Question 1 Brenda has a dress making business in Sydney.  She has a special order with Gloria to make a wedding dress for Gloria’s wedding which is to take place in Sydney on 20 March.  Gloria had paid Brenda a deposit of $1000 with the remaining $10,000 of the quoted price to be paid on completion of the dress.  Gloria had specified a special fabric which could only be bought from Steven, a fabric importer whose warehouse was in Melbourne. On 7 March, Brenda sent a letter by express courier to Steven, offering to buy a sufficient quantity of Gloria’s special fabric.  In the letter Brenda asked Steven if the fabric was available and if it could be delivered to Sydney by 12 March.  On 8 March Steven replied by express courier stating the fabric was available to be delivered by 12 March.  In the letter he specified the price at which he would sell it to Brenda and stated that acceptance was required by return express courier. Brenda, to avoid the cost of another special courier, replied by email that she accepted Steven’s offer and required the fabric to be delivered by 12 March.  When Brenda had not received the fabric by 12 March she phoned Steven who told her he had not received her email and that he had checked his email inbox daily.  He told Brenda he had sold the fabric to someone else.  When Brenda informed Gloria she could not make the bridal dress out of her special fabric, Gloried replied she would arrange for another dressmaker to make the dress and demanded the return of her $1000 deposit. a) Advise Brenda whether she has an action against Steven for breach of contract. b)If successful what remedies would be available to her?
Question 3 Giovanni is an elderly Italian immigrant with poor English fluency.  When Giovanni’s old motor car broke down on the side of the road he was unable to fix it.  Being a member of the NRMA ( the NSW road service he called for roadside assistance but was told by the NRMA mechanic that the car could not be fixed on the spot and would have to be towed to a car repair garage. The NRMA mechanic arranged for a tow truck from QRZ Motors to pick up the car and take it away to be repaired at QRZ’s repair service garage.  Ben, the tow truck driver, told Giovanni he would have to sign an authorisation for QRZ to pick up the car, deliver it to its garage and carry out the repairs. One of the terms of the contract stated:‘ “The company is not responsible for damage caused by fire to customers’ cars on the premises’.When Giovanni told Ben he could not understand the words of the authorization, Ben told Giovanni the authorization was standard and everyone signed it.  Giovanni signed the authorization.  While at the garage Giovanni’s car was extensively damaged by fire as a result of the negligence of one of QRZ Motors’ mechanics. When Giovanni sought compensation from QRZ Motors , the manager of QRZ told him that the company relied on the exclusion clause  and did not have to pay him any compensation.Explain whether QRZ can rely on its exclusion clause.  In your answer discuss the position under the common law of contract ( 6 marks) and the Australian Consumer Law.
Question 5 Gary was employed as an accountant for BikeHike Ltd, a large manufacturer of mountain bicycles.  With a view to increasing the profits of the company he decided that the mountain bikes should be advertised as having been made in Australia and meeting the standards of the Australasian Mountain Bike Society.  In fact the bicycles were imported from China and there was no such organisation called the Australasian Mountain Bike Society. Without the approval of the marketing manager, Gary sent out a message on BikeHike’s Facebook business page stating that BikeHike’s mountain bicycles  were far superior to those of ToughMount Ltd, a competitor mountain bicycle manufacturer.  The message claimed that BikeHike’s bicycles were superior because they were made in Australia while ToughMount’s bicycles were made in Korea.  In fact ToughMount s bicycles were made in Germany.Discuss whether ToughMount has an action under the Australian Consumer Law against BikeHike for Gary’s false statements in Facebook. (7 marks)  In your answer discuss whether BikeHike is liable for Gary’s actions( 3 marks).
Question 3 Giovanni is an elderly Italian immigrant with poor English fluency.  When Giovanni’s old motor car broke down on the side of the road he was unable to fix it.  Being a member of the NRMA ( the NSW road service he called for roadside assistance but was told by the NRMA mechanic that the car could not be fixed on the spot and would have to be towed to a car repair garage. The NRMA mechanic arranged for a tow truck from QRZ Motors to pick up the car and take it away to be repaired at QRZ’s repair service garage.  Ben, the tow truck driver, told Giovanni he would have to sign an authorisation for QRZ to pick up the car, deliver it to its garage and carry out the repairs. One of the terms of the contract stated:‘ “The company is not responsible for damage caused by fire to customers’ cars on the premises’.When Giovanni told Ben he could not understand the words of the authorization, Ben told Giovanni the authorization was standard and everyone signed it.  Giovanni signed the authorization.  While at the garage Giovanni’s car was extensively damaged by fire as a result of the negligence of one of QRZ Motors’ mechanics. When Giovanni sought compensation from QRZ Motors , the manager of QRZ told him that the company relied on the exclusion clause  and did not have to pay him any compensation.Explain whether QRZ can rely on its exclusion clause.  In your answer discuss the position under the common law of contract ( 6 marks) and the Australian Consumer Law ( 4 marks).

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