SOGO Case Study

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Issue: Can the contract of sale be governed by SOGO? What is the protection for a consumer under SOGO in business sale? What are the consequences of breach of implied terms? Legal Rules to the question (i) to (ii) Victoria bought the new set of dishes in a sale from a local hardware store. By the definition under The Sale of Goods Ordinance, it would appear to be a consumer buying goods from a business seller. It is a contract for sale of goods under business sale whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, s.3(1) of SOGO. Therefore, Victoria has the full protection of the implied terms of SOGO. This means that a breach of an implied condition allows the buyer to repudiate …show more content…

as durable 6. description applied to the goods 7. the price and all other relevant circumstance Fit for its purpose under s.16(3) of the SOGO 1. It applies only in the course of business, not in private sale. 2. All goods have an implied purpose, which is derived from their nature, and common purpose. 3. The period of the innocent party 's right to repudiate the contract should be reasonable if there is no specific period stated in the contract of sale. Application: Victoria bought the dishes from a local hardware store considered as a business sale. If dishes cracked and hurt Victoria 's hands when she was the first time used one of the dishes to hold the hot food, it is probably not of merchantable quality under 16(2). A reasonable person would not be expected a new set of dishes were cracked and hurt her hands because of holding hot food. The safety, durability and description applied to the goods of the product might be called into question. Also, the box, which the dishes were packed, has written “Oven to Tableware. Made in France. Suitable for all types of cooking…” The dishes had an implied a common purpose that it can be used in a high temperature for cooking or normal use because it is for oven use and for all type of cooking. Therefore, the dishes didn 't meet the common purpose of performance. It rendered the item unfit for its purpose under s.16(3) . Whether “first time used” was the date which Victoria bought the dishes or later, if the contract wasn 't having …show more content…

From the users’ advice on the box, it stated that the dishes were "Made in France" and can be the part of description. Second, this provision only applies to sale by description. In this case, we didn’t know whether the description came to the attention of Victoria, but it seen it might not have been until she opened the box and saw one of the dishes at the bottom have a label which showed that it was made in China rather than France. If so, then Victoria has no cause of action against hardware store, because the word "Made in France" cannot have been part of the contractual description at the time making the contract. However, if Victoria was aware of these words before the contract, this does not necessarily mean that there is a breach of

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