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Solution for Business Law 3rd Edition Chapter 8, Problem 1

by Nickolas James
128 Solutions 13 Chapters 13479 Studied ISBN: 9780730305743 Business Law 5 (1)

Chapter 8, Problem 1 : 1.Which of the following buyers would be classified...

1.Which of the following buyers would be classified as consumers within the meaning of the ACL?

(a)                An individual who purchases an engagement ring for $50 000.

(b)               A baker who purchases flour for use in the baking of bread in their bakery.

(c)                A baker who purchases flour for use in the baking of bread in their home.

(d)               A real estate agent who purchases a sportscar for use in their real estate business.

 

Step-By-Step Solution

See Business Lawpp 369-370.

The term consumer is defined in ACL s. 3 as follows:

(1)               A person is taken to have acquired particular goods as a consumer if, and only if:

(a)               the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption; or

(b)               the goods consisted of a vehicle or trailer acquired for use principally in the transport of goods on public roads.

(2)               However, subsection (1) does not apply if the person acquired the goods, or held himself or herself out as acquiring the goods:

(a)               for the purpose of re-supply; or

(b)               for the purpose of using them up or transforming them, in trade or commerce (i) in the course of a process of production or manufacture; or (ii) in the course of repairing or treating other goods or fixtures on land.

(a)               An individual who purchases an engagement ring for $50 000.

An engagement ring is ‘goods’. An engagement ring is usually purchased for personal use. Provided the individual has not purchased the ring with the intention of re-selling it, the individual is a consumer.

(b)               A baker who purchases flour for use in the baking of bread in their bakery.

Flour is ‘goods’. However, the baker has purchased the flour for the purpose of using or transforming it in trade or commerce. The baker is not a consumer.

(c)                A baker who purchases flour for use in the baking of bread in their home.

Flour is ‘goods’, and the goods were purchased for personal, domestic or household use. The baker is a consumer.

(d)               A real estate agent who purchases a sportscar for use in their real estate business.

A sports car is ‘goods’ of a kind ordinarily acquired for personal use. Provided the real estate agent did not purchase the vehicle with the intention of re-selling it, the real estate agent is a consumer.

 

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