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They have the right to sell it owner authorized by

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They have the right to sell it. Owner/ authorized by the owner. Eg unleded, it should met the description. b) The type of petrol sold? (sale by description) S56 of the ACL. Goods must correspond with description, except in sale by auction. This is a guarantee. c) The standard or quality of the petrol? (merchantable/acceptablequality) S54 of the ACL. Good must be of acceptable quality, except in sale by auction. They must be fit for the purpose/s for which they are intended. d) Whether the petrol will be fit for use in your car? (fitness for purpose) S5.5 of the ACL. If good are supplied to a customer, except by auction, there is a guarantee that the goods are reasonably fit for any purpose disclosed to the supplier by the consumer.
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2) You ask for a special mixture of fuel to operate a particular machine. The attendant gives you one litre of a product to try. You try it and it is satisfactory and you order 1000 litres of it. a) What type of purchase is this? Implied condition of fitness for a defined purpose. b) What warranty is provided by the ACL for this type of purchase and which section refers to this type of purchase? Implied condition of fitness for a defined purpose. c) Can a seller avoid the implied warranties contained in the ACL by inserting an exclusion clause in a contract? NO S64 states that guarantees cannot be excluded by contract. It expressly makes guarantees for consumers under the ACL non-excludable by the parties to a contract. Exercise 9.5 Read a summary of the case of Carpet Call Pty Ltd v Chan [1987] ATPR (Digest) 46-025 1) Did the court decide that the contract in this case fell within the definition of consumer? Yes, on the basis that carpet is a product ordinarily acquired for household or domestic use. 2) What did the court say with regards to product descriptions in this case? The court held that the acquirer was a consumer despite the fact that the carpet was being used in a night club, which is not personal or domestic use. The product was still of a personal, domestic or household character not fit for its purpose. 2) What effect does this case have on business-to-business contracts? Business operate thinking that the consumer guarantee provisions of the ACL are not applicable to their transactions and agreements as it is for domestic or personal use only. Exclusions will be void if the contract is
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found to be consumer. Exercise 9.6Capacity to make contracts The law takes the view that some persons are incapable of fully or properly understanding what entering into a contract means. Consequently, the law offers some sort of protection to such people if they attempt to enter into a contract. But the law does not offer the same protection to the other person who seeks to enter into this contract with them.
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