Business Law

On 3 January 2017 the ACCC released statistics that more than 20,000 shoppers complained about 'consumer guarantees' in 2016. With Christmas presents now unwrapped and gift cards spent during the stocktake sales, if a good is faulty what obligations do businesses face? The Australian Consumer Law imposes non-excludable consumer guarantees on the sale of goods and the provision of services;...

Despite the fact that people care more about the result of the final Saturday in September than the goings-on in Parliament, the AFL does not wield governmental power (though the AFL might wish otherwise). How then did James Hird allege that he was denied procedural fairness when the question of whether he breached the rules was determined? While those proceedings...

The increasing use of social media has had a profound effect on the way that people do business. The ability to reach a large market for low cost and engage with customers and potential customers in real time can have a major positive impact on your business. However, with the benefits also comes the risk from both improper use and...

Guarantees form a fundamental part of many loan contracts; for most lenders, having one or more guarantors for the borrower's obligations under the contract is essential, as it provides additional security for their loan. However, there are several issues to consider where a borrower defaults and you attempt to enforce the guarantee, especially in circumstances where you may only get...

When it comes to a company, the corporate "constitution" is often assumed to be the most important document when it comes to governing its day-to-day affairs and operations. In reality, there are a range of issues which are not covered by a constitution and implementing a Shareholders Agreement can be key; giving certainty and clarifying shareholder "rights", expectations and procedures....

When starting a new business, a franchise can be an attractive prospect. Entrepreneurs often find the promise of a well-established brand, bankable goodwill and the guiding hand of the franchisor too good to resist, a seemingly safe alternative to starting your own venture from scratch. Success stories, neatly captured on the franchisor's website, might well convince you that a franchise...

These days, information is can be the most valuable asset a business can own - so how do you protect it when entering into a new business partnership? Confidentiality or Non-Disclosure Agreements (NDA) are used in a wide variety of business relationships, where protection of one or both sides' confidential information is essential, whether it's customer and contact lists, design...

Directors are not the only decision makers regarding the operation and direction of a company's business; shareholders also have a lot of power. By being entitled to vote on key resolution affecting the company's future, its directors and strategic goals, shareholders can be crucial to a company's success and expansion. Shareholders exercise their powers through general meetings - but who...

Have you ever wanted to know what goes on behind the closed doors of Government agencies and a Minister's office? You might be surprised to realise that the Freedom of Information Act 1982 (Cth) (the Act) grants you a fundamental legal (and democratic) right to access that information, subject to certain exemptions such as confidentiality or national interest considerations. Equivalent...

Small businesses will soon enjoy the benefits of protection against unfair contract terms in their dealings with other businesses. Currently, only consumers who enter into standard form contracts can claim protection from unfair contract terms under the Competition & Consumer Act 2010 (Cth) (the Act). However, small business can be just as vulnerable, often lacking the bargaining power to negotiate...

It's a common scenario: you're owed money and your debtor is refusing to pay. Surely the next step is to protect your debt by lodging a caveat over the land they're sitting on, right? Wrong. The mere existence of a debt is no basis for lodging a caveat. If you lodge a caveat without reasonable cause, then you could end...

It has now been over four years since the Personal Properties Securities Act 2009 (Cth) (PPSA) took substantive effect on 30 January 2012.However, many businesses remain oblivious to the PPSA and the serious consequences that can follow its oversight. So what is the PPSA and what is the risk in ignoring it? The PPSA established a new, national system for...

'The statutory regime that governs the realm of corporate insolvency and personal bankruptcy has long been a point of contention between the business community and regulators, a balancing act that each side felt too often erred in favour of the other. The recently published recommended changes to Insolvency Laws, introduced as part of the Commonwealth's National Innovation & Science Agenda,...

'The key benefit of a company structure is the separate legal personality that the company has from its controllers (directors) and its owners (shareholders) and the protection given to those individuals if the worst occurs and the business goes bust; but if you think that a director therefore has no liability, you are mistaken. We often hear about instances of...

Evergreen contracts; often called automatic renewal clauses,they operate to automatically extend existing contracts for additional time,with silence or inaction deemed to be consent. Often appearing in the service industry, what once seemed a convenience can turn into a hidden liability for small businesses when they look to negotiate a new contract or terminate their existing agreement. So how do they...

In the everyday hustle and bustle of business, you could be forgiven for assuming that whatever sale you're negotiating or venture you're collaborating on, the deal isn't done until the contract is signed - wrong. The recent case of Yulema Pty Ltd & Anor v Simmons & Anor NSWSC 640 is a timely reminder that a verbal agreement can...