Question
As a result of current world events, Tahani (an architect) starts working from home.She visits All Electronics Here to purchase a Wi-Fi modem for her
As a result of current world events, Tahani (an architect) starts working from home.She visits All Electronics Here to purchase a Wi-Fi modem for her home office.Tahani explains to Eleanor, the sales assistant, that she needs the modem's range to extend to her whole house - which is very large.She explains that she needs to work from different rooms in her house at different times, depending on whether the other members of her family are at home too.
Eleanor has only just joined All Electronics Here as a junior sales assistant, but Tahani does not know this.Eleanor isn't sure about the best modem to recommend, but recommends the Marble Modem because she sees that it is currently on sale for $99 (half its regular price).Eleanor confidently says to Tahani, 'this will suit your needs'.Tahani purchases the Marble Modem.A sign behind the cash register states 'all purchases are final - no refunds are permitted under any circumstances'.
Tahani is disappointed to find that the Marble Modem has a very limited Wi-Fi range, which only extends to a couple of rooms in her house.When she returns to All Electronics Here, seeking a refund, the manager refuses and points to the 'no refunds' sign.
(A)Explain whether All Electronics Here has breached the consumer guarantee provisions of the Australian Consumer Law.Make sure that you fully explain your answer, and that you refer to relevant sources of law (cases and legislation)..(7 marks)
B)Explain whether All Electronics Here has breached the misleading conduct (s 18)andspecific false or misleading representation (s 29) provisions of the Australian Consumer Law.Make sure that you fully explain your answer, and that you refer to relevant sources of law (cases and legislation).(10 marks)
As so many people are spending more time at home as a result of current world events, All Electronics Here is considering expanding into the video games market.All Electronics Here engages Chidi, a financial adviser, to provide advice about whether this decision would be financially sound.Chidi prepares a report recommending the expansion.Chidi consults the range of research resources that are usually taken into account by financial advisers preparing this kind of advice in Australia.However, he does not take into account the fact that stocks of video game products are currently very limited in the market.This is a matter of common knowledge and is a matter that has been reported in the mainstream media.
All Electronics Here, acting upon Chidi's advice, decides to expand into the video games market and undertakes a significant (and costly) advertising campaign.It also purchases a new warehouse in Melbourne for $800,000.Since stocks of video game products are very limited in the market, All Electronics Here's expansion is unsuccessful.It suffers heavy financial losses from its advertising campaign and also from the costs of its new warehouse.
All Electronics Here seeks compensation from Chidi, believing his advice was negligently prepared.
Explain whether All Electronics Here is able to claim its losses from Chidi, according to the law of negligence.Please address all steps required for a negligence question.Make sure that you fully explain your answer, and that you refer to relevant sources of law (cases and legislation).(17 marks)
Michael and Janet are the directors of All Electronics Here.All Electronics Here is a company.Michael and Janet were responsible for making the decision to expand the business of All Electronics Here into the video games market.They both voted in favour of the expansion.
At the time the decision was made, Michael was aware that All Electronics Here was having difficulty paying its bills.It had received several overdue notices from its suppliers, it was behind on rental payments, and it also had overdue sums owed to the Australian Taxation Office.Janet was not aware of these issues, as Michael had deliberately concealed them from her.After deciding to expand into the video games market, an expensive advertising campaign was launched, and a new warehouse was purchased in Melbourne for $800,000.The expansion into the video games market was a failure.Incurring these costs has now put All Electronics Here into a disastrous financial position, and it is now completely unable to pay its bills on time.
Explain whether Michael and Janet have breached their duties to prevent insolvent trading under the Corporations Act 2001 (Cth).Make sure that you fully explain your answer, and that you refer to relevant sources of law (cases and legislation).(10 marks)
After the failure of All Electronics Here, Michael and Janet start up a new business together as a partnership.They are both partners in the business.They run an online store selling household appliances to customers around Australia.Their partnership agreement provides that Michael is responsible for purchasing stock from suppliers, and that Janet is responsible for selling stock to customers via the online store.Michael has no authority under the partnership agreement to sell stock to customers, and Janet has no authority under the partnership agreement to purchase stock from suppliers.
While Janet is processing customer orders in the online store, she sees a wholesale advertisement for coffee machines at a very competitive price.The offer is only open for the next hour, and she is unable to contact Michael.She decides to purchase 100 coffee machines, on behalf of the partnership business, on ordinary credit terms.When Michael later finds out about the purchase, he is very upset and tells Janet that she is solely responsible for the debt.
Explain whether Michael is also responsible for the cost of the coffee machines, according to the law of partnerships.Make sure that you fully explain your answer, and that you refer to relevant sources of law (cases and legislation). (6 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started