Paul is a stockbroker who often comes to Adelaide on business.

Paul is a
stockbroker who often
comes to Adelaide on business. On the last trip
,
he was using his
new electric shaver for the first time when it
overheated and
exploded
causing
severe burns to
his face and hands. The shaver was given to
Paul for his 40
th
birthday by his eldest daughter
Pauline. Pauline had bought the shaver from Cheap Imports, a national chain of discount retail
stores
with outlets across Australia
. Cheap Imports had imported the shaver from the United
States
(the US man
ufacturer has no place of business in Australia)
. When Pauline bought it there
was a large label on the outside of the box as follows:
IMPORTANT NOTICE: This shaver is
not to be left on for more than
10 minutes at a
time as it can overheat and cause inj
ury. Use with care.
The warning label was not overly big, but placed prominently on the front of the box. No such
warning labels appeared anywhere on the shaver itself or inside its packaging.
Paul
used the shaver for in excess of 10 minutes as he was u
sing the beard trimming and shaping
tools that came with the shaver to patiently sculpt his facial hair. He
never saw
the
warning
because Pauline threw the box away before gift

wrapping the shaver for Paul’s birthday. Paul’s
medical expenses are likely to
be about $17,000.
He believes the shaver had a safety defect and
seeks to recover these costs through legal action against Cheap Imports.
Outline the
steps of a defective goods action for Paul, and discuss the potential arguments he
and Cheap Imports will
likely make.
 
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