1. Written Report (25%) This is the major piece of work for this course and as such, should satisfy the following criteria: Demonstrate understanding of the legal/regulatory environment and...

Running Head: COMPETITION & CONSUMER ACT 2010
COMPETITION & CONSUMER ACT 2010 12
COMPETITION & CONSUMER ACT 2010
BUSINESS LAW
REPORT
COMPETITION & CONSUMER ACT 2010
1. Rationale of Legislation
The Competition and Consumer Act, (CCA) 2010 ensures to provide a fair competition and trading environment to the companies and promotes consumer protection (Government of Australia,2018). The Act is implemented by the Parliament of Australia and the Australian Constitution. It involves price fixing, anti-competition attitude, and fair moral conduct along with setting the responsibilities and rights for the consumers. The Act also involves the areas like refunds, returns, wa
anty, contract, marketing and advertisement. Each and every business in Australia is compiled under common legislative responsibilities and rights. It is a national law which is administered jointly by the State and Te
itory Governments and the Australians. The legislation makes sure that the Organisations undergo business in an ethical, legally valid and authorized manner following a procedure known to the customers and the stakeholders. Any issue related to negligence in Corporate Social Responsibility of the customers is subject to legal action and provisions under the law.
2. Legal Governance Issues
In order to comply with the Act, every Organisation must ensure that it maintains a written contract with its customers (Queensland Government,2016). The written contracts must be framed after proper negotiations with the customers. The company can sell its goods and services to the customers for personal, domestic or household purpose. The products must have visible and accurate price tags on as a label. If a product shows two or more different prices been displayed on the same product, it may become an issue, as the company may sell it at higher prices sometimes.
It is unlawful to show only partial or incomplete prices over the product. All the business must sell safe goods. They are not banned and are covered by safety standards. If an organisation comes to know that a customer has died due to use of its product or its side effect, the company must report about this incident to Commonwealth Minister in two days. The business must have a procedure for such notifications and the staff must be fully aware of it.
If an Organization is reported to perform unsolicited selling, through the marketing practices like telemarketing, cold calling, or door knocking. There are specific provisions in the Act about when to call the customers, what information to disclose, what to include in sale contracts when to supply the services, when to sell the products above a prescribed value, and when to accept the payments from the customers.
For the purpose of Advertisement and marketing of the products, the Act has certain provisions about what can be said in the advertisement and how it can be said, to avoid the unfair business activities.
The Organisations must provide itemized bills for every transaction to the customers, free of charge. The proof of transaction or receipts must have a valid ABN or ACN number, the name of the item, date and price of the product. If the customer agrees to pay the price of the products in 2-3 installments, it is known as Lay by agreement under the Act. Such agreements must be in written form and a copy of the agreement must be given to the customer as well.
All the consumer queries such as guarantee and wa
anty against defects, repairs, and refunds must be dealt at priority basis on time.
Major Theories of Governance
The main theories of the governance in any Organisation as illustrated by the Act mainly revolve around the Stakeholders Theory (Donaldson & Preston,2005). According to the theory, an Organisation is associated with Customers, Investors, Suppliers and the Employees. The theory describes how an Organisation work and help to predict the Organizational Behavior.
Other Theories are Agency Theory and Firm as Contract Theory. Both these theories depend upon efficiency. The Agency Theory says the Organisations are structured to reduce the cost of getting the (Managers) or agents to do whatever the Principals (Owners) want. The Firm-as Contract Theory says through the contracts, the agents or participants reach a common solution to cooperate with each other, instead of just working with each other in the market. It is mainly aimed to reduce the insecurity and cost of search.
The managers are agents for all the stakeholders. The relationships between the managers and the stakeholders are never in equili
ium. However to manage the tasks and the objectives of the Organisation, the relationships between the two is based on rewards and contributions, with an aim to maximize the profit to the company.
The agents are the managers and the employees of the Company. The stakeholders are the groups of people who have invested their money in erecting the Company. Institutions can be the competitors or the supporters of the Organisation which somehow help it to develop and contribute in business. The resources for a Company can be the manpower and the working environment. The intellectuals and intelligent experienced people working in the Organisations are the real resources of the company which are responsible for its development and progress.
3. Application of Legislation to the Organisations
The legislation has provisions for the Organisations about...