Business Law Assignment

CORP /BUSS LAW 1
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Business Law Assignment
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CORP /BUSS LAW 2
Question 1
Issue
The issue of the case is whether James can get his refrigerator replaced two months after
expiry of the one year written warranty. The retailer has refused turned down James complaint
about his fault product. The purpose for this essay to review provisions of the Australian
consumer law and analyze it in regard to this case hence provide a conclusion as to whether the
refrigerator can be replaced pursuant to the Act.
Rule
Along with manufacturer’s or company’s warranties, the buyer is also protected by
implied warranties under consumer act. The protection which is unwritten provides that
consumer products must be free of any defect and will effectively function within a period that is
reasonable. The term reasonable will be dependent on price and type of product. An implied
warranty is limited to four years pursuant to consumer law (Corones, 2011). The law applies to
product purchased from Australian retailers. Manufacturers ignore this and provide their own
written warranties. Considerably, it is clear that all written warranties purpose is to deprive a
consumer of his or her rights according to (Richard Alderman, director of the University of
Houston’s consumer law center).
Analysis
Pursuant to consumer rights act, all items including electrical goods should be of
fulfilling quality, serve the purpose and as described (Wilson, 2012). The regulations also
involve digital products under this definition. Therefore, every item whether digital, electrical or

CORP /BUSS LAW 3
physical should meet certain criteria. A refrigerator is an electrical product and hence is covered
by this provision. The following standards must be met by all products in this definition;
Quality must be satisfying - Goods are not supposed to have some faults or damages when the
buyer receives them. The goods in question must be in a condition that every reasonable person
in his right mind would deem satisfying.
Must fit the purpose – the item should serve the purpose it was supplied for and any particular
reason described to the seller before the consumer agrees to purchase it.
As described – the product delivered or supplied to the buyer should meet all provided
descriptions or match any samples or models demonstrated during the purchasing time.
If a purchased refrigerator is faulty, the buyer has a right to return it to the seller who
must replace or repair it or refund its cost. The rights are referred to as statutory rights. Warranty
on an item provides extra protection which is extended to any person who possesses the goods
during the guaranteed time. The warranty or guarantee is a statement in writing given to the
buyer by either the manufacturer or another company. It shows that the other company or the
manufacturer will replace or repair a product in a certain period after the purchase. Warranties
are legally binding (meaning that if necessary they can be enforced in a court of law).
Products like household goods, in this case, the refrigerator are accompanied by a
warranty. There are certain services that can also be guaranteed. The guarantee should be used
by the individual in possession of the goods with the warranty period (Ramsay, 2016). A number
of retailers offer extended warranties on expensive electrical warranties such a fridge costing
1000 dollars. This kind of warranty covers the product after the guarantee period of the
manufacturer is over. It acts as an insurance policy and the purchaser has the right to pick or