Assignment title: Management
Read the four (4) questions and determine whether the supplier or manufacturer of goods/services has breached a section(s) of and remedies (if any) available to the plaintiff under the Australian Consumer Law (ACL) (Schedule 2 to the Competition and Consumer Act 2010 (Cth). · Provide a brief answer, identify the section or sub-sections breached (if any) and explain why by applying the law. You only discuss the 'Application of law and conclusion' in your answer. · DO NOT repeat the law attached to those sections of the ACL. · Maximum word limit is 200 words per question. · Each short answer question is worth two and a half (2.5) marks. Question 1 Mary buys an expensive food mixer for $4000 from Electrix Pty Ltd. The mixer worked perfectly well as a domestic appliance, but proved to be useless in the new Coffee and Cake outlet that the customer has recently opened. The customer argues that she paid a lot of money for the mixer and therefore it should be suitable for domestic and commercial use. The manager of Electrix says that his particular mixer is imported from Switzerland and that the customer pays for the name and superior quality and that the customer didn't specify that she wanted a commercial mixer. Advise Mary if she has an action against Electrix under the ACL. Question 2 Clean Pools Pty Ltd operates a business cleaning swimming pools. During the cleaning process certain chemicals are used which are dangerous if not used in the proper quantities. Clean Pools sent a new employee, who had not been properly trained in the use of the chemicals to clean Yong's pool. The new employee used five times the safe amount of chemicals. As a result Yong suffered skin injuries. Before the cleaning commenced, Yong had signed a 'job sheet' which contained the following clause: "Under no circumstances shall Clean Pools Pty Ltd's be liable for injury or loss, whether such injury or loss arises from breach of contract or negligence or otherwise, and exceeds $500". Yong's damages are estimated at $10,000. Can Yong sue Clean Pools for $10,000 under the ACL? Does the clause protect Clean Pools from liability to pay damages to Young? Question 3 Jake's Meats advertises, by way of a letterbox drop, that it has rump steak available for one week selling for only $2 per kilogram. The shop is filled with eager customers. Jake tells them that to purchase the rump steak at that price they need to buy at least 15 kilograms. Some customers are angry about this. Advise Jake Meats if it has breached the ACL. Question 4 Jill Wong had immigrated to Australia in 1992 and had leased a shop in Paddington, Brisbane, where she ran Jill's Chinese Herbal Remedies & Tea Shop. Twenty years later, Jill Wong, is now 75 years old, suffers from poor eyesight, is partially deaf, speaks and understands limited English and has been recently diagnosed with Alzheimer's disease (which makes Jill unable to remember recent events, or persons). Bob Shifty, Jill's landlord, knowing of Jill's age, medical conditions, and limited English, presents Jill with a new lease contract for Jill's Tea Shop, insisting that she sign the new lease and return it to him tomorrow. When Jill protests that she needs more time to look over the document, Bob tells her that her original lease has run out and that the rental and other conditions of the new lease are exactly the same as the prior lease. Bob doesn't recommend Jill seek separate legal advice regarding the new lease. Rather, he threatens her that if she doesn't sign the new lease immediately he will rent the shop to another tenant. Jill signs the new lease. However, its conditions, including the rental payable, are significantly different from her prior lease and substantially favour Bob. Advise Bob if he has breached the ACL. Hypothetical Question (compulsory) Question 5 (15 marks) Students' answer to the hypothetical question must be written under the framework of – Issues, Legal principles, Application of Law and Conclusion (ILAC). Maximum Word Limit: 2000 words. Master Chef Limited advertised their restaurant for sale. Mrs Pomeroy was interested in buying the restaurant. Under the terms of the sale contract, the restaurant had a 2 am trading licence. However, when Mrs Pomeroy visited the site of the restaurant it was not disclosed to her that a new Council rule (due to take effect after Mrs Pomeroy signed the contract) required the restaurant to close at 11 pm. Master Chef Limited was aware of the new Council rule. Advise Master Chef Limited as to whether it has breached the Australian Consumer Law (ACL).