QuestionMulan has just bought a new power drill made by MacTools Ltd. Mulan lends the power drill to...

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QuestionMulan has just bought a new power drill made by MacTools Ltd. Mulan lends the power drill to his neighbour, Aurora. He gives her the box containing the drill, along with the instructions. The instructions include a safety warning saying that users of the drill should wear protective goggles. Aurora does not read the instructions.After Aurora had used the drill for ten minutes it catches fire and explodes. As a result of the explosion, Aurora loses an eye. MacTools Ltd was aware of the fact that there was a 1% chance that a short-circuit might occur if the drill was used for longer than 5 minutes, but that it decided not to do anything, because a recall of the drills would have cost the company$ XXXXXXXXXXThe fault in the drill also led to an interruption on the electric power supply in the street where Mulan and Aurora live, just at the moment when Jessie, who is a glass worker, was making a glass vase. The vase, which is worth $ 1 000, is shattered when the power goes off.Advise MacTools Ltd as to its legal position, citing relevant legal authority, using the ILAC format.instructionYou must write an answer to the problem-type question below, using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder.

Robert · Accepted Answer

1 
 
Issue  
Mulan had purchased a new power drill machine from Mac-Tools Ltd. After that, his 
neighbor whose name was Aurora needed a drill machine and Mulan had given to her for 
personal use along with box in which instruction guide was already located. That guide provided 
some restrictions for user before its use that goggles were necessary to wear while using the drill 
machine. But Aurora did not follow any instructions or precautionary methods and she operated 
beyond the set limit of drill machine i.e. more than 5 minutes. The result was literally miserable 
for her just because of her own ignorance; she lost her an eye due to the explosion in the drill 
machine. Meanwhile, another incident happened in the Mulan‟s Street, that drill fault created 
interruption in the electric power supply in the vicinity. That interruption made a problematic 
situation for Jessie who was glass worker. Explosion created power supply cut off in the entire 
street in which Jessie also worked and just because of that issue, her glass vase shattered which 
was worth 1000 dollar.  
Law  
Australian Consumer Law (ACL) provides some rights for consumer along with 
restricted guidelines for manufacturer against unfair treatment. ACL is divided into many 
sections that give detailed information for consumers and manufacturer in terms of business 
transactions. Some enlisted provisions of ACL include the following:   Consumer Product Safety 
Law, Unfair Practices, Consumer Transactions, Safety of Consumer Goods and Product Related 
Services, Information Standards, and Liability of Manufacturer for Goods with Safety Defects.  
These are the laws that are likely to be applied in this given case study.  
Application 
2 
 
Mulan cases study was clearly subjected to unfair practice of manufacturer (Mac-Tools 
ltd) because producer of the goods was clearly known of the product defect or fault that drill 
machines had some serious complications. But for the sake of mutual benefit; manufacturer had 
been continuously selling defected products for a long time to its consumers. Without measuring 
the outcomes; producer probably was playing with its customer life because electric product 
caused serious injuries or damage for the user. In-fact, same thing happened with Aurora and 
Jessie because both were victimized through the defected drill machine. However, if Aurora 
could follow the producer guidelines,

Question Mulan has just bought a new power drill made by MacTools Ltd. Mulan lends the power drill to his neighbour, Aurora. He gives her the box containing the drill, along with the instructions. The...

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