Business and Marketing law
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In this case Beauty purchased a barbeque from a national retailer BBQ Pty Ltd. She decided to use it to cook for friends on her birthday when the barbeque leg broke causing the barbeque to collapse which caused an explosion. The explosion caused a nearby oil can to ignite which injured beauty and her two friends as well as destroying her glasshouse and the orchids inside.
The main issue was to determine who was liable for the damages caused by the defective barbeque. Under the Trade Practices act 1974 there are implied conditions which stipulate that goods shall be of merchantable quality, that goods are to fit for purpose and that the sample good must match characteristics and quality of the good purchased.
It was found that the manufacture of the barbeque was liable for the damages sustained by Beauty and her friends under the trade practices act.
The first issue which will need to be discussed is whether BBQ Pty Ltd or the manufacture will be held liable for damages for the exploding can of cooking oil due to the barbeque leg breaking which burnt beauty and her two friends. In order to assess this we must first determine whether there has been a sale of goods contract in the first place and with the facts presented before us, it is evident that beauty had bought a barbeque for $1000 from BBQ Pty Ltd and all the elements of the contract have been satisfied.
A number of conditions and warranties are implied under Division 2 of part V of the Trade Practices Act. The relevant ones will be considered...