Question 5 (20 marks) Louis owns and runs a company selling brand new and also second-hand cars. He sold a brand new car to Mrs. Wong and a second hand car to her son Richard two weeks ago. While Mrs. Wong was driving her car to the countryside last week, the brake of her car suddenly stopped functioning, causing her car to run into a tree. Mrs. Wong was injured and she asked her husband Mr. Wong to take her car to a garage for repair. Mr. Wong was told that Mrs. Wong's car was in a hopeless condition and worthless. Two days ago, Richard was informed by the police that the second hand car he had bought from Louis had been stolen by a thief and he had to surrender it to the true owner. Richard surrendered the stolen car to its true owner yesterday. Each of the invoices issued to Mrs. Wong and to Richard respectively contains an exemption clause which states that Louis' company " will not be liable to any customer for any loss and damage, however caused, whether directly or indirectly, by the goods sold". Required: (a) Advise Mrs. Wong whether she can sue Louis' company for breach of any implied term under the Sale of Goods Ordinance (SOGO)(Cap.26) and whether she is entitled to reject the car she has bought from Louis' company and demand a full refund of the purchase price. (10 marks) (b) Advise Richard whether he can sue Louis' company for breach of any implied term under SOGO and whether he is entitled to demand a full refund of the purchase price of the car he has bought from Louis' company? You are required to cite a relevant case to support your answer. (6 marks) (c) Advise Louis whether he can rely on the exemption clause contained in each of the invoices issued to Mrs. Wong and Richard respectively to exclude his company's liability to pay damages for Mrs. Wong's injury and Richard's loss. (4 marks) Question 5 (20 marks) Louis owns and runs a company selling brand new and also second-hand cars. He sold a brand new car to Mrs. Wong and a second hand car to her son Richard two weeks ago. While Mrs. Wong was driving her car to the countryside last week, the brake of her car suddenly stopped functioning, causing her car to run into a tree. Mrs. Wong was injured and she asked her husband Mr. Wong to take her car to a garage for repair. Mr. Wong was told that Mrs. Wong's car was in a hopeless condition and worthless. Two days ago, Richard was informed by the police that the second hand car he had bought from Louis had been stolen by a thief and he had to surrender it to the true owner. Richard surrendered the stolen car to its true owner yesterday. Each of the invoices issued to Mrs. Wong and to Richard respectively contains an exemption clause which states that Louis' company " will not be liable to any customer for any loss and damage, however caused, whether directly or indirectly, by the goods sold". Required: (a) Advise Mrs. Wong whether she can sue Louis' company for breach of any implied term under the Sale of Goods Ordinance (SOGO)(Cap.26) and whether she is entitled to reject the car she has bought from Louis' company and demand a full refund of the purchase price. (10 marks) (b) Advise Richard whether he can sue Louis' company for breach of any implied term under SOGO and whether he is entitled to demand a full refund of the purchase price of the car he has bought from Louis' company? You are required to cite a relevant case to support your answer. (6 marks) (c) Advise Louis whether he can rely on the exemption clause contained in each of the invoices issued to Mrs. Wong and Richard respectively to exclude his company's liability to pay damages for Mrs. Wong's injury and Richard's loss. (4 marks)
