PBL Practice Exam – 60 questions | 2022 LATEST UPDATE
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PBL Practice Exam – 60 questions
Suggested time frame to complete: 15 minutes reading time, 90 minutes writing
time.
Remember for the actual final exam that:
If asked any question that is related to a particular piece of legislation, you
will be provided with the relevant sections of th...
pbl practice exam – 60 questions suggested time frame to complete 15 minutes reading time
90 minutes writing time remember for the actual final exam that if asked any question that is related t
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PBL Practice Exam – 60 questions
Suggested time frame to complete: 15 minutes reading time, 90 minutes writing
time.
Remember for the actual final exam that:
If asked any question that is related to a particular piece of legislation, you
will be provided with the relevant sections of the legislation in hard copy.
There is no need to memorise legislation.
You are not required to recall case “citations” (ie. year numbers, law
reports etc) but you will need to be able to recall at least one party’s name
for the purposes of selecting the case from a list of cases in a multiple
choice answer. You will not be given case summaries in the exam – you
need to remember the facts, the legal issue and the outcome, although it
may be helpful to summarise these in your exam “cheat sheet”.
1. Unfair terms in consumer contracts are invalid if the contract is a standard form
contract and the term is unfair. A “consumer contract”:
☐ is a contract for the supply of goods or services, or for the sale of an interest in land,
to an individual who is acquiring the goods, services or interest in land
predominantly for their own personal, domestic or household use or consumption.
☐ is a contract involving supply to an individual, not a corporation.
☐ is a contract prepared by one party and presented to the other on a take it or leave it
basis.
☐ is a contract between an individual and a retail store.
2. Choose the correct statement regarding the role of judges in creating law:
☐ Judges create law directly by passing legislation.
☐ Judges create law indirectly by examining Bills and reporting back to the House of
Representatives as members of standing committees.
☐ Judges create law indirectly when they decide specific cases brought before them.
☐ Judges create law when they write articles on the law in academic journals.
,Questions 3, 4 and 5 relate to the legislative excerpt below. Read the legislative excerpt
below and then answer these questions.
Competition and Consumer Act 2010 (Cth)
Schedule 2 – The Australian Consumer Law
Chapter 1 – Introduction
…
Part 2-3 – Unfair contract terms
23 Unfair terms of consumer contracts
(1) A term of a consumer contract or small business contract is void if:
(a) the term is unfair; and
(b) the contract is a standard form contract.
(2) The contract continues to bind the parties if it is capable of operating without the
unfair term.
(3) A consumer contract is a contract for:
(a) a supply of goods or services; or
(b) a sale or grant of an interest in land;
to an individual whose acquisition of the goods, services or interest is wholly or
predominantly for personal, domestic or household use or consumption.
(4) A contract is a small business contract if:
(a) the contract is for a supply of goods or services, or the sale or grant of an
interest in land; and
(b) at the time the contract is entered into, at least one party to the contract is a
business that employs fewer than 20 persons; and
(c) either of the following applies:
(i) the upfront price payable under the contract does not exceed $300,000;
(ii) the contract has a duration of more than 12 months and the upfront
price payable under the contract does not exceed $1,000,000.
24 Meaning of unfair
(1) A term of a consumer contract is unfair if:
(a) it would cause a significant imbalance in the parties’ right and obligations
arising under the contract; and
(b) it is not reasonably necessary in order to protect the legitimate interests of
the party who would be advantaged by the term; and
(c) it would cause detriment (whether financial or otherwise) to a party if it
were to be applied or relied on.
, (2) In determining whether a term of a consumer contract is unfair under subsection (1),
a court may take into account such matters as it thinks relevant, but must take into
account the following:
(a) the extent to which the term is transparent;
(b) the contract as a whole.
(3) A term is transparent if the term is:
(a) expressed in reasonably plain language; and
(b) legible; and
(c) presented clearly; and
(d) readily available to any party affected by the term.
(4) For the purposes of subsection (1)(b), a term of a consumer contract is presumed
not to be reasonably necessary in order to protect the legitimate interests of the
party who would be advantaged by the term, unless that party proves otherwise.
25 Examples of unfair terms
(1) Without limiting section 24, the following are examples of the kinds of terms of a
consumer contract that may be unfair:
(a) a term that permits, or has the effect of permitting, one party (but not
another party) to avoid or limit performance of the contract;
(b) a term that permits, or has the effect of permitting, one party (but not
another party) to terminate the contract;
(c) a term that penalises, or has the effect of penalising, one party (but not
another party) for a breach or termination of the contract;
(d) a term that permits, or has the effect of permitting, one party (but not
another party) to vary the terms of the contract;
…
3. Edgar goes to a department store and buys a standard household fridge for use in
his fruit shop. He is asked to sign a pre-prepared contract and he does so without
asking any questions. Is the contract for the purchase of the fridge a “consumer
contract” under subsection 23(3) of the ACL? Choose the correct answer.
☐ Yes, because the fridge is designed and intended for domestic or household use.
☐ No, because Edgar does not acquire the fridge for the purpose of personal, domestic
or household use or consumption.
☐ Yes, because the fridge is not an industrial or commercial fridge.
☐ There is not enough information to decide.
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