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COMMERCIAL LAW

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 laws by your company.

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