Scenario: Laptop drama! Clara has become very interested in coding ever since she was hired by Facebook as an accountant.

Scenario: Laptop drama! Clara has become very interested in coding ever since she was hired by Facebook as an accountant. She has decided to learn this new skill, which would help her create computer software and mobile apps for accountants. Last week she purchased a laptop from her best friend, Brian, for the cost of $1,000. When she went through the contract given to her by Brian, Brian guaranteed in writing that the laptop was 'near new and pretty freaking powerful'. Clara asked Brian about this and Brian assured her verbally that the laptop 'had no scratches on the screen and it had up to 10-hour battery life'. Clara liked the thin, light and beautifully pink laptop. It was perfect for her to carry around the city on public transport. She trusted Brian. She felt there was no need for her to inspect the laptop and signed the contract without changing it. On the following day, Clara was attending a coding boot camp. She decided to use her freshly purchased laptop to make notes while the presenter was discussing the challenges of coding for new programmers. As she opened the top lid, she was horrified to discover a small crack near the bottom of the screen and when she tried to switch the laptop on, the screen displayed 90% of usable image but a black spot appeared on the screen around the crack. Within ten minutes, the laptop suddenly shut down before the battery was even low.

1.      Discuss what assistance/financial compensation Brian would offer Clara if he was taking his responsibilities under contract into account. Use cases to support your recommendation but please exclude statutory law.

8 points

2.      That evening, Clara called Brain to complain and demand a refund of the cost of the laptop. Brian felt bad for treating his best friend so poorly, so he told Clara to drop by his store in the city, 'Tech Geek', where he sold notebooks professionally. He promised to 'look after her' and 'find her the best laptop for coding in the notebook market'. On the following day, Clara stopped by 'Tech Geek'. She proceeded to return the pink laptop to Brian and paid an additional $1,500 to buy another brand-new laptop, which Brian had recommended to her. Upon returning home, Clara decided to enrol in an online coding course for beginners. As the box was sealed, she had to unbox the laptop and download the necessary coding software from the Internet. Clara was very eager to learn in-demand skills to advance her career. But before she could get started with the activities of the first online tutorial, the laptop crashed because it could not support the coding program.

2. Discuss what assistance/financial compensation Brian would offer Clara if he was taking his responsibilities under consumer guarantees, Part 3-2 Australian Consumer Law (ACL) and the associated remedies with this part into account. Use cases to support your recommendation. 8 points

3. You start remembering our subject, 'Foundations of Company and Common Law' and the topics covered there. You decide to quickly and shortly sum up possible other legal risks that Brian might face. Take ONE other legal risk and explain how it might be applicable here. Also make ONE suggestion as to how ANY of the risks could be better managed in the future.