Australian Consumer Law Assignment -
FACTS - Anna runs a catering business 'Share Plate'. She has a large kitchen and 5 staff who work with her preparing food for various parties. Anna is keen to expand her business and create a line of pre-prepared meals for busy individuals and families. She creates a meal plan that includes a lot of curries, stews and pasta sauces that can freeze well. There is a lot of interest in her new business and she realises that she will need to buy new equipment to keep up with the demand.
Anna visits IncrEdible Kitchens, a Sydney based supplier of commercial kitchen equipment. She speaks with John, a senior sales person and tells him about her business and her need of several large slow cookers that are good for cooking the kinds of food she has in mind. John tells her about their new range of pressure cookers, called the IncrEdible X32 saying:
'The IncrEdible X32 is the new, top of the range model of pressure cooker. Intended for commercial use, it has a high capacity and cooks faster than traditional slow cookers while still ensuring that the meat stays tender.'
The IncrEdible X32 is actually manufactured by French company, Aliment Maison and is exclusively imported by IncrEdible Kitchens under their own brand.
Anna buys 6 of the IncrEdible X32 for a total price of $4800 and has them delivered to her kitchen. She has received a large volume of orders and is eager to get to work preparing and delivering meals. Due to the high demand, Anna's son George joins the Share Plate team in the kitchen to assist with preparing the meals. Three days after the IncrEdible X32s are delivered there is a loud explosion in the kitchen. The lid of one of the IncrEdible X32s has come loose during the cooking process due to a faulty seal and hot beef stew is sprayed across the kitchen. George and another one of Anna's staff, Beth, are badly injured with serious burns across their faces and arms. Anna rushes George and Beth to the hospital and then returns to her kitchen to sort out the mess. It turns out, two iPads that are used to display recipes and orders are also covered in hot stew and are unable to be repaired.
Anna calls IncrEdible Kitchens and tells John that she wants to return all of IncrEdible X32s (including the one that exploded) and asks for a refund. John tells Anna that she can return the malfunctioning IncrEdible X32 and exchange it for a new one but that IncrEdible Kitchens will not provide a refund for the remaining 5 IncrEdible X32s as they do not accept returns unless the stock is damaged or defective. John tells her that if she is really concerned she can bring the remaining IncrEdible X32s in to the store and IncrEdible Kitchens will send them away to be serviced and have their seals replaced. This will take approximately 2-3 weeks.
Anna is not happy and never wants to use the pressure cookers again. She asks to speak to John's manager.
1. Does the Australian Consumer Law (ACL) apply? Explain your answer.
2. Advise Anna.
3. Advise IncrEdible Kitchens.
In answering these questions you only need to look at the following provisions of the Australian Consumer Law 2010 (Cth) ss 2, 3, 7, 9, 11, 13, 16, 21, 22, 23, 24, 25, 26, 27, 28, 54, 55, 56, 57, 58, 59, 60, 64, 64A, 131, 132, 138, 139, 140, 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 236, 259, 260, 261, 262, 263, 264, 265, 266, 271, 272, 273, 274, 275, 276.
Not all these provisions are necessary for a complete answer. Some may not be relevant. Determining which provisions are relevant is part of the exercise.