STUDY CASE TO BE BASED ON AUSTRALIAN LAW

Jim Blonde is a former defence consultant who now works for Intelligent Sellutions Pty Ltd, a company that deals with modernising motor vehicles so that they can self drive. Jim is skilled in the area of artificial intelligence and autonomous vehicle technology, having worked in the area during his consultancy.

Intelligent Sellutions Pty Ltd has hired Tom Stone, a GPS navigation expert, to build a suitable navigation system that will allow autonomous cars to safely navigate any road network. A written contract was signed between the parties. Tom is a high achiever. He attended Massachusetts Institute of Technology (MIT) and graduated with the highest honours at age 16. He knows almost everything relating to navigation science and technology. He is a professional engineer and can craft any kind of navigation device. Tom is famous for creating the intelligent navigation systems that are used in the new futuristic defence aircrafts.

Jim Blonde told Tom that it was essential that the navigation system was safe and that it should be able to update itself for at least 5 years. He added that the system ought to work on marked roads and unmarked roads. Tom replied "All of our navigation systems are intelligent and can be used all over the universe on any terrain. We have it sorted. They will also update themselves for upto 10 years." The two agreed on this verbally and this statement was not incorporated into the written contract.

The cost of developing the navigation system was $500,000, to be paid in two instalments: at the start of the work and the balance on completion. Intelligent Sellutions paid $200,000 while the work was being carried out.

When Tom indicated that he had finished the work, Intelligent Sellutions ran some tests on the navigation system as soon as they received it. Jim Blonde installed it in one of the cars that they were working on and took it out for a drive. Immediately the car reached a busy unmarked road, the navigation system failed and the car stalled and would not move any further. As a result, Intelligent Sellutions refused to pay Tom, arguing that the navigation system was not safe and did not work according to their agreement.

REQUIRED:

With reference to relevant legal principles, use the IRAC legal problem-solving approach to advise Intelligent Sellutions of their common law rights against Tom Stone as they seek to rely on his assertions. Use appropriate case law in support of your answer.

-Identify the legal issue(s) arising from the facts of the case study

-Identify the appropriate legal rules that requires discussion in the case study

-Apply the law to the facts of the case study

-Reach a conclusion/ give practical advice to your client.

Your analysis should refer to appropriate cases and statutes and be referenced using the APA Reference system.