Consumer Law: Statutory Guarantees and Remedies for Product Liability

Running Head: Consumer law 1
Consumer Law
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Consumer law 2
Answer 1
Issue:
In the present case, Jocelyn purchased melon directly from the Melons R’Us shop in Victoria, as
she is the mother of three children’s and she is pregnant with her fourth child. After consuming
melon she fell ill because of the listeria bacteria. In this case the main issue is whether Jocelyn is
able to get assistance/ financial compensation in context of statutory consumer guarantees stated
under Part 3-2 Australian Consumer Law (ACL) and the associated remedies with this?
Law:
Section 54 of the Australian Consumer law stated that if any person supplies, in trade or
commerce, goods to the consumer then there is a statutory consumer guarantee that goods must
be of acceptable quality.
Clause 2 of this section states that goods must be of acceptable quality if they are fit for all the
purposes for which goods are purchased by the consumers. This clause further stated that goods
must be must be acceptable in context of appearance and finish, free from defects, safe, and
durable. This can be understood through case law Samaan bht Samaan v Kentucky Fried
Chicken Pty Ltd [2012] NSWSC 381.
Section 271(1) of the ACL stated, if manufacturer of the product or service fails to comply
with the guarantee then affected person has right to recover the damages from the manufacturer.
Under the ACL, person who is affected have number of remedies against both supplier and
manufacturer of the product in case goods or service supplied by them fails to comply with the
consumer guarantees. Person who is affected include not only the consumer who purchased the
goods but also include person who acquire goods from consumer, and also the person who
derives title of the goods through or under the consumer. Available remedy only depends on the
fact which guarantee has been breached, which means whether the action is brought against the
supplier and the nature of the breach.
Customers can seek compensation for damages and losses they have suffered because of the
problem with product or service. Additionally, customer has right to recover those losses which
mainly result from failure to meet the guarantee.
Damage claimed by the consumer includes cost incurred by the consumer because of the
problem with the product or service. This cost is generally financial in nature, such as cost

Consumer law 3
incurred in treatment, and handling other issues which cause because of the product failure.
Damages also include the cost related to the lost time and productivity.
Application:
In the present case, Jocelyn purchased the melons directly from the shop in victoria and she is
the mother of three children, and she is also pregnant. She is hospitalized because of this virus
but both her prognosis for her and the unborn child are good. She is worried about the bills of
the hospitals child care for her kids.
In this case, Company breach section 54 of the ACL because goods send by them is unsafe for
consumers and they failed to meet statutory consumer guarantees. Therefore, they are liable
towards the Jocelyn.
Jocelyn can seek compensation for damages and losses she has suffered because of the problem
with melons. Additionally, she has right to recover those losses which mainly result from failure
to meet the guarantee.
In this Company is also liable to pay damages and damages include cost incurred by the
consumer that is cost of melon, hospital bills, and cost for her child care. Damages also include
the cost related to the lost time and productivity.
Conclusion:
Jocelyn can seek both compensation and damages from the manufacturer of the product.