How is Australian commercial law developing? And what can we learn here?
Photo by Dan Freeman on Unsplash
Australia is famous for being prepared to change the laws on its books. The state is always shifting the goalposts to perfect society or reduce unwanted long-term consequences.
But what’s happening today is outstripping what came before. Sure, Australia was always quite liberal, but now the government is taking a more direct approach, changing statutes radically when the situation changes.
The purpose of this post is to explore what’s driving these changes and how they are impacting the UK. We look at how the law is developing in Australia and how things in Britain could improve following their lead.
How commercial law in Australia is developing?
In Australia, there is a stronger emphasis on using technology to apply the law. Companies are using innovations to improve their processes and ensure fairness throughout the process.
For instance, many firms are using digital signatures. These allow them to deal with contracting online instead of sending letters or signing documents in solicitors’ offices.
Companies are also using online consumer rights to improve outcomes for individuals buying online. These protections apply in both the B2B and B2C arenas.
Like the US, Australia has a strong focus on pro-consumer laws. It wants people to feel confident when ordering goods through numerous channels, knowing they have recourse should something go wrong.
For example, Australia is opposed to unfair contract terms. Many firms use a commercial litigation lawyer to look through their documents to check they fall under what the law might understand as “fair.”
Australia also fights scams and looks for evidence of them occurring online. Special units work to shut them down and bring perpetrators to justice. Similar schemes are in operation in the UK but the emphasis on them is lower.
Finally, commercial law is making it simpler for entrepreneurs to declare bankruptcy and leave the business world. People who don’t succeed can exit rapidly without incurring additional debts that might put a greater burden on lenders and other stakeholders.
What the UK can learn from Australia in commercial law?
Here are some of the things the UK could learn from Australia’s lead in commercial law:
Using more advanced technology
The first thing the UK could learn from Australia is how to better use technology. The latter has a more advanced model for managing commercial activity, particularly online where much of the fraud takes place.
Strong consumer safeguards
Australia also provides stronger consumer safeguards, ensuring residents don’t get an unfair deal, regardless of where they shop. Interestingly, these protections extend to the business community. Companies have a right to the goods they’ve paid for or get their money back.
Currently, the UK doesn’t offer the same level playing field for commercial transactions. It’s more challenging for smaller firms to ensure favourable terms on deals, often putting them in a dangerous financial position.
Improving insolvency procedures
Finally, the UK could streamline its bankruptcy and insolvency procedures. Entrepreneurs should be able to exit failing businesses quickly to salvage as much capital as possible.
Incorporating some of these ideas could improve the sluggish legal system and make it work better for the average enterprise.
