PROBLEM SOLVING QUESTION

On 2 May 2019, one day after signing a lease with Phuong Dong Company for Anh Duong Stereo 's new office, Mr. Cong, the president of Anh Duong Stereo, called the office manager, Mr. Huy, and said "I've rented a great new office for Anh Duong Stereo. Please go buy some new recording equipment so we can record some CDs"

Mr Huy responded that "I do not think I have to do that. Why don't you ask other employees to go and buy them ? ' Mr. Cong said "well, as an office manager and as specified in the employment contract, I believe you should be responsible for this issue". Nevertheless, Mr Cong continued and told Mr. Huy that "if you go and buy the equipment, I will pay you additional $500 this month".

The next morning; 3 May 2019, Mr. Huy went to a music equipment store called Tien Dat Equipment and told the salesperson that Anh Duong Stereo needed to buy nine microphones, two turntables, and a set of speakers. The salesperson showed Mr. Huy the samples of the equipment that Anh Duong Stereo needed and said that Tien Dat Equipment could deliver all of the equipment to Anh Duong Stereo's office anytime that Anh Duong Stereo wanted.

Mr. Huy said "I like the turntables and the speakers, but I'm not sure about the microphones. Can you tell me more about them and especially about how safe they are?" The salesperson replied "Our microphones are manufactured by Sony Vietnam. They are the safest microphones m the world. They are made out of Lubber and plastic and will never shock you. Tien Dat Equipment has been selling them for five years and no customer has ever had any problem with them". The salesperson also said that "if you buy the turntables, the speakers, and the microphones from us, we will give you a free 21 -inch Sony TV'

The salesperson then showed Mr. Huy the box that the microphones came in. The box said "Sony Mics will never shock you!" The box also had a statement in small prints on the back which said "If you use Sony Mics within three meters of any other electronic devices, you may be shocked and badly injured. The seller and manufacturer are not responsible for injuries and damage that are caused in this manner".

Mr. Huy was very interested in buying the equipment from Tien Dat Equipment. However, he did not sign the contract straight away. He told the salesperson that he needed some more time to think and would come back after five days to sign the contract.

When Mr. Huy left the office, the salesperson suddenly realized that he forgot to inform Mr. Huy some of the company's policies. Therefore, he immediately emailed ML Huy and stated in the email that "the seller will not be responsible for any damage or whatsoever caused by the equipment under both common law and statutory law". Mr. Huy's computer was affected by a virus and thus he did not check his emails.

Five days after Ins first visit, Mr. Huy went back to the store to sign the contract. As an alcoholic person, he dropped by a supermarket and bought 10 bottles of beer. He finished all of these bottles while driving to Tien Dat Equipment's store. When Mr. Huy got to the store, he could not park his car properly and the salesperson had to drive the car into the car park for him. The salesperson kept asking "Are you alright?" but Mr. Huy did not respond.

Mr. Huy then went to the office and signed a basic contract to buy the equipment from Tien Dat Equipment. The contract was prepared by Tien Dat Equipment and it mentioned the total price ($40,001), parties' names, and the fees for delivery and installation. The last footnote in the contract (i.e. footnote number 5) contained a statement which read as follows: "the seller will not be responsible for any damage or injuries caused by a misuse of the equipment". Mt. Huy signed the contract without reading any footnotes; and thus, he was not aware of the statement.

Later that day, when Tien Dat Equipment delivered and installed the equipment at Anh Duong Stereo's new office, Mi. Huy noticed that the equipment was not the same as the equipment he had seen at the Tien Dat Equipment store. Mr. Huy took a small electronic recording device called a Dictaphone that he only used for business purposes out of his coat pocket and recorded the following message: "Remember to call the salesperson at Tien Dat Equipment and tell him that these microphones are a different model, these turntables are a different size, and these speakers are a different color".

Mr. Huy put the Dictaphone back into his coat pocket and picked up one of the new microphones to see how it sounded. he did so he received a serious electric shock. The shock caused Mr. Huy to pass out. He was taken to the hospital where he stayed for three days. His medical bills at the hospital were $6,000. The electric shock also destroyed his Dictaphone, for which he had paid $400.

It tuned out that Tien Dat Equipment's microphones were not made by Sony Vietnam but by a Malaysian company, namely, Techtronic Industries. The microphones were also made out of metal rather than lubber and plastic.

Mr. Huy wanted to return the microphones and required the store to compensate him for his loss, but the store denied its liability.

Mr. Cong also refused to pay Mr. Huy the additional $500.

The written agreement between Anh Duong Stereo and Phuong Dong Company stipulated that the length of the contract was one year. The rent was $ 1000 a month. However, it was agreed m the contract that Anh Duong Stereo did not have to pay that amount of rental money because Anh Duong Stereo had provided sounding equipment to Phuong Dong Company in five marketing events in January and February 2019 for which Phuong Dong Company had not paid the service fees yet.

Phuong Dong Company wanted to get the office back (just after one month from the time Anh Duong Stereo moved in). Anh Duong Stereo refused to do so and argued that there was a binding contract between two companies.

REQUIRED:

Discuss all relevant issues in relation to who can reasonably sue whom for what under Common Law (not under the Australian Consumer Law), who can prevail, and why?

Do not discuss tort law.

Do not discuss the Australian Consumer Law.