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Strategies adopted by Australian Motor Industries for regulatory compliance

Describe about the Consumer Law for Australian Motor Industries.


The Australian Motors Industries is an automobile assembly firm. This company was started in 1926. The increase tariffs on import on vehicles have enhanced the growth of the Australian vehicle industry. The concessions on tax differed. The industries have started changing and there was a demise of the small body building industries. The Australian company was having English partners, (Eprofitfocus, 2014).

The company negotiated with Daimler-Benz in 1958 to distribute and assemble Mercedes Benz in Australia, (Amc, 2016). This way the AMI has started making business and increased the business and also the share market, (Industry, 2016).

The strategies applied by them are to make more business by forming agreement with different other automobile companies inside or outside Australia. They use some local made parts while assembling the body of the vehicles which also increase the employment as well as the use of local raw materials. This makes the price of the vehicle affordable for the general people of Australia, (Digplanet, 2016). This will increase the sell of the vehicle which will increase the business of both the company. The amalgamation of the AMI with Toyota has proved to be the milestone of the company. The first car of Toyota that has been made outside Japan was in Australia by AMI. This amalgamation has also increased the rate of shares of the AMI. The company changed its name and the new name was AMI Toyota Ltd in 1985 and was still listed in the stock exchange.

These strategies will indeed promote and increase the competition of the automobile industries in Australia. The amalgamation with different companies outside Australia will become threat to the local automobile industries. The AMI, as it make the body of the vehicle and assemble it will make sure that the cost of assembling should be cut so that the selling price of the vehicle becomes less compare to other companies. This is completely a business strategy. This action will increase the sell of the vehicle, which will enhance the business and will also help to earn more profit. The vehicle company should get profit in the country as this will help in growing the business of AMI. The AMI has started making the Matadors with more specific and modern technologies. They have included power windows, power steering, air conditioning, with an AM Radio. These modern technologies have made the other companies to think about such technologies to implant them in their vehicle. The AMI is doing this with a lower cost with the help of the other companies. This cannot be done by the other companies if they are not amalgamated. The AMI does not compromise with the quality of their work in order to cut the cost. This is one more reason behind the increase in competition of the assembling vehicles in the Australian market. This amalgamation has proved to be a boon for the AMI.

Promotion of competition

The AMI should look after the strategies they are making and should change according to the demand and the market. The strategies should change also according to the company it is amalgamating and the employees working therein. Forming an amalgamation means getting into a contract. The agreement made should be according to the law of Australia and not of the law of the country of the other party. The management of the AMI should make the terms of the agreement very consciously so that no misrepresentation is being made in the agreement. Any breach of term or any misrepresentation will make the contract void, and the AMI will be committing an offence. The management of the company should be working properly and should be honest amongst them. This will initiate and enhance in smooth working of the company. The company is should take care of the consumers. It should follow the rules and provision provided in the Consumer law of Australia. The AMI is a company that assembles the body of the vehicles, and also makes the parts of the vehicles. They should think about the customer satisfaction and also should make the vehicle with a price that will be affordable for the general people. The customers, who are the consumers according to the consumer law, should not face any problem regarding the vehicle they are purchasing. Any grievances should be made to the company and the company is bound to look after the problems. It is the duty of the company to look after the comfort level of the customers. And the company is also bound to make or give proper information regarding the vehicle. Any false representation or using of materials below quality will reduce the goodwill of the company. This reduction of goodwill will hamper the company to any extent. At first, the company will move down in the stock exchange, the rate of the shares will also fall down, (Futureinaustralia, 2016). Because of this the contract for amalgamation will also come to an end. Therefore, the management of the company should make strategies and decisions that will comply with the market resulting to competition and will also be according to the provisions of the Competition and Consumer Act.

The facts of the case that Bungee World Ltd ("BW”), is the world’s highest bungee jumping platform. The name of the platform is Sea Monster. The interested participants has to pay $50 for the jump and has to sign a form where it has been mentioned that the Bungee World Ltd. is nowhere responsible for the death or any injury caused to the participant during the bungee jump and other relevant terms.

An investment banker, Loki went for bungee jumping on the Sea Monster. He duly pays the fees and signs the form. After that he went to the platform where he met Kate, who is a bungee instructor. She had been working as an instructor since last 10 years. Kate, got him ready and ensures that his legs are tied up properly to the safety rope. Loki makes the jump and somehow a part of the steel platform has broken down from the main platform. The safety rope was attached to the steel platform. This happened due to the sea moisture. Loki did not get harm severely but had a nervous breakdown. He wants to sue BW for the negligence on its part.


There is a case of negligence on the part of Loki. As he has suffered from an injury (emotional distress), he can sue BW for the injury caused to him. For this it is very important to understand the actual meaning of negligence. Negligence in general can be termed as carelessness. It is a kind of tort. In legal terms, it signifies failure to exercise the standard of care which the doer as a reasonable man should understand and have followed the same and have acted in accordance with the circumstances. In general term, there is a legal duty to take care where it should have been forseeable that failure to do the act will cause injury. Negligence is a way in which kinds of harms may be caused, by not taking any adequate measure to avoid during such circumstances. Any harm may be caused to someone negligently though was not careless and tries to be careful, if the care taken was such as the court deems inadequate in the circumstances.

For proving the negligence, the plaintiff has to prove that there is a duty of care towards the plaintiff. The duty means a legal duty, (Lawhandbook, 2016). The plaintiff has to proof that the defendant owed to him a certain duty of taking care and has made a breach of it. No definition of duty has been provided anywhere. It depends on the circumstances and it varies from one another. In Donough v. Stevenson (1932), it has been stated that there must be proper and reasonable care that has to be taken care of which can cause injury and can be foreseen. Here, Loki is responsible to proof that the BW is negligible on its part as it could have foreseen the injury that has caused to him, (Ruralandgeneral, 2016). The BW could have taken proper care in order to prevent the injury caused to Loki. Therefore, BW has caused negligence.

The duty of the defendant also depends on the reasonable foreseeability of the injury. This means that if during the act, the defendant could have foreseen the damage that may cause to a person or the plaintiff and still he does the act or could not prevent the injury, the defendant is liable for the negligence, (Legalaid, 2016). This has been mentioned in the famous case of Glassgow v Muir (1943). The ability of foreseeing also varies from person to person. If this point is considered, then also BW is responsible for the negligence made on its part that has caused injury to Loki. If the injury is not foreseen, the defendant is not responsible on its part though the plaintiff may sue him.

Another point that has to be proved by the plaintiff is that damage has been caused to him. The damage caused to the plaintiff is because of the negligence made on the part of the defendant and the damage could have been prevented, if taken proper precautions. The damage if not proved, the defendant will not be liable for any negligence. The ALRC has divided the damage into two parts, (Alrc, 2016). First, physical injury- an injury that has caused bodily harm or has damaged any body parts and can be seen or make out by other people. Second is the mental injury. Any injury that has cause mental dis-balance or agony, emotional distress, nervous breakdown and similar other things can be termed as mental injury. Here, Loki has nervous breakdown but is not having any bodily injury.

If all these conditions are fulfilled and are satisfied then the BW will be held liable. But there is a form that has to be signed by all the participants that BW will not be held liable for any damage caused to the participants. Loki has also signed the said form. Therefore, in this case, BW will not be held liable for the negligence claimed by Loki. But for the near future, BW should take care pf the participants and also maintain the platforms and safety rope properly so that no further accident takes place.

All the workplaces, i.e., companies, industries, factories etc., are guided by the Fair Act, 2009. The National Employment Standards are also guided by the Fair Works Act, 2009, (Fairwork, 2016). The National Employment Standards are the ten entitlements at the minimum level that has to be maintained by all the employment sectors and has to be provided to all the employees of the concerned sector, (TDA, 2016). The ten entitlements referred in the National Employment Standards are:

The employees of a concerned should work for 38 hours per work and also additional hours which are reasonable. They are not supposed to work more than that.

There must be right given to certain employees who may request the employer to provide for flexible working arrangement.

The employees have the right to get an unpaid leave for 12 months and also request for an unpaid leave for another 12 months if required and also get leave for any sort of parental leave.

The employees are entitled to get paid leave for four weeks in a year and also additional leave for those employees who are shift workers.

The employees are entitled to get unpaid leave willingly for any emergency activities or leave for service of jury where the employees will be paid for 10 days if the take leave for jury service.

The employees are entitled to get which comes from a pre-modernised award.

The employees are entitled to get 10 days paid personal leave, two days unpaid carer’s eave and two days compassionate leave, i.e., leave granted under sympathy.

The employees are also entitled to get paid leave on the public holidays.

Notice up to five weeks must be given before termination and on redundancy; 16 weeks’ severance pay must be given.

The employers should be provided with Fair work Statement and the rolesof Fair Work Commission, (Ieuvictas, 2016).

The NES applies to all the employees working in the national workplace relations system without any regard to the employment contract, award that applies to the employees. But there are only certain rights, i.e., maximum working hours, carer’s leave etc., that has been entitled to the casual employees, (Fwc, 2016).

Being a head of human resource of an Australian Engineering company, a proper record has to be maintained, the grievances of the employees should be heard of and a sudden inspection has to be made in the company, in order to ensure that the company is not contravening any of these standards, (Awu, 2016).

4. The fact of this case is that Rebecca, who is an old woman, lives alone in Brisbane. The only language in which she can communicate is English. This is because she has recently migrated to Australia from Italy. She receives a call one day from Dave, who is a representative of a plumbing company. The call was made randomly for a general plumbing check for free. Dave tried to make Rebecca understand that this plumbing check was for free, just to check the condition of the pipes and taps of her house and it does not include any liability. She agreed for the plumbing check and on the very next Dave went to her house. After the checkup, Dave concluded that the pipes and taps are in good condition, (Consumerlaw, 2016). He then suggested Rebecca to buy an Ono filter which contains latest reverse osmosis technology for $2,000, including the installation. He said that he is having one unit of the said filter in his vehicle parked outside, (Australiancontractlaw, 2016).

Rebecca did not want to buy the filter but after and was not interested to spend any money. But as Dave went on convincing her for two hours, Rebecca at last got convinced and she signed the contract for buying the Ono filter, (Legislation, 2016). She did this under pressure and not by her consent, (Lawbuddy, 2016). Next Dave stated that if she refrains from the cooling-off period then he could install the filter and Rebecca agrees in doing so, (Libguides, 2016).

The issue is that Rebecca does not have any complain against the filter as it was working properly. But she did not have any need for the filter and she felt pressurized to sign the contract.

The law which is applicable in this case is the contract which has been made is by undue influence, (Lawhandbook, 2016). Undue influence means a situation where one party dominates the will of the other party and takes the unfair advantage of the position over the other party. The agreement made under such term is voidable at the option of the party who was forced to enter into the agreement. There is no remedy or rights available for Rebecca under Section 21 of the Australian Consumer Law, (Consumerlaw, 2016). All she can do is to give an application before the court, where the court after it is satisfied will set aside the said agreement.


Alrc. (2016). Negligence. Retrieved October 04, 2016, from › 7. Fault

Amc. (2016). Australian Motors Industries. Retrieved October 04, 2016, from

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Awu. (2016). National Employment Standards. Retrieved October 04, 2016, from

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Eprofitfocus. (2014). 2014 Australian Motor Industry Overview. Retrieved october 04, 2016, from

Fairwork. (2016). National Entitlement Standards. Retrieved October 04, 2016, from › Employee entitlements

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Fwc. (2016). National Employment Standards. Retrieved October 04, 2016, from › … › Minimum wages & conditions

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Industry. (2016). Automotive industry. Retrieved October 04, 2016, from

Lawbuddy. (2016). Contract Law in Australia. Retrieved October 04, 2016, from

Lawhandbook. (2016). elements of contract. Retrieved October 04, 2016, from › Contentsl

Lawhandbook. (2016). Negligence. Retrieved October 04, 2016, from › ACCIDENTS AND INJURIES

Legalaid. (2016). Negligence. Retrieved October 04, 2016, from › … › Birth, life, death › Personal injury

LEGISLATION. (2016). Australian Consumer Law and Fair Trading Act 2012. Retrieved from…

LEGISLATION. (2016). Competition and Consumer Act 2010. Retrieved from

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Ruralandgeneral. (2016). What is Negligence. Retrieved October 04, 2016, from

TDA. (2016). National Entitlement to Training. Retrieved from · PDF

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