Competition and Consumer Act Essay

932 Words4 Pages
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…show more content…
At the time of hiring, the Hospital Manager enquires about maintenance of the machine and is told that the Hospital is responsible for all maintenance during the period of hire. At the same time, the Manager is presented with a three page typed document for signature. The Manager only reads parts of the document. One clause that the Manager fails to read states that: ‘Any maintenance must be carried out by Zapit Ltd. Strict compliance with this condition is of the essence in this contract.’ Southern Cross Hospital maintains the X-ray machine using its own maintenance staff. The staff in question are highly skilled and are able to carry out maintenance of this nature. When Zapit hears of the Hospital’s actions, it notifies the Hospital that the contract is terminated and demands that the machine be returned immediately. Southern Cross Hospital is unable to find a replacement machine at such 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 document in full? the Manager, in response to the enquiry about maintenance of the X-ray, is told by a secretary at Zapit: ‘I’m not totally sure, but I think that it is the responsibility of the Hospital.’?


Question 4 Jim runs a small transport business in Melbourne. One of his best customers is ABC Ltd, which operates a chain of retail stores throughout the Melbourne CBD. ABC uses Jim to transfer
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