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PROBLEM QUESTION Ari is the sales manager at Confetti Pty Ltd ('Confetti), a large retailer of wedding dresses based in Sydney. Beaded dresses and a

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PROBLEM QUESTION Ari is the sales manager at Confetti Pty Ltd ('Confetti"), a large retailer of wedding dresses based in Sydney. Beaded dresses and a new colour called 'Champagne' (a very pale gold) are expected to be very popular in Spring. Ari has seen a beaded, Champagne-coloured dress, called 'Lill', at a fashion show that he thinks will sell very well. In May, Ari has the following telephone conversation with Zoe from Mimi's Bridal Wear Pty Ltd ("MBW'), the manufacturers of the 'Lilli' dress, also based in Sydney: Ari: What's your best price for the Lili dress in Champagne? Zoe: We can sell you 100 of those dresses in Champagne for $1000 each. Ari: Could we get a discount for a larger order - what about 200 dresses at $800 each? Zoe: OK, we can do that. Because you're a new customer, we'll need a 50% deposit. Ari: Sure. Can you deliver by August? It's our busiest time for Spring weddings and we really want that Champagne colour for this season. It's going to be popular! Zoe: Yes, that's all fine. We've been in the bridal business for decades, so we focus on Spring too. I'll email our order form - could you fill it in and email it back to me? When Ari receives the order form, he notices the following statement in small print: This order is subject to the terms and conditions of sale as set out on our website. Go to www.MimiBridal.com.ou. Ari wants to get the order in quickly, so he fills in the form with the style ('Lili') and colour ('Champagne') as well as Confetti's details. He doesn't notice there is nothing on the form about delivery dates. Ari signs the form, emails it back to Zoe and transfers the $80,000 deposit to MBW without reading the terms and conditions on the website. By the second week of August, Ari is getting worried as the Lili dresses haven't arrived. He calls Zoe weekly to ask about the delay. The dresses do not arrive until early October. Ari estimates Confetti will lose over $50,000 in profits due to cancelled orders for these dresses. When the dresses arrive, they are plain white instead of the 'champagne' colour Ari ordered. The dresses have also been poorly manufactured, with uneven seams and loose threads, and Ari feels certain there is much less beadwork on these dresses than the one he saw at the fashion show. He doesn't want to put the dresses into Confetti stores in this state. Before calling Zoe, Ari checks the website terms and conditions and finds the following clause: The purchaser agrees that the Sale of Goods Act 1923 (NSW) does not apply to this transaction

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