Competition and Consumer Act

Topics: Personal computer, Computer, Laptop Pages: 3 (933 words) Published: May 11, 2013
Question 1 Peng & Lau, a firm of accountants, recently purchased a laptop computer from computer retailer Ace Computers Ltd for $5,000. The laptop was acquired for use by the auditing staff of Peng & Lau during the times when they are working at the premises of clients of the firm. A term of the contract between Peng & Lau and Ace Computers provides that the liability of Ace Computers in relation to any defective computer is restricted to the cost of repairing the relevant defect(s). Soon after the laptop is acquired, it is discovered that, because of faulty wiring, users of the laptop receive an electric shock if they use the laptop while the batteries of the laptop are being recharged. One consequence of this problem with the laptop is that Peng & Lau lose the opportunity to tender for a highly profitable audit job in relation to a new client. What legal rights (if any) do Peng & Lau have against Ace Computers Ltd?

Question 2 Charlie enters the store of Rocks Pty Ltd, a specialist retailer of climbing equipment. He says to the salesperson, ‘Look, I’m going climbing in the Himalayas and need a tent. What do you have?’ The salesperson shows Charlie three tents, one of which is an ‘X’ tent. The salesperson is called away. Charlie chooses the ‘X’ tent and pays the cashier $750.

Charlie goes to the Himalayas and suffers frost bite because the ‘X’ tent has only been designed for use in mild climates. On his return, he hobbles into Rocks’ store and demands an explanation and compensation. The manager says: Well, you selected the tent and what’s more the sign at the cashier’s desk clearly states that Rocks Pty Ltd makes no promises, warranties or conditions in relation to goods that are sold and is not liable for any damages except replacement of goods that are proved to be faulty at the time of sale.

Charlie remembers reading the sign at the time that he bought the ‘X’ tent. Can Charlie successfully claim a breach of the Competition and Consumer Act 2010...
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