The assignment is in the form of a problem question dealing with exclusion of liability and consideration.
Before attempting the assignment you should review:
• • the guidance on writing eTMAs set out in section 4 of your eTMA Guide; and
• • the advice for answering problem questions set out in section 7 of your eTMA Guide.
You will also need to review the relevant material in Units 4, 5, 6 and 7. You are encouraged to do further independent research, but are not required to do so.
Commercial Vehicle Repairs PLC (“CVR”) repairs vehicles for small businesses. Last month it entered in to repair contracts with (among other customers) Parsons Plumbing Ltd (“PPL”) and Bright Sparks Ltd (“BSL”).
PPL’s managing director, Iwan Parsons, telephoned CVR to arrange the repair of one of its vans and its truck. After the telephone conversation, CVR sent a quotation for the job (see Document A).
Iwan read the quotation but did not look at the terms and conditions set out on the back, an extract from which appears as Document B. He telephoned CVR and explained the importance of finishing the jobs properly and on time, as the vehicles were crucial for cash flow. He said that PPL would be accepting the quotation.
BSL had been a customer of CVR’s for at least 10 years, and every 6 months its vehicles go to CVR for maintenance. CVR’s latest contract with BSL was to service a transit van for £150 (plus the cost of any replacement parts). A date for the work was agreed and CVR agreed that if the van was dropped off by 8:30 am the work would be completed by 4:00 pm on the same day. The first document that BSL received was the invoice after the job was finished. On the back of the invoice were the same terms and conditions mentioned above (Document B).
There have been a number of difficulties:
o • PPL’s van came to CVR with engine problems. CVR’s employee, Bill, reinstalled the radiator without attaching one of the pipes correctly. As a result, the engine overheated and failed. It needs to be replaced at a cost of £2,000. PPL has lost 10 days’ plumbing jobs, amounting to a £10,000 loss of profit.
o • On PPL’s truck, a defective engine management system unit was fitted, so, 2 days after the repair, the engine did not start and PPL has been unable to use the truck for 5 days. As a result, it has lost another £5,000 profit.
COMMERCIAL VEHICLE REPAIRS PLC Specialists in vehicle repairs since 1960 Unbeatable prices