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Select a package holiday brochure.  Read it and analyse it, looking to answer the following questions in your report;

  1. Identify the key information about the holiday as set out in brochure.Categorise the statements into representations, terms, conditions and warranties using contract law principles Identify whether there is any material in the brochure which is potentially 
  • unconscionable
  • misleading or deceptive
  • false representation
  • bait advertising
  • offers gifts or prizes

In your report explain the effect of these representations having regard to the consumer and consumer protection laws.  You should outline the law relating to advertising including improper business practices, any legislation regulating advertising, unlawful sales techniques and the powers of enforcement.

  1. Are there any exclusion or limitation clauses  If so identify and explain using the principles of contract law whether the clauses would be valid.
Key information in the brochure

A brochure is issued by travel agent or tour operators to customers which contains details regarding a holiday package. These brochures contain relevant information regarding the trip which includes details about transportation and accommodation facilities, daily play, locations covered in the trip and others. The corporations which issue these brochures have to ensure that they comply with the regulations imposed by the Australian government regarding contract and consumer law.

These regulations are imposed to protect the right of customers who rely on these brochures to make a contract with the travelling agent. In this report, the brochure of HelloWorld Travel titled ‘Hello Amazing Thailand Deals’ will be analysed. This report will identify key information in the brochure and categorised its statements into terms, representations, conditions and warranties based on contract law principles.

This report will identify whether any material given in the brochure is considered misleading or deceptive, bait advertising, unconscionable, false representation or offers. In case any of these representations are given in the report, then they will be explained based on consumer protection laws. Lastly, this report will evaluate whether any exclusion or limitation clauses are included in this brochure to evaluate whether these clauses are valid.

Key information in the brochure

HelloWorld Travel is an Australia based travel corporation which is specialised in retail, wholesale, and corporate product and packages. The agents of the company situated throughout Australia and New Zealand. The ‘Hello Amazing Thailand Deals’ is the brochure printed by the company for its Thailand trip for its customers (Thaiairways, 2017). This trip is given to customers who are looking for a relaxing trip to Thailand with good shopping, a romantic holiday, a spa experience, sight-seeing and others.

The brochure contains information about the hotels which provide spa and other facilities to customers which are situated in Phuket and Koh Samui. The prices of each hotel package are given in the brochure along with discounts which people are getting is mentioned as well. The facilities provided by hotels is included in the brochure which includes return economy airfare, full breakfast daily, bonus for extra night, free lunch and others. Moreover, the brochure has contact information regarding the company where customers can reach them to purchase the trip. Lastly, terms and conditions of the package are written in the bottom of the brochure. The text of these terms and conditions is very small and blurry which makes it difficult to read it correctly (Thaiairways, 2017). Based on these terms and conditions, the facilities of the hotels can be changed, and they can charge extra from customers.

Categorisation of statements

The details given in the brochure can be categorised into terms, representations, conditions, and warranties. Firstly, information given by the company regarding the holiday is considered as representations which are made to the customers. These representations include information regarding the hotels along with facilities provided by them. The information given regarding the price of the hotels along with other facilities given to the customers are categorised as terms of the brochure.

Categorisation of statements

For instance, the information regarding one free lunch and return airfares, four free night stay and daily breakfast are considered as the terms given in the brochure. The information regarding full breakfast daily, one free lunch for two and others are considered as warranties as per the principles of contract law. They are referred to non-essential terms non-compliance with which did not allow the customers to rescind the entire contract (McKendrick and Liu, 2015).

The customers can demand damages from the travel agency in case these terms are not meet, and they did not receive treatment and facilities as mentioned in the brochure. On the other hand, information such as return economy airfare, four free nights, and spa treatment are considered as conditions in this contract. These are some of the main terms based on which customers select this tour package which means that this contract is formed based on these terms (Huertas-Garcia, Laguna Garcia and Consolacion, 2014).

Therefore, the customers have the right to terminate the contract with the travel agency and demand damages if these conditions are not complied with. Furthermore, the travel agency has included various conditions in the brochure which are written below based on which they have limited the liability of customers to hold the company liable if they did not receive appropriate treatment and services as mentioned in the brochure.

Representations which breach consumer protection laws

There are certain representations included in the contract which violates the rights of customers based on which they can demand remedies under the consumer protection laws. Firstly, one of the key terms of the brochure which is highlighted in a large circle is that customers will receive breakfast daily while they are on the trip (Thaiairways, 2017). However, it is not mentioned anywhere in the brochure that the breakfast will be free or not. This is a key term because it is clearly mentioned below one free lunch which customers get in the first hotel. The customers could believe that they are getting free breakfast in the hotels, however, the hotel can charge them higher price for breakfast. This is considered as an unconscionable action by the company which could mislead or deceive customers.

Another issue in the brochure is that many key conditions are written in minuscule text size, and they are blurry. It makes it difficult for customers to read these terms, and they might purchase the package without understanding these terms. Since these terms and conditions are highly unreadable, they can mislead customers into accepting the contract without knowing its actual terms. It is also unethical that the company has made it difficult for customers to read the main terms of the contract. While forming a contract, it is important that parties are aware of all its terms and liabilities. Thus, the travel agency has the ethical responsibility to ensure that customers are aware of the necessary terms of the contract based on which they should make them clearly visible (Turner, 2013).

In these terms, many of the prices of hotels and transportation prices are misleading. For instance, the “free economy airfares” did not include charges for luggage and carriage and any other air travel related expenses which are paid by the customers. Moreover, charges for bus, cab or any other transportation facilities are not covered by the travel agency for its customers as mentioned in the terms. It is also mentioned that the travel agency will not pay for any expenses which are charged by the hotel that is not covered in this package. These terms are considered false representations because they are not clearly mentioned by the corporation while forming the contract (Jay, 2013).

Representations which breach consumer protection laws

Moreover, the information regarding daily breakfast and four free night stay are considered as bait advertisement because these offers are displayed at the front by the travel agency to attract customers into purchasing this trip. However, the company has included many terms to charge extra from the customers by including terms in the brochure which are difficult to read by customers. The company is also giving offers to customers to gain their attractions into purchasing this package. For instance, it is claimed by the company that each couple will save around $652, $1,720 and $1,082 in the first, second and third hotel respectively. These discounts attract customers are they are more likely to purchase this package without checking all of its terms.

Moreover, the company is provided that it is giving its customers bonus by giving them four free nights, upgrade to deluxe rooms, and one free lunch for couple. However, this is potentially misleading and false representation because the actual price of the rooms is not mentioned by the company, and extra charges for facilities are not included in the brochure. The terms written below the brochure are difficult to read by customers due to lack of clarity and size, therefore, they are highly suspicious and misleading to purchasers.

Section 18 of the Competition and Consumer Act 2010 prohibits organisations and individuals from making misleading or deceptive claims regarding their products or services or any statements which are likely to mislead or deceive (Legislation, 2018). Section 29 prohibits them from making any statements regarding their products in the advertisement which are misleading or deceptive or likely to do so. These regulations prohibit parties from making false representations regarding their products and services. Moreover, section 21 imposes prohibition on parties that engage in conduct regarding their goods or services which are unconscionable (ACL, 2018).

These provisions are introduced by the Australian government to protect the rights of customers based on which HelloWorld Travel company could suffer legal consequences if they did not improve their brochure by avoiding these legal consequences. These are considered as improper business practices based on which the company can face legal penalties for misleading its customers by using unlawful sales techniques.

Exclusion clause in the brochure

A contract gives the right to its parties to terminate the contract and claim damages in case a term of the contract is not met by the contracting parties. However, parties can limit this right by including exclusion clause in the contract. In Olley v Marlborough Court [1949] 1 KB 532 case, it was held by the court that the exclusion clause by brought into the attention of the party before or while the contract is formed (Mason, 2014). The term must bring into reasonable notice of another party against whom the exclusion clause is included. This rule did not apply in case a contract is signed by the party in writing. In this case, the travel agency has included an exclusion clause in the brochure. As per this clause, they limit their liability to pay only for the ticket and hotel room costs, and any other expenses which are charged by the airline and the hotel to the customers will not be covered in the package.

The company wanted to limit its liability to pay damages to customers if they raise any questions regarding why they are charged extra when they believe that this service is free as per the brochure of the company. Moreover, the company has provided that surcharges might apply based on which the rates mentioned in the brochure may vary, and they will not be covered by the travel agency.

However, these exclusion clauses are not valid because they did not comply with the rule of incorporating exclusion clause as mentioned in Olley v Marlborough Court case (Sims, 2012). These terms are written towards the bottom of the brochure, and they are not clearly seen by customers because they are written in small texts, and they are blurry which make it difficult for customers to read them. Therefore, the exclusion clause is not valid as per the principles of contract law based on which the corporation cannot limit its liabilities which arise in the contract.

Conclusion

In conclusion, the brochure issued by HelloWorld Travel agency has many major flaws which violate the principles of contract law and consumer protection regulations. The information given in the brochure is misleading because complete details are not included by the travel agency. The corporation relies on false representation to gain the attention of customers by showing them offers and bonuses to lure them into signing the contract. However, the company has included exclusion clause and many other charges in the bottom of the brochure which are written in small and blurry text which is difficult to read by customers.

The information regarding whether the breakfast is free or not is missing along with details of surcharge and expenses which customers might have to pay in the hotel or aeroplane. It shows that the company has violated the principles of contract law and consumer protection laws based on which it can face legal consequences. Therefore, the company should improve its brochure by making details clear about the hotel, breakfast and flight pricing. They should also make it easier for customers to read the terms and conditions to ensure that they rely on the exclusion clause in the brochure.

References

ACL. (2018) Section 21: Unconscionable conduct in connection with goods or services. [Online] Available at: https://www.australiancompetitionlaw.org/legislation/provisions/acl21.html [Accessed on 12th November 2018].

Huertas?Garcia, R., Laguna Garcia, M. and Consolacion, C. (2014) Conjoint analysis of tourist choice of hotel attributes presented in travel agent brochures. International journal of tourism research, 16(1), pp.65-75.

Jay, E.D. (2013) Ten Truths of False Advertising Surveys. Trademark Rep., 103, p.1116.

Legislation. (2018) Competition and Consumer Act 2010. [Online] Available at: https://www.legislation.gov.au/Details/C2017C00369 [Accessed on 12th November 2018].

Mason, L. (2014) Inadequacy and Ineffectuality: Hong Kong's Consumer Protection Regime against Unfair Terms in Standard Form Contracts. Hong Kong LJ, 44, p.83.

McKendrick, E. and Liu, Q. (2015) Contract Law: Australian Edition. London: Macmillan International Higher Education.

Sims, A. (2012) Unfair contract terms: A new dawn in Australia and New Zealand. Monash UL Rev., 39, p.739.

Thaiairways. (2017) HelloWorld Amazing Thailand Deals - Sale Ends 21 Apr '17. [Online] Available at: https://www.thaiairways.com/en_AU/plan_my_trip/Special_event/HelloworldThailandDeals.page [Accessed on 12th November 2018].

Turner, L. (2013) Transnational medical travel: ethical dimensions of global healthcare. Cambridge Quarterly of Healthcare Ethics, 22(2), pp.170-180.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2021). Analysing The 'Hello Amazing Thailand Deals' Brochure By HelloWorld Travel. Retrieved from https://myassignmenthelp.com/free-samples/law201a-business-law-for-managers/accommodation-facilities.html.

"Analysing The 'Hello Amazing Thailand Deals' Brochure By HelloWorld Travel." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/law201a-business-law-for-managers/accommodation-facilities.html.

My Assignment Help (2021) Analysing The 'Hello Amazing Thailand Deals' Brochure By HelloWorld Travel [Online]. Available from: https://myassignmenthelp.com/free-samples/law201a-business-law-for-managers/accommodation-facilities.html
[Accessed 29 March 2024].

My Assignment Help. 'Analysing The 'Hello Amazing Thailand Deals' Brochure By HelloWorld Travel' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/law201a-business-law-for-managers/accommodation-facilities.html> accessed 29 March 2024.

My Assignment Help. Analysing The 'Hello Amazing Thailand Deals' Brochure By HelloWorld Travel [Internet]. My Assignment Help. 2021 [cited 29 March 2024]. Available from: https://myassignmenthelp.com/free-samples/law201a-business-law-for-managers/accommodation-facilities.html.

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