Coercion in business law is not just a theoretical concept; it's a practical reality that can impact contracts and relationships significantly. Holman Webb Lawyers can help navigate these murky waters, providing clarity and protection to businesses and individuals alike. 

As we delve into the nuances of coercion, let's explore what it means, how it manifests in business dealings, and its legal repercussions.

The case of Bellas v Powers [2023] NSW SC involved a dispute over the enforceability of a clause that imposed a higher interest rate on a loan facility in the event of default. The court held that the clause was a penalty as it was extravagant and unconscionable in comparison with the greatest loss that could be proved to have followed from the breach. The term was therefore deemed void and unenforceable.

In 2016 the Australian government introduced a new law that will come into effect on 9 November 2023 to protect small business from unfair terms in business-to-business standard form contracts. Are you are compliant?

Foreign investors will be required to provide notice to the Commissioner of Taxation of certain transactions relating to interests held in land and in entities and businesses in Australia.

Transactions that occur on or after 1 July 2023 are captured by the new Register of Foreign Ownership of Australian Assets, irrespective of when an approval was granted, (if any).

Over the last couple of years, the Franchising Code of Conduct has increased the disclosure obligations on franchisors. However, franchisors have always had to make sure that, in simple terms, they deliver what they promise to franchisees.

Under the Australian Consumer Law, franchisors can be liable where they engage in misleading or deceptive conduct – which can include promising an amount of start-up costs without a reasonable basis.

The Federal Court recently found that this is what took place within the ‘UFC Gym’ system in Australia.

Holman Webb Lawyers is expanding its capability in several teams to support ongoing growth, announcing the addition of three partners across our Sydney and Melbourne offices.

The NSW Court of Appeal recently delivered an interesting judgment in the matter of Scenic Tours Pty Ltd v Moore [2023] NSWCA 74.

The Plaintiff in this matter, Mr David Moore, was the lead Plaintiff in a class action against Scenic Tours by thousands of disgruntled cruise ship passengers from multiple separate cruises.

For extra context, we suggest reading our 2020 article discussing Moore v Scenic Tours Pty Ltd [2020] HCA 17: Damages for ‘Disappointment and Distress’ Available to Consumers for Breaches of Consumer Guarantees for Travel and Recreational Contracts.

The Australian Competition and Consumer Commission has ordered Booktopia Pty Ltd (‘Booktopia’) to pay $6 million dollars in penalties for breaches of the Australian Consumer Law.

Specifically, Booktopia was found to have made false and misleading representations regarding consumer rights and guarantees in the Terms of Business provided on their website, and by their customer relations and service staff working within their service centres.

On 7 March 2023, the new chair of the Australian Competition and Consumer Commission, Gina Cass-Gottlieb, announced the Commission’s 2023-2024 Compliance and Enforcement Priorities  in relation to competition and consumer issues.

One of the top priorities is combatting ‘greenwashing’ claims by businesses.

In late 2021, the much-anticipated Franchise Disclosure Register was announced by the government of the day. Around that time, Holman Webb dove into what the register would look like, and what franchisors would need to do to prepare for its introduction. See our November 2021 article ‘The Franchise Disclosure Register – What is it and When Does it Begin?’.  The register is now in force.

Key Takeaways:

• Franchisors must, if they haven’t already, create a profile on the Franchise Disclosure Register as soon as possible and provide the mandatory information.
   
• The profile and information provided should be updated at least annually. Franchisors should also take care to make sure the information provided is consistent with their disclosure document and key facts sheet.