CASE SCENARIO Gracieuse Medeiros is an Australian supermodel who began an intensive fitness program to prepare for her appearance in a TV Commercial for gym equipment. She knew that she needed to be very fit. In addition to her fitness program, she decided to consultant a dietician about what sort of food she should eat. The dietician suggested that she have at least one protein smoothie every day. Gracieuse researched a range of blenders that might suit her needs. At her local electrical store, she found that the only blenders for sale there did not meet her needs as they were not powerful enough to produce smoothies. Gracieuse kept looking. She had heard good things about the Great Homewares Store so she decided to go there to purchase a blender that met her needs. She was very happy to find that a blender was on sale at the Great Homewares Store. A sign advertising the blender stated: Buy it today and you will get 50% off. It is high quality, superb, safe and durable. You won't regret it. But when Gracieuse went to the counter to purchase the blender, she was informed by the Sales Assistant that the blender was not on sale for 50% off as the advertisement had stated. The Sales Assistant explained, "Sorry, that was yesterday, and I cannot give you a 50% discount." Gracieuse was in a hurry to get started as possible with her protein shakes, so she purchased the blender and kept her receipt. Once home, she unpackaged the blender and as soon as she plugged it in, the upper lid came off and the sharp blades flew out, badly injuring her right hand. At the hospital, a doctor explained to Gracieuse that she would need stitches in her hand, and she would be unable to use her hand for four weeks unless the cut had healed, so the stitches could be removed. Gracieuse was very upset when she realised that she would not be able to participate in the planned TV Commercial and that another supermodel would have to take her place. This also meant she would lose the $12,000 fee that she would have received for the commercial. Three weeks after the accident, Gracieuse went back to the Great Homewares Store to complain about the blender and the injury it had caused to her hand. While she was waiting for the Store Manager, she noticed that the same advertisement was still being displayed: Buy it today and you will get 50% off. It is high quality, superb, safe and durable. You won't regret it. She asked the Sales Assistant whether the blender was 50% off as described by the advertisement. The Sales Assistant responded, "Sorry that was yesterday". Gracieuse noticed the advertisement did not have a date and wondered if the Sales Assistant always told customers that the discount was for yesterday, meaning there never really was a discount. Instead of waiting for the Store Manager, she decided to seek legal advice. QUESTION 1 - Contract Law (10 Marks) Please advise Gracieuse if she entered in a contract with the Great Homewares Store. o In your answer explain the meaning of Contract and which elements need to be satisfied to be in a simple contract and how to identify if this contract can be terminated. o You will need to address all the essential elements of a simple contract including (Offer and acceptance, intention and consideration) as well as elements of a valid contract (Capacity, Legality, Genuine Consent, Mistake, Misrepresentation, Durres, Undue Influence and Unconscionability) and explain if Gracieuse can terminated the contract. o You will also need to address and explain what sort of remedies she will be entitled to if she can terminate the contract under the Contract Law in Australia. QUESTION 2 - TORT LAW (NEGLIGENCE) (10 Marks) Please advise Gracieuse if she has a claim under the tort of negligence. o You need to address all the essential elements under the tort of negligence. o You also need to address if the Great Homewares Store has any defences available under the tort of negligence. o Explain what sort of remedies Gracieuse will be entitled to claim under the tort of negligence in Australia. QUESTION 3 - Australian Consumer Law (10 Marks) Please advise Gracieuse if the Great Homewares Store breached her Australian Consumer Law Guarantees under the Competition and Consumer Act 2010 (Cth) Schedule 2. o You need to justify your view as to whether these guarantees are available. Don't forget to explain if Gracieuse will be entitled to claim the remedies. o You also need to explain if the Great Homewares Store will have to pay any penalties