ASIC Has Asked For This Webinar And Other Information To Be Passed To Members
Feb 16 2016
ASIC INFORMATION: From 12 November 2016
existing unfair contract term protections for consumers
will be extended to cover standard form small business contracts
These new provision are triggered when at least one of the parties to the contract is a small business. The law defines a 'small business', in the context of the unfair contract term protections, as a business that employs fewer than 20 people at the time the contract is entered into (including casual staff employed on a regular or systematic basis).
What is a standard form contract? The law does not define a ‘standard form contract’. However, in broad terms, a standard form contract is one that has been prepared by one party to the contract and is not subject to negotiation between the parties – that is, it is offered on a ‘take it or leave it’ basis.
Small businesses enter into standard form contracts every day for financial products and services. Contracts for business loans, credit cards and client or broker agreements, for example, are almost certainly standard form contracts.
The new unfair contract term protections will apply to standard form small business contracts entered into, or renewed, on or after 12 November 2016, where the upfront price payable under the contract does not exceed $300,000 – or $1 million if the contract is for more than 12 months.
ASIC, the ACCC and state and territory offices of fair trading will be responsible for regulating the new law.
For full details, read the ASIC information sheet about the new law.
WEBINAR - Registration Open to All
To assist businesses to comply with and understand the new law, ASIC and the ACCC will be hosting a webinar titled ‘The new business-to-business unfair contract terms law: what you need to know and do now’on Wednesday 16 March 2016 at 7pm AEDT.
This webinar is free to attend and will be beneficial to both small and large businesses. Interested parties can register now to attend this webinar.