Content Do not attempt this Test until you have completed the engagement tasks. The questions are designed to test your understanding of materials covered in this Unit. Set out below are three situations. In each case identify the following: What terms of the contract have been broken. How the exemption is likely to have been incorporated in the contract Which section of UCTA 1977 applies to the exemption clause and state its effect. (a) Fox & Co, Estate Agents, buys a computer from Planet Ltd for use in its offices. After three weeks the computer stops working due to a manufacturing defect and Fox & Co immediately reports the matter to Planet Ltd. The signed contract contains a clause: 'Planet Ltd is not liable for any defects in the goods unless such defects are notified to Planet Ltd within 14 days of delivery.'(b) John contracts with B & J Decorators (a company he has dealt with many times before) to paint his hotel. B & J Decorators supply the paint. Two weeks after the work was finished the paint begins to flake. John has never read the small print in the contract, but as on previous occasions it includes a clause which says: 'B & J Decorators will not be liable for defective work or goods.' (c) Ace Ltd orders new machinery from Bart & Co to be delivered on 1 June. In fact Bart & Co did not deliver until 1 December. The order form clearly stated on the front at the bottom the following: ''Bart & Co will not be liable for late delivery of the machinery cause