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Instructions: 1) There's no word limit for all the questions. Document Preview: BUSINESS LAW Tutorial Questions: Furnace Maker Berhad has agreed to sell a melting furnace to Tango Sdn. Bhd. and has...

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BUSINESS LAW Tutorial Questions: Furnace Maker Berhad has agreed to sell a melting furnace to Tango Sdn. Bhd. and has given an undertaking that the melting furnace would have a temperature of not lower than 1500°C. After the melting furnace has been delivered to Tango Sdn. Bhd., it is found that the temperature could only reach a temperature of 1000°C and it is not in accordance with the specification. Mr. Lee buys a bag of charcoal from Super-Matt Sdn. Bhd. so that his family can enjoy themselves sitting around the fire-place in the chalet in Cameron Highlands. Unfortunately, the bag of charcoal contained an explosive device which exploded when Mr. Lee lit the fire. Mr. Lee was badly injured. Advise Mr. Lee. Jack, a mechanic, wanted to sell his car and advertised it as a ‘Volvo 240GL, 1984…’ Bobby read the advertisement and immediately went to view the car. After seeing the car, he agreed to buy it. Later, it was discovered that while the rear half of the car was part of a Volvo GL, the front half was part of an earlier model, a Volvo 244 GL. Advise Bobby. Ali and Siti are neighbors. One day, Ali bought a bottle of root beer from a provision shop, Syarikat Ah Kow and Sons. After drinking that bottle drink, Siti became ill due to a decomposed earthworm in the bottle. Can Siti succeed if she sues Syarikat Ah Kow and Sons for breach of an implied term in the contract of sale? Give reasons. In relation to the sale of goods, explain the rule ‘nemo dat quod non habet’.

Answered Same Day Dec 23, 2021

Solution

David answered on Dec 23 2021
114 Votes
ANSWER TO Q1
Caveat Emptor is a Latin word which states “let the buyer beware”. This decree is not
premeditated to safeguard sellers who employ in deception or bad faith trade by making
counterfeit or deceptive illustrations regarding the quality or stipulation of a fastidious product. It
purely recapitulates the perception that a purchaser should scrutinize, judge, and assess a product
considered for procuring him or herself. Under the dogma of caveat emptor, the purchaser could
not convalesce from the vendor for defects on the goods that rendered the goods ailing for
average functions. The solitary exclusion was if the vendor keenly cloaked latent deficiencies or
else made material falsifications amounting to deception. Prior to statutory law, the purchaser
had no assurance guarantying the superiority of goods. In numerous jurisdictions the
commandment entails that goods ought to be of "merchantable quality". Conversely, this implied
assurance can be intricate to implement and may well not be relevant to every products.
Consequently, purchasers are still recommended to be precautious.
Contract is defined as an accord enforceable by commandment. Agreement is an indispensable
constituent of a legitimate contract. In this case both the parties i.e. Berhad and Tango Sdn Bhd
had an intention to form a lawful relationship. There was consent among both the parties to buy
melting furnace and the consent was liberated and authentic. And even both the parties were
competent enough to enter into a...
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