Paul is a stockbroker who often comes to Adelaide on business.

Paul is a

stockbroker who often

comes to Adelaide on business. On the last trip

,

he was using his

new electric shaver for the first time when it

overheated and

exploded

causing

severe burns to

his face and hands. The shaver was given to

Paul for his 40

th

birthday by his eldest daughter

Pauline. Pauline had bought the shaver from Cheap Imports, a national chain of discount retail

stores

with outlets across Australia

. Cheap Imports had imported the shaver from the United

States

(the US man

ufacturer has no place of business in Australia)

. When Pauline bought it there

was a large label on the outside of the box as follows:

IMPORTANT NOTICE: This shaver is

not to be left on for more than

10 minutes at a

time as it can overheat and cause inj

ury. Use with care.

The warning label was not overly big, but placed prominently on the front of the box. No such

warning labels appeared anywhere on the shaver itself or inside its packaging.

Paul

used the shaver for in excess of 10 minutes as he was u

sing the beard trimming and shaping

tools that came with the shaver to patiently sculpt his facial hair. He

never saw

the

warning

because Pauline threw the box away before gift

-

wrapping the shaver for Paul's birthday. Paul's

medical expenses are likely to

be about $17,000.

He believes the shaver had a safety defect and

seeks to recover these costs through legal action against Cheap Imports.

Outline the

steps of a defective goods action for Paul, and discuss the potential arguments he

and Cheap Imports will

likely make.