Answer the TWO (2) questions below using the IRAC method.
Question 1
Golden Care Sdn. Bhd. (Golden Care) runs a nursing home providing residential care for the old and sick people. Golden Care needs new machines for washing the twenty-five residents’ bed linen and clothes after their old ones broke down. Pn. Mariam, the director in charge of the nursing home, calls WashDoc Bhd ("WashDoc"), a retailer of electrical appliances specializing in washing and laundering equipment.
She informed the salesman for WashDoc that the home needed new machines to do their laundry works and asks recommendations about the type of machines to be used. After hearing the explanations, Pn. Mariam however decided to order 4 "Kleen" brand model GX 530 machines to be delivered to "Golden Care Sdn Bhd. She has selected the GX 530 model because she herself owns one at her house and is happy with its performance and durability. The salesman did not comment anything about her choice.
After a couple of months use, the washing machines start to break down regularly. Golden Care complains to WashDoc. Their reply was that the washing machines are ordinary domestic machines and are not intended to be run almost continuously, with an average of five loads daily, as Golden Care is doing.
Pn. Mariam had no idea that washing machines come in different grades and neither do the eight members of her staff. They all think that the big machines they have seen in commercial laundries and nursing homes differ from smaller machines only in the size of the load they can wash.
Discuss whether WashDoc is in breach of any implied term under the Sale of Goods Act due to the faulty machines. (14 Marks)
(Hint: there are TWO implied terms that are relevant and can be used in your discussion)
Question 2
Rajesh agreed to buy Ben’s car provided Ben makes certain modifications to the car’s engine. Ben agreed and Rajesh gave Ben a deposit of 10 percent of the price. Ben made the modifications but, before he could inform Rajesh, the car was destroyed in a fire at Ben’s garage. Ben, who was not insured, is demanding that Rajesh pay the agreed price for the car. Rajesh refuses to do this. He is demanding the return of his deposit and is threatening to sue Ben for non-delivery of the vehicle.
SUBJECT: BUSINESS LAW