1. Freda has recently graduated as a medical doctor. Her mother Anya is very proud and gives Freda a gift of $20,000. Keen to start her new medical practice, Freda decides to use some of the money to buy from Medic Supplies Corporation a computer program that will assist in the organization and management of her medical practice. Freda tells the salesperson, Jana, that she needs to rely on her advice about which software will meet her needs such as maintaining 10,000 patient records and accounts. Jana recommends the ProDoc software package.

Freda repeatedly asks if the software package will meet her needs. Jana responds with confidence "don't worry, all the doctors in New Westminster use ProDoc. It is perfect for your needs and will maintain at least 10,000 patients records ". Freda signs the contract. The written contract only stated Freda's name and address, the name of the software package and the price of the software package (ie: $10,000). No other information was recorded. Freda had also told Jana that her computer that she used at her medical practice clinic was a COMPUK computer. Jana confirmed that this computer and the ProDoc software package are both compatible.

Freda tried to install the ProDoc software, but her computer failed to upload it. Freda has now been informed that the ProDoc software was incompatible with her COMPUK computer and also not appropriate for her particular needs as it can only maintain 5,000 patient records.