Unit 5 Aspects of Contract and Negligence for Business

Introduction and background notes

You are a legal representative whose legal advice has been sought by a number of (fictitious) clients who have been affected by the activities of various (fictitious)  businesses. In each case you have been asked to clarify the relevant legal principles, apply the same, and advise your clients as to the likelihood of bringing a successful claim in the courts.

 

You are required to fulfil the following four tasks. Each answer must address the task, and provide analysis and application with reference to relevant case law and statutory provisions.  The total word limit is 3,500 words; your assignment should be at least 3,000 words in length. 

Task 1 (LO1)

“XP World” is a business that specialises in selling computers at discounted prices. The business has witnessed a fall in its profits and decides to run an advertising campaign to attract new customers. As part of this campaign the company pays for a newspaper advertisement that states:

 

“The first five customers to enter our shop on the 15 February 2014 will be eligible to purchase one of our highest specification computers, which normally retail at £2000.00, for £2.00”.

 

James reads the advertisement and waits outside “XP World” shop all night on the 14 February 2014 to ensure that he is one of the first five customers on the morning of the 15 February 2014. He is in fact the first customer to enter the shop on the morning on the 15 February 2014. When James tells the sales assistant that he wishes to purchase one of “XP World” highest specification computers for £2.00 he is told that the advertisement was not meant seriously and nobody of “sound mind” would think that they could purchase a computer for £2.00. He is informed that if he wishes to purchase the computer he must pay the “market rate” of £2000.00.

James has sought your advice as to whether he can force “XP World” to sell him the computer for £2.00.

 

In giving advice you must focus on the law relating to offer, acceptance, Intention to create legal relations and consideration.

Task 2 (LO2)

Peter wishes to purchase a new Ipad. He knows little about Ipads and decides to his local, “XP World”, to get some information and possibly purchase an Ipad.

He finds the sales assistant at “XP World” to be very helpful and decides to purchase an Ipad on the basis of a 24 month contract. The sales assistant informs him that he must sign a standard form contract. He signs the contract in the shop without reading it. When Peter later tries to use the Ipad he finds that it does not work.

He takes the telephone back to “XP World” and asks for a replacement but is informed that he is liable to pay for the cost of repairing the Ipad and even if he chooses not to have the Ipad repaired he is bound  for the 24 months period of the contract that he signed. The sales assistant points out clause xiii of the contract that he signed, which states:

“XP World accepts no liability for the replacement or repair of faulty products. In all circumstances the customer must bear the cost of either replacing or repairing any faulty product and is bound by the terms of this contract for its full duration”.

Peter has sought your advice as to whether he can force “XP World” to replace/repair the Ipad and whether he is bound by the 24 month contract. In giving advice you must focus on the relevant common law and statutory provisions protecting consumers who purchase goods from businesses.

Task 3 (LO3)

Alina was a passenger on “Great Northern Trains”, a train company that has recently gone into liquidation. The train she was on was involved in a crash with another train. She suffered a broken arm. The crash was caused because the driver of Alina’s train fell asleep.

Alina wishes to bring a claim in negligence against the train driver. Advise her as to what she must establish to bring such a claim and her chances of success.

Task 4 (LO4)

Sue was invited to a job interview with “Delux Hotel.”. On entering the building, which was owned and occupied by “Delux Hotel”, for her interview she fell over due to slippery floor at the reception area. There were no warning notices advising visitors to the building to take care due to the slippery floors.

Sue has sought your advice as to the possibility of bringing a claim against “Delux Hotel”  under occupiers’ liability legislation. However, she is worried because she is taking medication for a virus and the medication should only be taken with food; she took the medicine on the day of the interview without food and feels this may have contributed to her falling over on the slippery floor in the Hotel.

Advice Sue as to any action that can be brought under legislation relating to occupiers’ liability and whether and damages award might be reduced because of any possible contributory negligence on her part.

This is assignment case study guides you about the sort of the assignment, if you need help the way by which assignment must be done, see HND Assignment help unit list to see the solution.

Learning outcomes	Pass
LO1. Understand the essential elements of a valid contract in a business context	explain the importance of the essential elements required for the formation of a valid contract  discuss the impact of different types of contract analyse terms in contracts with reference to their meaning and effect
LO2. Be able to apply the elements of a contract in business situations	apply the elements of contract in given business scenarios apply the law on terms in different contracts evaluate the effect of different terms in given contracts
LO3. Understand principles of liability in negligence in business activities	contrast liability in tort with contractual liability explain the nature of liability in negligence explain how a business can be vicariously liable
LO4. Be able to apply principles of liability in negligence in business situations	apply the elements of the tort of negligence and defences in different business situations  apply the elements of vicarious liability in given business situations.