Slumbertrek Australia Pty Ltd, Paul Schwarz and David Schwarz v Structure Imports Pty Ltd

Slumbertrek Australia Pty Ltd, Paul Schwarz and David Schwarz (the appellants) appealed to the Supreme Court of New South Wales against a decision of the District Court. The dispute concerned a contract for the supply of goods, specifically a consignment of mattresses, between the appellants and Structure Imports Pty Ltd (the respondent). The District Court had found in favour of the respondent, ordering the appellants to pay the outstanding amount for the goods.

The primary legal issue before the Supreme Court was whether the District Court had erred in finding that the appellants had accepted the consignment of mattresses. This involved determining whether the conduct of the appellants, particularly their actions after receiving the goods, constituted acceptance under the Sale of Goods Act 1923 (NSW). The court also considered whether the appellants had effectively rejected the goods within a reasonable time.

Justice McDonagh reasoned that acceptance of goods under the Sale of Goods Act occurs when a buyer, after a reasonable opportunity of inspecting the goods, intimates to the seller that he has accepted them, or when the buyer does any act inconsistent with the seller's ownership. The court found that the appellants had retained the mattresses for an extended period and had attempted to resell them, actions which were inconsistent with the respondent's ownership and indicated acceptance. The court further held that the appellants had not rejected the goods within a reasonable time, given the circumstances. Consequently, the appeal was dismissed.