Jenna entered Buntings Pty Ltd shop. She said to the salesperson, Look, I am going climbing in
Question:
Jenna entered Buntings Pty Ltd shop. She said to the salesperson, “Look, I am going climbing in the Himalayas and I need a suitable sleeping bag. I’ll be there in the climbing season, but I’ll be attempting several 7,000 meter peaks so the sleeping bag needs to be waterproof, and also very warm, as the temperature falls at night to around -30 degrees Celsius. What have you got?”
The salesperson showed Jenna three sleeping bags, one of which was manufactured by X-Treme Sports Ltd. While the salesperson was called away, Jenna selected X-Treme Sport’s sleeping bag and paid the cashier $750. Jenna went to the Himalayas and suffered frost-bite because the sleeping bag was totally inadequate. In fact, it was designed for use in milder climates. When Jenna returned she hobbled into Buntings Pty Ltd store and demanded an explanation and compensation.
The store manager said: “It’s not our problem. You selected the sleeping bag and what’s more the sign at the cashier’s desk clearly states that Buntings Pty Ltd shall not be liable for any damages except for the replacement of goods proved to be faulty at the time of sale.” Jenna remembered reading the sign at the time she bought the sleeping bag.
a. Does Jenna have any action against Buntings Pty Ltd for damages under the ACL Explain your answer and include at least one (1) case reference.
b. Would it make any difference to your answer in (a) above if Jenna had been an expert climber with many years of experience, and this fact was known to the salesperson?
c. What are Jenna’s rights against the manufacturer, X-Treme Sports Ltd?
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher