A 1,200 (+- 10%) word individual assignment on a problem question to be submitted
electronically via Turnitin in week 11
Chong wants to buy a truck for his construction business. He inspects several different
trucks advertised as brand new at a truck dealership owned by Jason. He likes the
look of a white 6 wheel Hino Tipper priced at $55,000. Jason convinces Chong that it
is almost new and really a good deal as it is in immaculate condition with no
mechanical fault even though Jason knows the truck has oil leaks. He can tell Chong
doesn’t understand English very well so he inserts a clause into the purchase
agreement waiving his protection under the Australian Consumer Law statutory
One week later the truck has a massive oil leak and stops in the middle of the road.
Chong has the car towed to a mechanic who speaks Mandarin, his native language.
The mechanic explains the car has travelled over 50,000kms and that the seller might
have removed any cardboard used to soak up leaks.
Jason refuses to refund Chong his money. He points out Chong agreed to waive his
protection under the statutory guarantees when he signed the purchase agreement
and claims he is not a consumer under the Australian Consumer Law anyway
because the car cost more than $40,000.
a) Is Chong a consumer under the Australian Consumer Law?
b) Did Jason breach any law when he advertised a used truck as brand new?
c) Did Jason breach the law when he included the waiver in the agreement?
d) Can Jason claim that Chong waived his protection under the statutory
guarantees when he signed the purchase agreement?
e) Has Jason breached any other provisions of the Australian Consumer
Please use the IRAC method to answer this question. Please use statute and case law to substantiate your answer.