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Andrew Hart is the owner of a bakery, Maximus Cakes & Scones Limited, in Wan Chai

Question 3 (50 marks)
Andrew Hart is the owner of a bakery, Maximus Cakes & Scones Limited, in Wan Chai (“Maximus”). Maximus is well known for its traditional Chinese crispy cakes (“Crispy Cakes”), egg tarts, scones and coffee. To produce the Crispy Cakes, a very special oven, that has an internal flipping mechanism (that flips the trays 20 times per minute) and that preheats at 300 degrees Celsius, is required.
The oven for making Crispy Cakes broke down one morning. Andrew decided to purchase a new one. He contacted Tricky Ovens Limited (“TOL”). Moses Long, the senior sales representative of TOL, introduced Andrew to Model X, a special purpose oven designed for high-end bakeries. Moses reassured Andrew that Model X, which they distribute, is the latest product from Israel and meets all Andrew’s requirements. Moses added that Model X captured 30 different industrial accolades, including “the Best Global Professional Oven in 2017”. Andrew was impressed and ordered the Model X for HK$2,000,000 on behalf of Maximus.
The Model X was installed. But soon afterwards, Andrew regretted his decision. Not only did the Model X failed to preheat at 300 degrees Celsius (it could only preheat at 200 degrees Celsius), the internal flipping mechanism did not work at all. The cakes that came out of the oven were soggy, not crispy! Andrew lost many customers as a result. He had to replace the Model X with another oven that costs HK$3,000,000.
Andrew later discovered that Model X was not even produced in Israel (it was produced in Vietnam) and it never received any industrial accolade.
Advise Andrew Hart whether Maximus has a claim against TOL.

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