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Australian Law

Australian Law
Estella buys a floor rug from Pablo’s Persian Carpet Bazaar. Pablo’s imports these rugs into Australia by Aladdin Ltd, having been made in Istanbul by Turkehran Ltd, a Turkish corporation. Turkehran Ltd has an office in Sydney which has nothing to do with rugs but deals with the importation of olives into Australia.
Prior to the purchase, Estella told Pablo that she wanted a rug with blue and green shades to match the colours of her living room. She also said that it the room was an odd shape and she needed the rugs to be the correct measurements to fit in the room. Pablo showed Estella many rugs and finally she selected a rug which had the colours she was looking for but she was hesitant about the size. Pablo said to Estella ‘Don’t worry about that, we’ll change it if it is the wrong size- look at the notice on the wall”. On the wall was a notice “Statutory rights given to consumers under legislation will be respected”.
Estella purchases the rug and takes it home. When she arrives and spreads the rug on the floor she finds the following:
(a) the rug is the wrong shape and size and does not fit the dimensions of the room. When she takes it back, Pablo says ‘Don’t you know ‘statutory rights’ mean you only can return the carpet within 5 hours of talking it home. You waited three days. You’ve lost any rights that you have’
(b) Some water was spilt on the rug. It dried but the area now stains the soles of shoes
or feet of people as they walk across the rug and leave a trail of coloured footprints as they walk across the rug. Estella only discovered this after she walked on the rug and left a trail of foot prints throughout the house
(c) At a party one of the guests dropped a cigarette on the rug. Within a few seconds a large part of the rug was on fire. This was because the dyes used to colour the fibres in the rug were highly flammable. Estella was injured putting out the fire and her husband, as well as being burnt himself, suffered nervous shock when he saw the fire. The living room was damaged and the carpet was ruined.
(a) Advise Estella of her rights (if any) against Pablo’s Carpet Bazaar and whether she has any claim against either Aladdin Pty Ltd or Turkehran Ltd Corporation. 10 marks
(b) Also advise Estella’s husband of any claim he might have against any of them as well. (10marks).

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