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Managing Legal Issues – Consumer Protection
XYZ Travel runs a travel agency in NSW. Business is slow so they decide to launch a new advertising campaign for a 10 day tour of Italy. To encourage business, they decide to advertise the tour at a price of $1,500 even though they know that the full price is $2,000 inclusive of taxes. The advertisement has an asterix near the price with a note that taxes are in addition but the full price of $2,000 is not displayed in the advertisement. They also advertise that the tour involves travel by a luxury coach and cruise ship even though they know that 80% of the trip is by a small old minivan including parts of the cruise as the ship will not be able to dock at certain port.
John and Mary are really keen to visit Italy and have worked for many years to save for a trip. The XYZ Travel advertisement catches their eye due to the cheap price and they decide to book. John is given the booking terms and conditions and reads that if the booking is cancelled for any reason, they will not be entitled to a refund. John is being pressured to sign the terms and conditions, which he does. John and Mary book and pay for the trip and are very disappointed when they realise that the tour does not include travel by a luxury coach or cruise ship.
You must use the IRAC approach to answer this question.
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