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NSW Want to Cancel Stock Order - Can They File against Me?

Discussion in 'Australian Consumer Law Forum' started by priscillaF, 7 July 2015.

  1. priscillaF

    priscillaF Member

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    Hi there. I placed an order worth $1,000 2 months ago from this company and suddenly I have to sell my business but the new owner didn't want to take the stocks that I ordered so I told to this company that I have to cancel my order as I am selling the business, but 2 months ago I paid the 30% deposit. I am aware that I can't get any refund from it. The company said that they won't allow me to cancel it this far as the stocks were just delivered in their warehouse, but if they have the stocks in their warehouse they usually email me, but this time I haven't received any, so I was thinking maybe they don't want me to cancel it that's why they told me that.

    And also they told me that they will pass this over their accounts and legal advisers. Does it mean they're going to file anything against me under Australian Law?
     
  2. AnnaLJ

    AnnaLJ Well-Known Member

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    Hi Priscilla

    This will all come down to the terms and conditions that applied to your order.

    Did the supplier give you a set of T&Cs when you placed the order or, alternatively, were there T&Cs listed at the bottom of their invoice? If there are no T&Cs at all listed, and you have ordered with them several times, then the usual course of business that happens between the two of you may become the relevant T&Cs that apply to the transaction.

    The first step, would be to get a clear understanding of the T&Cs that govern this transaction. It's difficult to give you a proper response without knowing this.

    On a more practical point, it may be worth actually calling up and asking to speak with their accounts or legal team and seeing what can be negotiated?
     
  3. priscillaF

    priscillaF Member

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    Hi Anna.

    The invoice says any changes or cancellation after 7 days cannot be accepted. These terms are governed by the laws of NSW. and by placing this order you consent the jurisdiction of the courts of NSW.

    Does it mean if I cancel my order, there going to file against me?
     
  4. Ivy

    Ivy Well-Known Member

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    Hi there,

    Your purchase of stock to the value of $1000 is covered by Australian Consumer Law (ACL). The ACL covers purchases up to $40000 even if it's a business that is purchasing the good or service. The terms of your contract won't necessarily apply if they are "unfair" as per the definition in the ACL.

    Firstly, can the business sell the stock to someone else? i.e. is it a general item that could be reasonably sold to a similar sort of business or is it a very specific item?

    How much you need to pay the company is debatable. Assuming that the goods could be sold to another buyer, then you shouldn't have to forfeit the entire cost of them. Furthermore, deposits are generally only around 10%, so the company needs to be able to justify the higher deposit amount to keep the entirety of the amount you have already paid.

    Companies are not allowed to keep large deposits or require full payment for goods or services that have not been provided without just cause because that is seen as a penalty which the ACL prohibits businesses applying to consumers.

    However if the goods are a very specific custom order that would be difficult to on-sell, the company might be able to justify asking a higher amount from you.

    Give NSW Fair Trading a call and go from there. You may want to let the company keep the large deposit in order to come to an agreement with them more quickly or you may want to argue that they should return some of your deposit.
     

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