Reference no: EM133530579

Problem

John, Paul, George and Bingo were musicians in a band called the Beagles.

The Beagles were about to release their latest smash hit album called Sgt. Salt and Pepper's Happy Hearts Club Band (Salt and Peppers).

In January 2022, to promote the Salt and Peppers album, the Beagles started a world tour called, Lucy in the Sky with Diamonds (LSD Tour). The first stop of the Tour was Australia.

To travel around Australia, the Beagles decided to purchase a double-decker second-hand school bus and Catamaran boat and trailer from Jimbo's Used-Vehicles (Jimbo). The bus was 10 years old, but appeared to be in good condition. The boat and trailer were much older, but described as 'built to last a lifetime - We guarantee it'.

The Bus was priced at $150,000 and the boat and trailer were together priced at $40,001. The Beagles signed two separate contracts. The first contract was for the bus and the second contract was for the boat and trailer. At the bottom of both contracts, the following disclaimer was in large print:

'It is your responsibility to fully inspect any vehicle before purchase. We strongly advise you to seek a comprehensive inspection from the National Roads and Motorists' Association (NRMA). Under no circumstances will refunds be provided. All vehicles supplied by us are considered by us to be commercial vehicles. The Australian Consumer Law does not apply to you.'

The Beagles quickly inspected the vehicles before purchase, but did not seek an inspection from NRMA.

One week into the Tour, the Beagles drove the bus with boat and trailer up the coast of New South Wales. Along the way, they drove on a bumpy dirt road for over 10km. The road was being repaved. Shortly after they noticed that an error message reading 'Cruise Control failure' appeared on the dashboard of the Bus. When the cruise control was switched on the bus started to speed up and slow down at irregular intervals, instead of maintaining a constant speed. When they arrived at a service station, the owner, who was a retired mechanic, informed the Beagles that the cruise control system was faulty and this was 'something well known in this model of bus'. The owner also informed the Beagles that he noticed 'a large amount' of rust at the back of the boat near the motor and that the boat was unlikely to be seaworthy. The owner also said that the hitch for the trailer was damaged and should be not used as it was 'too dangerous to continue to drive' with the trailer. The Beagles informed the owner that they needed to continue with their Tour, and whether he could fix the hitch or provide a replacement part. The owner said that he could not fix the hitch, nor could he (or anyone) provide a replacement as this model was no longer made.

The Beagles immediately took the bus, boat and trailer back to Jimbos and demanded a refund for all three vehicles.

Task

Advise the Beagles whether Jimbo has non-complied with any provisions of the Australian Consumer Law (ACL) and whether the Beatles is entitled to a refund for the bus, boat, and/or trailer.