Question la Samad wished to purchase a sewing machine on hire- purchase. He entered Raz Electrical Goods Store and expressed this wish to Ali, a salesman. Ali showed Samad a sewing machine. At the same time, a spin drier which was on display nearby, caught Samad's attention. On seeing Samad's interest in the spin drier, Ali pointed at it and said: "That's a good buy. It's economical to use and can dry 5 kilos of clothes in 15 minutes." On hearing this, Samad told Ali that he would take the spin drier as well as the sewing machine on hire-purchase terms with Kenanga Finance Bhd. After using the spin drier for two days, Samad discovered that it could take only 4.5 kilos of clothes. Moreover, it took 40 minutes for the clothes to dry in the machine. Samad was unhappy with the performance of the spin drier and wished to terminate the hire-purchase agreement. Kenanga Finance Bhd has disclaimed all liabilities and knowledge about the product. Advise Samad as to whether he can claim from Kenanga Finance Bhd for misrepresentation. Question lb Reza entered into a hire purchase agreement with Tegas Finance Bhd for the hire purchase of a new Proton Perdana motorcar. The agreement expressly negated the owner's liability for fitness and merchantable quality of the car. Discuss liability of merchantable quality and validity a clause under Hire Purchase Act.

Question la Samad wished to purchase a sewing machine on hire- purchase. He entered Raz Electrical Goods Store and expressed this wish to Ali, a salesman. Ali showed Samad a sewing machine. At the same time, a spin drier which was on display nearby, caught Samad's attention. On seeing Samad's interest in the spin drier, Ali pointed at it and said: "That's a good buy. It's economical to use and can dry 5 kilos of clothes in 15 minutes." On hearing this, Samad told Ali that he would take the spin drier as well as the sewing machine on hire-purchase terms with Kenanga Finance Bhd. After using the spin drier for two days, Samad discovered that it could take only 4.5 kilos of clothes. Moreover, it took 40 minutes for the clothes to dry in the machine. Samad was unhappy with the performance of the spin drier and wished to terminate the hire-purchase agreement. Kenanga Finance Bhd has disclaimed all liabilities and knowledge about the product. Advise Samad as to whether he can claim from Kenanga Finance Bhd for misrepresentation. Question lb Reza entered into a hire purchase agreement with Tegas Finance Bhd for the hire purchase of a new Proton Perdana motorcar. The agreement expressly negated the owner's liability for fitness and merchantable quality of the car. Discuss liability of merchantable quality and validity a clause under Hire Purchase Act.

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