solution

Azman Organic Sdn Bhd (AOSB) provide organic fresh produce with has no pesticides and has a Mitsubishi truck plate no: JB 1234, Chassis no: HTYV1PLO980 as the designated truck to ferry their produce to their clients. One of the clients is Jen’s Grocer (JG) located at Medini Mall, Iskandar Puteri. The parties have agreed to execute a new transport agreement for the usage of the designated transport as JG in now venturing into organic products promoting non-usage of pesticides. JG main customer for organic produce are the nearby hospitals as they service healthy food. JG decided to maintain the integrity of the supply chain by having the supplies delivery in designated truck and was notified of Mitsubishi truck details. Due to the high demand for AOSB’s transport service, AOSB decided to include another truck Honda lorry plate no JH7654, Chassis no: TGFD76JLMNB90 to be the second halal truck under its scheme. Nevertheless, the matter was not notified to JG and AOSB has not taken the necessary steps to cleanse the Honda truck from the previous activities which was to deliver non-organic produce. In Ramadan 2021, AOSB delivers organic produce from the warehouse to JG using the new Honda truck. Amin, JG’s current Executive Manager went to inspect the goods during the delivery acceptance. Amin noticed the truck is different from the one usually ferries the goods. So, he went for further inspection and saw meat produce packages in a single container, non-organic produce inside the same container of the organic produce. Amin suspected the lunch food is not halal and confronted the truck driver. Due to this, Amin decided to refuse the delivery of the goods as to avoid further problem of cross- contamination of pesticide it is no longer Toiyib or wholesome as it is now considered as syubhah. Upon investigating previous delivery, he has also discovered that two previous delivery was also made by the same Honda truck and due to this Amin advice JG to proceed for legal action under the Sales of Goods Act 1957.

a) Examine whether Jen’s Grocer will be successful in their claim against Azman Organics Sdn Bhd under Section 16 (a) of Sales of Goods Act 1957.

b) Analyse whether Jen’s Grocer will be successful in their claim against Azman Organics Sdn Bhd under Section 16 (b) of Sales of Goods Act 1957.