Question
Chloe is the managing director of Scenic Parks Pty Ltd., a company which operates a caravan park near a river. Nina owns a mobile home
Chloe is the managing director of Scenic Parks Pty Ltd., a company which operates a caravan park near a river. Nina owns a mobile home and wishes to live in the caravan park on a permanent basis. She asks Chloe whether the river ever floods so as to be a danger to vans in the park. Chloe tells Nina that the river has never flooded. It is true that there have been no incidents of damage in the caravan park due to flooding in the river. Chloe, however, does not tell Nina that in heavy rain, the back waters of an adjacent creek had sometimes flooded the caravan park and damaged vans parked there.
Nina enters into a contract with Scenic Parks Pty Ltd to park her mobile home in the caravan park for one year. Three months later the creek floods and damages Nina's van. She is furious and wishes to claim damages from Scenic Parks Pty Ltd.
Nina is worried about an exclusion clause in her contract which provides that:
"The van owner acknowledges that the park owner (Scenic Parks Pty Ltd) has made no misleading representations to the client and hence does not accept responsibility for any damage to the client".
Advise Nina as to her rights and remedies, if any, under section 18 of the Australian Consumer Law. Be sure to discuss whether the exclusion clause in the contract applies.
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