The paper "Evaluating the Small Business and Unfair Contract Terms" is a good example of business coursework. The Australian government has made significant progress in carrying out policy reforms in several sectors to promote trade. Recently, the government enacted a business Bill that is intended to improve the contract terms that bind parties doing business together under the Australia law. In particular, the Treasury Legislation Amendment Bill 2015 also called the Small Business and Unfair Contract Terms sought to improve the provisions of the then-existing unfair contract terms. The ” Small Business and Unfair Contract Terms” is a law that was implemented by the Australian government to offer a ’ fair go’ for petite enterprises.
The law seeks to promote small size businesses by expanding the protections of the unfair contract terms to cover the small size businesses as it currently protects the customers. The bill was implemented to help amend the Australian Consumer Law as outlined in Schedule 2 of the ” Competition and Consumer Act 2010” as well as the ” Australian Securities and Investments Commission Act 2001” , to cover both consumers and small businesses.
This essay thus seeks to illustrate how the new law is likely to change the image of the business and overall engagement between small firms and consumers in Australia. In this essay, I agree with the new law because of the various benefits it will offer businesses and consumers by changing the old Australian Consumer Law. After its establishment, the unfair contract terms was set to apply to small businesses starting November 12, 2016. Beginning November 21, 2016, the law would extend the current unfair contract terms protections for clients to cover normal form of undersized business contracts (Boustani, 2016).
In lieu of the Australian Consumer Law, unfair contract terms law is defined to include the following elements: A term is considered unfair if it is deemed likely to lead to a significant disparity in the rights and obligations as set out in the contract; A term is unfair if it is not logically compulsory to safeguard the genuine interests of the party who would be favored by the term; and A term that would cause harm to the party if used or relied upon. Under the new law, an unfair contract term refers to the terms that recognize the importance of both parties in the contract (Boustani, 2016).
Unlike the old unfair contract terms that also gave emphasis to the rights and welfare of consumers, the new law seeks to balance between clients and small businesses. The new law recognizes that both consumers and petite enterprises have restricted market influence and a reduced capacity to change ’ take it or leave it’ contracts. Under the recently implemented law, the unfair contract terms regulation is justified to extend protections for small enterprises and started to apply ordinary types of small business contracts including new and renewed contracts, on November 12, 2016 (Mena Report 2016).
The new law declared the unfair term in a contract involving small businesses as void by the court on condition that the small business had less than 20 employees at the time the parties agreed to the ordinary type contract. Besides, the only recognizes a contract that does not involve more than $300,000 and includes a means of exempting some particular contracts from the protections.
In such a case, the exemption mechanism requires that exempted contracts are likely to receive equal and enforceable protections as established under the new law. Such waiver is considered necessary as it helps to evade regulatory duplication.
Bondarenko, NL. (2016). The Principle of Freedom of Contract in Civil Law of the Republic of Belarus. Vestnik Permskogo Universita. Juridicheskie nauki - Perm University Herald. Juridical Sciences. Issue 33. Pp. 281-285. (In Eng.). DOI: 10.17072 / 1995-4190-2016 33-281-285
Boustani, Hadi. (2016). ”Unfair Terms for Standard Form Contracts are now in Force.” Mondaq Business Briefing: Mondaq Ltd.
Australian Securities & Investments Commission (ASIC). (2016). ”Unfair Contract Term Protections for Small Businesses.” Retrieved from http://asic.gov.au/about-asic/what-we do/laws-we-administer/unfair-contract-terms-law/unfair-contract-term-protections-for small-businesses/
Hobart Community Legal Service Inc. (2013). ”Elements of Criminal Justice System.” The Law: Legislation vs Common Law. Retrieved from http://www.hobartlegal.org.au/tasmanian law-handbook/courts-lawyers-and-law/law/legislation/legislation-vs-common-law
Lattin, Avryl. (2016). ”Australia’s Unfair Contract Terms Regime Extended.” Mondaq Business Briefing. Mondaq Ltd.
Mena Report. (2016). ”Australia: Small Business Unfair Contract Protections Enshrined in Law.” SyndiGate Media Inc.