Hard Rock Pty Ltd ("Hard Rock") is a supplier of concrete blocks to the building trade. It supplied $100,000 worth of blocks to Advanced Excavations Pty Ltd ("Advanced Excavations") which used them in the construction of a development project. Before the project was completed the blocks started crumbling and most of the walls had to be pulled down and rebuilt. Further problems are expected. Advanced Excavations refused to pay Hard Rock for the blocks. Hard Rock prepared a statutory demand which it left on 1 September 2017 under the door of a shed at the Advanced Excavation's work site. The statutory demand sought payment of $100,000 plus $10,000 in liquidated damages for loss of use of money by Hard Rock. Advise Advanced Excavations in relation to the following issues: (a) Upon what grounds can it challenge the statutory demand?

11 (b) What application(s) and documents are required? (c) What can it do to prevent damage to its commercial reputation caused by the threat of insolvency proceedings?