Question 3 (20 marks)

Sharon, who loves cooking, wanted to buy a pressure cooker costing $150 from Hogan, an Australian online retailer which specialises in selling kitchen appliances. That particular brand of cooker that Sharon wanted to buy is imported by Hogan from overseas. She went to Hogan's website and completed the online order form and entered her credit card details. At the bottom of the form printed in bold was the following statement: "Read our terms and conditions before submitting your order. By submitting your order, you are indicating that you accept our terms and conditions." Sharon did not read the terms and conditions as she was in a hurry and clicked the "Agree and Submit" button.

A week later the cooker was delivered to Sharon. At first, it worked well but one day several months later, the cooker exploded causing damage to the benchtop and splashback in Sharon's newly renovated kitchen. She wants to sue Hogan for the price of the cooker and the costs of repairing her kitchen. Hogan draws her attention to the following clause in their terms and conditions: "Hogan Pty Ltd is not liable for any loss, damage or injury caused through use of its products, irrespective of how the loss, damage or injury is caused." They also claim that as they are not the manufacturer of the cooker, they cannot be held responsible for any defects in the product.

Advise Sharon of her legal rights, and Hogan of its potential legal liabilities, under the Law of Contract and the Australian Consumer Law. Please ensure that you support your answers with reference to decided cases and statutory provisions.