Question Three: 20 MARKS

Joel and Melanie Jacobs have established an online business, Outback Adventures, selling "Dundee Knives", which they claim are authentic copies of the Bowie knife used by Mick Dundee in the Crocodile Dundee series of movies starring Paul Hogan. In their marketing, they claim that the knives are exact replicas of the knife created by gunsmith John Bowring for this character. Merchandising for the product includes the memorable line from the movie: "That's not a knife, this is a knife", to show the impressive profile of the weapon, and to further appeal to the fans of the character.

The online advertisement for the Dundee Knife states that the product is identical in every regard to the high quality stainless steel knife used by Mick Dundee in the movie when he is accosted by a group of young thugs in New York City. There is an obvious intention to align the Dundee Knife with this character, with a likeness of that scene from the movie included in the advertisement.

Max is fascinated by the movie and immediately telephones the order line to purchase one of these iconic knives for himself. He speaks directly with Melanie, who confirms that the price for the item is $500 including postage. As this seems to be a high price for a knife, he questions Melanie, and she confirms that the weapon is manufactured from the highest quality materials by a master tradeperson, and is an exact replica of the knife used in the movie. A leather scabbard to protect the blade is also included in the price. These details are all stated clearly in the online advertisement that prompted Max's initial call.

When the knife arrives the following week, Max is disappointed to find that the knife is of poor quality. The stainless steel blade is tarnished and blunt, the grip is unfinished wood without the leather strapping shown in the advertisement, and the leather scabbard is missing. Max has also been online on various forum sites in recent days, and is now aware that neither Paul Hogan nor his production team were aware of, or consented to the use of Mick Dundee's image in the advertising.

Does Max have any cause of action against Outback Adventures in relation to this matter?

Please use IRAC method(Issue, Rules, Application, Conclusion) and support with relevant statute or case law authority.