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Sammy runs a retail outlet in Sydney, selling radio-controlled Submarines and Drones [Quadcopters]. Sammy imports his stock directly from overseas factories, to maximize his profits.

Sammy runs a retail outlet in Sydney, selling radio-controlled Submarines and Drones [Quadcopters]. Sammy imports his stock directly from overseas factories, to maximize his profits.

Jim has received a printed catalog from Sammy's Super-Duper RC Store, which includes information on the Spy-Drone 1000 model available for $399. The printed advertisement catalog indicates that the drone is easy to fly, has a high-resolution 4K camera, and will fly for 2.5 hours on a single battery charge. The printed materials also compare this battery life to their main competitors in the drone market, the Havoc-20 and the FlyHigh-200, claiming that those models only last 20 minutes per battery. In fact both models available from competing outlets have batteries that last at least 1 hour under typical flying conditions.

Jim is very interested in the Spy-Drone 1000 and in particular its battery life. He visits Sammy's store and discusses the claimed battery life with the salesperson, Michael, who confirms the claimed 2.5 hour useful time as indicated in the catalog. Jim decides to buy the drone and hands $400 to Michael, expecting change. The store manager Travis comes over to point out that the drone sells for $699, and that it has never been available at $399. Jim tries to argue the point, that he wants to accept their advertised price of $399, but Travis will not budge on the price. Jim eventually pays $699 and takes the drone home.

After setting it up and charging the battery, Jim discovers that the battery only lets him fly for about half an hour. He follows all instructions in the user manual, correctly charging and connecting the battery and attempting to fly the drone on three or four occasions, however each flight ends after around 30 minutes.

Dejected, Jim tries to return the drone for a refund, but Michael and Travis show Jim the large 'no refunds' sign on the wall behind the sales counter. Jim insists there must be something wrong with the battery in his drone, and so Michael connects Jim's battery to the store charger located on the sales counter, to demonstrate the charging procedure, and to verify the battery is working. Michael fails to notice the charger had been left by Travis setup for charging model submarine batteries, which operate at much higher voltages. When Michael turns the charger on, the battery explodes within seconds, covering Jim's arms and hands with burning battery acid.

Jim's injuries require several surgical operations, and he is unable to work for several months. When he does return to work he cannot fulfill all of his work duties, and is forced into a lower paying role with less chance of future promotion.

Discuss; considering contract law, consumer law, competition law, and tort law.

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