Question 2 ANSWER BREIFLY BASED ON CONSUMER LAW

Ada has recently moved to Australia from Italy. Her spoken English is exceptional, but she does not read or write English terribly well, and she has little experience in the way business is conducted in Australia. Ada ran a successful business in Italy as a supplier of olive oil to restaurants. She is now in the process of establishing a similar business here in Australia with two employees. She approaches Johnny to negotiate the supply of olive oil to his restaurant. During the negotiations, Johnny realises how little Ada understands Australian business practices and convinces her to accept less payment than what he pays current suppliers. He also tells her that it is unusual for Australian businesses negotiating such an arrangement to use legal representation. Then Johnny instructs his solicitors to draw up the contract for 12 months for the amount of $90,000, and he tells them to make it especially complicated and legalistic. Ada signs the contract agreeing to all of Johnny's requirements, and she does so without seeking independent legal advice. One of the terms in the contract permitted only Johnny to terminate the contract at any time for any reason whatsoever without informing Ada. Ada asks Johnny to change it or to give her the same ability to terminate the contract. Johnny replies, 'Take it or leave it'. This is what I give to all my suppliers.'

After chatting with Ada, Johnny has decided to add a new range of pasta dishes to his menu. He has placed a large sign on the restaurant window promoting his new pasta dishes as 'the best pasta in town, made with all fresh ingredients!'. Angel, the owner of Angel's, the Italian restaurant next door, is rather annoyed about the sign. She has been serving pasta for years. She has accused Johnny of misleading customers, because she knows that Johnny still uses bottled olives in his pasta dishes. Johnny's response is that, even if the olives are from a bottle, they are fresh from the bottle.

Answer the following questions.

1. In the above case study, identify statements/conduct that may contravene the consumer protection provisions of the ACL.
2. Does Johnny's conduct fall within unconscionable conduct provisions of the ACL? Explain your answer with reference to relevant case law/statutory provisions.
3. Can Ada argue that the contract term is unfair under ACL? Explain your answer with reference to relevant case law/statutory provisions.
4. Do you think Johnny acted in contravention of s 18 of the ACL? Explain your answer with reference to relevant case law/statutory provisions.

Question 3 ANSWER BREIFLY BASED ON CONSUMER LAW

Jack wants to buy some carpets for the apartment and goes to Carpet Depot to purchase carpets for his large living area. Jack tells the salesperson that he has parties most weekends and so wants to buy a durable carpet that can withstand heavy traffic. Also, he does not want to spend too much time cleaning the carpet, and the carpet should be machine washable. The salesperson recommends a carpet with heavy-duty rating, which he says is the best to meet Jack's needs.Jack takes his advice and purchases the carpet with the heavy-duty rating for $42,000. Unfortunately, within a few months, Jack notices that there are multiple rips and tears on the carpet. When he washes the carpet, it results in fading colours. Jack returns to the store and tells the salesman the carpet is useless and is not at all suitable for his purposes. The sale person tells him nothing can be done and points to a sign above the cash register that says, "The consumer guarantees do not apply to this store." Advise Jack whether he has any action open to him under provisions related to consumer guarantees provided in the ACL.

In your answer consider the following questions:

1. Is Jack a consumer?
2. Is this a sale of goods or services?
3. Which guarantees are breached?
4. Can the guarantees be excluded?
5. What is the likely remedy?

Question 4 ANSWER BREIFLY BASED ON CONSUMER LAW

ProFit advertises its FitnessMax exercise machine to be the best in quality and price of all exercise machines available on the market. Rahim buys a FitnessMax exercise machine from ProFit and then discovers that the exercise machine is overpriced. Furthermore, ProFit imports all its exercise machines from overseas and then change packaging to sell them in Australia. The goods are labelled "Product of Australia". What would happen if Rahim were to make a claim against ProFit?

Question 4 ANSWER BREIFLY BASED ON CONSUMER LAW

Brian received a bicycle as a gift from his partner Clara. The bicycle was made by Penny Farthings Pty Ltd, an Australian manufacturer based in Victoria, and is sold by various retail outlets throughout Australia. Clara bought this bicycle from ParraCycles in Parramatta. The bicycle does not comply with the relevant product safety standards, which require lights on the front and back of the bicycle and reflectors on the wheels. Neither Brian nor Clara know much about bicycles so they do not realise that this is a problem. Several weeks later, Brian was knocked off the bicycle by a car when riding home from work in the early evening. Brian has a broken leg and has been unable to work for several weeks. Clara, who is a freelance writer, has had to decline several jobs in order to care for Brian during his recovery.

a. What should ParraCycles do if Clara complains to them about Brian's injuries?

b. What steps could the government take to prevent others being injured by this particular make of bicycle?

c. Does the bicycle have a 'safety defect'? Explain your answer.

d. Is Penny Farthings or ParraCycles liable for the injuries to Brian? Why or why not?

ANSWER BREIFLY BASED ON CONSUMER LAW. THANKS!!!!