QUESTIONS 3: CASE STUDY 25 MARKS

Mr Careless Putin is an immigrant from Ukraine. He establishes a business in central town selling spares for bicycles. He advertises his stocks as "Titanium spares for all makes of bicycles". He further guarantees the durability of the goods for a period of at least one year. A customer Mr Chopper is upset with Mr Putin as his son was involved in a bicycle crash when his chain collapsed, resulting in him losing control of his bicycle. The chain was used for one day.

Mr Chopper, upon inspecting the chain realised that the chain was actually made of Tin and spray painted with a brass paint and not Titanium as advertised by Mr Putin.

Mr Chopper approaches you for advice. He shows you the written advertisement where Mr Putin claims that the spares were Titanium. According to Mr Chopper, Mr Putin claims that he had omitted to check the advert before publishing it, Mr Chopper does not believe him. Advise Mr Chopper by discussing the common law principles of Fraudulent Misrepresentation and Negligent Misrepresentation and its impact on the transaction.