Question 1
Sandra, who runs a florist shop, decides to replace the van which she uses to make deliveries. She attends a long-established street market in used cars, where she sees a van with a notice in the front window which reads: FOR SALE: Low kilometres. When Sandra takes a look of the odometer, its reading is 42,224 km. After a thorough inspection and a test drive Sandra enters into a contract to buy the van from Matthew.
What is her legal position in the following circumstances:
a) Sandra discovers that the van’s real odometer reading was 90,800 km.
b) Sandra discovers that the clutch was defective.
c) Sandra has now been informed by the police that the van was stolen six months previously and that it must be returned to its true owner
Question 2
Fred recently obtained a 58” Plasma colour TV set
What are Fred’s rights and the source of rights in the following circumstances:-
a) Just as he is sitting down to watch ‘Match of the Day’, there is a flash and a puff of smoke from the back of the TV and the screen goes black. Fred bought the set new from a local department store. He paid for it in cash
b) Fred obtained the TV from his brother-in-law, Tony, by swapping his laptop. Fed was assured by Tony that it was a colour TV, but so far he has only got a black and white picture.
c) Fred is an Aussie Soccer enthusiast. He told the salesman at Happy Nolan TV World Ltd, a local electrical shop, that he wanted a TV that would receive Channel 11 broadcasts. Fred has now discovered that he cannot get Channel 11 with this particular model.
Question 3
By a written contract dated 1 June 2017 Sam sold to Bob for $1,000 the goods described in the contract as:
“500 for 2000 bottles of whisky stored in my warehouse in Sydney”
In accordance with the contract, Bob paid the price for the goods on 2 June 2017. The contract provided for Bob to take the goods at Sam’s warehouse on or before 10 June 2017
On 3 June 2017, Same selected 500 bottles of whisky and packed them into crates which he left in the loading dock of the warehouse. Later that day, Sam phoned Bob advised that the wine was ready for collection. Bob said that he would arrange collection on or before 10 June.
On 9 June 2017 a fire occurred at the warehouse without any fault on Sam’s part. The warehouse and all of its contents were destroyed in the fire.
On 10 June 2017 Sam advised Bob that due to the fire he would be unable to fulfil his obligations under the contract and that Bob should not try to collect the wine.
Advise Bob