Topic: Australian Business Law €“ Main Assignment

Tim, who is a certified antique furniture dealer, is the newly appointed Manager of a large Canberra (ACT, Australia) based second hand furniture store. One Tuesday, a couple (Anthony & Vanessa) enter his furniture store shopping for a large lounge suite. From a distance, Tim notices that they are inspecting the lounge lizard on display in the front window of the store which is a classic brown coloured antique seven (7) seater sofa (the sofa). The sofa is marked for sale at $1,200.00.
Tim approaches the couple and asks if he can be of any assistance. Anthony tells Tim that he and Vanessa are in the market for a good second hand leather lounge suite for their café which has its grand ing’ in Cooma on Saturday. He informs Tim that he likes the sofa and comments that it appears to be in excellent condition, clean and unmarked. Tim informs the couple that in his opinion, it will last for at least another ten (10) years. Tim then goes on to assert that the sofa is so comfortable that it’s guaranteed to put you to sleep in fifteen (15) minutes. Vanessa is suitably impressed with the apparent soothing qualities of the sofa and thinks that the Café’s customers will love it! Anthony then asks Tim, If I were to purchase the sofa, can you deliver it to our café before Saturday’s ing? Tim replies, Sure thing, no problem at all.
Anthony then agrees to purchase the sofa but not before again seeking and obtaining Tim’s assurance that the sofa will be delivered prior to Saturday’s ing.
Tim then directs the couple to the store’s office area and has Anthony sign a contract for sale which includes the agreed price ($1,200.00) and the item being purchased (1x Brown Lounge Lizard Sofa).
Anthony then pays Tim the $1,200.00. As the couple are leaving the store, Anthony explains to Tim that he has a fire inspector visiting the café soon and he has been told that amongst other requirements, in order to comply, the café’s large furnishings are required to be made fire safe. This involves a fire retardant substance (a spray) being applied to various items that would include the sofa. Tim promises Anthony that before delivering the sofa, he will apply an approved fire retardant spray to the sofa. The couple then leave the store and head straight back home to Cooma. On Friday afternoon, Anthony phones Tim and asks when he should expect delivery. Tim then informs Anthony that his driver is ill and he will not be able to deliver the lounge until Monday. This forces Anthony to rent a similar sized lounge for the Café’s ing at a cost of $440.00. When the lounge is finally delivered on the Monday, Anthony and Vanessa place it into position in the café but discover that after a couple of lengthy sittings, the sofa is not comfortable at all. In particular, the cushions have thin, cheap stuffing through which Anthony and Vanessa can feel the hard frame and springs and the sofa seat cushions, although in good condition on one side, are badly faded on the other. To top things off, the fire inspector attended the café on Tuesday afternoon (the next day) and it was discovered that no fire retardant product had been applied to the sofa. As a result, the inspector then informed the couple that a fire notice is to be issued immediately and orders that the café be closed for a period of forty eight (48) hours.
Anthony is furious. He subsequently learns that the sofa only has a three (3) year lifespan. On the Wednesday after work, he borrows a truck, loads the sofa and drives back to Tim’s store and demands the return of his money. Tim then directs Anthony’s attention to a small sign at the rear of the store immediately adjacent to the office which reads:
Conditions of sale €“ Customers acknowledge and accept that all furniture sold is second hand and agree that the proprietor will not be liable for any deficiencies that may subsequently be found to exist.
Anthony then informs Tim that he has never had any trouble with the previous Store Manager and he will in future, take his business elsewhere.
Anthony now seeks your advice. He wants to know, as a matter of law, whether he can insist upon the return of his money and/or claim any damages and if not, why not? Or if so, on what basis’?

Please note that you are to answer this question by reference to general law principles only. Do not discuss or consider the application of any consumer protection legislation such as the Competition and Consumer Act 2010 (Cth).