Question
Pezla Pty Ltd (Pezla) is an Australian owned company that is in the business of manufacturing expensive luxury cars. In December 2020, Pezla's General Manager
Pezla Pty Ltd ("Pezla") is an Australian owned company that is in the business of manufacturing expensive luxury cars. In December 2020, Pezla's General Manager places an overseas order for various car parts. In January 2021, the car parts arrive at Pezla's automotive factory. In early February 2021, Pezla's mechanic installs the wrong brake and steering parts in several of their "Luxury V1" models (The "Luxury V1" is Pezla's most expensive and popular luxury car). Pezla does not have a system in place to check for any production mistakes and unknowingly distributes the cars to various car dealerships for sale. On 25 February 2021, Max goes to "Cars R Us" (a local Brisbane car dealership) to collect and pay for his pre-ordered "Luxury V1". On his way home from thedealership, and with one hand on the steering wheel, Max phones his girlfriend to tell her about his new car. With the phone to his ear, Max sees a green traffic light in the distance changing to yellow. Max attempts to slow down by pressing his foot against the brake. Unfortunately, due to the incorrect installation, the brake locks and steering do not work and Max is unable to control his car. As a result, Max drives through a red light and crashes into another car coming from the opposite direction. The crash causes injuries to him and the other driver, Sam. Max suffers minor chest and facial injuries and has to pay $5,500 in associated medical expenses. Sam is hospitalised and the doctors find that he has a fractured skull, damage to his lower back and three broken ribs. Sam's medical costs amount to $45,000 and Sam is unable to work for 6 months. At that time, Sam is on a fixed contract and loses $100,000 in wages.
Advise Max as to any potential claims he has against Pezla.
Advise Sam as to any potential claims he has against Max.
Please use ILAC to answer this question.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started