During the Covid 19 Level 4 lockdown, Iris mobile phone stopped working which meant he could not operate his small business effectively. So, he rang the Ned Lemming electronics store to see about getting a replacement. He could do this because mobile phones were classed as essential products.

He was told they only had one phone left. It wasnt a brand he had heard of and it seemed a bit cheap for the quality he wanted but he had no choice. He said yes and paid by credit card over the phone.

He started using the phone immediately but, the next day, the battery caught fire setting his car alight. The car exploded.

He wants redress against Ned Lemming for the cost of the phone and for his consequential loss. But when he looks in the packet, he finds a lengthy booklet containing exclusion clauses in several languages. One clause says: No liability is accepted for any loss or damage whatsoever, direct or indirect, however arising including by the negligence of Ned Lemming, its employees or agents.

Which one of the following is CORRECT?

• Ned Lemming is not liable for the damage because the exclusion clause covers all of Iris loss;

- The exclusion clause does not apply because it is not part of the contract.

• Ned Lemming is liable because Iri was forced to buy the phone through economic duress;

• The exclusion clause protects Ned Lemming because Iri is in business and the phone was purchased for business purposes and not for his personal and domestic use. As a result the Consumer Guarantees Act does not apply;