Question Three: 30 marks: 2,250 wordsJoan and Henry Marsden are a retired couple

Question Three: 30 marks: 2,250 wordsJoan and Henry Marsden are a retired couple from Bayswater. They decided to usesome of their retirement funds to purchase a new motorhome to travel with. Afterchecking out several caravan and motorhome dealerships, they stumbled acrossCatapult RV’s Pty Ltd (“Catapult”), a medium-sized dealership in Frankston.In early March 2018, Joan and Henry met with Mark, a sales representative fromCatapult. Joan and Henry told Mark that they wanted a motorhome with “off-road”capabilities and low fuel consumption. As they walked through the dealership, Joanand Henry were shown the Catapult Grand All-Terrain. Mark told Joan and Henry thatthis was the best value-for-money motorhome that could go completely “off-road”. TheCatapult Grand All-Terrain was, in fact, one of the more expensive motorhomes andwas only suitable for limited unsealed road usage (not “off-road”).Joan and Henry noticed that the Grand All-Terrain was much bigger than the othermotorhomes they had been shown. They were quite concerned about how efficientthe vehicle would be and asked Mark whether the fuel consumption would be under20 litres per 100km. Mark responded, “not only is this one of the cheapest, but alsoone of the most economical. My guess is that this model would consume much lessthan 15 litres per 100km, even fully loaded. Tell you what, if you buy today, I will giveyou a special price. $650,000 for everything you see here, including the upgradedappliances and furnishings.”Joan and Henry were impressed with these statements and immediately entered intoa written contract with Catapult to purchase the Grand All-Terrain, a document thatsurprised the couple with its brevity. The contract required Joan and Henry to payCatapult $650,000 on pick-up of the vehicle and included the following disclaimer:Catapult provides no warranty or guarantee that the caravan ormotorhome sold to purchaser will be fit for any purpose, howsoeverdescribed or disclosed. Catapult disclaims all liability and will not beresponsible for any losses suffered or incurred by purchaser, arising outof, or in connection with, the use of the caravan or motorhome onunsealed roads.About three weeks later, Joan and Henry returned to pick up their Grand AllTerrain motorhome. Although the interior was a different colour to themotorhome that they had inspected, they were excited and paid Mark the$650,000 in full. The couple went on to tell Mark about their plans; firstly, a tripto Northern Queensland in May before a separate trip to Perth across theNullarbor Plains in November.Joan and Henry told Mark that they would need a suitable trailer for the Perthtrip. This was to transport furniture to the couple’s son in Adelaide along theway. Mark tells them that he has the perfect trailer for $57,000, and althoughnot in stock, it would be ready by the time they got back from Queensland. Allthat was required was a deposit of $5,700. Joan and Henry paid the $5,700deposit. No written agreement was entered for the purchase of the trailer.

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