Assignment:
1. Tommy is a successful property developer who regularly attends Jay's Dry-Cleaning Service to have his expensive suits dry-cleaned. The owner of the business, Bob Jay, has been advised to limit his liability by the use of an exclusion clause on the back of the clothing dockets which are handed to customers for the collection of clothing items.
On the last visit to Jays, Tommy was given a clothing docket after he had paid his money and agreed on the price, containing the following clauses:
(1) The proprietor of Jay's Dry Cleaning Services does not accept liability for any loss or damage caused to clothing items during the dry-cleaning process.
(2) The consumer guarantees under the Australian Consumer Law are expressly excluded in respect to any dry-cleaning services provided by Jay's.
On returning to collect the suit, Tommy is informed by Bob that one of his employees had stolen the suit and that Bob was excluded from liability under clauses (1) and (2) of the docket.
Required
(a) Advise Tommy as to the application of the exclusion clauses?
(b) How would a court interpret clause (1) and would the clause cover Jay's liability for items stolen by its employees?
(c) Would clause (2) be effective to exclude the application of the consumer guarantees under Competition and Consumer Act 2010?