Question 5 (10 marks)

Boh is a well-known Geelong restaurateur and is opening a new bakery business specialising in muffins. She visits Best Kitchen Pty Ltd (BKPL), that specialises in selling commercial kitchen equipment, to purchase a new commercial grade oven costing $20,000. Boh tells BKPL that she needs the oven to be able to cook three trays of muffins every hour for 8 hours to meet the demands of the morning rush at her new bakery. She is advised that the oven "Bakemagic" is a new model that is suitable for her new business and her needs.

The oven is installed in Boh's bakery but when she uses it on the first day, she finds it can only cook two trays at a time and it overheats after four hours. The bakery cannot keep up with demand and is losing customers and money rapidly.

Boh knows you have studied Law for Commerce at Deakin University and are familiar with the Australian Consumer Law (ACL). She decides to seek your advice as to which consumer guarantees BKPL has breached under the ACL. Advise Boh. (DO NOT discuss remedies.)