LAW172 T2 - Meg’s Journey To Expanding Her Candle Business Case Study

Assignment Task

The Scenario

Meg runs a successful beeswax candle business in the Northern Rivers area of New South Wales. Starting with a stall at her local markets she has recently expanded her business, opening her own shop, with a small adjoining factory where the candles are made.

To help meet demand, Meg has two employees who assist her in making the candles and running the store. As part of her efforts to build the brand, she decides to arrange for the team to have a uniform, complete with the business’s logo on it. With the business’s official opening party coming up soon, she believes that having a snazzy uniform will help promote her new expanded business and shopfront and attract a sophisticated clientele.

Meg goes to Sew Easy, the local sewing and alterations business in her town. She enquires from the owner, Sue, whether she can make a total of six uniforms – two each for herself, and for her two employees. She provides a copy of the business logo, explains where she’d like it positioned on the uniforms and the necessary sizes for each team member. Sue notes down these details and says that she can organize this. She’ll order in suitable generic shirts and trousers from a third-party supplier and then Sue and her team will add Meg’s business’s branding and alter the sizes to meet the team’s needs. Meg selects a pastel light pink coded “Pink543” from a printed colour chart, to match her shop’s boho aesthetic. Sue quotes Meg a total price for these items.

Meg is very professional and wants to ensure the uniform will be just what she needs. She says:

“I need these uniforms to be breathable and safe for use in my candle-making factory, and presentable for when my team is serving customers in the store.”

Sue says:

“You can rest assured, our uniforms are of the highest quality, made from natural fibers. I guarantee they’ll be perfectly safe and fit for use. You’ll love them and they’ll be the pièce de résistance at your big opening.”

Feeling reassured, Meg asks Sue to go ahead with the order and pays her the total price owing. Sue thanks Meg and hands her a piece of paper entitled “Receipt of Order” and says “Make sure you hold onto that one, you’ll need to show it when you pick up your order.” Meg places it in her wallet for safekeeping.

A few days before the official opening party, Meg picks up her order and excitedly takes it back to her workplace and unwraps it. With dismay, she notices the bright magenta of the uniforms. It clashes horribly with her shop’s boho décor, and the fabric is highly synthetic and shiny.

Meg goes back to Sew Easy and confronts Sue. Not only are the uniforms incredibly ugly but the fabric is unsafe to wear around open flames. Even putting aside that danger, they would make her team very sweaty.

Sue says:

“Sorry, but this is the number, sizes, colour code and branding you ordered. You agreed to order these uniforms with those specifications. I fulfilled my part of the bargain by ordering in the required base clothing and altering them to meet your specifications. They’re personalised for your business now, I can’t take them back and refund you. Plus our paperwork doesn’t allow returns for change of mind.”

On the Receipt of Order docket, Sue points out some small print at the bottom:

“No exchanges, no returns. Sew Easy is not liable for any loss, damage or injury whatsoever and howsoever arising from any purchase or order.”

The Questions

Assume that Meg and Sew Easy had a valid agreement.

1. Advise Meg as to whether Sew Easy has likely breached any express or implied terms of their agreement.
2. Advise Meg as to the likely status and effects of the purported exclusion clause in the Receipt of Order docket

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