Question 1 (worth 15 marks)

Katherine who is 17 years and 11 months is an architectural design student at La Trobe and an accomplished opera singer. She decides to buy a personal computer for her architectural course at Evercheap Electronics Pty Ltd.

In the shop she was overwhelmed at the different kinds of computers displayed in the shop. Andy the sales person at Evercheap explains the different capabilities of each computer and shows her the ‘SUPER’ computer selling for $1000.00, which is able to perform all the functions, required for her architectural course. He further says that it is the best in the market and had no complaints from the customers who bought the computer.

Andy also says that the computer has a 1 year warranty but she can get an additional five year warranty upon payment of $150.00.

Katherine was happy with what Andy had told her and decides to purchase the computer and paid the sum of $1000.00.

She was given a printed form by Andy for the additional warranty and told her that she could mail the form at any time together with the requisite payment. She signed the document without reading it, included the payment, and posted it.

One day while Katherine was using the computer the hard disc crashed due to a virus known as Notty. She immediately called the company and told them about the problem. She was told that the extended warranty contained a clause “The company will not be liable for any defect in the computer caused by the virus Notty’.

Advise Katherine of any common law remedies available to her.(Note DO NOT discuss any statutory remedies)

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