Shubh wishes to install a smart HVAC (Heating, Ventilation, Air Conditioning) system in his home that saves energy by automatically raising or lowering temperature based on whether or not the home is occupied. He explains this to a local supplier who agrees to install a HVAC system for $15,000. After installation, Shubh is disappointed to discover the system's thermostat does not register occupancy and cannot tell if his home is empty or not.

Advise Shubh.

Follow the format of possible solution and adding more information:

Possible Solution

Issue

Shubh has purchased a smart HVAC system and installation that does not do what he wanted it to do.

Rule

The ACL implies consumer guarantees into contracts for the sale of services to consumers. These guarantees cannot be excluded by agreement. Any materials supplied with a service are guaranteed to be fit for their required purpose: see s.61 ACL The courts have held that an installed alarm that failed to go off when thieves cut the phone line, despite the shop owner specifically requesting a system that would work in such circumstances, was a breach of s.61 ACL: see Crawford v Mayne Nickless Ltd

Application

The components of the smart HVAC system are materials supplied with an installation service. Shubh explained to the local supplier that he required the system to control the temperature in his house in response to occupancy. The smart HVAC system installed cannot do this.

Conclusion

Shubh can take legal action against the local supplier for breaching the guarantee that the smart HVAC system would be fit for its required purpose.