for comlaw 101 - 900 word limit

QUESTION 2 Earnshaw Limited (Earnshaw) is a corporation registered under the Companies Act 1993 carrying on business in Auckland as a dealer selling motor vehicles, both new and used. In late August 2019 Earnshaw sold a sport utility vehicle (SUV) to Heathcliff. The vehicle had not previously been sold by retail. Under New Zealand regulations, every vehicle must have attached to it a compliance plate containing information relating to the description of the vehicle, and its date of manufacture. The compliance plate is affixed to the vehicle by the manufacturer. An importer of motor vehicles assembled overseas is normally the manufacturer under the regulations. The date of manufacture to be inserted on the compliance plate is the date the vehicle is available in New Zealand in a condition which will enable it to be registered. The vehicle was imported into New Zealand fully assembled. There had been no model changes with respect to this SUV since the year 2017 and the SUV was a current model. The SUV was sold as a new motor vehicle as distinct from a demonstration or used motor vehicle. The sale took place in that part of Earnshaw's premises reserved for the sale of new vehicles as opposed to that part of its premises reserved for the sale of used vehicles. Consumer Protection NZ had issued an information circular - a copy of this circular had been sent to Earnshaw by Consumer Protection NZ in response to a query about advertising vehicles as new. The information circular stated that: "Generally whether or not goods can be advertised as 'new' will depend on all the circumstances surrounding the advertisement in question. In the case of motor vehicles having regard to the nature of the product and the market in which they are advertised, we consider that they can be described as 'new' where: (a) the vehicle had not previously been sold by retail; (b) it is a current model." In early August 2019 Heathcliff attended at the premises of Earnshaw and spoke to a salesperson, Catherine, and was taken for a test drive in a demonstration SUV. In mid-August 2019 Heathcliff went to Earnshaw's premises to sign a contract for the purchase of a motor vehicle including an order form and an application for registration. Page 5 of 9 COMLAW 101 The order form contained various details. In a part headed, "description of goods appeared the words, "new/demo/used" and underneath those words the words, "cross out whichever is not applicable. The words, "demo" and "used had been crossed out. In the application for registration, under the title, vehicle particulars and the subheading, year of manufacture was the year, 2017 in writing and under the part marked, "is certificate of road worthiness attached a box was ticked which stated, not required new vehicle. On 2 September 2019, Heathcliff took delivery of the SUV he purchased and received a 2017 owner's manual. He said to Catherine, "This is a 2017 manual and she said, I think they all come with them. I don't think we have any other manuals." On 3 September 2019, Heathcliff checked the compliance plate and found that it was dated "Jan 2017. REQUIRED: Identify and discuss whether there has been any potential contravention of s 9 of the Fair Trading Act 1986. If so, what are the potential penalties and remedies? 10 marks