Competition And Consumer Act Essay Example
Competition And Consumer Act Essay Example

Competition And Consumer Act Essay Example

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  • Pages: 3 (801 words)
  • Published: September 2, 2016
  • Type: Tests
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Peng & Lau, an accounting firm, purchased a laptop computer from Ace Computers Ltd for $5,000. The laptop will be used by Peng & Lau's auditing staff at clients' locations. As per the contract, any defects in the computer will only be covered by Ace Computers up to the cost of repairing those specific issues.

The laptop, recently acquired, poses a risk as users receive an electric shock while using it during battery recharge due to faulty wiring. As a result, Peng & Lau miss out on a lucrative audit opportunity with a potential client. What legal recourse, if any, do Peng & Lau have against Ace Computers Ltd?

Charlie visits Rocks Pty Ltd, a store that specializes in climbing equipment. He informs the salesperson that he is going to

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climb in the Himalayas and requires a tent. The salesperson presents Charlie with three tents, including an 'X' tent. While the salesperson is away, Charlie decides to purchase the 'X' tent and pays $750 at the cashier.

Charlie went to the Himalayas where he experienced frost bite due to using the 'X' tent that was specifically designed for mild climates. When Charlie returned and went to Rocks' store, he confronted the manager seeking an explanation and compensation. The manager responded by pointing out that Charlie himself chose the tent, and furthermore, there is a sign at the cashier's desk clearly stating that Rocks Pty Ltd does not make any promises, warranties, or conditions regarding the goods sold, and they are not liable for any damages except if the goods are proven to be faulty at the time of purchase.

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Charlie purchased the 'X' tent and recalls seeing the sign. Can Charlie make a valid claim for a violation of the Competition and Consumer Act 2010 (Cth)? If he can, what type of damages can he seek compensation for?

The Southern Cross Hospital rents an X-ray machine from Zapit Ltd, and the Hospital Manager asks about maintenance which the Hospital is responsible for during the rental period. The Manager is given a three-page document to sign and only reads some parts of it. One clause in the document states that maintenance must be done by Zapit Ltd, and strict compliance with this condition is crucial in the contract. However, Southern Cross Hospital uses its own maintenance staff to maintain the X-ray machine.

The highly skilled staff can perform the necessary maintenance. Zapit terminates the contract and demands the immediate return of the machine when it learns of the Hospital's actions. Southern Cross Hospital cannot find a replacement machine on short notice and wants to know if it has to return the Zapit X-ray. Would your answer be different if: • • The Manager had read the entire document? The Manager is told by a Zapit secretary in response to the X-ray maintenance inquiry, "I'm not entirely sure, but I think it's the Hospital's responsibility"?

Question 4 - Jim operates a small transport business in Melbourne and has a good customer named ABC Ltd. ABC owns multiple retail stores in the Melbourne CBD and frequently utilizes Jim's services to transfer goods between their stores. The process for this arrangement is always the same. ABC contacts Jim and provides the collection point and destination.

Jim then picks up the goods and together with an ABC employee, they complete and sign a collection docket. ABC retains a copy of this docket. Jim directly delivers the goods to the drop off point and has another ABC employee counter-sign the docket. On 5 June, at 12:30 pm, Jim collects a valuable quantity of goods from one of ABC's stores.

The standard collection process is adhered to by completing, signing, and retaining a collection docket. ABC keeps a copy of the docket which outlines the terms as follows: This receipt confirms that Jim received the corresponding goods in satisfactory condition. Jim will make every effort to securely deliver the goods in question. Regardless of the cause, whether it be negligence or any other reason, Jim is not liable for any loss or damage that occurs during transportation under this agreement.

As lunch time approaches, Jim decides to have lunch before delivering the goods. He deviates from his route to pick up a friend and they both go to a hotel with a fantastic lunch option. Jim parks his vehicle on a steep hill without realizing that he hasn't checked the brakes recently. Tragically, the brakes fail and the vehicle starts speeding down the hill, causing significant damage as it collides with various objects in its path. The goods belonging to ABC are completely ruined as a result of this incident. ABC claims that Jim should be responsible for compensating for the damage to their goods. Jim, on the other hand, denies any responsibility. Provide advice to both parties.

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