Question 6 (11 marks)

Clare bought a second-hand car from Canberra Bargain Hunters for $7,000 and spent a further $1,000 on having it overhauled. After using the car for five (5) months, the Canberra police arrived at her home one day and asked to examine the car. They discovered it had been stolen and seized it from her. It was eventually returned to its true owner.

Required:

Advise Clare of her rights, if any, under Australian Consumer Law (ACL) against Canberra Bargain Hunters.

Note: You must answer this question using the IRAC method according to Australian Consumer Law (ACL).

Note: Do not answer this question using contract law principles as you will not receive any marks if you use contract law principles for this question.