Everest Air Conditioners Pty Ltd is a small Australian company that manufactures, sells, and installs air conditioners directly to the public. Mavis is a frail elderlywidow who lives alone in a three-bedroom, 35-squarehouse. Mavis attends Everest’s show room and tells the manager, Peter, that she is specifically looking for a powerful air conditioner that can cool her entire house. Peter tells Mavis that Everest’s air conditioner model number EZ7900 can easily cool the house within one hour and he explains that she can pay in instalments, but would need to sign a contract. Mavis tells Peter that she would not understand the contract and that she would return on another day with her son so that he can explain and help her to understand the contract. 

Keen to secure a sale, Peter entices Mavis to sign the contract by promising that he will personally install the air conditioner the next day and that the contract is a standard one that stipulates that Mavis can pay by way of monthly instalments. He assured Mavis that the air conditioner would easily cool the house. Mavis tells Peter that she feels pressured but given the hot weather and the option of paying by way of instalments, Mavis signs the contract. Peter installs the air conditioner the next day. 

The next day, after the air conditioner is installed, the weather is very hot and Mavis uses the air conditioner for the whole day. Unfortunately, the air conditioner fails to cool the house. Mavis telephones Peter and explains what had happened. She asks Peter to come and have a look. Peter disregards her request. Mavis calls an independent air conditioning contractor who inspects theair conditioner. 

The independent contractor tells Mavis that the capacity of the EZ7900 model installed in her house is insufficient to cool the whole house and that she needs an air conditioner with a larger cooling capacity. Mavis telephones Peter and explains what the independent contractor has informed her. Despite her insistence that she needed an air-conditioner capable of cooling her entire house, Peter had given her one that could not do that. She says that she will not pay the monthly instalments until the unit is replaced with a more powerful unit, at Everest’s cost. Peter becomes very aggressive. He calls Mavis on a daily basis and threatens her with legal actionover the course of the next 15 days.

Advise Mavis as to her rights under the Australian ConsumerLaw.