relevant statute(s) applicable to liability

Beatrice (Bea) likes shopping for antique furniture and on a Saturday afternoon after having brunch with some mates, she passes by a shop, Copenhagen Antiques (CA). CA is known all over Melbourne for selling great quality antique European furniture at very reasonable prices. In the store, Bea becomes very excited when she sees the famous egg chair by Arne Jackobsen and immediately approaches the store owner, Giselle. Giselle says to Bea that Bea has an eye for quality as it is one of the artist’s most famous designs. Giselle tells Bea that the chair is an original, was made in the 1950s when not many were manufactured and that the price of the chair is $25,000. Bea feels reassured by Giselle and after much negotiation between the parties, Bea agrees to buy the chair. The parties enter into a written agreement which sets out the names of the parties, the price and a short description of the chair. The written agreement also contains the following clause: “It is hereby agreed that the chair is sold as is and no guarantee is given to the buyer that it is an original”.

Shortly after the purchase of the chair, Bea runs into financial difficulties and hence wants to have the chair valued. This is when she discovers that the chair is only a machine produced replica of the egg chair by Arne Jackobsen. She is advised that it is of good quality but a replica nonetheless and most likely only worth $2,000.

Bea has come to you for help. She wants to know if she can take any legal action against Giselle who denies liability and refuses the refund the purchase price to Bea.

REQUIRED:

Please advise Bea of all the grounds on which she may commence an action in common law and under statute law. In relation to common law arguments, use case law to substantiate each argument made and indicate whether she is likely to succeed. In relation to statute law, indicate the relevant statute(s) applicable and which provisions in that statute apply.