IRAC ANSWERS FORMAT :

ISSUE :

RELEVANT LAW / RULE :

Application :

Conclusion:

Reigen went to see Dr Mob, the local dentist nearby. For years he has not seen a dentist and he was in severe pain. After the examination, Dr Mob told him he had four cavities (holes) in his teeth that needed fillings. The dentist recommended the very latest material for the fillings known as Adamantium XY (manufactured by Psycho Ltd).

When Reigen expressed his concerns about the procedure, Dr Mob replied:

"You do really need these fillings. They will last at least 20 years, probably longer. They are perfectly safe - I guarantee it!!'

Reigen made further attempts to clarify his concerns to Dr. Mob, but the dentist assured him that:

"Everything will be okay! These fillings are practically indestructible! Nothing can destroy it!"

Satisfied, Reigen then booked for an appointment with the receptionist for treatment the following day. The procedure cost $10,000.

Three days later, Reigen started to suffer terrible pain in his mouth near the filled teeth. He was diagnosed with severe blood poisoning and an infection. It was later found Dr. Mob did not properly install the Adamantium XY. The fillings will have to be done again (cost $1,000), Reigen had to be hospitalised for 10 days at a cost of $5,000 and he missed his flight to New Zealand (worth $6,000) to watch a concert of his favourite band.

Reigen returned to the clinic to demand compensation from Dr Mob. The receptionist however explained they do not offer compensation and pointed at the notice board hidden behind the aquarium which reads:

Although Dr Mob always takes great care, his patients agree that Dr Mob cannot be responsible for any injuries or losses howsoever caused.

His patients also agree the ACL consumer guarantees do not apply for Dr Mob's services!

Reigen does not recall seeing the notice board at all during his visits.

UNDER THE ACL CONSUMER GUARANTEES:

1. Whether any consumer guarantees are breached?
2. Whether the exemption clause is effective? (Assume it is a term of the contract)