Commercial law - Sample Assignment PDF
Added on 2021-06-17
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Running Head: COMMERCIAL LAWCOMMERCIAL LAWName of the student:Name of the University:Author Note
COMMERCIAL LAW1Question OneIssueIn relation to the given scenario the issue that has been identified as whether Jocelyn isentitled to receive financial compensation or assistance.LawIn this given scenario the Australian consumer law which has been provided in schedule 2 ofthe competition and consumer act of Australia is relevant. Section 51 to 59 of the Australianconsumer law deals with the consumer guarantees. It can be stated that in section 54 of theAustralian consumer law it has been provided that when a person supplies goods in trade orcommerce or by way of sale buy auction he has to ensure that the goods delivered are ofacceptable quality. It is in for the provided in this section that Goods will be considered tobe of acceptable quality if it is fit for the purposes for which goats are supplied, acceptable inappearance, defect free, durable and safe. Section 260 of the ACL discusses what constitutes a major failure to comply with theconsumer guarantees. Section 251 of the ACL clearly states that a person who is a consumerhas the right to claim replacement repaired or refund for products, which majorly failed tocomply with the consumer guarantee. It is worth mentioning that in addition to remedies formajor and minor failure of complying with consumer guarantees consumers also have theright to recover and claim damages suffered by the consumer for the failure of the goods tocomply with the consumer guarantees. Such damages can only be claimed if the damagesustained by the consumer was reasonably foreseeable to the supplier. In the notable case I &L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd the High court of Australia had heldthat the claimant had the right to claim whole of damage as the damage suffered was due to abreach of material cause.Application In this given scenario it has been clearly provide that Jocelyn had to be hospitalized afterconsumption of melon from R’Us melons as the melons contained a certain strain ofpoisonous bacteria. Jocelyn was pregnant at the time she consumed the melon. Thus it can beestablished that the melons were not of acceptable quality as per the provisions of section.Therefore contravention of section 54 can be established. She had to pay the hospital bills.Therefore she is entitled to claim compensation for suffering consequential loss after the
COMMERCIAL LAW2consumption of the melons as per the provisions of the case I & L Securities Pty Ltd v HTWValuers (Brisbane) Pty Ltd.ConclusionJocelyn can claim compensation for sustaining consequential loss after consumption of themelons.Question 2Issue:What financial assistance or compensation is Arjun entitled to get Law:In relation to part 3-5 of ACL it can be stated that a consumer has the legal rights to makeclaims against the manufacturer and the supplier for failing to comply with the standards ofhealth and safety.The definition of a manufacturer has been provided in section 7 of the Australian ConsumerLaw. This section defines manufacturer a person who manufactures goods or representshimself as a manufacturer or allows others to know him as the manufacturer. In accordance with section 138 of the ACL it can be stated that a manufacturer has theobligation to pay compensation if any defect exists in the product manufactured by themanufacturer. In the notable Australian case COOK V PASMINCO LTD (No 2) - [2000] FCA 1819 it hadbeen held that a key test was required to asses whether defect that had been pointed out by themanufacturer is in relation to the product. Such test is based on the expectation andknowledge of the community as opposed to the knowledge and expectation of the consumerin consideration. In accordance with section 9 of the ACL it can be stated that goods are to be considered to behaving a safety defect if the safety of the goods is not such as expected by the persons.Specifically as provided in section 9(2) of the ACL it can be stated that goods are to beconsidered to be defective if the defect is in relation to the marketing or packaging of theproduct. Application
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