Please answer all three questions

1.Smallgoods Pty. Ltd. is a manufacturer of processed meat products including salami. During the manufacturing process, the salami is put through a treatment process that kills bacteria which is known in the small goods industry to form in the salami during production. The bacterium is very small and cannot be seen with the human eye. During the manufacture of a particular batch of salami marked "use by 31 July 2018", Smallgoods Pty Ltd omitted to put the batch through the bacteria treatment process. The salami was then packaged in air-tight plastic packaging which allows the purchaser to see the salami.

This batch of salami was sold to Supermarkets Pty. Ltd. for sale in its supermarket in Melbourne. On 20 July 2018, Ann purchased a package of salami which was marked "use by 31 July2018" from the supermarket. Above the smallgoods section of the supermarket was a large sign which read "The Liability of Supermarkets Pty. Ltd." for any loss or damage caused by any product it sells is limited to the cost of replacing the product".

Ann properly stored the salami in the refrigerator but did not look at the "use by" date. On 7 August 2018, she consumed part of the salami which contained bacteria and she became very ill. She required hospitalisation, incurring large medical expenses and was unable to go to work for two months.

(a)Compare Ann's rights against the salami manufacturer under the tort of negligence with her rights under ss54 and 138 of the ACL (10 marks).

(b)Aside from the rights discussed above, explain whether Ann has any (and if so, what) rights against Supermarkets Pty. Ltd. under the ACL in relation to the contaminated salami (10 marks).