Ulysses wants to buy a new motorcycle. Ulysses visits Fagan's Motorcycles Pty Ltd on the 'Magic Mile' andtakes a demonstration model 2018 Triumphant Bonneville motorcycle for a ride to the Gold Coast and back.Impressed with this bike but not with its high price, Ulysses then takes a second-hand naked (ie. withoutfairings) red and white 2010 Triumphant Bonneville, sporting a fuel-injected 865cc engine, a sissy bar for apassenger or to support luggage, and new white wall tyres once around the block.The very enthusiastic salesman, Roger tells Ulysses that this 2010 motorcycle is in excellent condition, hashad (so far as he recalls) only one owner, has genuinely low kilometres (3.900km); that it comes with a full 12-month registration; and has been fully maintained. Roger adds, "This could all be yours, Ulysses, for a 'driveaway' price (including stamp duty and transfer fees) of only $11,000. That includes our special rebate of $500for all purchasers over 60 years of age, which you obviously are. Alternatively, we have finance available onthe best terms you'll ever get in Australia, even from the banks. If you decide on that option, you can savesome money - not that this baby will burn a hole in your budget anyway. We give you special low-cost servicingon all the bikes we sell, and we guarantee that we have every spare part that you could ever want here in-store. And if you do decide to change your mind (you'd be crazy to, of course), there's a 'cooling off' period of24 hours after you've signed the purchase contract."
Ulysses tells Roger that he just wants a good reliable motorcycle for daily commuting as well as long distancecountry driving, and that the two bikes seem to him to be essentially the same. Roger smiles and nods butdoes not contradict him and, based on this response, Ulysses decides to purchase the 2010 TriumphantBonneville and pays a deposit of $500.
An ever-smiling Roger presents Ulysses with a number of documents, all of which Ulysses, who is neithercommercially savvy nor financially literate, signs. The first is a Notice, which states: the motorcycle's make (Triumphant), model (Bonneville), year of manufacture (2010); the amount of Ulysses' non-refundable deposit of $50 that the motorcycle had two owners previously, and that neither the odometer nor the engine has beenreplaced; andthat the 'class B' statutory warranty (which protects Ulysses from financial loss if the motorcycle is faultyand has a built date of more than 10 years before the day of its sale) expires after 1 month or the first1,000km, whichever occurs first.The second document is a Sale Agreement, which includes: a description of the motorcycle - naked (ie. without fairings) red and white 2010 Triumphant Bonneville(VIN FATTJ9109G9999007), with a fuel-injected 865cc engine; a notice about the 24-hour cooling off period; a statement confirming that Ulysses has clear title to the vehicle;a safety certificate (previously called a roadworthy certificate); and a clause limiting the liability of Fagan's Motorcycles Pty Ltd's to 'the supply of equivalent goods.'
The third document is a Finance Agreement, which states that Ulysses must pay $370 per month over the nextfive years. It makes no mention of an annual equivalent interest rate for the finance.A proud Ulysses mounts his newly acquired Triumphant Bonneville and rides it around to his friend Jenny'splace to show it off. Jenny lives only about 2 kilometres from the Fagan's dealership.Jenny is very impressed and, being a motorcycle enthusiast herself, wants a ride. She becomes concernedwhen the electronic ignition does not fire, so that the motorcycle cannot start. After about 15 minutes, however,the two of them get the engine going, and Jenny sets off to ride around the block. As she is riding from herdriveway onto the road, both she and Ulysses hear a loud clunk. She brakes, bringing the motorcycle to a stop,
2105AFE Introduction to Business Law - Trimester 2, 2023 Problem Solving Assignment 2and looks behind her. The sissy bar and one of the rear-view mirrors have fallen off the motorcycle and arelying in the gutter. Another loud clunk comes from the engine, and the motorcycle snuffs. Neither Jenny norUlysses can start it again.
Neither Jenny nor Ulysses owns a phone. An hour later, a hot and sweaty Ulysses arrives at the Fagan'sdealership, pushing his newly acquired motorcycle. Unfortunately, the dealership has closed, and Roger hasapparently gone home for the weekend. Ulysses is incensed, because he is working shift work at nights for thenext three days, and will not be able to come back to the Fagan dealership until four days' time.
On the fourth day, Ulysses returns to the Fagan's dealership, only to be told by Bruce, the mechanic in theadjacent workshop, that the motorcycle has probably not been ridden since 2010, and that the rubber sealsinside the engine may well have corroded. Bruce adds that the bike may even have been flood damaged,although it is impossible to tell at this point in time. He advises Ulysses that motorcycle could be repaired, butthe cost would probably exceed $21,000, and that Ulysses may well be better off spending that money on anew bike.
Ulysses confronts Roger, who smiles benignly and says to Ulysses, "That's the luck of the draw with a second-hand bike, mate! 'Buyer beware' and all that! Oh - I've only just found out that there's an outstanding chargeover your bike, and that MegaBank wants to repossess it because the previous owner failed to pay off his loanon your bike."Now Ulysses is very worried, since not only is he unable to afford the $21,000 to repair the bike, but he thinksthat MegaBank might repossess his bike anyway, leaving him with nothing.

(a) Advise Ulysses as to his rights, and Fagan's Motorcycles Pty Ltd's and/or Roger's obligations,

under the common law of contract. (Do NOT discuss the Australian Consumer Law or torts in your

answer).
(20 marks)
(b) Advise Ulysses about any defences which Fagan's Motorcycles Pty Ltd and/or Roger might be
expected to raise, and whether (and how) Ulysses could rebut those arguments. (Again, do
NOT discuss the Australian Consumer Law or torts in your answer).
(5 marks)
(c) Advise Ulysses of any common law remedies he may have in this case. (Again, do NOT discuss
remedies under the Australian Consumer Law or torts in your answer).
(5 marks)

 

MAKE SURE TO USE THE ILAC METHOD AND INCLUDE RELEVANT CASES AND ACTS (INCLUDING SECTIONS)