Reference no: EM133474468

Case: Hotels Ventura owns a chain of budget and luxury hotels. It enters into a contract with Carpet R Us to purchase a bulk supply of carpet tiles totalling $600,000 for its hotels. The Carpet tiles had the "V" sign on each tile. Hotels Ventura approved a sample colour of the carpet tiles provided to it by Carpet R Us and also "V" in the carpet tile in the company colour of purple. The colour of both the carpet tile and the "V" was vital to Hotels Ventura's branding and image. After the carpet tiles are laid by Carpet R Us, Hotels Ventura discovers that the colour of the carpet tiles is quite different to the sample and the "V" is smudged and blurry. Carpets R Us concedes that the colour is different and there is a slight smudge in the "V" but refuses to replace the carpet tiles, or compensate Hotels Ventura, on the basis that its terms and conditions release it from any liability for any colours and/or logos not matching those given in its samples.

Hotels Ventura also buys vending machines for its budget hotels from U Vend. Each vending machine costs $35,000. Three of the vending machines keep malfunctioning. Hotels Ventura has sought a refund on those three machines. U Vend has a limitation of liability clause which excludes all liability in respect of the machines and is refusing to refund Hotels Ventura's payment. It keeps sending out repairers and the vending machines just keep breaking down.

Required:

Identify and list (a table form is recommended) the facts and related consumer law legal issues in the above scenario.