A person who acts on negligent advice to their financial detriment may possibly: Select one: a. Bring legal action for negligence only. b. Bring legal action for a breach of the ACL s 18(1) only. c. Bring legal action in both negligence and for a breach of the ACL s18(1). d. Bring legal action only if the advice was obtained in a contractual relationship.
Question
A person who acts on negligent advice to their financial detriment may possibly:
Select one:
a. Bring legal action for negligence only.
b. Bring legal action for a breach of the ACL s 18(1) only.
c. Bring legal action in both negligence and for a breach of the ACL s18(1).
d. Bring legal action only if the advice was obtained in a contractual relationship.
Solution
The correct answer is:
c. Bring legal action in both negligence and for a breach of the ACL s18(1).
This is because a person who acts on negligent advice to their financial detriment has the right to bring legal action for negligence, as the advisor failed to exercise the care that a reasonably prudent person would have done in the same circumstances.
In addition, they can also bring legal action for a breach of the Australian Consumer Law (ACL) section 18(1), which prohibits misleading or deceptive conduct in trade or commerce. If the advisor's negligent advice was misleading or deceptive, and it led to the person's financial detriment, then it could be considered a breach of this law.
Therefore, the person can bring legal action in both negligence and for a breach of the ACL s18(1). It's not necessary for the advice to have been obtained in a contractual relationship for the person to bring legal action.
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