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October 22, 2022

Alternate-Current is a supplier of washing machines. Fountain-Wash operates a commercial laundry business in the city centre.

Alternate-Current is a supplier of washing machines. Fountain-Wash operates a commercial laundry business in the city centre. In April 2022, Fountain-Wash saw an advertisement by Alternate-Current about the high performance, durability and sound workmanship of their washing machines. The advertisement also stated that AlternateCurrent only sold quality, genuine “Power X1” machines. Fountain-Wash ordered 10 new “PowerX1” washing machines from Alternate-Current at a total cost of $10,000. In June 2022, Alternate-Current delivered and installed 7 new “PowerZ3” and 3 new “PowerX1” washing machines in the premises of Fountain-Wash. All the 10 machines stopped functioning in July 2022 due to a mechanical defect in their spinning wheels. This resulted in water from the washing machines flooding the entire premises and damaging customers’ garments. Three operators of the washing machines (staff of Fountain-Wash) were injured when they tried to disconnect the washing machines from power and water supplies. An independent expert revealed that the machines were made up of clone parts.

(a) Advise Fountain-Wash (15 marks) AND

(b) How would you answer differ from (a) above, assuming that the 10 washing machines were sold as second-hand by Alternate-Current to Fountain-Wash. (5 marks)

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