Alice needed to lose some weight. She saw a half page newspaper advertisement by Slim Pty Ltd.

Fantastic news! We've Found the answer you've been seeking!

Question:

Alice needed to lose some weight. She saw a half page newspaper advertisement by Slim Pty Ltd. The advertisement read "Lose up to 10kg of weight for a $10 program fee". In small print at the foot of the advertisement were the words, "Purchase of food is an additional cost". In the centre of the advertisement was a photo of JH, a famously skinny model, looking very skinny and referred to as "one of the program's ambassadors". The advertisement also stated (again in small print) that some of the meals were gluten free.

Alice was excited and visited Slim Pty Ltd to sign up for their weekly meals and found that the minimum cost of the meals was $150 per week. Alice was further disappointed when she discovered that none of meals were gluten free.

After her disappointment at Slim Pty Ltd, Alice considered buying an exercise bike. She visited Beta Bikes and approached their sales assistant, Marcia. After a long discussion, Marcia recommended the "Upgraded Amateur Choice" model as suitable for Alice. She particularly recommended it because it had pedal straps that reduced the risk of slippage while riding. Alice was persuaded and purchased the bike for $1200, taking note of the packaging which read "Upgraded Amateur Choice-the superior bike for amateurs".

Soon after purchasing the bike, Alice fell on the floor while exercising as one of the pedal straps had snapped. She suffered a broken hip. She had to spend some time in hospital and was off from work for two months. Alice returned to the store and sought a refund and remedies for other losses she sustained. Marcia then showed Alice a clause in the contract which she signed which read:

The liability of Beta Bikes is limited to the repair and replacement of goods. In no event shall Beta Bikes be liable other than for the repair and replacement of goods.

What are the possible rights and remedies Alice can claim against Slim Pty Ltd and Beta Bikes under Australian Consumer Law?