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AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 12BF

Unfair terms of consumer contracts and small business contracts

             (1)  A term of a consumer contract or small business contract is void if:

                     (a)  the term is unfair; and

                     (b)  the contract is a standard form contract; and

                     (c)  the contract is:

                              (i)  a financial product; or

                             (ii)  a contract for the supply, or possible supply, of services that are financial services.

             (2)  The contract continues to bind the parties if it is capable of operating without the unfair term.

             (3)  A consumer contract is a contract at least one of the parties to which is an individual whose acquisition of what is supplied under the contract is wholly or predominantly an acquisition for personal, domestic or household use or consumption.

             (4)  A contract is a small business contract if:

                     (a)  at the time the contract is entered into, at least one party to the contract is a business that employs fewer than 20 persons; and

                     (b)  either of the following applies:

                              (i)  the upfront price payable under the contract does not exceed $300,000;

                             (ii)  the contract has a duration of more than 12 months and the upfront price payable under the contract does not exceed $1,000,000.

             (5)  In counting the persons employed by a business for the purposes of paragraph (4)(a), a casual employee is not to be counted unless he or she is employed by the business on a regular and systematic basis.

             (6)  For the purposes of subsection (4) and despite subsection 12BI(3), in working out the upfront price payable under a contract under which credit is or is to be provided, disregard any interest payable under the contract.



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