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A red leather lounge was purchased from Lounge Ltd - HSC - SSCE Business Studies - Question 1 - 2016 - Paper 1
Question 1
A red leather lounge was purchased from Lounge Ltd. After only two weeks of use, the legs of the couch fell off. What is the law that enforces the warranty in this ... show full transcript
Worked Solution & Example Answer:A red leather lounge was purchased from Lounge Ltd - HSC - SSCE Business Studies - Question 1 - 2016 - Paper 1
Step 1
What is the law that enforces the warranty in this situation?
Answer
In this scenario, the relevant law that enforces the warranty is the Competition and Consumer Act 2010 (Cth). This Act provides consumer protection laws, including implied warranties and guarantees that ensure products sold are of acceptable quality and fit for the purpose intended. Given that the legs of the couch fell off after only two weeks, it indicates a breach of consumer guarantees under this legislation.