Question
Gary was employed as an accountant for BikeHike Ltd, a large manufacturer of mountain bicycles.With a view to increasing the profits of the company he
Gary was employed as an accountant for BikeHike Ltd, a large manufacturer of mountain bicycles.With a view to increasing the profits of the company he decided that the mountain bikes should be advertised as having been made in Australia and meeting the standards of the Australasian Mountain Bike Society.In fact the bicycles were imported from China and there was no such organisation called the Australasian Mountain Bike Society. Without the approval of the marketing manager, Gary sent out a message on BikeHike's Facebook business page stating that BikeHike's mountain bicycleswere far superior to those of ToughMount Ltd, a competitor mountain bicycle manufacturer.The message claimed that BikeHike's bicycles were superior because they were made in Australia while ToughMount's bicycles were made in Korea.In fact ToughMount s bicycles were made in Germany.
Discuss whether ToughMount has an action under the Australian Consumer Law against BikeHike for Gary's false statements in Facebook. (7 marks)In your answer discuss whether BikeHike is liable for Gary's actions( 3 marks).
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