BigMart Pty Ltd (BigMart) is a large Australian-based retailer of consumer electrical products, including computers, televisions, kitchen
Question:
BigMart Pty Ltd (BigMart) is a large Australian-based retailer of consumer electrical products, including computers, televisions, kitchen appliances, and laundry appliances. BigMart sells its good through its online store. Frosty Fridges is a Japanese business which designs and manufactures fridges and produces a range of fridges called "CoolZone".
CoolZone fridges are produced in specialised factories in Japan and, in comparison to other fridges, are unique in how their parts are designs and manufactured. The fridges are generally regarded as one of the best and most high-tech fridges available as they are extremely reliable, are able to precisely control the temperature of different parts of the fridge, are made of high-quality materials, and consume very little electricity. In Australia, CoolZone fridges tend to sell for over ten thousand dollars per unit.
BigMart began selling CoolZone fridges in 2015 and, since introducing the product into its range, has sold thousands of the fridges to consumers in Australia through its online store. In selling the fridges, BigMart has advertised the product as "The fridge that will last you a lifetime", "The most reliable fridge you'll ever meet", and "The most high-tech fridge since sliced bread".
When users purchase goods from BigMart's online store they are required to confirm that they agree to BigMart's standard terms and conditions of sale (T&Cs). Clause 5 of the T&Cs states: "BigMart provides a three-year warranty for all goods that it sells during which BigMart will repair or replace any goods that are faulty. After the expiration of the three year warranty period, BigMart will have no obligation to provide any repair, replacement or other remedy to the purchaser if the goods are faulty."
Since it began selling CoolZone fridges, BigMart has received very few complaints about the quality of the fridges. However, BigMart has recently begun receiving complaints from consumers with older CoolZone fridges sold in 2015 to 2017 that, as the fridges have aged and needed to be repaired, the consumers have been unable to repair the fridges as there are very few technicians in Australia that have the tools and skills to repair CoolZone fridges, and as there are no spare parts for CoolZone fridges as the fridges require special parts which are only available in Japan.
BigMart has notified each of the consumers that due to clause 5 of the T&Cs, BigMart has no obligation to repair or replace the fridges or to provide the purchasers with any other remedy, and that if they have any issues with repairing their fridge they should contact Frosty Fridges.
Answer the following questions using IRAC (legal issue, relevant legal rules, and then apply the legal rules to the facts to reach a conclusion):
- Advise BigMart whether it breached any consumer guarantees under the ACL.
- Advise BigMart whether it breached section 29 of the ACL.
- Advise BigMart whether it has breached section 18 of the ACL.
Expert Answer:
