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Question: question two mr kumar and his son raj kumar jointly...

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Question Two

Mr Kumar and his son Raj Kumar jointly own a business selling and repairing electrical goods; washing machines, air conditioners, televisions, sound systems etc etc. The business trades under the name Kumar and Son.

 

Mr Kumar and Raj in fact have many business interests. They also own a taxi business, a construction company and a company that imports used vehicles. In consequence of their many business interests neither Mr Kumar nor Raj are actively involved in the business known as Kumar and Son. The management of this business is left to Kim Moon, an experienced electrician and trusted employee.

 

Kumar and Son has a good reputation with consumers. A major reason for this is that all electrical products sold, and all electrical repair work done by the firm comes with a 12 month warranty.

 

In early 2020 the construction company and vehicle import company owned by Mr Kumar and Raj are growing rapidly. Mr Kumar and Raj decide that they should dispose of their taxi business and their business in electrical goods and repairs and invest further resources into their two companies.

 

In July the business known as Kumar and Son is sold as a going concern to Green Co Ltd (‘Greenco’), a private company owned by the Green family. The purchase and sale agreement provides (inter alia):

(i) that Greenco shall meet any warranty claims on products sold or repair work done prior to the sale of the business, and

(ii) that Greenco may use the existing business name Kumar and Son for the business. [The parties are careful to update the information on file with the registrar re business names.]

 

Greenco employs Kim Moon to manage the business as previously. The business continues to be conducted from the same premises (the business premises having been included in the sale of the business.)

 

X is the owner of a washing machine purchased from Kumar and Son in January 2020. In September the machine stops working. X brings the machine into the business premises of Kumar and Son where she speaks with Kim Moon. X asks that the machine be repaired without charge. Moon refuses to do the work.

 

X is now very upset. She bought her machine from Kumar and Son because of the very good business reputation and more particularly because of the 12 month warranty. X wants to sue for breach of warranty.

Who, if anybody, can X sue? Provide full reasons and explanation in support of your answer.

 

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