Question

Word Limit: Minimum 2,700 words – Maximum 3,000 words [includes footnotes and

bibliography]

QUESTION 1 [30 marks]

On 1 August, Nandini, who owns an electrical appliance store, Nandini Electro Pty Ltd, places an advertisement in the newspaper which states:

“Huge Electronics Sale. All Computers 50% off.”
Visit our web site and see the large range of goods we carry.”

On 2 August, Angelo reads the advertisement and visits the web site. He sees a picture of a Apple Model Number 5 Computer and clicks on the picture. Angelo is linked to a page which has all the details on this computer. At the bottom of the page are words “Contact Us” and the store’s email address.

That afternoon Angelo sends the following email to the store:

“What is the price of the Apple Model Number 5 computer? How many models of this computer do you have in stock?

Within 1 hour, Nandini replies to Angelo by email, saying:

“We have five Apple Model Number 5 computers in stock. Our retail price is $2,000 and the sale is price is $1,000.”

Angelo telephones several other computer stores to check their prices and discovers Nandini’s price is very cheap. Angelo decides to buy this computer from Nandini Electro Pty Ltd.

On 3 August Angelo telephones Nandini’s store and asks if this model computer is still on sale.

Nandini, who answers the phone, replies: “Yes, I can see one on the shelf right now, it is sale priced at $1,000.”

Angelo says: “Great, I will buy it. My name is Angelo and I will come and pick it up immediately.”

Nandini replies: “See you soon, Angelo.”

Angelo takes a taxi to Nandini’s store. When Angelo walks into the store, Angelo sees one the advertised computer he wants on the display shelf with price tag saying “Sale Price $1,000.”

1

Angelo says to Nandini: “I just telephoned you about buying this computer for $1,000. I am here to pay for it and take it home.

Nandini replies: “I’m sorry, I have changed my mind. This is the last Apple Model Number 5 computer I have in stock and I have decided to give it to my brother, Raju, as a wedding present for his wedding tomorrow.”

1. (a) Advise Angelo what legal rights he has under the common law of contract in respect of the computer that he wished to purchase. Your answer must include relevant legal principles and relevant case law to support your answer. [20 Marks];

   and

2. (b) Assume the computer is still available for sale but Nandini says to Angelo she has

   changed her mind about the price and that it is now for sale for $1, 800. Analyse whether Nandini has acted in breach of a relevant statute law studied in this course. Your answer must identify the relevant statute and section(s) together with a discussion on its relevance to the given facts. [10 Marks]

Answer 1