Peter is a qualified carpenter/builder but because of a downturn in the economy he has been unemployed for some time. A friend advises him to set up a lawn mowing business to carry himself and his family through this hard time. Peter thought he should start small and just target pensioners who make up a significant number of residents in his local area. As Peter is also a carpenter/builder he could offer to do 'small handyman repairs' as part of his service.

He discusses his business plan with his father, Tom, as Peter knows his father gets his lawns mowed by "Green Fingers". He works out a price scheme and a range of services that will undercut this business. Tom reminds him that his Uncle Bruce runs a lawn mower sales and repair store in a suburb of Sydney, and Tom is certain that his Uncle Bruce will give him a good deal on a new mower.

Peter travels to see his Uncle Bruce who tells him that his business has just started to import a new range of heavy-duty commercial grade lawn mowers that are made under license in Asia; they are called 'Sinovictar'. These mowers do not come with any warranty but Bruce said that because Peter is family he will give him a discount and provide free servicing for the first 12 months if he buys 2 lawn mowers. Peter agrees to these terms and they agree on a price of $750.00 for each mower.

In fact, the mowers are not made under license at all. Bruce imports the parts and assembles them in his workshop. They are standard grade lawn mowers and unknown to Bruce made from inferior grade steel that will not stand up to any prolonged heavy use.

Peter's business goes very well for the first three months; he quickly picks up a loyal clientele. However, the mowers fail to be reliable. One day while he is mowing, the steel plate and bolt holding a blade snap, but luckily does not cause any damage or harm, other than to the lawn mower itself. Peter can see the problem and immediately returns the mower to his uncle for repairs. Uncle Bruce tells him that spare parts are almost impossible to obtain for this mower and he might have to buy a new one. While the mower is with his uncle the same thing happens to the second mower, only this time the blade hits a young boy in the face causing serious injury to his eye.

Peter, is now concerned about the quality of his lawn mowers, so he goes on the internet and is able to discover the truth about 'Sinovictar' mowers. He confronts his uncle about this information who finally tells him the truth.

a)Under the common law, what arguments could Peter use to support a claim for damages in breach of contract?(5 marks)

b)Does Peter have any claims under the Australian Consumer Law? Fully explain your answer including a discussion of possible remedies.(10 marks)

c)Does Uncle Bruce have any liability towards the injured boy? Discuss all possible claims which may be taken against him.(10 marks)