Spectacular Motors has a range of 2016 Svalbard X1s in stock. Initially, they were sold at the recommended retail price of $49,500.00. Lately the Svalbard X1s have been receiving bad publicity regarding sudden engine and clutch failure resulting in breakdowns on the roads and the market for X1s has declined sharply.

Mary sees an ad on television that states that Svalbard is the official sponsor of the Sydney Cignets (the local football team). Mary decides to boost sales of the Svalbard X1s by doing a promotion and selling them at the reduced price of $40,000.00.Mary plans on advertising on the front page of the Spectacular Motors website and on a billboard outside the front of Spectacular Motors.

Rachel Ross is head of IT at Spectacular Motors and designs the web page. Rachel hasn't test driven the Svalbard X1 at Spectacular Motors. Mary tells Rachel to photo shop a picture of the Sydney Cignets team next to a fleet of Svalbard X1s. Mary has not received authority to use the Sydney Cignets picture but she figures that as Svalbard is their official sponsor, it won't be an issue. The website and the large billboard is launched on the Spectacular Motors website and on site, which reads:

Buy a Svalbard X1 from Spectacular Motors ON SALE NOW $39,999.00* Svalbard is the car of choice of the Sydney CignetsTest Driven and approved by all Spectacular Motors directors We guarantee our Svalbard X1's will never let you down

For every purchased Svalbard, Spectacular Motors will do a same day oil change and safety check of your car for free, valid for a year.

* No refunds whatsoever or exchanges on sale items

Scenario 1: Simon

Simon is an avid Sydney Cignets fan and he sees the advertisement online advertising his beloved team and a flash new Svalbard. He purchases a white X1 from Spectacular Motors a few days before the Football Grand Final between the Cignets and the Kew Cats. On the day of the Grand Final whilst Simon is driving, the X1 suddenly breaks down on the Eastern Distributor causing major traffic delays. As a result Simon misses the Grand Final which he had premium box tickets to attend. The car is towed to the nearest Svalbard dealer at Rushcutters Bay and upon inspection the car has a faulty Electronic Control Unit which controls how much fuel gets to the engine. Simon is furious and demands a refund from Spectacular Motors.

i) Discuss the potential liability of Mary, Mike and Rachel under the consumer protection provisions of the Australian Consumer Law and any other applicable statute, and

ii) identify the potential claimants.

Please answer this question by referring to relevant provisions in relation to statutory guarantees under the ACL.