Question 11 Australian Consumer Law (10 marks)

This question is worth 10 marks. Students MUST use the IRAC method (Issue, Rules, Application, Conclusion) to answer this problem scenario question. All answers MUST be supported with relevant statute or case law authority.

Scarlett is a new motorcyclist and decides that she also wants to explore off-road motorcycling.

Three weeks ago, she went into her local motorcycle dealership, Chicken Motorcycles (in Parramatta), to buy some new equipment and informed the consultant, Sofia, that she was going on an off-road motorcycle tour and needed a motorcycle that was made specifically for road and off-road use.

Based on this information Sofia recommended that she purchase a European bike the 'Australorp 500', which costs $15,000. Scarlett decides to go with Sofia's recommendation and also buys a helmet ($900) & leather jacket ($500).

One week later, Scarlett rides her new motorbike to the course on the outskirts of Sydney where the adventure is to begin. The following happens:

On joining the tour group, the tour leaders informed Scarlett she could not continue in the ride as the motorbike is not suitable for off-road use. It is a road bike only (meaning it is not able to be used on a dirt road).

Disappointed, Scarlett rides the bike back home. Upon arriving at home, she notices she has developed a rash from the jacket. Further, the clasp on the helmet securing it has broken.

Further analysis reveals the chemical that treated the jackets is banned in Australia.

Scarlett contacts the bike shop to complain about the broken helmet and jacket. Sofia says "sorry, there is nothing we can do" due to the helmet clasp having no parts as they are no longer being manufactured.

Exasperated, Scarlett seeks your advice on the bike, the helmet and the jacket. Advise her whether Chicken Motorcycles has breached any of the consumer guarantees under the Australian Consumer Law.