Question 2 (15 marks)

Cathy and Josh are building a house in Ballarat. They have entered into a fixed price contract

with a local builder, Wellbuilt Homes Pty Ltd. The total price for the build is $205,000. Included

in the contract is an allowance of $4,500 for vinyl plank flooring throughout the house.

The builder instructs Cathy and Josh to make a selection of vinyl planks from Stylezone

Flooring who have a shop at Sebastopol. Cathy and Josh look through the samples and

choose the sample called 'Blackbutt' for the flooring. The sample board is a rich chocolate

brown colour. Cathy and Josh explain to Ernie, the salesperson, that they really like the colour

as it will match their furniture and soft furnishings. They even bring some cushions and curtain

material along with them. They place these next to the sample board and are happy with the

colour match.

Cathy and Josh sign the order form. Ernie, confirms that the total price of the planks does not

exceed the $4,500 allowance and so Cathy and Josh do not have to pay any extra for the

flooring.

Approximately six months later, the house is complete and Cathy and Josh are conducting an

inspection. They are horrified to discover that the floorboards in the house have a reddish

tinge. Cathy and Josh are very upset. They tell the building supervisor that they think that the

wrong floorboards have been delivered and installed. The building supervisor checks the

delivery note and also the packaging for the product and confirms that the boards are Blackbutt

Vinyl Planks which is the product listed on the order form signed by Cathy and Josh.

Cathy and Josh return to the Stylezone showroom to complain to Ernie and to look again at

the sample board. Ernie shrugs his shoulders and says that sometimes there is some colour

variation during the manufacturing process and it is too late to complain as the building

supervisor accepted delivery of the boards on behalf of Cathy and Josh and the Wellbuilt

Homes have paid for the boards.

Required: Answer the following questions:

a) Identify the parties to the contract for purchase of the vinyl planks.

b) Are Cathy and Josh entitled to any remedy against the supplier of the vinyl planks,

Stylezone Flooring?

c) Would your answer to (b) be different if the order form that Cathy and Josh signed

included some fine print that Cathy and Josh did not read, including a statement that

the statutory terms implied by the Goods Act 1958 (Vic) are not to apply to this contract?