Q1

Brown operates a retail clothing business and has been concerned about security as several other shops near his have been recently attacked by thieves. He contacts Acme Security Systems and, on their recommendation, enters into a contract for them to supply and install a security system (monitored back to base) for the sum of AUD35,000. The contract contained nothing more than a description of the security system, the installation date, and the price.

Several weeks after the installation of the security system thieves broke into Brown's business premises and stole several thousand dollars' worth of goods. The security system failed to detect the theft.

Required

What rights (if any) does Brown have against Acme Security Systems for breach of any of the consumer guarantees under the Australian Consumer Law. Discuss with reference to relevant cases, legal principles, and legislation.

Q2

Mark is engaged to be married and purchases a diamond and sapphire engagement ring from Charles, a Jeweller in Melbourne. Mark was careful to ensure that the ring came with a Certificate of Authenticity from the Diamond Certification Laboratory of Australia. Charles was very happy to assure Mark that the Certificate of Authenticity would be provided when the ring was collected and paid for.

Mark collected the ring a few days later and paid Charles $15,000 for it. Charles provided a sales note to which was attached a Certificate of Authenticity as to the diamonds used in the manufacture of the ring. Mark was in a hurry and did not read the sales note or the Certificate.

A year later Mark decided that he should review his insurances and took the ring to be valued to a Jewellery Valuer in Melbourne. When he collected the ring Mark was shocked to learn that the ring had been valued at $5,000 and that the Certificate of Authenticity had been provided by someone not known to the Valuer and not the Diamond Certification Laboratory of Australia.

Required

Advise Mark as to his rights and remedies against Charles making reference to relevant cases and legal principles.

Q3

Harry is the Manager of the Jonestown Recreation Centre a facility owned by the Jonestown Council. At the Recreation Centre Harry was provided with his own office and wore a uniform provided by the Council which had his name and the title 'Manager' sewn into his shirt. It was a condition of Harry's employment that he could not enter into any contracts on behalf of the Council or approve expenditure exceeding $5,000.

Business at the Recreation Centre had increased, and Harry became increasingly concerned that some urgent improvements needed to be made to the male and female change rooms. Harry had raised this issue frequently with his manager, but nothing had been done by the Council to make the required improvements.

In desperation Harry signed a contract with Fred, a local builder to carry out some minor improvements to the men's and women's change rooms at a cost of $9,500. The contract was signed by Harry 'for and on behalf of Jonestown Council'.

After completion of the work Fred submitted his account to the Council for payment and he received a letter from the Council stating that the account would not be paid as Harry had no authority to make the contract on the Council's behalf.

Required

Advise Fred of his chances of being paid, and by whom. Support your answer with reference to relevant legal principles and cases.