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ARTICLE · 29 JULY 2012

Unfair contracts get a test case - the mystery of the broken dining table

The tribunal found that the 'I accept' liability clause in standard form consumer contracts was unfair and thus void.

AustraliaConsumer Protection

Ray and Barbara Malam have become part of legal history, winning one of the first cases to be brought under the unfair contracts provisions of the Australian Consumer Law. The law makes unfair terms in standard form consumer contracts void. This is a big worry for online sellers, and the Malams have just proved why.

The Malams bought a glass-topped Tuscany Square dining table from graysoline.com, an auction website. They had the table picked up by courier, and when it arrived at their place the glass was broken. Obviously, the courier didn't break it, that never happens. So it must have been broken already. Anyway, that's what the Tribunal decided had happened.

The standard terms of graysonline, which you accept by clicking the "I accept" button after not reading the terms like we all do, excluded all liability for the damage. The terms were 13 pages long. The Tribunal found that the terms which excluded liability were unfair to the Malams and therefore void. It

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