Reference no: EM132508688

CASE STUDY - AUSTRALIAN CONSUMER LAW

James and his family decided that it was time to take a holiday in Adelaide. They chose Adelaide as their destination because it has a world famous wine industry and related tourist attractions. They were really looking forward to visiting many of the wineries in the Barossa valley and in particular sampling the famous local Shiraz. They spent two weeks wandering around the wineries.

James's mother, Betty asked them to bring her back a case of the best Shiraz that they had sampled from Barossa Valley Mountain Wines Pty Ltd. Betty's key requirement was that the wine should be not too dry but had a hint of citrus as she liked to drink wine that reminded her of the wine that she had drunk when she lived in Adelaide before she was married and moved to Brisbane.

When James and his family went to the manufacturer and retailer to buy the wine, the Manager of Barossa Valley Mountain Wines Pty Ltd, assured them that the Shiraz was exactly what they required, not too dry but with a hint of citrus. In addition to the verbal advice, the wine label clearly indicated that the wine met their requirements (not too dry but with a hint of citrus). They were happy to purchase the wine using their credit card and were given a tax invoice receipt.

When they went home to Brisbane, they gave Betty the case of wine and the receipt as she had offered to reimburse them. She was delighted and opened a bottle for the family to drink over dinner. Much to her disappointment, not only was the wine very dry it also tasted very bitter. It made her very ill. As she felt she was unable to drink the rest of the wine, she contacted Barossa Valley Mountain Wines Pty Ltd to get a refund. The Manager told that because she was not the one who had purchased the wine directly, she could not apply for a refund.

In this scenario you should address these questions in order to provide advice to James' mother Betty

Question 1: Explain whether Betty is entitled to exercise Australia Consumer Law guarantees and how long does she have to exercise her rights?

Question 2: Provide advice to Betty what are the available remedies that she could apply under the Australian Consumer Law and what are the possible penalties that Barossa Valley Mountain Wines Pty Ltd could incur if there is deemed to be a breach of Australian Consumer Law?