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COMMERCIAL LAW

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COMMERCIAL LAW

COMMERCIAL LAW

This is a solution of Information Technology Strategy Assignment[A8]  in which we discuss Developing business IT strategy can help your company cope with aging systems and limited resources that can lead to fragmented IT solutions.[A9] 

 

The setting up of a new business in Australia needs to go through a number of important steps. There new business requires to be set up in accordance with all the laws that are mandatory to be followed in Australia. The clothing retail business is a lucrative business in the country and has gained a lot of popularity in the country over the last few years. In the words of Howells and Ramsay (2018), there are an increasing number of businesses, which are tending to make a shift towards the retail sector. Thus, the large number of companies requires proper administration and monitoring on the part of the government of Australia. The government of Australia has a set up a number of laws that are required to, be followed while setting up a business and after the business has been set up as well. Fresh businesses have to register the business in order to start any kind of business activity in Australia. There are a set of laws, which the newly developed company needs to follow in order to ensure fair-trading of the products and services of the company. There are provisions for the enforcement of laws to ensure the completion of any kind of contract that the company enters. In accordance with Akbar et al. (2018), the company must ensure that there is no breach of any provision of a contract, which the company has entered. The company must also ensure that it is also following all legal obligations regarding the marketing activities that the company is undertaking.

The main task of your company is to get itself registered with the Australian government. This needs to be done following the Australian laws regarding registration of a business. In the words of Douglas, and Loadsman (2018), a new company not only has to register the business name, but also has to register itself to a number of taxes. These taxes include, Australian Business Number (ABN), the Goods and Services tax (GST), a Tax File Number (TFN) and Pay as you go (PAYG) withholding (Business.gov.au, 2019). You need to make sure that you have registered your company with all the mentioned taxes. This is the first major step towards setting up a new business in Australia.

There are a number of issues, which your business might face in the future. These issues can be highly impactful on the goodwill of the company and not following them might lead to severe consequences for your company.

The main aim of a business is to attract as many customers as possible. The main aim of any profit making business is to enhance the sales figures, by driving in more customers. However, the customers require highly efficient handling and the satisfaction of the customers with the products of the company is highly essential. The clothing business that you are planning to set is bound to deal with a diverse set of consumers, especially men. The focus of your business should be to satisfy all your customers and follow the standard set of rules and regulations of customer satisfaction as set by the government. In the words of Greenleaf, Mowbray and Chung (2018), the main agenda of any company is to comply with all the consumer norms and contracts that are made by the business, failing to which can cause serious legal issues for the business. The business that you are planning to set up is highly demanding and has a number of competitors. The customers can take legal actions against your company, in case they are not satisfied with the products and services of your company.

In such a situation, there is a breach of the Australian Consumer Law. This law is the national law that looks after all the legal matters relating to the interaction between a customer and a business. The law has been set out in the schedule 2 of the Competition and Consumer Act, 2010. As stated by Lahovnik and Bečić Steiner (2019), there are various provisions in the act that are meant to be properly interpreted and followed by each business, in order to avoid any legal trouble from the consumers. The law contains a standard form of consumer and business contracts that must be followed by all businesses. The focus of the law is to guarantee consumer rights while a purchase is being made. The law also makes proper enforcement of the product safety laws and standardizes the quality of the products. You must ensure that the quality standards of your products are in accordance with the standards set by the law. The law also makes sure that there is a proper national law set for the agreements that are unsolicited with any consumer. This includes laws to regulate over the telephone sales and door-to-door sales of a company. The companies are required to follow all the provisions of the Australian Consumer Law in order to ensure smooth functioning of the company.

There are several cases, when the breach of the provisions of the consumer law by any business has costed the business dearly. The most significant example is the case in which the Australian Competition and Consumer Commission took the global electronics giants, Apple, to court in 2017 (Abc.net.au, 2017). The main claims that the ACCC had put up against Apple was that the customers of the company were denied warranty repairs, after they had repaired the device from a third party repairer. This was seen as a move to undermine the third party repairing business and breached the consumer law, as the consumer law clearly states that a customer can repair or replace faulty goods beyond their warranty. The reputation of Apple was severely hampered due to the case and there was a substantial loss of customers for the company (Abc.net.au, 2017).  Therefore, you need to make sure that you strictly abide by all the guidelines set by the law, while managing the operations of your business.

The next major issue that your company might face is regarding the proper marketing of your products. In the words of Meltzer (2018), marketing of the products is highly essential component for a newly formed company. The marketing of the products of a company helps in developing the brand image of the company and gaining in more customers for the company. As influenced by the ideas of Lahovnik and Bečić Steiner(2019), it can be stated that the marketing process of a company should follow a fixed set of norms and should not contain any defamatory or unacceptable content. There are a set of laws, which regulate the various aspects of marketing. These aspects of marketing include the setting of the price of the product, advertising of the products of the company. The advertising of the products of the company should be strictly in accordance with the section 18 of the Australian consumer law. According to Tuite(2018), this section of the Australian Consumer law clearly states that a business must not initiate any activity that is deceptive or misleading for the consumers or other businesses. In case of any kind of advertising that tends to be deceptive or misleading, is seen as a serious breach of the law and is a punishable offence under the law. There are a number of provisions that are set in the law that protects the consumers against getting mislead to buy a product. The Spam Act of 2003 regulates the marketing of products and services through emails (Business.gov.au, 2019). The act clearly states that misleading people or cheating on people through email services is a punishable offence. In the words of Howells and Ramsay (2018), the emails sent out by a company for the purpose, of marketing the products of the company should be strictly in accordance with the laws set by the Spam Act, 2003.

The business that you have chosen is a highly competitive business. The clothing industry in Australia is a highly demanding business, with huge markets across the country. There are a number of competitors, which your business will face at the local level itself. This means while setting up the business, all the norms and regulations are to be followed. This will not give your competitors any kind of scope to act against the aims of your business. The first thing that you need to make sure is the fact that your company is registered to all the required taxes and has a proper Australian Business Number. The company cannot start its operations without securing these particular registrations from the government. The company needs to have a unique name that does not coincide with any other business at the local level. This is a major demand of the laws regarding the registrations, as any coincidence in the names of two or more companies can lead to serious consequences for both the companies. The Australian Consumer Law is the main law that you need to keep in mind while designing the future policies of the company. As a new clothing company, you need to make sure that there is proper marketing of the products of the company. This should also be done in accordance with the Australian Consumer Law and the Spam Act. The setting up of the company depends entirely on the following of proper laws by your company.

 Reference list

Books

Howells, G. and Ramsay, I. eds., (2018). Handbook of research on international consumer law. Edward Elgar Publishing.

Journals

Akbar, D., Subedi, R., Rolfe, J., Ashwath, N. and Rahman, A., (2018). * School of Business and Law, CQUniversity, Rockhampton, QLD, Australia,† School of Nursing, CQUniversity, Rockhampton, QLD, Australia,‡ School of Health, Medical and Applied Sciences, CQUniversity, Rockhampton, QLD, Australia. Advances in Eco-Fuels for a Sustainable Environment, p.441.

Douglas, M. and Loadsman, N., (2018). The Impact of the Hague Principles on Choice of Law in International Commercial Contracts. Melb. J. Int'l L.19, p.1.

Greenleaf, G., Mowbray, A. and Chung, P., (2018). Building sustainable free legal advisory systems: Experiences from the history of AI & law. Computer Law & Security Review34(2), pp.314-326.

Lahovnik, M. and Bečić Steiner, E., (2019). Organization in New Business Environment: a Franchisor’s View. Zagreb International Review of Economics & Business22(SCI), pp.83-94.

Meltzer, J.P., (2018). Digital Australia an Economic and Trade Agenda.                        

Tuite, A., (2018). Jenny Kee and Flamingo Park: Independent fashion retailers as creative practitioners. Fashion, Style & Popular Culture5(2), pp.169-183.   

Website

Abc.net.au (2017) Apple taken to court by ACCC over alleged consumer warranty misrepresentations Available at: https://www.abc.net.au/news/2017-04-06/apple-taken-to-court-by-accc-over-alleged-consumer-misrepresent/8421346 [Accessed on: 25.05.2019]

Business.gov.au (2019) Legal obligations of marketing Available at: https://www.business.gov.au/Marketing/Advertising/Legal-obligations-of-marketing [Accessed on: 25.05.2019]

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