First Principles of Business Law

9. A principal's liability for harm caused by their agent

9.3. Liability for misleading conduct

Read the facts below, and then answer the questions.

A, a printer, appoints B to represent him in soliciting orders for printed products. B visits local businesspersons, explains what sort of things A can produce, and quotes prices. B quickly finds out that potential customers are discouraged from ordering products if he tells them that most of the printing is done offshore, so he stops disclosing this fact and begins describing A's business as "100% Australian". A competitor finds out about this and brings an action against A and B, alleging a breach of s 18 of the Australian Consumer Law.

1. Does it appear that B's statement amounts to misleading conduct in breach of s 18 of the ACL?

2. Assuming that B's statement is misleading, is A liable, as B's principal, for a breach of s 18 of the ACL?

3. Assuming that A is liable, is B also liable, even though he is acting as A's representative?