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AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 12BH

Examples of unfair terms

  (1)   Without limiting section   12BG, the following are examples of the kinds of terms of a contract referred to in section   12BF that may be unfair:

  (a)   a term that permits, or has the effect of permitting, one party (but not another party) to avoid or limit performance of the contract;

  (b)   a term that permits, or has the effect of permitting, one party (but not another party) to terminate the contract;

  (c)   a term that penalises, or has the effect of penalising, one party (but not another party) for a breach or termination of the contract;

  (d)   a term that permits, or has the effect of permitting, one party (but not another party) to vary the terms of the contract;

  (e)   a term that permits, or has the effect of permitting, one party (but not another party) to renew or not renew the contract;

  (f)   a term that permits, or has the effect of permitting, one party to vary the upfront price payable under the contract without the right of another party to terminate the contract;

  (g)   a term that permits, or has the effect of permitting, one party unilaterally to vary financial services to be supplied under the contract;

  (h)   a term that permits, or has the effect of permitting, one party unilaterally to determine whether the contract has been breached or to interpret its meaning;

  (i)   a term that limits, or has the effect of limiting, one party's vicarious liability for its agents;

  (j)   a term that permits, or has the effect of permitting, one party to assign the contract to the detriment of another party without that other party's consent;

  (k)   a term that limits, or has the effect of limiting, one party's right to sue another party;

  (l)   a term that limits, or has the effect of limiting, the evidence one party can adduce in proceedings relating to the contract;

  (m)   a term that imposes, or has the effect of imposing, the evidential burden on one party in proceedings relating to the contract;

  (n)   a term of a kind, or a term that has an effect of a kind, prescribed by the regulations.

  (2)   Before the Governor - General makes a regulation for the purposes of paragraph   (1)(n) prescribing a kind of term, or a kind of effect that a term has, the Minister must take into consideration:

  (a)   the detriment that a term of that kind would cause to consumers; and

  (aa)   the detriment that a term of that kind would cause to persons who carry on a business and employ fewer than 100 persons; and

  (b)   the impact on business generally of prescribing that kind of term or effect; and

  (c)   the public interest.


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