Subject Code and Title LAW2000-Business Law
Summative or Formative Summative
Summative Assessment Number Assessment 4- Take-Home Supplementary Exam
Test Description This is an Open Book Exam.
LAW2000 Business Law Assignment-Australia.

LAW2000 Business Law Assignment-Australia.

Question 1
Question text
Short Answer:Jasper was at an industry trade fair where he met a
financial planner, Leon, who was looking for a buyer to purchase his business. An offer was made by Leon and Jasper agreed to purchase the financial planning business. Leon was not aware that Jasper was suffering from a mental illness at the time, as he had not been taking the medication which kept it under control. When Jasper resumed his medication shortly thereafter and regained
his sanity, he decided that he still wanted to purchase the property and he affirmed the contract with Leon. The next day, he changed his mind and wanted to rescind the contract on the basis that he was suffering from a mental illness at the time of entering into the contract. Advise Leon, providing case law as authority.

Question 2
Question Type
Question text
Short Answer

Pack away Limited and Contain all Limited are both suppliers of cardboard packaging and containers in Australia. For many months, the two competitors have been engaged in a price-cutting war, which means that they each reduced their prices below the other’s prices to gain more customers. The chief executives of both
companies attended an international environmental conference aimed at reducing hard waste and landfill, and they had a meeting at which they decided to stop the price war and charge the same prices to their customers, using a price formula by which the amount of the prices could be calculated. Two directors of Pack away Limited, Robert and Samuel, arrived late at the meeting, after the chief executives had already reached their decision to stop the price war and charge the same prices to their customers. State whether Pack away Limited and Contain all Limited have breached the Competition and Consumer Act 2010 (Cwlth), giving reasons for your answer, supported by legislation and case law. In addition,
state whether Robert and Samuel can be held liable for breaching the Act.

LAW2000 Business Law Assignment-Australia.

LAW2000 Business Law Assignment-Australia.

Question 3
Question Type
Question text

Surinder and Ramanjeet are partners in a business which manufactures jewellery. They have heard that it might be
more beneficial to trade as company instead. Compare the advantages and disadvantages of a company as opposed to a partnership, referring to both a company and a partnership in your answer.

Question 4

Case Study:
Sofia and Mia are developing a block of land which they bought jointly and intend to build townhouses on the land and sell them. They approach Universal Bank Ltd for a loan for their project. They attend the local branch office of the bank and negotiate with Ngoc who is acting in the role of the senior branch manager, Karl Jurgen, while Karl is absent due to illness. Senior management executives, who themselves have actual authority to approve loans, are aware that Ngoc is acting in the role of senior branch manager and dealing with clients, and allow him to continue to do so although they have not yet given formal approval for him to do so.

Ngoc tells Sofia and Mia that he will notify them by email regarding the outcome of their application for finance for the project. A week later Ngoc sends an email to Sofia and Mia approving their application and offering them credit of $2 million. Sofia and Mia accept the offer on the same day as they receive the email. Several days later, senior management of the bank decide not to continue
to finance the project, arguing that Ngoc does not have actual or apparent authority to approve the finance. Advise Sofia and Mia.

PART (A)

Question 4 A

Using the Issue and Rule part of the IRAC method of problem solving identify, analyse and explain the legal principles involved in determining whether apparent authority is present and would result in a binding contract, in the circumstances described in the case study.

Question 4 B
Using the Application and Conclusion part of the IRAC method of problem solving and giving reasons for your answer, supported by case law, advise Sofia and Mia whether there is a binding contract between them and bank, in the circumstances described in the case study.

Question 5

Case study:Julio is a farmer and his farm borders on the main highway leading to the town centre. Julio is aware that his neighbour’s son, Jing, takes a shortcut through the farm to
reach the main highway, when travelling to the town centre on his motorbike. Julio has made several requests for Jing to stop doing this, as it scares the cattle on his farm, but Jing ignores the requests. One day, Jing is taking a shortcut through Julio’s farm on his motorbike and he does not see a large hole in the ground where Julio has removed a tree. Julio had not put any safety guard around the hole or given any warning of the hazard.

Jing rides into the hole on his motorbike and is severely injured. He suffers multiple fractures, a head injury, pain and suffering and is unable to continue his employment for six months.

While in hospital, Jing’s pain is so severe that his friend offers him heroin to relieve him of the pain and Jing becomes addicted to heroin. Jing believes that his heroin addiction is a direct result of the accident and claims damages for the addiction from Julio, in addition to all the other damages claimed.

PART (A)
Question 5 A
Using the Issue and Rule part of the IRAC method of problem solving identify, analyse and explain the legal principles required to succeed in a negligence claim for the damages sustained in the circumstances described in the case study, including a claim for damages for the hero in addiction.

LAW2000 Business Law Assignment-Australia.

LAW2000 Business Law Assignment-Australia.

PART (B)
Question 5 B
Using the Application and Conclusion parts of the IRAC method of problem solving and using your knowledge of legal principles, advise Jing whether he would be successful in a negligence claim against Julio for damages suffered as a result of his injuries and also for his heroin addiction. Explain fully with the aid of relevant
case law.