Business law – Question

Michael, who lives in an isolated property in the centre of Australia is watching a popular television programme on satellite television, when he sees an advertisement for a new brand of car, which makes a number of quite astounding claims as to its performance and value for money compared to its competitors. The advertisement claims that the car is the best car in the world.

The advertisement invites members of the public to come and test drive the new model at its flashy new dealers. The advertisement continues that any member of the public who test drives one of our cars within 12 hours of this advertisement appearing on television will become eligible for inclusion in a draw for a new car, and flashes onto the screen a complicated list of conditions which, despite Michael’s best efforts, he is unable to read entirely. He is however able to read a large notice that full details will be made available at the time of test driving the car.

Michael hires an executive jet to rush him to the nearest dealer, Slimy Motors Pty. Ltd., which is 1,200 kilometers away, in part due to the claim that it is the best car in the world, and partly because of the competition. After he has test driven one of the cars, he asks the salesperson for details of the competition and any forms which he has to complete to become eligible, and is told that the competition is not real, but is intended to attract people to the showroom. Michael is furious, and tells the salesperson that this whole exercise has cost me over $10,000 because I relied on it being the best car in the world which it isn’t, and also because you offered me a chance to win a car, which you now deny.

Question: What legal action, if any, does Michael have against:
(i) the manufacturer who authorised the advertisement; and
(ii) the dealer who gave him the test drive?

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