Advise vanya on his rights and possible remedies

Assignment Help Taxation

Reference no: EM133606271

Case: In April, Vanya received an offer to study at QUT, starting in semester 2. To congratulate Vanya, his father purchased a new Apple Mac Laptop at the end of May at CompUworks (CU Works) as part of an End of Financial Year run out stock sale, receiving a 20% discount on what he was advised was an older model. He gave this to his son in July, directing that Vanya "make sure to study hard and pass all courses!" Vanya, thrilled with the laptop, opened it, admired it and then stored it carefully until after orientation week. Prior to his first class, Vanya charged the laptop but it would not turn on. After referring to the instructions, he phoned the Apple help line and, as per the direction of the online expert, plugged the laptop back in to charge it. It still didn't turn on, much to the confusion of the support person who advised Vanya that "it should be working by now and if there are any problems it can be returned to the shop where it was purchased." Vanya, aware Apple products were known for being good quality, was not concerned and tried again to turn the laptop on.

This time it made a loud noise and started to smell like it was burning so Vanya turned it off and decided to take it back to GUWorks the following week when he went home for the weekend. In the meantime Vanya used QUT's computers and the 24 hour computer lab when he wanted to study late. Vanya went into CUWorks and the Manager of the store examined the laptop and confirmed it was not working. After asking for the purchase receipts, which Vanya didn't have, the Manager informed Vanya: "Unfortunately this store is not in a position to help you. Even if you had the receipts, we no longer sell this old model which is why we sold it at a discounted price. Generally, as a courtesy and because we appreciate our customers, we will offer an exchange service for problems that arise within two weeks of purchase - as that is more than a reasonable time to figure out if there is an issue. But you are several months on so we can't do that. Additionally, we cannot replace it because we do not have any others. Look at the sign on the cash desk - it clearly states if you receive a discount of any type then you are not able to return the item or have it replaced for any reason, 'Any stock purchased at a discounted price is excluded from the Australian Consumer Law Guarantees.' Vanya is really upset as his parents used their savings to buy the labtop and he really needs it for University.

He asked if he could have a replacement as he needed to start his assessment preparation but the Manager just pointed at the sign on the desk and shook his head. "Sadly, we can't help. Pity your father didn't buy the extended warranty package - that would be the only circumstances that would really cover this situation with CUWorks. Otherwise it is a manufacturer thing." Unfortunately every Apple store in Queensland is closed for refurbishment in preparation to launch the new "Apple Vision Pro" so Vanya can't even go there to ask for help. More to the point, Vanya doesn't see having to find an Apple service store and engage with more entities to be reasonable use of his time.

Part A problem question:

Advise Vanya on his rights and possible remedies under the Australian Consumer Law (ACL), providing the relevant sections of the ACL and cases where relevant. Advise Vanya if the Store Manager is correct when he states "the extended warranty package - ... would be the only circumstances that would really cover this situation." Why/why not?

Reference no: EM133606271

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