Case Study Analysis

Running head: CASE STUDY ANALYSIS
CASE STUDY ANALYSIS
Name of the Student:
Name of the University:
Author Note:

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CASE STUDY ANALYSIS
Question 1:
Issue:
The issue involved in this case is whether James has a chance to get a replacement of his
refrigerator as per the Australian Consumer Law.
Laws:
The Australian Consumer Law is provided in the Schedule 2 of the competition and
Consumer Act 2010 which was previously known as the Trade Practices Act 1974 (TPA). The
ACL replaces the pre existing national, Territory and State laws on consumer transactions.
Chapter 3 of the ACL prevents particular types of conduct and controls practices in the consumer
transactions.
Chapter 3-2 provides various consumer guarantees in the supply of goods or services to
the consumers. Section 54 contained in Part 3-2 of ACL provides guarantee as to the acceptable
quality. It states that when a person provides goods to a consumer by way of commerce or trade
and such supply was not done by way of sale of auction, then there lies a guarantee that the
goods are of acceptable quality. The goods are to be regarded of acceptable quality if they are fit
for all the purposes for which the goods of a particular type are usually supplied by the seller.
The goods must be acceptable in finish and appearance and free from any defects. Moreover, the
goods must be safe to use and durable.
Sub section 4 of section 54 says that when the goods provided to the consumer is not in
acceptable quality and the reasons for not being of the acceptable quality were informed to the
consumer then the goods are to be regarded as of acceptable quality. Sub section 5 states that

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CASE STUDY ANALYSIS
when the goods have been displayed for sale or hire and the goods will be of the acceptable
quality if when they are supplied to the consumer when the reasons of not being considered as
non acceptable were revealed to the consumer by means of a written notice that was displayed
with the goods and such notice was transparent and free from any ambiguity.
Sub section 6 states that the goods do not failed to be considered as of acceptable quality
if they are made unacceptable due to over usage or abnormal use by the consumer to whom they
are supplied. Moreover, the goods will not be regarded as unacceptable if the consumers failed to
take steps to prevent the goods from becoming unacceptable quality in reasonable manner. Sub
section 7 provides that goods will not fail to be regarded as of acceptable quality if the consumer
checks the goods before agreeing to its supply and such examination disclosed that the goods
were not of acceptable quality.
Section 259 provides that a consumer can take action against the supplier of goods if the
supplier in trade or commerce supplies goods to such consumer along with a guarantee that is
applicable to the supply as per sub division A of Division of Part 3-2 is not properly construed
except sections 58 and 59(1). Section 260 states that a failure to comply with a guarantee
referred in section 259 9 (1)( b) that applies to the supply of goods is regarded as a major failure
if certain conditions are satisfied.
Application:
In the present case study, it was seen that James purchased a new refrigerator from a
department store at the cost of 1000 $ which he had paid already. He got a ‘one year
manufacturer warranty’ for refrigerator. After one year and 2 months, the motor of the fridge