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CLWM4000 Business and Corporations Law- Australian Consumer Law

Chong wants to buy a truck for his construction business. He inspects several different trucks advertised as brand new at a truck dealership owned by Jason. He likes the look of a white 6 wheel Hino Tipper priced at $55,000. Jason convinces Chong that it is almost new and really a good deal as it is in immaculate condition with no mechanical fault even though Jason knows the truck has oil leaks. He can tell Chong doesn’t understand English very well so he inserts a clause into the purchase agreement waiving his protection under the Australian Consumer Law statutory guarantees.

One week later the truck has a massive oil leak and stops in the middle of the road. Chong has the car towed to a mechanic who speaks Mandarin, his native language. The mechanic explains the car has travelled over 50,000kms and that the seller might have removed any cardboard used to soak up leaks.
 
Jason refuses to refund Chong his money. He points out Chong agreed to waive his protection under the statutory guarantees when he signed the purchase agreement and claims he is not a consumer under the Australian Consumer Law anyway because the car cost more than $40,000.
 
Advise Chong:
 
1) Is Chong a consumer under the Australian Consumer Law?
2) Did Jason breach any law when he advertised a used truck as brand new?
3) Did Jason breach the law when he included the waiver in the agreement?
4) Can Jason claim that Chong waived his protection under the statutory guarantees when he signed the purchase agreement?
5) Has Jason breached any other provisions of the Australian Consumer Law?

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