competition and consumer act. A breach of a mandatory code of conduct can also possibly lead to triggering the misleading conduct provision; section 18 acl. In addition, some franchise agreements include an express term requiring the parties to act in good faith. There is also some case law suggesting that the law implies an obligation of good faith into agreements (including franchise agreements) in some circumstances. The trade practices (industry codes franchising) regulations 1998 is a mandatory code of conduct that applies to franchises. Section 4 of the regulations defines a franchise. See also agro holdings ltd v flexi-coil (australia) pty ltd [1999] fca 1658; accc v.
