BACKGROUND FACTS:
Rockhampton Mari-Yacht Pty Ltd is a newly established company, started by two best friends. They have
scraped enough money together by maxing out their credit cards, taking out personal loans and
borrowing money off family and friends to buy a site in the North Queensland city of Rockhampton. The
site is located in the city centre.
Rockhampton Mari-Yacht Pty Ltd has obtained development approval for the site to develop it into a
medium-rise three-star apartment-style hotel. Construction will commence when the bank is satisfied
that there are enough buyers signed up to buy units ‘off the plan’ to make the development profitable.
Rockhampton Mari-Yacht Pty Ltd plans on selling the units in the hotel to interstate and foreign investors.
It is working with a marketing agency who is distributing the brochure to sales agents all over Australia. It
will also be uploaded onto the developer’s website and the content is currently being animated into a
television commercial. The sales launch is scheduled for 31 May 2017.
3220HSL Real Estate and Property Development Law
Trimester 1, 2017
QUESTIONS FOR YOU TO ANSWER:
1. Is targeting of interstate and foreign buyers with the brochure, as drafted, unconscionable conduct?
In your answer discuss:
a) The unconscionable conduct provisions in the Australian Consumer Law; and
b) Relevant cases on unconscionability.
2. What are the potential and actual misrepresentations made by Rockhampton Mari-Yacht Pty Ltd in
the brochure? Will Rockhampton Mari-Yacht Pty Ltd breach the Australian Consumer Law when
making these misrepresentations?
In your answer discuss:
a) All the applicable misrepresentation provisions in the Australian Consumer Law; and
b) Cases interpreting the misrepresentation laws.
3. Will the disclaimer on the brochure protect the developer?
In your answer discuss the cases on disclaimers.
4. How would you change the brochure so that it reduces the risk of the developer misrepresenting the
facts?
, either present an amended brochure with a summary of the changes OR describe the
changes to be made.