Stanley (an IT student at Monash College) approached Jack, an experienced computer technician atMonashElectricals Pty Ltdin Melbourne to replace and upgrade his laptop.

He carefully explained his requirements which included:

• Upgrading the RAM and video card
• Installing an antivirus to protect his work

Jack told Stanley they can upgrade his laptop and install the antivirus program. Before Jack begins the repair, he advised Stanley to carefully read the exemption clause on the notice board displayed above the counter which reads:

Stanley, not paying attention, ignored the notice board and gave his laptop to be repaired and paid $3,000 in total.

A week later after the repairs and upgrades were completed, Stanley found a number of issues with the laptop including the laptop was slower and would often crash. He later discovered the RAM installed was incompatible with his laptop, and the video card was an older and inferior version than his previous video card!

Stanley argues that Monash Electrical has breached the contract and is therefore entitled to a refund. Jack however stated the store does not give refunds and pointed at the notice board on the counter.

i.Identify the relevant statutory guarantee(s) that Monash Electrical has breached.

ii.Explain why and how the statutory guarantee(s) was breached. Make sure to cite relevant section and case law!

iii Issue: Is the breach a major failure or minor failure

Rule: The remedies for breach of the ACL consumer guarantees for services depends on whether it is a major failure or not. Determining whether it is a major or minor failure requires consideration of the elements listed in section 268

Issue iv : What remedies are available?

Rule: The remedies for breach of the ACL consumer guarantees for services depends on whether it is a major failure or not. The remedies are listed under s 268 .

Issue V : Does the exemption clause cover the alleged breach?

Rule: The ACL has two rules regarding the effectiveness of exemption clauses. Under section 64 , exemption clauses cannot modify, remove or exclude any of the ACL consumer guarantees, and such clauses are considered illegal. On the other hand, under section 64A , exemption clauses can limit the remedies to replacement, repair or having the services performed again but only if the good or service is not normally or ordinarily acquired for PDH use.