BUS203: PROBLEM SOLVING EXERCISE

Roberta is a student at USC studying a double degree in Business and Arts. She is studying Spanish with the School of Arts and Social Sciences and recently enrolled in a Tango dance class with her boyfriend, George. She needed dance shoes.

Roberta loves shopping and headed for the Plaza and Myers (trading as Myers Stores Ltd). In 'Miss Shop' she found some black shoes that looked suitable. She spoke to the sales assistant saying:

"I want these shoes for my Tango dancing lessons. They need to be strong. Do you think they will be suitable?"

"Oh yes" said the assistant "They are made in Spain and must be OK for Tango dancing."

With that assurance Roberta bought the shoes, which were on sale reduced from $100.00 to $60.00.

She went on to do some browsing around the store. It was coming up to Mother's Day and she was looking for something special for her mother. Her Mum loves pasta. When she saw a pasta maker in the home wares section on special for $80.00, she bought one. The sales assistant went out the back to the storeroom and got one still in its box. She placed the box unopened in a bag and gave to Roberta.

Roberta's boyfriend, George, was about to have a birthday and so she looked about for a present for him. She saw a vintage styled record turntable on special and knowing that George likes playing vinyl records, she bought it for $250.00. The price was reduced from $350.00.

The next Saturday, while at dance class, the heel of one shoe broke off as she attempted a heel step. Luckily she didn't fall over and hurt herself.

The next day was Mother's day. Roberta's Mother was excited when opening her present to see the label 'pasta maker' on the box. But she was disappointed when she opened the box and found it was a popcorn maker.

Sunday was also George's birthday and he was very happy with the turntable. Unfortunately when he used it the needle on the arm of the turntable scratched one of his favourite records. He told Roberta that he can't risk using it again.

Roberta went back to Myers to return the shoes, the pasta maker and the turntable. The store manager drew her attention to a statement on each of her receipts, which said:

"No Refund or Exchange will be given for items on sale or on special."

Roberta is very unhappy and comes to you for advice.

With reference to theAustralian Consumer Law, answer the following questions in relation to each transaction between Roberta and Myers Stores Ltd:

1.Does the transaction fall within the operation of theAustralian Consumer Law('ACL')?

2.What implied guarantee/s could Roberta argue have been breached by Myers Stores Ltd in relation to the shoes, the pasta maker and the turntable?

3.What remedies, if any, could Roberta claim in relation to any breaches of the ACL? Consider each transaction separately.

4.Does the statement on each of Roberta's receipts for the purchases have any legal effect, and if so, what is the effect?