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Assignment Task

 

Question One
John, Paul, George and Bingo were musicians in a band called the Beagles. John and Paul visited their favourite music store called Wilsun Guitars. John wanted a new electric guitar. He saw next to a stand what was described as a black T-100 Fender Electric (T-100). The sign read only $1,000, but the price tag read $1,100. The sign also read ‘great value’ and that ‘Slash from GNR says that this is a great guitar’.
John took the guitar to the counter and he was served by the store owner Murray. Murray said that the T-100 came was a two week manufacturer’s warranty and that if anything broke during this time, John could have the guitar repaired. John asked about the price difference between the tag and the sign, and Murrary responded that it was a mistake and the real price was $1,100. John reluctantly paid $1,100 for the T-100. He took the guitar home and start to play it. Unfortunately, the guitar below up after two weeks and one day.
John discovered that the T-100 was not a T-100, but rather a T-10. Both guitars look similar to each other, but the T-10 was a much cheaper guitar than the T-100. Moreover, John was horrified to learn that Slash never said that it was a ‘great guitar’, but rather that it was a ‘great guitar for smashing’. John took the guitar back to Wilsun Guitars. Murray the store owner said to John ‘Sorry mate. I only own the store. I don’t make the guitars. I am only passing on the model information from the manufacturer’. I am not responsible for this. John asked if he could have the guitar repaired, but Murray said ‘sorry this model (the T-10) is outdated and there are no repairs for this type of guitar and no spare parts’. John then asked if he could have a refund, but Murray refused saying that John had no rights to a refund, as the manufacturers’ warranty had expired a day earlier. John took the guitar home and did what Slash suggested and smashed the guitar.

Advise:
1. John whether Wilsun Guitars have contravened and/or non-complied with any of the provisions of ACL in relation to his circumstances?

2. Paul whether Wilsun Guitars have contravened and/or non-complied with any of the provisions of ACL in relation to his circumstances?

 

Question Two
John, Paul, George and Bingo were musicians in a band called the Beagles. One day George searched online for a new electric sitar (i.e. a type of guitar). After searching the internet for about 10 minutes, he found what he thought was the perfect sitar, namely the T-1000. The T-1000 was made by a company called Sound Check, which was registered in the United States. Sound Check did not have a place of business in Australia, and had only sold guitars on an infrequent basis over the last 20 years.
The T-100 was advertised for $10,000 (AUS) and was described on the website as made from the ‘highest quality’ and ‘totally new’. The T-1000 was also described as the ‘No. 1 electric Sitar in the galaxy, no the universe’. At the bottom of the description read ‘The T-1000 was can be used as both an electric and acoustic guitar, and was made in ‘United States’.
When George went through the checkout for payment, the final price was $10,000 (US). When he converted the price, he actually paid $15,000 (AUS) for the T-1000. George called the number on the phone, and spoke to a customer service representative from Sound Check. George said ‘Hey, I have rights under the ACL.’ The representative responded and said ‘sorry the contract that you signed online clearly stated in clause 21 that the law governing the contract was the law of Texas, not Australia. George hung up the phone. Two weeks later after the T-1000 arrived, George immediately realised that it was not made from quality material and that looked like someone had been using it. Worse yet, the T-1000 was not even electric, and had a sticker on the back, which said all parts sourced from Brazil, but assembled in the United States.
On a later date, a musician named Gibbo (who played the drums in a band called the ‘Gibsons’) was interviewed on the television program 60 Minutes. During the program (and to the shock of his fans), Gibbo made a number of statements about being diagnosed with brain cancer. Gibbo said that he only had a ‘few years to live’ and that he would ‘donate all the profits to several cancer charities’ from his upcoming tour (called the ‘The Whole Gibbo Tour’). Gibbo told the interviewer that he already donated $100,000 to a boy named Jazz, who also had brain cancer. Gibbo showed the interviewer a photo of Jazz in hospital. Gibbo set up an App (‘Gibbo App’) so fans could all donate money to cancer research.

Advise:
1. George whether Sound Check has contravened any provisions of the Australian Consumer Law (ACL)?
2. George whether Sound Check will likely be successful in a defence that the ACL does not apply to it, as it is an American company, and in any event the contract with George was subject to the law of Texas.
3. Bingo whether Gibbo has contravened and/or non-complied with any of the provisions of the ACL?

 

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  • Posted on : April 29th, 2019
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