Using the book (First principles of law) by Micheal A.Lambiris: Laura Griffin

Benjamin is the proprietor of a small licensed grocery store selling wine and beer as well as some foodstuffs. He approaches Gregory, a secondhand car dealer who manages the Super Star Second- Hand Cars Pty Ltd. Benjamin tells Gregory that he needs a vehicle in his business for delivering wine, beer and groceries but would prefer a station wagon to a van. Benjamin also explains to Gregory that some of his loads are quite heavy and that he will need a vehicle that is capable of taking the weightof a full load of wine and beer. Gregory replies, 'I guarantee that the vehicle I will supply meets your needs right down to the ground!'.

Gregory shows Benjamin a vehicle, which seems to meet Benjamin's requirements. The special price of the station wagon for Benjamin is $39,999. Benjamin test drives the vehicle but asks Gregory for a few days to think it over. In further negotiations, without the checking the history of the station wagon, Gregory tells Benjamin that he knows the reliability and history of the vehicle and that it has only had one previous owner. Gregory also thinks that the station wagon had never been in an accident nor had any major breakdown repairs even though he is unsure, buthe doesn't want to waste time checking the accuracy of his statement.

Benjamin decides to purchase the vehicle. He sends Gregory a bank cheque and receives a receipt from Gregory bearing the words'As seen and inspected.Super Star Second-Hand Cars Pty Ltd is notliable for any defects in the vehicle.'

Two weeks later, Benjamin doesn't feel confident about driving the station wagon because he feelsthat there is something not right at the back of the station wagon,but he doesn't have time to get it checked. Benjamin continues to drive the station wagon and while he is delivering a full load of wine and beer on a busy street, the rear axle breaks. Benjamin loses control of the station wagon when he tries to avoid a pedestrian, Jacob who is on his way home after finishing work. Jacob is jaywalking while busy texting on his mobile phone. As a result, the station wagon hits a post injuring Benjamin quite seriously and the station wagon is a complete write-off. The accident report also signals that the vehicle had been improperly repaired after an accident only six months previously.

3

Use only legislation (and any relevant case law) to answer questions 1 to 4. Do not use common law principles.

1. Would the contract of sale between Super Star Second-Hand Cars Pty Ltd and Benjamin beconsidered a 'consumer' contract under theAustralian Consumer Law? (3 marks)
2. Has Super Star Second-Hand Cars Pty Ltd breached any relevant statutory guarantee under theAustralian Consumer Law? (10 marks)
3. Can Gregory rely on the exclusion clause on the receipt'As seen and inspected. Super Star Second-Hand Cars Pty Ltd is not liable for any defects in the vehicle'to exclude his liability for breach of statutory guarantees under theAustralian Consumer Law? (2 marks)
4. Has Gregory misled and deceived Benjamin by breaching section 18 of theAustralian Consumer

Law? (8 marks)

Use only common law principles to answer questions 5 and 6. Do not use legislation

5. CanBenjaminsuccessfullysueJacobinnegligence,toclaimdamagesforhisseriousinjuries? (12 marks)

6. HasGregorymisrepresentedBenjamin?IfGregorymademisrepresentation,whattypeof

misrepresentation was it?

(5 marks)