Chapter 6

Traps for the seller — pitfalls in negotiations

Commercial negotiations can be a risky business. Your natural impulse to enthusiastically market the products and services you deliver can have the potential to lead you into legal trouble.

Misleading and deceptive conduct — what is it?

The law says you cannot engage in misleading and deceptive conduct or conduct that is likely to mislead or deceive.

Section 52 of the Trade Practices Act 1974 provides the following:

A corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

This section applies nationwide. There are respective provisions in state legislation on dealing with ‘persons’ so that both companies and almost ...

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