Question 1 Peng & Lau, a firm of accountants, recently purchased a laptop computer from computer retailer Ace Computers Ltd for $5,000. The laptop was acquired for use by the auditing staff of Peng & Lau during the times when they are working at the premises of clients of the firm. A term of the contract between Peng & Lau and Ace Computers provides that the liability of Ace Computers in relation to any defective computer is restricted to the cost of repairing the relevant defect(s). Soon after the laptop is acquired, it is discovered that, because of faulty wiring, users of the laptop receive an electric shock if they use the laptop while the batteries of the laptop are being recharged. One consequence of this problem with the laptop is
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Jim picks up the goods. Jim and an employee of ABC complete and sign a collection docket. ABC keeps a copy of the docket. Jim takes the goods directly to the drop off point and has the docket countersigned by another employee of ABC. At 12:30 pm on 5 June, Jim collects a quantity of expensive goods from one of ABC’s shops. The usual procedure on collection is followed. A collection docket is filled in and signed, and a copy of the docket is kept by ABC. The following terms are set out at the back of the docket:
This receipt is an acknowledgement that the relevant goods were delivered to Jim in reasonable condition. Jim will use his best endeavours to ensure that the goods in question are delivered safely. Jim is not liable for any loss of or damage to any goods carried under this contract regardless of how such loss or damage may arise, whether by negligence or otherwise.
As it is nearly lunch time, Jim decides to have lunch before delivering the goods. He goes a number of kilometres out of his way to pick up a friend. Together, they then proceed to a hotel which has a great counter lunch. Jim parks on a steep hill. Unfortunately, Jim has not recently checked the brakes on the vehicle that he uses. The brakes fail and the vehicle races down the hill, smashing into a number of obstacles along the way. The goods that belong to ABC are totally destroyed. ABC maintains that Jim must pay for the damage