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ARTICLE · 12 JUNE 2015

New small business unfair contract terms for the transport sector

Holding Redlich
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These new laws are likely to significantly impact the transport sector, where standard form contracts are often used.

AustraliaTransport
Nathan Cecil
Nathan Cecil
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The Federal Government recently released draft legislation which will extend the consumer unfair contract protections to small businesses.

If implemented, terms in standard form contracts with small business which are found to be unfair will be struck out and unenforceable. The new laws are likely to significantly impact the transport sector, where standard form contracts are common. Many settled and internationally accepted clauses in such contracts may be considered unfair under the new laws. If struck out, Carriers, logistics and marine service providers may find themselves unable to rely on many of the protections that they presently take for granted.

The new laws are expected to come into force in early 2016. All Carriers, logistics and marine service providers operating in Australia should review their bill of lading and standard trading conditions now, in order to ensure that they comply with the new laws.

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