When famous musician, Saul Hudson (aka "Slash" from Guns n Roses) and his wife suffered 'embarrassment, worry and loss of appetite' over a bad real estate deal, they sought (and were denied) compensation for their "Disappointment, Distress and Discomfort". Why? (1 mark) Also, in what circumstances are Courts more likely to award compensation for this type of claim? Give one example. (4 marks) ACL - NEGLIGENCE) Gemma is the owner and head chef of 'Notso Nuts About Nuts' - a new Sydney based restaurant that specialises in food that is safe for nut-allergy sufferers. To ensure her restaurant's safety standards are maintained, Gemma (who suffers from a severe nut- allergy herself) has always relied on a combination of carefully checking product labels for nut warnings, only buying from trusted suppliers and regularly testing all food samples for traces of nuts using a 'Nutcracker 2000' testing kit. Purchased brand new, at a cost of $19,000, this testing kit was considered to be the best on the market and manufactured and sold by 'Commercial Kitchen Supplies Ltd' ('CKS'). When she bought the testing kit 6 months ago, Gemma carefully studied the instructions which stated that the machine works by placing a small drop of food stuff on a "Nutcracker 2000 Testing Strip" which is then inserted into the machine and analysed. Provided the user stored the testing strips correctly, results are available in 30 seconds and guaranteed to be 100% accurate. Gemma also made sure she carefully read the storage instructions which said testing strips had to be "Stored in a cool and dry place" - which she did by storing unused testing strips in her air conditioned office. Due to a recent change in legislation, CKS was forced to change the formulation of the testing strips. As a result, all new strips had to be refrigerated at all times. Although CKS changed the wording printed on the new testing strips to say: "WARNING: Store testing strips in the fridge at all times", CKS failed to expressly warn existing users and failed to make changes to the existing packaging to draw attention to the new warning. As a result, Gemma didn't notice the change and continued to store new testing strips in her office. A few weeks later, Gemma collapsed after tasting a new pasta sauce she was planning to serve in the restaurant. Unfortunately, her allergic reaction happened so suddenly that she collapsed onto a nearby stove and suffered severe burns to her upper body. After spending almost 3 months recovering in hospital, Gemma calculated her losses totaling $50,000 in lost income and $200,000 in medical expenses. It was later discovered that Gemma's failure to store the testing strips in the fridge, caused the strips to become ineffective. As a result, the testing kit failed to sound the alarm about large amounts of peanuts in the new pasta sauce. Advise Gemma in relation to her rights under the ACL to hold Commercial Kitchen Suppliers Ltd liable for her injuries and losses. (Also consider if any of the ACL Defences could be raised in this case study) QUESTION 3 (ESSAY/ REPORT STYLE) With reference to the sale of the second hand car in Paisley v Aitchison t/a Dean Cars & Anor (2012), explain how a Court decides whether a product is of 'Acceptable Quality' under ACL s 54. (8 marks) What are the likely remedies for breaches of this section? (2 marks)