Analysis of Breach of Implied Term under Sale of Goods Act
Question:
Discuss whether WashDoc is in breach of any implied term under the Sale of Goods Act due to the faulty machines.
Answer:
SUBJECT: BUSINESS LAW
The issue in this case is whether WashDoc is in breach of any implied term under the Sale of Goods Act due to the faulty washing machines sold to Golden Care Sdn. Bhd.
Explanation:
Under the Sale of Goods Act, there are certain implied terms that apply to the sale of goods. One of the implied terms is the implied condition of satisfactory quality. According to Section 16(2)(c) of the Sale of Goods Act, goods must be of satisfactory quality, which means that they should be reasonably fit for the purpose for which goods of that kind are commonly supplied.
In this case, Golden Care contacted WashDoc, a retailer of electrical appliances, to purchase new washing machines for their nursing home. Pn. Mariam, the director of Golden Care, informed the salesman about their need for new machines and asked for recommendations. However, Pn. Mariam decided to order 4 "Kleen" brand model GX 530 machines based on her personal experience with the same model at her own house. The salesman did not comment on her choice.
After a couple of months of use, the washing machines started to break down regularly, causing inconvenience to Golden Care. When Golden Care complained to WashDoc, they responded by stating that the washing machines are ordinary domestic machines and not intended to be run almost continuously, as Golden Care was doing.
Based on the implied condition of satisfactory quality, the washing machines should be reasonably fit for the purpose for which they are commonly supplied. In this case, the purpose was to wash bed linen and clothes in a nursing home setting. If the machines were not designed or intended to be used almost continuously for commercial purposes, it could be argued that they were not reasonably fit for the purpose for which they were sold.
In conclusion, WashDoc may be in breach of the implied condition of satisfactory quality under the Sale of Goods Act. The washing machines sold to Golden Care were not reasonably fit for the purpose for which they were commonly supplied, considering their continuous commercial use. However, further analysis of the specific terms of the sale agreement and any disclaimers made by WashDoc would be necessary to determine the extent of their liability.