The IRAC method (Issue, Rule, Application, and Conclusion) Case Study

IRAC TASK
Student Name
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IRAC Task
Issue
Antonio desires to purchase a photography business and David manages to link him to a seller. Antonio has a mild disability and does not understand the complex transactions involved in completing the purchase. David understands Antonio’s situation but tricks him into believing that the identified business makes profit. Based on the facts provided, can Antonio argue that the contract be set aside on the basis of unconscionable conduct and undue influence?
Rule
Unconscionable conduct refers to a mean behavior that is so harsh and violates the good conscience. It mainly involves a dominant party taking advantage of a weaker party. The Australian consumer law prohibits businesses from engaging in unconscionable conduct when dealing with businesses or their customers. The conduct has to be harsh or oppressive to be perceived as unfair and has to be against the societal norms. Australian courts have dealt with several cases of unconscious conduct when they find out that the exercise was deliberate, involves serious misconduct and the conduct can be classified as unfair and unreasonable.
The law safeguards the vulnerable individuals against such forms of exploitation through three main sections of the competition and consumer aid. Section 20 of the Australian consumer law prohibits unconscionability that a corporation may engage within the meaning of the unwritten law, implying the equitable doctrine of unconscionable conduct. The section states that, “A person must not, in trade or commerce, engage in conduct that is unconscionable within the meaning of the unwritten law, from time to time.” therefore, according to this section, no one is allowed to engage in any conduct that he knows violates the ethical code of conduct.[Australian Competition Law. “Section 20 Unconscionable Conduct within the Meaning of the Unwritten Law,” 2017. /legislation/provisions/acl20.html.]
The second section against the unconscionable conduct is section 21, which warns against unconscionable conduct in regards to the supply or acquisition of goods and services by or from an individual other than a listed public company. This section is not meant to be restricted by the unwritten law regarding the unconscionable conduct. Any relevant factors surpass the consideration of the prevailing circumstances in the formation of the contract. The section states that “A person my not, in trade or commerce, in connection with the supply or possible supply of goods or services to a person other than a public company engage in a conduct that is, in all circumstances, unconscionable.” Therefore, no person should engage in either the sell or purchase of goods or services in which he understands the actions as being unconscionable.
Section 22 provides some exceptions to the section 21 guidelines. According to this section, the court may have regard to only cases where there was a significant bargaining power on either the side of the buyer or the supplier, or whether the conduct that the supplier engage in did not necessarily require protection of the interests of the buyer or the supplier. It also provides the exception in cases where the buyer was able to under...