Question

This is a business law question from an accounting degree. I cannot find a proper subject for this question so use the 'accounting'.

I think that Australian consumer law and contract law including misrepresentation (lack of consent) and terms in contract would be applied to this case.  

Pharmaceutical Plus Pty Ltd (PP) is a company that amongst other products, sells a packaged powder to the Australian domestic market that claims to assist women with weight loss. The product sold is called “Slim Curve” and it is sold both in store and online. The online advertisement for Slim Curve says the following: “Slim Curve has been scientifically tested and proven to assist with the loss of weight when used in accordance with its instructions. Join thousands of other women worldwide seeking to regain control and live a healthier life. Order now and receive a complementary sample of Slim Curve Double Plus, our latest fat burning product that if used in combination with Slim Curve, is guaranteed to shed those kilograms even quicker and have you looking young and healthy.”

Mavis is a 57-year-old mother of three who is looking to lead a healthier life. One day she and her trusted daughter (named Stella) visit a PP store in Sydney and speak with Chad, the Manager. Chad tells Mavis and Stella that in his opinion, Slim Curve is the best weight loss product on the market. Chad goes on to tell them that if Mavis uses Slim Curve and is disappointed with the results, she can return the unused portion of the product for a full refund.

While discussing whether or not to purchase the product, Stella tells her mother that she saw a report on television that suggested Slim Curve actually causes weight gain and that she should not buy it. Despite the warning from her daughter, Mavis decided to purchase a 10kg packet of Slim Curve powder for the advertised price of $220.00. A week later, Mavis remembered that by purchasing the product, she was entitled to a complementary sample of Slim
Curve Double Plus however when she returned to the store and spoke to Chad, he said: “that was last week, if you want the complementary sample to lose weight quicker, you will have to buy another 10kg packet of Slim Curve.” Mavis, desperate to lose weight, felt pressured by Chad and so purchased another 10kg packet of Slim Curve in order to receive the complementary product.

The Slim Curve range of products has since been investigated by the authorities and it have been discovered that the powder offers very little to consumers in terms of assistance with weight loss. In fact, most persons who used the product gained weight. This was also Mavis’ experience who stopped consuming the powder eight (8) months ago. It was also subsequently discovered that Slim Curve contained exactly the same ingredients as Slim Curve Double Plus and that the two products were identical. When Mavis rang to complain, the company said that it was not aware the two products were identical and that the manufacturer is responsible. Further, the representative said that Chad’s promise of a refund was not reflected in the written contractual terms entered between the parties and therefore did not apply.

Mavis has come to see you and wants to know if there is any legal basis on which she can now rescind the contracts and return the unused portion of the 20kg of the Slim Curve product she purchased and be reimbursed her $440.00.

Advise Mavis on whether or not in all the circumstances, the law can assist her to have her $440.00 reimbursed and if so how.

Assignments will be marked on the following criteria:
(a) Knowledge and research of the assignment topic(s);
(b) Identification of the relevant law, legal issues, development of argument and application of facts to the relevant law;
(c) Conclusions reached and whether they are properly supported and follow logically from the argument put

Answer 1