Law with Tort of Negligence

Topics: Contract, Tort, Law Pages: 6 (2006 words) Published: August 17, 2012
Problem Questions
Question 1

Based on the question, the issue in the question is will there be a contract of sale of goods act 1895(SA) under s 1? Hence, the law is s 1 where a contract of goods is a contract whereby the seller transfers or agrees to transfer the property the goods to the buyer for a money consideration based on the case Toby Construction Products Pty Ltd v Computer Bar Sales Pty Ltd. The application is under s1 sale of goods act there is a contract form between me and Mandela where I have agreement, intention and consideration to buy the armchair from Mandela, thus contract is form. Besides that, armchair is considered goods and there is consideration of money where I paid Mandela for $1500 and lastly there is also transfer of property where I paid $1500 for the armchair from his shop. Hence, in conclusion the armchair that I purchased is under Sale of Goods Act. Another issue in the question is whether we can insist Tyson (owner) compensate me for $500 that I (buyer) spent on fixing the chair and either return the chair and insist upon a refund, specifically under consumer guarantees s 55 fitness for purpose? In the question the law would be s 55 ‘there is an implied guarantee that where the buyer expressly or by implication makes known to the seller the particular purpose for which the goods are required, and shows that judgment and seller, the goods must be reasonable fit for purpose’, based on the case Grant v Australia Knitting Mills and Wallis v Russell. In the question Tyson has breach s 55 fitness for purpose where he is selling furniture in his Classic Antiques Store but the furniture that he sell are fragile. In s 55 there is certain condition we must satisfy. First, buyer must express or the seller has known the buyer particular purpose for the goods they required. Second, has the buyer relied on the seller’s skill or judgment? Third, are the goods of a description which it is in the course of the seller’s business to supply? And lastly, has the buyer ordered the goods under their trade name so that it is clear there is no reliance on the skill of judgment of the seller? Based on the condition above, I had satisfied all the condition, where I express to Mandela (salesperson) that I want to use the armchair as my new house furniture. On the other hand, Mandela stated that ‘It is a solid old thing. I sit on it all the time.’ Hence, I relied on his judgment and bought the armchair. Moreover, Tyson business are selling furniture’s where the armchair is considered as a furniture, thus it is also satisfied goods are descriptive under the course of the seller’s business. Lastly, although I didn’t buy the armchair based on the trade name, but I rely on the skill or judgment by Mandela. In conclusion, the seller has breach all the criteria in s 55 and under s 261 consumer have the right to choose either a refund or replacement of the products if supplier fail to fulfill with consumer guarantee, as a result I can insist Tyson compensate me for $500 for fixing the chair and also can return the chair and insist upon a refund. -------------------------------------------------

Question 2

Based on the question, the issues would be based on Mandela’s statement that ‘It is a solid old thing. I sit on it all the time. You will be used it safely for many years.’ Will it lead consumers to believe that it can be used as furniture and can be used safely for many years, specifically under consumer guarantees s 18 Misleading or Deceptive conduct? In the question, the law would be s 18 where ‘A corporation shall not engage in conduct that is misleading or deceptive or is likely to mislead or deceive’, based on the case of Eveready Australia Pty Ltd v Gillette Australia Pty Ltd ,Henjo Investment Pty Ltd & Ors v Collins Marrickville Pty Ltd and Taco Company of Australia Inc v Taco Bell Pty Ltd. In the application, there are 3 elements which must fulfill...
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