Internal Code: 4AEA
TAFE Assignment Help:
Task:
1. Who is a ‘consumer’ under the ACL?
2. Dalia contracts to sell her crop of apples to Phil’s Supermarket. Assume:
(a) The apples are not yet picked and are sold under an agreement to sell them when they ripen. Before the apples are picked, a fire destroys the crop.
(b) The apples are picked and sent to Phil’s storage sheds. The night before Phil sends the apples to his supermarkets, the apples are destroyed by fire.
What are the rights and liabilities of the parties in each situation?
3. Ben, a supplier of office furniture, contracted with Cate Pty Ltd to supply furniture for $50,000. Ben and Cate Pty Ltd agreed that Cate Pty Ltd would pay a deposit of $5,000 and the balance of $45,000 at $2,000 per month. After one year, Cate Pty Ltd went into liquidation, and Ben received no further payments. Can Ben recover from Cate Pty Ltd?
4. Explain whether the buyer is a ‘consumer’ as defined in the ACL s3 in the following situations.
(a) Buyer purchases $100 worth of film for use in her professional photographic studio.
(b) Buyer Ltd, a public company, purchases a light aircraft for the personal use of its managing director.
(c) Buyer, a carpenter, purchases $50 worth of nails and a $50 hammer.
5. What guarantees does the ACL provide in relation to a consumer transaction for the supply of goods? Identify the relevant section of the ACL.
6. Retail Pty Ltd sells domestic and commercial hardware to both trade and retail customers. At the time of sale, Retail Pty Ltd proposes to hand to all customers an invoice on which is printed in legible, but very small, print one of the following:
(a) ‘All implied conditions and warranties are excluded to the extent, if any, permitted by law.’
(b) ‘No returns and no refunds.’
(c) ‘The liability of Retail Pty Ltd is limited to the cost of repairing defective products.’ What is the legal effect of each of these?
7. Elle, an accountant, runs her own small accounting practice from an office at her home in Brighton. She purchased a desk, a chair, a filing cabinet and a Pentium computer from Office Ltd for use in her practice. In July, Elle is busy doing tax returns for her clients and the filing cabinet is very full,
with client documents. If overfilled, this type of filing cabinet tends to fall over, but there is a warning against overfilling stuck on the outside of the cabinet. Elle did not read this.
Late one night, while Elle is asleep, the filing cabinet falls over and damages the computer on the desk. By the time Elle reaches the room, the computer has caught fire, and all her work is destroyed. She suffers burns to her hands trying to extinguish the fire, and there is substantial damage to the wall, ceiling and other contents of the room. Discuss whether Elle has any claim against Office Ltd or the manufacturer of the filing cabinet at common law or under statute.
8. In January this year Michelle entered a three-year chattel lease with Australian Office Suppliers for a photocopier. The machine was for use in her accountancy business which she operates from her home. The monthly rental for the copier is $160. Before she signed the lease agreement, Michelle explained to Oliver (an employee of Australian Office Supplies) the purposes for which she needed the copier and, acting on Oliver’s advice, Michelle chose that particular model based on his advice.
The chattel lease contained the following provisions:
‘The lessee warrants that before making this agreement he has examined the goods and satisfied himself as to their condition, quality and suitability for his purpose and as to the compliance of the goods with the description herein. The lessee agrees that the lessor has given no warranty, representation as to quality and fitness and that all such conditions and warranties whatsoever are excluded. The lessee agrees to maintain the goods in working order, and the cost of such maintenance is to be paid by the lessee. In the event of breach or early completion of the agreement the lessee agrees to indemnify the lessor for the balance of rent due under the lease.’
Australian Office Supplies also required that Michelle’s husband Ron sign a collateral agreement as a guarantor.
The photocopier has proved to be completely unsatisfactory for Michelle’s requirements because, when it is working, it becomes overheated when dealing with a run of more than 10 copies. Additionally, a fault in the design means that it is frequently breaking down and costing large amounts in repairs.
What remedies, if any, are available to Michelle and Ron who would like to terminate the lease as soon as possible?
9. Sometimes a seller who has sold goods continues in possession. If the seller resells the goods to a second buyer who receives ‘the same in good faith and without notice of the previous sale’, the second buyer gets good title. Why is this?
10. What are the rights of a consumer against a manufacturer under the ACL Part 3-5?