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In: Accounting

Question 5 (15 marks) Kitty went to a toy shop, SuperToy, to buy a birthday gift...

Question 5

Kitty went to a toy shop, SuperToy, to buy a birthday gift for her son, Johnny. In the shop, Kitty expressly told the salesperson that she would like to buy a gift for a 2-year old child. The salesperson then recommended her a robot, which could walk and talk. A few days later, Johnny put a small component of the robot in his nose and was injured. Kitty then discovered in the robot’s user manual that the toy was only suitable for children over the age of 10.

Required:

Advise Kitty whether she has the right to claim against SuperToy for breach of any implied term of the Sale of Goods Ordinance (Cap. 26). You are required to cite a relevant case in your explanation.

Solutions

Expert Solution

As per Section 16 of Sale of Goods Ordinance (Cap. 26), Where the seller sells the goods in the course of a business, there is an implied condition that the goods supplied under the contract are of merchantable quality.

And Where the seller sells goods in the course of a business and the buyer expressly , makes known to the seller any particular purpose (toy for 2 year old son) for which the goods are being bought, there is an implied condition that the goods supplied under the contract are reasonably fit for that purpose.

As per given case, Salesperson of the SuperToy has given inherent guarantee of quality of robot and recommended such robot to Kittty for her 2 year old child, Johny.

In such a case of injury made to her child, Kitty shall have following remedies:

1)She may require the salesperson to remedy the failure within a reasonable time

2)If he has been required to remedy a failure refuses or neglects to do so, or does not succeed in doing so within a reasonable time the she may reject the goods and required the remedy obtain from the salesperson all reasonable costs incurred in having the failure remedied.


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