NTIn ForceAct
Consumer Affairs and Fair Trading Act 1990
242Orders by Local Court where undertaking refused or breached
Start here
Get a plain-English read of 242
Turn the raw legal text into a practical explanation grounded in Consumer Affairs and Fair Trading Act 1990.
242 Orders by Local Court where undertaking refused or breached
(1) Where a person fails to comply with a request by the Commissioner
for the giving of an undertaking under section 240(1), the Local
Court may, on the application of the Commissioner or any other
person, and on being satisfied that there were grounds for
requesting the undertaking, order the first-mentioned person:
(a) to act in a manner that would have been required; or
(b) to refrain from acting in a manner that would have been
prohibited;
by the undertaking if it had been given.
(2) Where, on the application of the Commissioner or any other person,
the Local Court is satisfied that a person has failed to observe an
undertaking given by that person under section 240(1), the Local
Court may make an order under subsection (3).
(3) The Local Court may order the person by whom the undertaking
was given:
(a) to observe the undertaking; and
(b) in the case of an undertaking to rectify the consequences of a
contravention of a code of practice – to observe the
undertaking within a time specified in the order.
(4) Where:
(a) the failure on which an application under subsection (1) or (2)
is based is a failure by a body corporate; and
(b) the Local Court is satisfied that the failure occurred with the
consent or connivance of a person who, at the time of the
failure, was a director of the body corporate or a person
otherwise concerned in its management;
Consumer Affairs and Fair Trading Act 1990 92
the Court may, in addition to any other order, make an order under
subsection (5).
(5) The Local Court may, in a case falling within subsection (4), make
an order prohibiting the person from:
(a) continuing to consent to, or connive at, the failure; or
(b) consenting to, or conniving at, a like failure by any other body
corporate of which the person is a director or in the
management of which the person is concerned.
(6) An order under this section may be made subject to such conditions
(whether as to the duration of the order of otherwise) as the Court
thinks fit including:
(a) conditions as to the future conduct of the person affected; and
(b) conditions specifying the action to be taken by the person to
rectify the consequences of the failure the subject of the
application under this section.
(7) A person who contravenes an order under this section is guilty of