Maurice owns and manages the Helios Tanning Salon. He purchases a new tanning machine from its Swedish manufacturers, Swedish Sunbeds Pty Ltd. The new sunbed has sensors that detect how much ultra violet light has been absorbed by a user, and sounds an alarm when safe levels are exceeded.

When the new sunbed is installed, Maurice employs Vinay to go around the neighbourhood, knock on doors, and offer a week's free trial to anyone who is interested in a membership of Helios. Vinay goes door-knocking in the late evenings when people are home from work.

One of the persons he calls on is Susan, aged 28. When she answers the door, Vinay says: "Hi! I'm Vinay. I've come to offer you a free one-week trial of Helios' new sunbed!" Susan says: "Not now. Sorry, but I'm busy." Vinay says: "It's now or never, and you would be mad to miss an opportunity like this. Let me in — it'll only take a moment." Susan lets him in. Vinay tells her that she can use the machine for a week at no charge. He gets Susan to fill in her personal details on a form and asks her to sign it. She does not read it and he does not explain what it says.

Vinay then signs up more people for the free trial than can possibly be scheduled to use the new machine. Maurice says people can use the old machines instead.

The document signed by each customer is in fact a contract for a year's membership of Helios, at a cost of $60 per month. The contract states that if membership is terminated for any reason before it expires, the remainder of the year's fees become immediately payable.

The contract says that neither Helios nor Maurice or any employee of Helios is liable for any adverse consequences of using Helios' tanning equipment.

The sensors and alarm on the new machine prove to be faulty and several customers receive excessive doses of ultra violet light, causing severe sunburn. Susan is one of these persons and, as a result of this, she misses a week of her work as a sales representative. During this week, she gets her basic pay, but earns none of her usual commission.

Despite the problems, Helios continues to advertise its Swedish sunbed as "automated and completely safe".

Discuss these events in light of the provisions of the ACL:

 

1.Vinay goes door-knocking in the late evenings when people are home from work.

 

2.Vinay signs up more people for the free trial than can possibly be fitted in on the new machine. Maurice says people can use the old machines instead.

 

3.Vinay gets Susan to fill in her personal details on a form, and asks her to sign it. She does not read it and he does not explain what it says. The document is a contract. The contract states that, if membership is terminated for any reason before it expires, the remainder of the year's fees become immediately payable. The contract also says that neither Helios nor Maurice or any employee of Helios is liable for any adverse consequences of using Helios' tanning equipment.

 

4.The sensors and alarm on the new machine prove to be faulty and several customers receive excessive doses of ultraviolet light, causing severe sunburn. Despite the problems, Helios continues to advertise its Swedish sunbed as "automated and completely safe".

 

5.Vinay says: "It's now or never, and you would be mad to miss an opportunity like this. Let me in — it'll only take a moment." Susan lets him in. Vinay tells her that she can use the machine for a week at no charge.