Question 1

Troy owns a shop that sells luxury watches. Troy decides to run a television commercial promoting the range of watches he has for sale. The commercial states that the store currently has various Polex watches on sale, which are known for their durability, water and scratch resistance and are manufactured in London. The image of Polex's most expensive model called the Polex Elite is pictured throughout the entire commercial.

Daniel is a keen cyclist. After viewing the TV commercial, Daniel believes that the Polex Elite would be ideal for his needs and drives to Troy's shop. Upon arrival, Daniel says to Troy that he has been searching for a good quality, hard-wearing watch for months and after seeing the commercial is so pleased to know that the Polex Elite will be suitable for him to wear at cycling competitions in all weather conditions. Troy says, "Well, Polex is the best brand that you can buy. I'm pleased that we can help you."

Contained in the information booklet that Polex previously sent to Troy's shop, was a pamphlet prepared by Polex which correctly states, "The Polex Elite is a designer watch and should only be worn at special indoor occasions due to its easily scratchable surfaces and delicate internal mechanisms and design features. This is the watch specially designed for a businessman, wanting to impress." Troy knows about the contents of this pamphlet but does not wish to jeopardize the $25,000 sale of his most expensive watch in the store.

After wearing the watch for two weeks during various cycling competitions, the watch stops working. Daniel notices that the face of the watch has developed deep scratch marks on it and also sees that water has appeared beneath the glass surface. Daniel takes the watch to Bob who is the owner of "Bob's Watches" (a competing watch retail store). Bob tells Daniel that the watch should never have been worn whilst cycling as it is Polex's most delicate watch with highly sensitive design qualities. Bob also tells Daniel that unfortunately the watch has been damaged beyond repair.

Advise Troy of his potential liability under the ACL.

Please use the ILAC method to answer this question.