Mike is a college student. To improve his academic performance, he bought an expensive smartphone from his neighbor Kerry for the stated purpose of recording his lectures so that he could listen to them while going out for his daily run. The contract he signed with Kerry included a clause excusing the seller from liability for the breach of "any term of the contract, whether a breach of condition or warranty whether express, implied, statutory, or otherwise."

After only 30 days, the smartphones microphone stopped working. The smartphone could still function, but Mike was unable to record or use the microphone to dictate. As a result, it was totally useless for Mike's purpose, so he took it back to the seller. The seller refused to take it back and pointed out the exemption clause in the signed contract. On these facts, does Mike have any legal recourse?

1. What are the legal issues that arise in this case? (2 marks)

2. What are the legal tests that the court will apply to decide the case? (1 mark)

3. Discuss how the legal tests should be applied to the facts of the case, and state the likely outcome of the dispute between the parties. Give reasons for your answer, referring to the relevant legal tests. (2 marks)