Algol is looking at purchasing a forklift truck to assist in moving the equipment

that Beacon Tours has purchased. She asks a friend for advice about forklift trucks

and she directs her to a Melbourne based business.

Algol telephones this business and confirms that she needs a forklift for 'general

equipment moving'. The salesman recommends a brand and she purchases a

second hand one for $35,000. The forklift is delivered to Beacon Tours' address in

Tasmania. The first time the forklift is used to move a merry-go-round carousel

owned by Beacon Tours it becomes so overheated that it is unable to be used.

Required: Advise Algol.

Questions to Consider:

a. Which legislation applies, Sale of Goods or Australian Consumer Law?

b. Is there a contract?

c. Is it a contract for the sale of goods?

d. Do any of the implied terms in Schedule 2 of the ACL apply?

e. Is the forklift fit for its purpose?

f. Has the buyer made her purpose known to the seller for which the goods are

required?

g. Has the buyer relied on the seller's skill and judgment?

h. Are the goods of a kind which the seller normally sells?

i. Has the buyer bought under a trade or patent name?

j. Is Algol entitled to return the forklift and obtain a full refund?