Question 1 Melanie and Carol conduct a beauty salon business. Melanie is responsible for performing...

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Question 1 Melanie and Carol conduct a beauty salon business. Melanie is responsible for performing the beauty treatments and Carol is solely responsible for providing and packaging the beauty products for sale. Polly, a friend of both Melanie and Carol's, agreed to lend them $10,000 to get the business started. Profits are to be shared between Melanie and Carol equally. Claire purchased a beauty lotion from the business recently. She complains that the lotion she bought has caused her severe facial burns, leaving her unable to work for several weeks. Tests have revealed that the lotion contains chemicals likely to cause harm if applied directly to human skin. Unfortunately, when Carol was preparing the lotion for bottling she allowed a quantity of corrosive industrial cleanser to be mixed into the lotion. Claire is seeking $150,000 damages to cover medical expenses, lost wages and considerable pain and suffering. Carol has no money and Claire wants to claim against Melanie and Polly. Melanie and Polly claim that the negligence and breach of contract is solely the responsibility of Carol.Discuss whether Claire has an action against either Melanie or Polly XXXXXXXXXXwords)

David · Accepted Answer

Issue: 
The issue in question is whether Claire can claim for damages against Melanie and Polly. Is 
the negligence and breach of contract solely the responsibility of Carol? The issue is also 
whether Claire has an action against Melanie or against Polly?  
Law: 
As per the Australian Consumer Law, there is a consumer guarantee as to quality and fitness 
for purpose. As per Section 54, there is a guarantee as to acceptable quality, and goods are 
said to be of acceptable quality if they are fit for the purpose for which they are supplied, free 
from defects and safe and durable. 
As per the privity of contract under the general common law rule, it is only the parties to a 
contract who have any rights or obligations under that contract. This is irrespective of 
whether the contract intends to benefit a third party. Also, the rights and obligations of parties 
to a contract are determined in all cases by the terms of that particular contract. These terms 
may be expressed as written or oral, or may be applied by the conduct of the parties, by 
statute, or by usual commercial practice.  
The Case Law applicable is the rule in Hadley v Baxendale which entitles the plaintiff to 
damages for any disappointment and distressed caused.  
Application: 
As per the facts of the given case, Melanie and Carol operate a salon business in which; 
Melanie is in charge for carrying out the various beauty treatments and Carol is sole in charge 
of providing the various beauty products for sale as well as their packaging. Both of them 
have a friend Polly who agrees to lend them a loan of $10,000 for the purpose of getting their 
business started. Melanie and Carol decide to share the profits equally between themselves. 
Claire, a client, bought a lotion from the salon and complained that it caused her severe facial 
burns and thus,

Question 1 Melanie and Carol conduct a beauty salon business. Melanie is responsible for performing the beauty treatments and Carol is solely responsible for providing and packaging the beauty...

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