July 20, 2016
– FARMERS are being urged to know their rights when dealing with big business.
The Australian Competition and Consumer Commission’s new Agriculture Commissioner, Mick Keogh, issued a warning to small businesses and farmers to review any contracts before new competition laws come into effect in November.
“Many small businesses entering into contracts with larger businesses have no option but to accept all of the terms of the standard form contract that they are given,” Mr Keogh said.
“However, this new law will allow the courts to strike out any contract terms that unfairly benefit one party.”
Mr Keogh acknowledged that “imbalances in bargaining power are particularly common in agriculture” and the new law would “ensure a fair deal” for farmers.
The new law will apply to contracts where one business employs fewer than 20 people and the contract is worth up to $300,000 a year.
Nationals Victorian Senator Bridget McKenzie said the changes would have a significant impact for small businesses and agriculture producers.
(By KATH SULLIVAN, The Weekly Times)