Answer every question in each part.
Answer every question in each part.
Each part is worth 10 marks
PART A
A1
The definition of a consumer under section 3 of the Australian Consumer Law (ACL):
a. Applies only if the goods are to be used in manufacturing
b. Includes all items over the value $100,000
c. Includes items purchased where the value does not ordinarily exceed $100,000
d. Applies only if the goods are to be used for re-supply
A2
The case of Grant v Australian Knitting Mills:
a. Was decided on the basis of acceptable quality
b. Was overruled by the later case of Graham Barclay Oysters Pty Ltd v Ryan
c. Was overruled by the later case of Medtel Pty Ltd v Courtney
d. Was overruled by the later case of Read v Nerey Nominees Pty Ltd
A3
Under section 64 of the Australian Consumer Law (ACL), any attempt to exclude the statutory guarantees:
a. Is valid
b. Is void
c. Is permitted under the exceptions provided in section 65
d. Is permitted under the exceptions provided in section 66
A4
Which of the following services are excluded under the Australian Consumer Law (ACL) consumer guarantees:
a. Financial services
b. Insurance contracts
c. Supply of electricity
d. All of these are excluded
A5
In which case did the Federal Court have to decide whether an ostrich egg incubator was a good of a kind ordinarily acquired for personal, domestic or household use or consumption?
a. Atkinson v Hastings Deering (Queensland Pty Ltd
b. Crago v Multiquip
c. Carpet Call Pty Ltd v Chan
d. Balfour v Balfour
A5
Tom owns a shop in Burwood. Tom bought a new van for $110,000 from a local Truck dealership to make deliveries of products he sells from his shop. Will the sale of the van be a consumer contract and so be covered by the statutory guarantees in the Australian Consumer Law? Select the one best answer.a. The statutory guarantees do not apply because Tom operates a business.
b. The statutory guarantees will apply to this contract
c. The statutory guarantees do not apply because the van is not being used for personal, domestic or household use by Tom
d. The statutory guarantees do not apply because the van cost more than $100,000.
A6
Which one of the following sections of the ACL defines a major failure in relation to goods?a. s 260b. s 55c. s 54d. s 64
A7
JC Hi Fi Pty Ltd purchases a large industrial packaging machine to manufacture boxes for their mail order packages. The machine costs $62,000. Which of the following is most correct?a. This will not be consumer contract under s3 of the ACL as it is an industrial machine
b. This will not be a consumer contract under s3 of the ACL as the machine is used in productionc. This will not be a consumer contract under s3 of the ACL as the machine is used in trade or commerced. This will be a consumer contract under s3 of the ACL as the price is under $100,000.
A8
Which one of the following transactions would be covered by the consumer guarantee provisions under ss 54-57 of the ACL?
a. Don, a school teacher, sells his private car to Sarah on eBayb. Don, a school teacher, sells his private car to the Burwood Car Dealership Co Ltdc. John buys a new washing machine from JC Clearances Pty Ltd at their retail showroomd. John buys a new washing machine from JC Clearances Pty Ltd at their weekly clearance auction.
A9
Which one of the following is correct?a. The consumer guarantee provisions of the ACL cannot be excluded or limitedb. The consumer guarantee provisions of the ACL can be excluded and limitedc. The consumer guarantee provisions of the ACL can be excluded in certain circumstancesd. The consumer guarantee provisions of the ACL can be limited in certain circumstances
A10
Which one of the following would NOT be a major failure under the consumer guarantee provisions of the ACL?
a. The purchaser would not have purchased the goods if they knew the nature and extent of the failure
b. The goods are significantly different from the description or sample by which they were soldc. The statutory guarantees do not apply because the van cost more than $100,000.
d. The goods were unsafe
See over for rest of exam.
PART B
Is Harry a consumer under the Australian Consumer Law (ACL) in relation to the four consumer guarantees? For each part:
Answer Yes or No and
Explain your answer with reference to the relevant part of section 3 of the ACL.
Each part is worth 2 marks
Harry purchases a truck and trailer for $165,000 to transport goods between Perth and Brisbane
Harry is given a brand new Ferrari 812 GTS valued at $450,000 as a gift from his father, Jack, on his 21st birthday. Jack had purchased the Ferrari at a luxury car sales business the previous week.
Harry purchases an original Van Gough painting worth $7,000,000 at an art auction.
Harry purchases timber worth $4,000 to make tables that he will sell at his furniture store.
Harry buys a 2001 Commodore in an Ebay auction to sell at a later date from his used car showroom.
PART C
Mick lives on the Gold Coast and is keen to take up surfing. Hes tried a few times on a friends board and can actually ride small waves. He visits a local sports store that sells everything from tennis racquets to sport shoes to surfboards. As he is looking at the vast array of surfboards on display he realizes he has no idea what he should purchase. An attendant approaches Mick and says, I can see you look a bit confused, would you like some help? Mick explains that he needs a surfboard on which it would be easy to ride small waves. The attendant points to a Golden Gun Surfboard and tells Mick that this is the board that she thinks he should get.
Mick purchases the board for $900 and next day tries it out at his local beach where there a nice, small waves and hardly anyone else present. Unfortunately he cannot do anything on the new board. As he is walking across the beach to his car a young female surfer approaches him and tells Mick that he has the wrong board for the type of surf hell experience here. When Mick goes home he does some research on the Internet and discovers, much to his annoyance, that Gun boards are meant for large wave surfing, the exact opposite to what he needs.
He has asked the shop to take back the board and give him a full refund but they refuse.
With reference to the relevant section and supporting cases, advise Mick regarding his chances of success should he sue the store under the ACL.
PART D
What would be the remedy under the ACL for the following two breaches of Section 54 of the ACL? Refer to the remedies available under the ACL.Where Layne purchased a brand new motor car from a local car dealership for $95,000 and very soon after the purchase the following defects were discovered:
The coolant leaked into the engine contaminating the engine oil
The warning light would come on and 90% of the time the car would not start
The car would breakdown approximately every 3000 ksWhere Stephanie purchased a 2001 Commodore from a local second hand car yard and very soon after the purchase the following defects were discovered:
The radio would crackle a lot and turn on and off intermittently.
The boot compartment would not close completely
The front passenger door rattled even when closed.
End of Exam
