Highlights
Task:
Question One (worth 25%)
John, Paul, George and Bingo were musicians in a band called the Beagles. John and Paul visited their favourite music store called Wilsun Guitars. John wanted a new electric guitar. He saw next to a stand what was described as a black T-100 Fender Electric (T-100). The sign read only $1,000, but the price tag read $1,100. The sign also read ‘great value’ and that ‘Slash from GNR says that this is a great guitar’. John took the guitar to the counter and he was served by the store owner Murray. Murray said that the T-100 came was a two week manufacturer’s warranty and that if anything broke during this time, John could have the guitar repaired. John asked about the price difference between the tag and the sign, and Murrary responded that it was a mistake and the real price was $1,100. John reluctantly paid $1,100 for the T-100. He took the guitar home and start to play it. Unfortunately, the guitar below up after two weeks and one day. John discovered that the T-100 was not a T-100, but rather a T-10. Both guitars look similar to each other, but the T-10 was a much cheaper guitar than the T- 100. Moreover, John was horrified to learn that Slash never said that it was a ‘great guitar’, but rather that it was a ‘great guitar for smashing’.
Advise:
1. John whether Wilsun Guitars have contravened and/or non-complied with any of the provisions of ACL in relation to his circumstances? (15 marks)
2. Paul whether Wilsun Guitars have contravened and/or non-complied with any of the provisions of ACL in relation to his circumstances? (10 marks)
Question Two (worth 25%)
John, Paul, George and Bingo were musicians in a band called the Beagles. One day George searched online for a new electric sitar (i.e. a type of guitar). After searching the internet for about 10 minutes, he found what he thought was the perfect sitar, namely the T-1000. The T-1000 was made by a company called Sound Check, which was registered in the United States. Sound Check did not have a place of business in Australia, and had only sold guitars on an infrequent basis over the last 20 years.
The T-100 was advertised for $10,000 (AUS) and was described on the website as made from the ‘highest quality’ and ‘totally new’. The T-1000 was also described as the ‘No. 1 electric Sitar in the galaxy, no the universe’. At the bottom of the description read ‘The T-1000 was can be used as both an electric and acoustic guitar, and was made in ‘United States’.
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