Amigo is looking to buy a new sport utility vehicle (SUV) with the money he has recently won from a lottery. He hopes that he would receive the money in the next few days. On Thursday, he visits a car dealership, and speaks to salesperson and owner of the dealership, Domino. Domino shows Amigo the different models of SUV available. While showing him the Power Tower model, Domino comments that it has a towing capacity of 5 tonnes. At the time, Domino believes this to be true, without checking the SUV's specifications in a publication from the manufacturer. Amigo says nothing in response, but after viewing several other models, he decides to purchase the Power Tower SUV for $30,000. Domino takes Amigo to the office and prepares a sale document with a description of the SUV and gives a copy to Amigo. Domino then informs Amigo that the 10% deposit will be forfeited if Amigo does not return with payment before 12 pm the following Tuesday. Amigo is not very happy with the short turnaround time, but he really likes the Power Tower SUV, so he pays the 10% deposit and signs the contract of sale. On Tuesday of the following week, having visited his bank in the morning, Amigo returns with a cash cheque for $27,000 and collects his Power Tower SUV. Domino tells Amigo that he is lucky that his 10% deposit is not forfeited! On the weekend, Amigo goes shopping for some wood he needs for a small home renovation, and he tries to tow a load of 3.5 tonnes of wood. This causes serious damage to the SUV, and Amigo abandons it. Amigo later finds out from an advertisement in the newspaper, that the towing capacity of the Power Tower model is only 3 tonnes. Use only legislation (and any relevant cases) to answer questions 4 and 5. Do not use common law and/or equitable principles. 4. Does section 23 of the Australian Consumer Law (ACL) render the term below void? (8 marks) "10% deposit will be forfeited if Amigo does not return with payment before 12 pm the following Tuesday". 5. Amigo says that Domino acted unethically by breaching section 18 of the Australian Consumer Law (ACL) when Domino told him that the Power Tower has a towing capacity of 5 tonnes. Is he right? (8 marks) Amigo is looking to buy a new sport utility vehicle (SUV) with the money he has recently won from a lottery. He hopes that he would receive the money in the next few days. On Thursday, he visits a car dealership, and speaks to salesperson and owner of the dealership, Domino. Domino shows Amigo the different models of SUV available. While showing him the Power Tower model, Domino comments that it has a towing capacity of 5 tonnes. At the time, Domino believes this to be true, without checking the SUV's specifications in a publication from the manufacturer. Amigo says nothing in response, but after viewing several other models, he decides to purchase the Power Tower SUV for $30,000. Domino takes Amigo to the office and prepares a sale document with a description of the SUV and gives a copy to Amigo. Domino then informs Amigo that the 10% deposit will be forfeited if Amigo does not return with payment before 12 pm the following Tuesday. Amigo is not very happy with the short turnaround time, but he really likes the Power Tower SUV, so he pays the 10% deposit and signs the contract of sale. On Tuesday of the following week, having visited his bank in the morning, Amigo returns with a cash cheque for $27,000 and collects his Power Tower SUV. Domino tells Amigo that he is lucky that his 10% deposit is not forfeited! On the weekend, Amigo goes shopping for some wood he needs for a small home renovation, and he tries to tow a load of 3.5 tonnes of wood. This causes serious damage to the SUV, and Amigo abandons it. Amigo later finds out from an advertisement in the newspaper, that the towing capacity of the Power Tower model is only 3 tonnes. Use only legislation (and any relevant cases) to answer questions 4 and 5. Do not use common law and/or equitable principles. 4. Does section 23 of the Australian Consumer Law (ACL) render the term below void? (8 marks) "10% deposit will be forfeited if Amigo does not return with payment before 12 pm the following Tuesday". 5. Amigo says that Domino acted unethically by breaching section 18 of the Australian Consumer Law (ACL) when Domino told him that the Power Tower has a towing capacity of 5 tonnes. Is he right? (8 marks)
