Reference no: EM133577567
Fundamentals of Business Law
CASE STUDY ANALYSIS
Olivia purchased a set of silk pillowcases from a local retail store. The retailer has purchased the pillowcases directly from the manufacturer. These pillowcases were manufactured by Satin Dreamz Ltd. Unfortunately, the manufacturer (Satin Dreamz Ltd) failed to remove a known allergenic substance from the silk fabric. After using the pillowcases, Olivia developed respiratory issues and later diagnosed with a severe allergic reaction. Satin Dreamz presented evidence that they had manufactured over one million pillowcases without any prior complaints. Olivia sued the manufacturer, Satin Dreamz and the local retail store.
Analyse the information for the case study given above and write a report addressing the following questions.
Questions
Can Olivia bring a lawsuit under tort of negligence against the manufacturing company, Satin Dreamz Ltd? In your answer you are required to examine following aspects.
1. Does Satin Dreamz Ltd owes a ‘duty of care' to their ultimate consumers?
2. Discuss whether Satin Dreamz was negligent in manufacturing their products? ( apply section 5B of the Civil Liability Act 2002 (NSW)).
3. Whether there are any defences that the manufacturing company raise under tort of negligence in relation to Olivia's claim?
4. Did Olivia have a contract with the local retail store, when he purchased the pillowcases? What is the nature of such contracts? Note: consider the impact of the Australian Consumer Law and evaluate the application of the consumer guarantees under the Australian Consumer Law in this case.
5. Can Olivia initiate a lawsuit against the manufacturing company under the Australian Consumer Law (ACL)?
You should refer the following two cases, when answering the above questions.
Donoghue v Stevenson case [1932] UKHL 100, [1932] AC 562
Grant v. Australian Knitting Mills Ltd case [1936] AC 85
Your case study report must be structured as follows:
Executive Summary
Introduction
Findings
Discussion
Conclusion
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