Carlos buys a new rifle, the Assassin 007 from Guns ‘R’Us Ltd. The rifle is manufactured by Koresh Ltd, Waco, Texas, and is imported from the USA by Charlton Heston Imports Ltd, who are the Australian agents.

The rifle is packed in a wooden case which has a notice on the outside: “Unpacking this rifle constitutes acceptance of all terms and conditions in the owners’ manual”.

When he is reading the owner’s manual, he finds a document called Terms and Conditions which contains the following clause: “Charlton Heston Ltd will not recognise any manufacturer’s warranties of any kind. Anyone using the Assassin 007 does so at their own risk and the importing agent refuses all liability for injuries, loss, death, or any failure of this rifle.”

At first Carlos is pleased with his new rifle, and uses it for hunting rabbits on his farm. However, after a while he notices that the rifle is very sensitive, and sometimes does not work reliably. One day, after hunting rabbits, he puts the rifle in his truck, and closes the truck door. The rifle suddenly fires, sending a bullet through the side of his truck, wounding Carlos and crippling his fifteen-year-old son Oswaldo, who will never walk again.

Carlos tries to contact Guns ‘R’ Us, but finds the shop is closed, due to bankruptcy.

He also learns that there have been many deaths and injuries overseas caused by the Assassin 007, and for several months before he bought it, this rifle has had a very bad reputation.
What are Carlos’s rights under the common law and the Australian Consumer Law? What about Oswaldo? Explain your answers.
What action can the ACCC take?