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Part B : Hire-Purchase Law (35 marks)
Cylops after graduating from the University that’s Always Resilient (UTAR), secured the job of his dreams, at an Information Technology based company in Cyberjaya, the Intelligent City. The job required him to travel a lot to meet up with clients to develop IT solutions that would enhance the clients’ businesses. Hence, owning a car was a necessity for him. Unfortunately, he hardly had any savings to buy a car, by making a lump sum cash purchase. However, he did recall that when he studied business law at UTAR, it was possible to purchase a product via hire-purchase, which avoided the need for making a lump sum payment. Without any hesitation and in full confidence, Cyclops approached Goody, a car dealer in Kajang on 1 January 2017. Cylops told Goody, on the very same day, that he wanted to puchase the Perodua Axia priced at RM24,000, via hire-purchase. Goody told him that it was a good buy because it was fitted with a new EEV Engine (1.0l VVT-i) that was built to improve fuel consumption, as well as to reduce levels of vibration and noise. One month after the car was delivered to him, the car started to vibrate and emit noice; also, the consumption of fuel seemed to have increased every week, although the distance travelled was more or less the same every week.
(a) Discuss Cylop’s rights in this case and against whom those rights should be exercised under the Hire-Purchase Act 1967 (Revised in 1992). (9 marks)
(b) Make an assumption that Cyclops encountered no problems with his Perodua Axia after having purchased the car via hire-purchase in January 2017. However, this year, 2018, Cylops is all of a sudden ashamed of his car, attributable perhaps to his colleagues in the same company owning foreign made cars. He no longer wants to be seen driving the car. Advise Cylops as to what he should do from a practical and legal perspective. (9 marks)
[Total = 18 marks]
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