1. Carl’s situation as per contract law is described as follows:
Issue – In this case study, Carl owns a café of his own and for his café he purchased a ‘Coffee-2000’ espresso machine for $60000 from Coffee CO Pty Ltd. The machine was designed in a perfect manner and it was perfect for Carl’s café as well. Carl told the manager while buying the machine that he is taking the machine for his Café and it is very much important for him. He also told him the no. of customers that approximately I the café on daily basis and also that his café is open from 5 am to 8 pm. After listening to all this, the manager still suggested the machine to Carl so he purchased it. He made an instant payment of $8000 and the rest of the payment will be made weekly $2000 till six months (Goldberger, 2016). Carl signed the sale papers without even reading it and he was also told by the manager that was their regular sales order form . When Carl started using the machine, few days later only he started facing issues in the machine. The technician informed him that this machine requires cleaning after every four hours of service and the cleaning takes at least 1 hour. He also informed him that the machine works only five days a week and it is designed for the morning ‘coffee rush period only’. He also came to know that the machine required expensive repairs after 1 year of service. Now Carl thinks that Coffee Co. cheated him for selling their coffee machine.
Rule – As per the contract law, this is a case of misrepresentation and breach of contract as well. As per the contract law, misrepresentation can be described as a situation whereby one party makes a statement to another party which is not true and which encourages the party to enter into the contract, as a result of which he suffers losses. There are various kinds of misrepresentation like fraudulent misrepresentation, negligent misrepresentation and innocent misrepresentation (Close, 2016). In this case study, the misrepresentation that happened is Fraudulent Misrepresentation as the manager and the manufacturer was aware of the functionalities of machine very clearly still they did not reveal it to the purchases. It is clearly seen that they lied to Carl in order to sell their machine to him. The elements which are located in the case study in relation to fraud are:
In order to come out of this situation, Carl needs to apply for remedies against the action conducted by Coffee co. as soon as they come to know about the fraud.
Analysis – In this case, Carl needs to apply for the remedies and these are like:
Conclusion – This is a case of clear misrepresentation where the seller i.e. Coffee co. did not disclose the actual issues of the machine and sold them to Carl and now when Carl went back to take the refund then they also did not took it back and instead threatened him to take legal actions against him. Carl can take the help of contract law and can sue them in court by charging them of misrepresentation and breach of contract. These actions need to be taken as soon as possible.
2. Carl’s situation as per Australian consumer law is as follows: -
As per the Australian consumer law, the rights and guarantees of the consumer is mentioned which are called as consumer guarantees (Bianchi, 2018). These include the rights for repairs, replacements, refund as well as compensation for the damages. As per the Australian consumer law, if the product or service bought fails to meet the consumer guarantee then they have the right to ask for a repair, replacement or refund. The remedy will depend upon whether the loss is major or minor. In case of Carl, the damage is major and thus as per the legislations of Australian consumer law, he can ask for a refund from the seller as they did not reveal the actual capacity if coffee machine and instead lied about it (Pearson, 2017).
The country which is chosen for comparison with Australian legal system is Russia as they do not follow the common law system. They are following the Civil law system in their country.
Role of Precedent
Role of Judges in Dispute Resolution
Goldberger, J., 2016. An overview of developments in key areas of Australian contract law. Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia, 30(1), p.17.
Close, N., 2016. Coherence-based reasoning in Australian contract law adjudication with broad principles and detailed rules (Doctoral dissertation, University of Newcastle).
Pearson, G., 2017. Further challenges for Australian consumer law. In Consumer Law and Socioeconomic Development (pp. 287-305). Springer, Cham.
Bianchi, L., 2018. Consumer law: Changes to Australian consumer law: Key benefits for vulnerable consumers. LSJ: Law Society of NSW Journal, (50), p.71.
Palmer, E., 2019. An Investigation of Russian Law and Legal Translation.
David, F., 2016. Russian law and globalization. Russian Law Journal, 4(4).
Remedies for consumers.2020.[Online]. Available through<https://www.accc.gov.au/consumers/consumer-rights-guarantees/repair-replace-refund>.
Role of Precedent in Australia.2020.[Online]. Available through<https://biotech.law.lsu.edu/map/TheImportanceofPrecedent.html>.
Dispute resolution in Australia.2020.[Online]. Available through<https://www.lexology.com/library/detail.aspx?g=78731c5b-d0e2-4be0-b2ce-85ac4d3ee589>.
Dispute resolution in Russia.2020.[Online]. Available through<https://gettingthedealthrough.com/area/9/jurisdiction/26/dispute-resolution-russia/>.
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