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(a) That's right. The Australian Consumer Law does regulate unfair terms in contracts, but not all contracts. It only regulates the inclusion of unfair terms in consumer contracts. Such contracts are defined in s 23 as contracts for the supply of goods or services to a person who is acquiring them predominantly for their own personal or domestic use or consumption. Furthermore, the contract in question must be in standard form, so that the weaker party has no meaningful opportunity to negotiate the terms.

The facts of the case do not suggest that these requirements could be satisfied. The contract may well be a contract for Sunny's services as an actress, but Tyler does not acquire those services predominantly for his own personal or domestic use or consumption: the production is a commercial one. Also, it is not suggested that Sunny was asked to sign a standard form contract. It must be concluded that the contract is not a consumer contract to which the relevant provisions of the Australian Consumer Law apply.

This means that, even if the particular term is not fair, it is not made invalid by the provisions of the Australian Consumer Law.

Answer (a) is therefore correct.