The Commonwealth Parliament passes the Online Marketplace Fair Trading Act 2026 (Cth). Section 18 provides: “A platform operator must take reasonable steps to prevent the sale of prohibited goods through the platform.” The Act defines prohibited goods as “goods the sale of which is unlawful under a law of the Commonwealth, a State or a Territory.” The Act does not define reasonable steps.
A dispute arises after a consumer buys a “lock-pick training kit” from a seller on a large online marketplace. The kit is lawful to possess in some States but unlawful to possess or sell without a permit in others. The platform had a general policy banning “items that may facilitate crime” and used an automated filter that blocked listings containing the words “lock pick”, but the seller listed the item as a “precision pin kit” and it was not blocked. The ACCC brings proceedings alleging the platform operator breached s 18.
In one judgment, the Federal Court interprets reasonable steps to require the platform to implement stronger verification and review processes for high-risk categories, not just keyword filtering. Following public debate, the Commonwealth Attorney-General announces that Parliament is considering amendments to “restore the original policy intention” and to “ensure consistent national operation”.
Using this scenario, analyse how the relationship between legislation and case law operates when courts interpret broad statutory terms and when Parliament responds to that interpretation.
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Create Free Account Log inThis is a free QCE Units 3 & 4 Legal Studies practice question worth 5 marks, testing your understanding of Legislation vs case law. It falls under Topic 1: Governance in Australia in Unit 3: Law, governance and change. Submit your answer above to receive instant AI-powered marking and personalised feedback.
In Unit 3, students examine the complexities of the Australian legal system and its capacity to deal with the diversity of competing needs. They explore the role of legal institutions and law-making bodies in creating laws that reflect the views of society. Students consider the range of forces that create catalysts for change and reform, and how laws are changed or reformed to reflect shifting societal demands.
In Topic 1, students consider the processes and roles of government in shaping law in Australia and Queensland. They examine how federal and state or territory legal institutions respond to forces of change and the impact of landmark cases.
the relationship between legislation and case law
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