Question
Read the following case study and answer the questions. Please consider Australian Consumer Law and Contract Law when reviewing the case study. Then answer the
- Read the following case study and answer the questions. Please consider Australian Consumer Law and Contract Law when reviewing the case study. Then answer the five (5) questions.
Case study Sally is the new owner of a suburban caf and she need to buy a new espresso machine. She contacts Espresso Brothers Machines and they send in one of their sales representatives, Ben, to assist Sally.
Sally explains to Ben that she has to follow requirements:
- High quality machine (she does not mind paying premium price)
- Long warranty
- Produce good quality coffees
Sally explains to Ben that she does not have a lot of experience with contracts and will need Ben's assistance to complete the paperwork.
Ben suggests that Sally purchase the Deluxe Venti Espresso Machine. It meets all her requirements being hand - made in Italy and comes with a 10 year lifetime warranty and costs $15,000. Sally asks Ben if there is anything else that she needs to consider before signing the paperwork. Ben says there will be a bit of paperwork but nothing that will affect her. Sally signs the contract and deposits the money into Espresso Brothers Machines account.
One week later Sally receives the machine and a copy of the terms and conditions of the contract. Oninspection she realises that the machine was made in China and the warranty is only for 12 months not 10 years. On closer inspection of her contract she realises that she must only purchase coffee beans from Espresso Brothers Machines.
Sally contacts the company and asks for the contract to be terminated and requests a full refund of her money. Sally is told that since the contract has been signed and accepted by both parties it is binding and there is nothing they can do to help her.
- Has a contract been established? (Use the three essential elements of a contract to explain your answer).
- Can Sally cancel the contract? Explain your answer.
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| Case study | |
| Sally is the new owner of a suburban caf and she need to buy a new espresso machine. She contacts Espresso Brothers Machines and they send in one of their sales representatives, Ben, to assist Sally. Sally explains to Ben that she has to follow requirements:
Sally explains to Ben that she does not have a lot of experience with contracts and will need Ben's assistance to complete the paperwork. Ben suggests that Sally purchase the Deluxe Venti Espresso Machine. It meets all her requirements being hand - made in Italy and comes with a 10 year lifetime warranty and costs $15,000. Sally asks Ben if there is anything else that she needs to consider before signing the paperwork. Ben says there will be a bit of paperwork but nothing that will affect her. Sally signs the contract and deposits the money into Espresso Brothers Machines account. One week later Sally receives the machine and a copy of the terms and conditions of the contract. Oninspection she realises that the machine was made in China and the warranty is only for 12 months not 10 years. On closer inspection of her contract she realises that she must only purchase coffee beans from Espresso Brothers Machines. Sally contacts the company and asks for the contract to be terminated and requests a full refund of her money. Sally is told that since the contract has been signed and accepted by both parties it is binding and there is nothing they can do to help her. | |
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Statistics For Engineers And Scientists
Authors: William Navidi
3rd Edition
73376345, 978-0077417581, 77417585, 73376337, 978-0073376332
