SPECIAL INSTRUCTIONS:
1.This examination is worth 50 marks out of a  total of 100 marks for this unit.
2.All questions are of equal value (10 marks each).
3.Answer five (5) questions.
4.You must refer to relevant rules, cases and legislation as appropriate for each question.
5.You must complete your exam on this document in the spaces provided under each question.You can expand the space under each question if needed.
LAW00150 Introduction To Business Law Assignment-Southern Cross University Australia.

LAW00150 Introduction To Business Law Assignment

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QUESTION 1

What would be the appropriate remedy in each of the following breaches of contract? Your answer should state the:
1.Most likely remedy and the specific area e.g. 1) equitable remedy – specific performance or e.g. 2) common law damages – reliance losses; plus
2.Best supporting case.

Each part is worth 2.5 marks

a) Mary breaches her contract to play for the Jets football team after having a fight with the team captain. Contrary to a clause in her contract she starts playing with another team in the same competition.

b) Fred and Jane read a brochure about a seaside resort offering a one-week holiday package that includes scuba diving and whale watching. They book a package only to find, when they arrive, that the scuba tanks have been declared unsafe and cannot be used and the boat used for whale watching has been put on dry dock for its annual maintenance inspection, repair, and keel painting.

c) Fiona purchases a Commodore after the seller had promised that there was absolutely no rust.She would not have entered the contract had she known about the rust.

d) Emma enters into an oral agreement with Fred where he agrees to build her a house for $500,000. Fred builds the house but Emma refuses to pay. The agreement was made in a state where building contracts of this type have to be in writing.

QUESTION 2

In Derry v Peek 14 App.Cas. 337 (House of Lords, 1889) the Court held that there was not a fraudulent representation made by the tramway company. With reference to the issues before the court in that case, do you think that in 2020 it would be more desirable to sue under S 18 of the Australian Consumer Law? Explain your reasons.

QUESTION 3

Bill has dismissed Penelope from her job as his personal assistant. She decides to get revenge by phoning the local pizza delivery shop and ordering 30 vegetarian pizzas to be delivered to Bill’s house that evening ’for a business working dinner’. She has ordered pizzas from the same shop on behalf of Bill, as his agent, in the past. When they arrive at his home Bill refuses delivery.

LAW00150 Introduction To Business Law Assignment-Southern Cross University Australia.

LAW00150 Introduction To Business Law Assignment

a) Advise the pizza delivery shop regarding any possible legal action against Bill.

b) Explain whether your answer would be different if Penelope had not previously ordered pizzas on behalf of Bill from the pizza delivery shop.

Do the following contracts fall under the provisions of the Australian Consumer Law (ACL) relating to the four consumer guarantees (Ss 54-57)?  For each part:
1.Answer Yes or No and
2.Explain your answer with reference to the relevant ACL section.

Each part is worth 2 marks

a. International Wheat Corporation (IWC) buys a Rolls Royce for $300,000 from Pure Luxury Autos P/L for its CEO, Kristy
b. Steel Fabricators P/L pays $39,000 for a container of tin and steel shipped from the USA with which it will build house frames for a new housing development
c.Charlotte buys a painting for $42,000 from a top-end art gallery
d. Jane purchases a second hand computer from a fellow student at her university residential college for $4,000
e. Mick buys a large trailer from Trailers R Us P/L for $15,000 to be used for political advertising signage in future election campaigns.

QUESTION 5

A supermarket customer accidentally dropped his carton of milk. The carton split open when it hit the floor.  Milk spread over the area in front of the dairy section. A supermarket employee witnessed the accident and rushed off to collect cleaning equipment and warning signs.

Graham had spent the afternoon drinking beer and spirits at his local hotel. Evicted from the hotel for being drunk, he stumbled across the road to the supermarket to purchase some milk. Graham also witnessed the accident with the milk carton but, unlike the other customers who stood back, he walked onto the wet floor and reached for a carton of milk. Graham slipped on the wet floor and, as a result, suffered concussion and a broken arm.

Graham now wishes to sue the supermarket for common law negligence. The supermarket acknowledges that it owes a duty of care to Graham but it wants you to advise it regarding standard of care and anything else that might help their defence.

QUESTION 6

Harry is a truck driver who has entered into a one-year contract with Chloe, a florist, to collect 500 red roses each Thursday at 4.00 am from a Sydney flower market and deliver to her Coffs Harbour shop no later than 4.00 pm on Thursday afternoon. Harry had calculated that he would make a handsome profit on the contract based on the seven hours it normally took him to travel the Pacific Highway between the two points.

After much public criticism of the highway’s condition following several major accidents the NSW Premier announced that it would undergo major repair work near Taree and for eight months all trucks would be required to use a detour.  Harry wants to be discharged from the contract for frustration and seeks your advice in the following scenarios:

LAW00150 Introduction To Business Law Assignment-Southern Cross University Australia.

LAW00150 Introduction To Business Law Assignment

a) The detour adds four hours to Harry’s trip which means he will only arrive at Chloe’s an hour before the deadline. He has calculated that the additional costs (in fuel and time) mean that he will now incur a loss on the contract.

b) The detour adds eight hours to the trip, which means Harry, will be unable to deliver until Thursdays at 7 pm at an even greater loss.

LAW00150 Introduction To Business Law Assignment-Southern Cross University Australia.