Lin Fung, who is very worried about global warming, reads the following newspaper advertisement for...

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Lin Fung, who is very worried about global warming, reads the following newspaper advertisement for Bing’s Appliances Pty Ltd, a retailer of electrical goods. “Special Offer: ANCO G100 environmentally friendly air conditioners, just $735, marked down from $950 for one day only on Saturday, 1st July.” Lin goes to the store on Saturday, 1st July, arriving half an hour after it opens, and is told by the sales staff that they have sold out of the reduced-price ANCO air conditioners, but they have a better air conditioner, the Earthcare G200, also manufactured by ANCO Ltd and also environmentally friendly, which cost $899. The salesperson hands her a manufacturer’s brochure in which it is written: ? the EARTHCARE G200 is a revolutionary environmentally-friendly air conditioner ? EARTHCARE G200 is designed for minimal environmental impact ? the production process for the EARTHCARE G200 results in reduced carbon dioxide emissions. Lin is impressed with the environmental claims of the manufacturer and buys an Earthcare G200, which is delivered to her house the following week and it is installed by a technician. The technician tells her that he knows with certainty that the ANCO G100 model never sold for more than $735. Lin leaves the air conditioner running all day and all night on a very hot day. When she rises the next morning she finds a puddle of water on the table under the unit and a much-loved water-colour painting from the Tiwi Islands that was awaiting framing, worth over $2,000, that she had left on the table, ruined by the water dripping onto it from the unit. When she gets the air-conditioning technician in to find out what happened, she learns that there is a defect in the air conditioner causing water to flow out of the front of the unit. She also learns that the air conditioner contains a fluorocarbon gas called R407C, which is a potent greenhouse gas that will contribute to global warming if released into the atmosphere, although it is less harmful to the environment than certain other fluorocarbon gases. She also learns that ANCO is unable to substantiate the claims concerning the reduced carbon dioxide emissions in the production p

Robert · Accepted Answer

Answer One  
Lin has all the legal rights to be compensated from ENCO as their model, Earth Care 
G200, produced by Bing Ltd. failed to provide compliance satisfaction and it did not fulfill the 
client’s expectations. As per the regulations of CCA 2010, Part VIA, Proportionate liability for 
misleading and deceptive conduct applies here in this context which states some provisions for 
the misleading or deceptive conduct of the manufacturer. This Part applies to a claim (an 
apportion-able claim) if the claim is a claim for damages made under section 236 of the 
Australian Consumer Law for  (a)  economic loss; or  (b)  damage to property; caused by conduct 
that was done in a contravention of section 18 of the Australian Consumer Law. (Federal 
Register of Legislation, 2017) thus, under section 236, the damage to the property is solely 
dependent on the performance of the product and it is quite visible that the loss of the handmade 
painting was because of the dripping water from the AC unit.  
Lin had expected to get a product which is not only user friendly but also it will help in 
saving the environmental issues caused by CO2 emission. The mechanic which she calls for 
fixing he AC unit informs her that the unit was reducing a gas which would be harmful to the 
atmosphere, not up to a great level like CO2 but it would be enough to bring the concern of Lin 
forward. Thus, she must use her rights, as per the consumer law in order to avail for herself the 
legal compensations.  
Answer Two  
 If seen from broad legal perspectives, the chances of ANCO and Bing for getting 
remedies or defence against the claims of Lin are weak; the companies do not have many 
chances to prove their point legally in terms of provisions made by the consumer law. In fact, the 
product which ANCO had sold to her was not up to mar and moreover, it was claimed to be the 
best alternative to the product which the company was selling. At first, it is a false ground that 
ANCO claimed to sell a $950 product on a discount price and only within a couple of hrs, the 
sale of the same was done. It sound inappropriate and looks like the company had already 
planned and might have made some pacts with Bing. In other words,

Lin Fung, who is very worried about global warming, reads the following newspaper advertisement for Bing’s Appliances Pty Ltd, a retailer of electrical goods. “Special Offer: ANCO G100 environmentally...

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