Cyril Is a Customer Service Officer at a Mobile Phone

question 48

Multiple Choice

Cyril is a customer service officer at a mobile phone company.Jane is interested in a mobile plan.After Cyril explains the Super Value price plan to her, Jane exclaims, 'So I'll have unlimited text usage! I can message my friends all day, every day without paying a cent! I'll sign up right now!' Cyril knows that the plan only provides users with 50 free text messages a month but says nothing to Jane.One month later, Jane's phone bill is $2000.Has the mobile phone company, as a result of Cyril's actions, breached ACL s 18?

• A)Yes, all three requirements of s 18 have been satisfied.
• B)No, Cyril has not 'engaged in conduct'.
• C)No, Cyril's conduct was not 'in trade or commerce'.
• D)No, Cyril's conduct was not 'misleading or deceptive'.

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Definitions:

Uncollectible Accounts

Also known as bad debts, these are receivables that a business is unable to collect, often leading to their write-off as an expense.

IFRS

International Financial Reporting Standards, a set of accounting principles that dictate how companies' financial statements are prepared.

Initial Franchise Fee

A one-time payment made by a franchisee to the franchisor when a new franchise agreement is signed, covering rights to use trademarks, systems, and support.

Substantial Performance

A legal principle indicating that a party has fulfilled enough of its contract obligations to warrant payment, despite minor issues.