2) Belinda wants to buy a second-hand car and visits a number of car dealers before deciding to purchase an as new 1998 Ford Mustang from American Car Sales. The sales person, Jaxson, tells Belinda that the car was manufactured in 1998 and had only done 54,000 kms.

Three months later, Belinda has the Mustang serviced with her local mechanic who was a Mustang enthusiast. He comments on the fact that the car was in pretty good condition for a 1994 Mustang, though he was surprised that it had only done 54,000 kms. He would not have been surprised if it had done 100,000 kms.

Belinda makes further inquiries and discovers that the Mustang was in fact made in 1994 and she has paid about $5,000 more than the actual market value of the car. Belinda intends to approach American Car Sales about this issue.

Advise Belinda of her contractual rights.

3) Exclusion clauses

Will and Jenny booked a bus tour going from Melbourne to the Hunter Valley wine region for a short holiday with Hunter Busline. They purchased their tickets from the local travel agent and the tickets were to be collected at the point of departure. Just before getting on the bus, when they were collecting their tickets, they were asked to sign a document that confirmed their personal details. They thought it was simply a receipt for the tickets.

As they were travelling out of Sydney, Jenny took off her seat belt and went to the baggage compartment to collect a book she was reading. Just as she was doing this the bus braked suddenly and Jenny fell and broke her wrist and suffered nervous shock which all but ruined the holiday.

When Jenny sued Hunter Busline for damages for her injury and the loss of enjoyment of her holiday Hunter Busline drew Jenny's attention to a clause in the printed form that she had signed which stated that the Hunter Busline was not liable for any injury howsoever caused to passengers not wearing a seatbelt.

Advise Jenny whether she can successfully sue the Hunter Busline for damages for her injury and the loss of enjoyment of her holiday.

4) Explain how the new Australian Consumer Law will change terms implied into contracts.

5) Capacity to contract

John is 16 and buys a set of tools for his plumbing apprenticeship which is to start when he finishes school in six months. While still at school he learns about the stock market and through his broker he invests in AppTools Ltd and BuzzTools Ltd. He doubles his money in AppTools and instructs his broker to sell. However, one month after buying BuzzTools the company goes into liquidation and as the shares are partly paid the liquidator is seeking to recover money still owing on the shares. Despite his mixed success on the stock market he decides to give up his plumbing apprenticeship and stick to the stock market.

Advise John as to the following:

a) Is he bound by the contract to purchase the tools?

b) Can he enforce the contract to gain the profit from the sale of his AppTools shares?

c) Can the liquidator sue John to recover the money owed on the BuzzTools shares?