Step 1: Identify the legal issue

The legal issue is, has there been a breach of an implied term in relation to the Sale of Goods Act 1895 or new Competition and Consumer Act 2010

STEP 2: Explain the rule(s) of law relevant to the principle issue of law identified in step 1 with reference to authority

What are exclusion clauses

Sydney City Council v West

Olley v Marlborough

Express and implied terms define

Mention Sale of Goods Act 1895 and new act Competition and Consumer Act 2010

Discuss:

Section 13: Sale by Description

Varley v Whipp

Section 14: Implied conditions as to quality of fitness

S14 (2) fit for purpose

S14 (3) merchantable quality

David Jones v Willis

Section 15: Sale by Sample

Have any of the above implied terms been breached

STEP 3: Apply the law to the facts of the question in a detailed and logical manner.

What are the agreed terms in this case study?

Any regarding quality

Yes discuss and interpret the exclusion clause

Are there any terms implied?

Section 13 Sale by Description Is this relevant

Is Marc being given an accurate description of the machine?

Section 14 (2) Fit for purpose is this relevant

Marc does not specify the purpose for which the goods are required

Section 4(3) Merchantable quality is this relevant

Section 15 Sale by Sample not relevant

Have any of the implied terms been breached?

Will the exclusion clause effect liability?

STEP 4: Draw possible conclusion

Will the exclusion clause be valid?

Case study The computer system Marc operates a bakery. Marc needs a computer system for his business that allows him to design and print edible cake decorations. Marc goes to a shop owned by a company called CompuSales Pty Ltd and browse around for a while. Marc informs a sales assistant of the computer system he requires and the sale assistant suggests Marc buy the 'Bakery Deluxe Computer System' and describes a number of system's features. After hearing about all the 'Bakery Deluxe Computer System' features and viewing a display model, Marc agrees to purchase the computer system. The sales assistant fills in some details on a standard document describing the computer system and the price as follows: $42,000 1x Bakery Deluxe Computer System INCLUDES: Computer Printer (capable of printing edible images) Bakery image software The following clause also appears in the document: "The seller gives no guarantees as to the quality of the goods supplied, nor of their suitability for the buyer's purpose and is not liable in law for any defects in the quality of goods supplied under this contract." Marc signs the document where it says "purchaser", pays $42,000 and is given three boxes containing the computer system. Marc takes the computer system home, unpacks it and gets it working. But after a couple of hours of use, the battery gets hot and a warning message tells Marc to shut the computer down. Over the next two weeks Marc finds that this often happens when the computer has been switched on for more than two or three hours. Marc needs to use the computer for long periods of time for his work. Over the next two weeks Marc finds that this often happens when the computer has been switched on for more than two or three hours. Marc needs to use the computer for long periods of time for his work. Not surprisingly, Marc is not satisfied with the computer and fear that, if left unattended, it may catch fire. Using the four step process, establish whether there been a breach of any term implied by law and if the exclusion clause is effective in excluding liability? For the purpose of this case study, you can assume that the Sale of Goods Act 1895 (WA) is applicable in the given circumstances. Case study The computer system Marc operates a bakery. Marc needs a computer system for his business that allows him to design and print edible cake decorations. Marc goes to a shop owned by a company called CompuSales Pty Ltd and browse around for a while. Marc informs a sales assistant of the computer system he requires and the sale assistant suggests Marc buy the 'Bakery Deluxe Computer System' and describes a number of system's features. After hearing about all the 'Bakery Deluxe Computer System' features and viewing a display model, Marc agrees to purchase the computer system. The sales assistant fills in some details on a standard document describing the computer system and the price as follows: $42,000 1x Bakery Deluxe Computer System INCLUDES: Computer Printer (capable of printing edible images) Bakery image software The following clause also appears in the document: "The seller gives no guarantees as to the quality of the goods supplied, nor of their suitability for the buyer's purpose and is not liable in law for any defects in the quality of goods supplied under this contract." Marc signs the document where it says "purchaser", pays $42,000 and is given three boxes containing the computer system. Marc takes the computer system home, unpacks it and gets it working. But after a couple of hours of use, the battery gets hot and a warning message tells Marc to shut the computer down. Over the next two weeks Marc finds that this often happens when the computer has been switched on for more than two or three hours. Marc needs to use the computer for long periods of time for his work. Over the next two weeks Marc finds that this often happens when the computer has been switched on for more than two or three hours. Marc needs to use the computer for long periods of time for his work. Not surprisingly, Marc is not satisfied with the computer and fear that, if left unattended, it may catch fire. Using the four step process, establish whether there been a breach of any term implied by law and if the exclusion clause is effective in excluding liability? For the purpose of this case study, you can assume that the Sale of Goods Act 1895 (WA) is applicable in the given circumstances