Facts: Beacon Fun Stuff Pty Ltd has been manufacturing Tasmanian souvenirs for a number of years. They formed an agency relationship with Greg Gold in 2019 for him to sell their souvenirs in Queensland.

Greg Gold recently asked Beacon Fun Stuff Pty Ltd if he could change the relationship between him and Beacon Fun Stuff Pty Ltd from one of agency to one of buyer and seller. His business in Cairns in Queensland has expanded and he wishes to buy large quantities of souvenirs from Beacon Fun Stuff Pty Ltd and label them as Gold Great Souvenirs and sell them to his customers directly.

Beacon Fun Stuff Pty Ltd are content with this and sign a contract to make, sell and deliver 1000 Leaf Nosed Bat Magnets within a 28-day period to Greg Gold's business in Cairns, Queensland. The magnets are made within 3 weeks and Algol asks her parents Sunny and Monny Rigel to transport them to Queensland. Sunny and Monny had been wanting to take a holiday anyway so had booked to take their motor home to Queensland, to arrive in time to deliver the magnets to Greg in accordance with the time stipulated in the contract. Algol does not tell her parents that time for delivery is an essential term in the contract. It took Monny and Sunny two weeks to deliver the magnets as they stopped and enjoyed the sights along the way.

Greg accepts late delivery but confirms that he will take $500 off the contract price for this late delivery.

Further, some of the magnets are faulty, they have not been glued correctly and they fall apart within a few days of use by purchasers. Approximately 50 of Greg's customers return the magnets and demand a full refund. Greg says he is just an 'agent' and that the customers have a right to sue under the Australian consumer law, but they need to sue Beacon Fun Stuff Pty Ltd and not him or his business.

Thirty of these customers contact Beacon Fun Pty Ltd in Tasmania and demand a refund.

Required:

Algol seeks your advice on the following matters:

1. Can Greg deduct the $500 for late delivery if there is no clause in the contract for purchase that provides for this?

2. Who is liable here to compensate the customers for the faulty magnets and what sections of the Australian Consumer Law might have been breached?

3. What do you believe is the relationship between Greg Gold and Beacon Fun Stuff Pty Ltd, is it one of agency or one of seller and buyer?

Please refer to legal cases, legal principles and provision of the Competition and Consumer Act 2010 (Cth) as applicable.