Cash Bazaar Pty Ltd v RAA Consults Pty Ltd (No 2) [2020] FCA 636

FEDERAL COURT OF AUSTRALIA

Cash Bazaar Pty Ltd v RAA Consults Pty Ltd (No 2) [2020] FCA 636 File number: VID 1348 of 2017

Judge: STEWARD J

Date of judgment: 15 May 2020

Catchwords: CONSUMER LAW – misleading or deceptive conduct – pre-contractual representations – alleged contraventions of s. 18 of the Australian Consumer Law – where first applicant entered into franchising agreements allegedly in reliance on representations made to its sole director and shareholder (the second applicant) with respect to guaranteed income and capital growth – where alleged that first respondent would pay the guaranteed income – where first applicant entered into a shareholders agreement with the second respondent allegedly in reliance on representations made to the second applicant with respect to guaranteed payments – where representations allegedly made by various officers and employees of the first respondent – where first and second respondents ceased making payments to the first applicant – where price of the franchising agreements did not increase – identification of the true nature of the representations – whether representations were as to future matters within the meaning of s. 4 of the Australian Consumer Law – whether respondents had reasonable grounds for making the representations

Legislation: Competition and Consumer Act 2010 (Cth.) Sch. 2, Australian Consumer Law ss. 2, 4, 18, 236 Corporations Act 2001 (Cth.) s. 1305 Trade Practices Act 1974 (Cth.) s. 51A (repealed)