Early in February this year, Ken came to Olive$$s second$-$hand car yard in Wollongong NSW and asked to be shown an economical vehicle suitable for use as a second family car. Olive pointed out to Ken a Toyota Corolla. On the windscreen of the Corolla was a sign saying $2010$ model. $$10,000.$ Mechanical Inspection Welcomed$.$ Ken expressed interest in the vehicle and enquired whether he may have the car inspected by a mechanic from the automobile club of which he is a member. Olive agreed to the inspection. Later, acting on a request from Ken, the automobile club sent one of its mechanics, Melvin, to Olive$$s car yard to inspect the vehicle. Melvin explained his mission to Olive and was shown the Corolla. Melvin asked Olive if the vehicle was $$Okay$$ and was told $$What can you expect for $$10,000?$ Melvin replied that he would not bother inspecting the vehicle and would tell Ken that $$On the inspection I have made I can see nothing wrong with the car$.$ Melvin then reported to Ken in those terms.

Ken called on Olive and said, $$The inspection was alright. Can I have the car?$$ Olive said $$Yes$.$ The parties signed a written contract describing the vehicle as $$a second$-$hand $2010$ Toyota Corolla$,$ specifying $$10,000$ as the price and containing the following clause: $$No warranty express or implied is given as to the state, fitness or quality of the vehicle and the purchaser accepts responsibility for all latent defects$.$ Ken paid $$10,000$ to Olive and drove the Corolla out of the car yard. At the first corner the engine fell out of the car. A hastily summoned mechanic informed Ken that, although the body was that of a $2010$ model, the engine was a reconditioned $2004$ model which had been improperly installed. Ken was thinking of commencing proceedings against the dealer and the manufacturer.