Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two widget producing companies, Aussie Style Pty Ltd (AS) and Verity Owl Pty Ltd (VO), engaged Vestales Pty Ltd (V), to use or supply acid

Two widget producing companies, Aussie Style Pty Ltd (AS) and Verity Owl Pty Ltd (VO), engaged Vestales Pty Ltd (V), to use or supply acid for processing their widgets. V used and supplied the acid purchased from Redux Pty Ltd which, in turn, had purchased the product from the manufacturer. Clause 8 of Redux's standard terms and conditions of sale provided as follows: "EXCLUSIONS OF LIABILITY (a) Unless otherwise agreed in writing the only warranty provided by the company in respect of the goods is that if any provided by the manufacturer of the goods and the liability of the company pursuant to such warranty is limited to an amount receivable by the company from the manufacturer. (b) To the full extent permitted by law: a. The company gives no condition or warranty whatsoever as to the suitability or fitness of the goods for their ordinary or any special use or purpose, and the description of the goods in any contract or any other document shall not import any such conditional warranty on the part of the company. b. All statutory and implied conditions and warranties except as to title are excluded, and c. It is the responsibility of the purchaser to satisfy himself as to the condition, quality, suitability and fitness of the goods for this purpose and the purchaser accepts the goods as they are within the faults or defects (if any)." The acid was found to be too acidic, and the widgets produced from it were unsaleable. AS and VO sued V to recover their losses and V joined Redux as a third party. V relied on conditions of fitness for purpose and merchantable quality implied into its contract with Redux by s 19 of the SOGA. Redux's defense was that cl 8 of its standard terms and conditions of sale expressly negatived the implied conditions. Discuss the validity of Redux's exclusion clause having regard to the SOGA and relevant case law (if any).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald Hilton, David Platt

10th edition

78025664, 978-0078025662

Students also viewed these Law questions