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Scenario:
Mrs Smoke read an advertisement in a magazine about a new health product (Carlill's Cough Ointment) that claimed to 'cure any type of cough within two weeks'. The instructions stated that 'users should apply the ointment three times daily to the throat region', and 'within two weeks the cough will completely disappear'. The advert also claimed it would fully refund the cost of the medicine as well as pay $500 to anyone who followed the instructions and continued to have a cough after a two-week period. The advert also stated that the company had deposited $10,000 with its bank, 'showing sincerity in the matter'.
Mrs Smoke took the ointment three times daily for two weeks as per the instructions but continued to have a severe raspy cough. When she approached the Carlill Cough company to claim a refund and the $500, they refused to give her the money, claiming their advert was a mere puff and an invitation to treat, not an offer.
Which of the following are relevant RULE/S, defined and cited correctly, relating to the case above?
(may select more than one correct answer.)
Only select the RULES that are relevant to the stated HFS.
Question 2 options:
the answers must be oriented in australian law and the sources and references must be australian as well.
ROLE REVERSAL: Write a short-answer question dealing with either misrepresentation on the part of an applicant for insurance or bad faith by an insurer.
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