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Shelley, who suffers from cancer, wanted to treat her younger sister Gemma to a European holiday on the occasion of the latter’s 35th birthday. They visited the Merry Land Travel Agency to inquire about holiday packages and talked to John, one of the agency’s marketing staff.  
 
Shelley had wanted to pay for Gemma’s tour package in full but could only spend up to $2,500. John, however, sought to convince Shelly and Gemma to go for the Asian Tour for Singles, a more expensive package operated by the Lux Luxury Tours Ptd Ltd, because of its great customer reviews. He said that if they went for that package, he would ensure that Gemma would get hotel accommodation at 4-star hotels, instead of the standard 3-star hotels.  Gemma was thrilled and asked Shelley to book her instead on the more expensive tour that cost $3,200.  
 
Gemma agreed to pay for the difference between Shelley’s budget of $2,500 and the tour’s cost of $3,200. Gemma handed $700 over to John to pay for her share of the tour cost and hurriedly left for a meeting.
 
Shelley then paid the remaining $2,500 for the tour cost and signed the agency’s standard Holiday Tour Agreement (the “Agreement” which had a provision that it constituted the entirety of their agreement). Shelley also wrote down on the Agreement the personal details of Gemma as the guest in the Asian Tour for Singles.  Under the Agreement, the travel agency would be liable for damages in the event of any delay in the tour which was due to depart from Brisbane on 14 November 2015.  
 
Because of an ash cloud resulting from the eruption of one of Indonesia’s major volcanoes and an airline strike, Gemma’s departure was delayed. Gemma, who lives in Sydney, had to stay at a hotel while waiting for her flight, which eventually departed after five days.
 
While Gemma’s Asian tour was underway, she received the sad news that Shelley had succumbed to cancer. Gemma also wanted to cancel her tour because she was only staying at 3-star hotels instead of the 4-star hotels that John had promised. But the tour operator Lux Luxury Tours Ptd Ltd refused Gemma’s request to cancel her tour. Gemma had to return to Sydney at her own expense to grieve for her sister.
 
After Shelley’s burial, Gemma has come to you, as a Solicitor, for advice. Provide Gemma a thorough legal advice as to her rights (if any). For the purpose of this question, assume that the Australian Consumer Law does not apply.
 
 
 
 
Question 2                                                                             (20 Marks)  
 
William, a 17-year old university student, wanted to purchase a high-end gaming computer so he could play his online games better and use it for his university studies. He checked out the computers sold by the Zenith Computers Pty Ltd at its shop. The Mwave DeltaForce Recon Ultrathon Gaming PC, which had a $2,750 price tag, captured his fancy. William then asked Jeff, the computer shop’s owner, if he could pay it in installments. He told Jeff that he would like to take the computer home upon payment of 50% of the purchase price in cash. He would then pay the balance in six months by installment and by bank direct debit from money that he earned while working part-time at a supermarket. William showed Jeff copies of his pay-slips to prove that he had the capacity to pay. Jeff agreed to William’s offer. The parties then signed the shop’s standard Sale and Purchase Agreement that also contained their agreed payment terms.
 
Four months after the purchase, William’s payments stopped. Jeff called William to ask about his delinquent payments. William explained that he had lost his job two months prior and could no longer continue to pay for the computer. Although this was the situation, William told Jeff that he was keeping the computer, considering that as a minor, he had certain rights that protect him under the law.
 
Jeff has come to you, as a Solicitor, for advice. Provide him a thorough legal advice as to his rights (if any). For the purpose of this question, assume that the Australian Consumer Law does not apply.
 
 
 
Question 3                                                                             (20 Marks)  
 
On 4 January 2016, Alex visited the Your Body Rocks Fitness Centre (the “Fitness Centre”) to look into signing up for membership. He was entertained by one of the Fitness Centre’s Fitness Experts, Brad. The Fitness Centre has various fitness and leisure facilities including a gym, tennis courts, badminton courts, a sauna, and a swimming pool. According to the Fitness Centre’s website, the fitness centre is open to its members 24/7 and never closes.  
 
Alex, however, found the $120 monthly fee to be excessive and accordingly informed Brad that he was not signing up. Brad encouraged Alex to instead try their one-month free trial membership and showed him the Trial Membership Agreement.  
 
The Trial Membership Agreement provides, among others, that:
 
a)    a trial membership will automatically change to a regular annual paying membership unless the trial member informs the Fitness Center’s Manager in writing not later than 15 days from the start of the trial membership that he or she was discontinuing with the trial membership;  
b)    the Fitness Centre may change its operating hours at its discretion;  
c)    the Fitness Centre may, without any incurring any liability, indefinitely suspend the operations of any of its facilities;  
d)    the Fitness Centre may unilaterally vary any of the terms of the Trial and/or
Regular Membership Agreement; and
e)    the Agreement contains the entirety of the agreement of the parties.
 
Alex expressed his reservations about the above terms of the Trial Membership Agreement. Brad assured Alex, however, that the terms were standard terms and that the Fitness Centre always seeks to keep its members happy. Brad also assured Alex that he could cancel his trial membership just by sending him a text message even at the end of the trial membership. With these assurances, Alex signed the Trial Membership Agreement and signed a Direct Debit form authorizing the Fitness Centre to automatically deduct any appropriate fees from his bank account.
 
On 31 January, Alex sent a text message to Brad informing him that he was not continuing with the Fitness Centre’s regular paid membership. However, Alex did not receive a reply from Brad.  On 6 February, Alex was surprised to find the amount of $120 deducted from his account by the Fitness Centre. He called the Fitness Centre to complain about this and told them that he had already previously informed Brad that he was discontinuing his membership.  In reply, the Fitness Centre told Alex that he was bound by the terms of the Agreement that he signed and that any statements made by Brad were unauthorized. Hence, the Fitness Centre would continue to make the monthly deductions.
 
Alex has come to you, as a Solicitor, for advice. Provide him a thorough legal advice as to his rights (if any).  Focus on the Australian Consumer Law for this question.
 
 
 
 



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