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.

Commercial and Corporations Law Assignment

This article is related to the Commercial and Corporations Law Assignment.

Internationalization of regulations would benefit countries in Trade and Commerce Assignment. In other words, creation of a set of rules that could be applied and enforced regardless of jurisdiction of a country.

Length: 2500 words (max.) excluding citations and quotations, footnotes and

Bibliography.

1. There is one short essay as part of the progressive assessments. It is worth 20% of the final mark. More information about the assignment will be given with the question.

2. In this unit you are required to use legal citation and referencing not Harvard referencing style which is used in most of your other units.

The Bibliography should include all books, articles and reports consulted including cases or legislation. Correct footnoting should be used. Note that end notes should not be used. Please note that the file cannot be printed. It can however be bought online or ordered at the Unitext bookshop at your campus. The styles as set out in the Guide must be complied with and this will be taken into account in marking.

Check the Language and Learning website for the document ‘Referencing using law style’ which gives you an introductory overview of the Australian Guide to Legal Citation required by the Deakin Law.

3. The Short Essay may be based on a Chapter which has not been covered in class before the due date. Therefore, it is expected that you do your own research on the topic beforehand.

4. You should select only seven (7) academic sources: articles or chapters from books.You should cite them appropriately in your Bibliography. Prescribed text book/s are not considered as reference material. The statutes and cited cases should not counted academic sources.

5. The title page must include:

   Your name and student number

   Word count

6. Please refer to the Rubric (marking guide). Make sure that you follow the guidelines carefully to avoid losing marks for unnecessary mistakes and omissions. The mark will reflect an assessment of style, structure and the content.

7. Both assessments are required to be submitted online via CloudDeakin ONLY.

8. The CloudDeakin submission area will be opened from one week before the due date.

9. The results and feedback will be released within 15 working days from the scheduled submission date.

Submission policy

1. The Short Essay is to be submitted online in CloudDeakin in the area provided.

2. It should be typed and presented in a professional manner. The typed assignment MUST only be in ‘WORD’ format (no PDF or any other format).

3. No extensions will be considered for both submissions unless a written request is submitted to and approved by the designated Unit Chair. Late submissions will be marked subject to a penalty – 1.5 marks will be deducted for each day. Any work submitted more than 10 days overdue will not be marked. If you are given an extension, the 10 days will run from the last day of your extension. Submissions after 10 will not be marked.

4. Any submissions sent by fax or email will not be marked.

5. The late submissions (with or without permission) will not be marked along with the other papers.

6. Late submissions (with or without permission) will be marked at the time of finalization of the final results.

7. Late submission of an assessment occurs when not due to a fault of the Cloud Deakin system a student submits an assessment after the due date and time without a prior permission for an extension from the Unit Team.

CLW 3000 - Assignment of Taxation Law

LEARNING OUTCOMES:

The purpose of the assignment is to assess a student’s ability to:

1. identify the facts available;

2. identify the taxation issues arising;

3. research the relevant law;

4. apply the law to the facts identified; and

5. form an opinion.

REQUIRED

Taking the above Learning Outcomes into consideration, your assignment is to prepare a written opinion addressed to your client, Water-Jet Ferries. It should be no longer than 1,000 words.

ASSIGNMENT CASE- STUDY

WATERJET FERRIES

WaterJet Ferries is a successful ferry operator providing roll-on/roll-off car and truck ferry services to the larger islands off the coast using vessels that are propelled by water-jets powered by diesel engines. Over the last twelve months the company’s profitability has been badly affected by rising fuel costs and a fall in patronage. As a consequence management has decided to examine the possibility of modifying the existing engines to reduce their fuel consumption. Not only would the modifications result in reduced fuel costs, the modified engines would produce increased power permitting the vessels to travel at higher speeds and so enable more services to be provided. A further benefit would be that the modified engines would be environmentally friendlier which is important to the island communities served by the company.

 Their decision was arrived at after receiving advice from the engine manufacturer that WaterJet would be able to treat the modifications as a repair and by doing so claim a tax deduction for the cost incurred.

 WaterJet has requested your company to provide them with an opinion as to the correctness of this claim by the engine manufacturer. Your opinion must be supported by reference to any applicable tax legislation and/or case law. 

SCHOOL POLICIES

You should refer to the Subject Outline and carefully note the School’s policies in regard to the following matters:

1. the late submission of assignments;         

2. the presentation of written work; and

3. academic integrity

ASSIGNMENT COVER SHEET

An Assignment Cover Sheet must be completed, signed and attached to the hard copy of your assignment prior to its submission. These forms are available at the Reception/Front Office. Please check the cover sheet for details relating to assignment requirements.

Assignment based on Corporations Law

Assignment Topic:

One of the main ways in which the ‘veil of incorporation’ can be lifted is when directors breach their duties.  This essay question is set around the duty to prevent insolvent trading.  You will need to have read the chapter in your prescribed text that deals with this duty and have then researched more widely by looking at other textbooks, the relevant CCH online library, articles from the internet and journal articles.  You must answer both parts of this topic.  Please make sure you have REFERENCED in the body of your work ACCURATELY.  Remember, referencing shows you have researched and thought about what material will be relevant to assist you in answering the questions.

Read the following scenario

 and answer BOTH parts (questions) at the end.

OHS Solutions Pty. Ltd. is a company formed by three friends (Des, Satish and Emma) who bring different skills and abilities to the business.  Emma is an accounting graduate, Des has expertise in occupational health and safety (OHS) and Satish has an IT degree.  They decided to start up a business which would provide a portal through which the public and businesses could access (for free) information on all aspects of OHS.  OHS Solutions would finance its business, and make profits, by charging businesses to advertise via their website.

 

The directors of OHS Solutions are: 

Managing Director – Des

Finance Director – Emma (non executive)

Director – Satish (executive – employed also to run the technological side of the business)

Director – Ying (non executive) – a friend of Des’ and director of Support Pty. Ltd.  (Support Pty. Ltd. has gone guarantor for a $50,000 loan from the Business Bank Ltd. to OHS Solutions)

The Shareholders of OHS Solutions (holding equal amounts of ordinary shares) are Des, Emma, Satish and Support Pty. Ltd.

As at January 2007 OHS Solutions had been operating for six months.  It had some initial IT problems which prevented some of the advertisers’ material from being accessed.  In order to try to help overcome these technical problems Satish engaged Trouble Shooters Pty. Ltd. 

At the February Board meeting, Satish reported that two businesses who had paid to advertise on the website were dissatisfied with what was happening and were threatening to sue for breach of contract.  Emma was unable to table any financial information as the employee who had been doing the accounts had been sick and when Emma looked at the records she found that they seemed to be in a bit of a mess.  She did find a large account from Trouble Shooters that was over due.  Des reported that he was disturbed by this news.  He had been told by Satish that the IT problems had been fixed since Trouble Shooters had been engaged, and he had just signed a $10,000 advertising contract with Promotions Plus Pty. Ltd. to advertise the website and signed up to go to a trade show to be held in conjunction with a forthcoming OHS conference.  He said this was needed because a number of high profile advertisers were threatening to discontinue their association with OHS Solutions unless the portal became better known.

Ying just listens in disbelief at the March Board meeting.  It seemed to her that OHS Solutions is being poorly managed and is failing to make the most of a potentially profitable business opportunity.  This could present an opportunity for Support Pty. Ltd. to make an offer to buy OHS Solutions at a good price.  On the other hand Support Pty. Ltd. is exposed as a guarantor.

Assume she consults you, an accountant, for your preliminary view about the predicament of OHS Solutions and what she should do.   Assume also that the first thing that comes to your mind is whether Ying herself may be vulnerable as a director of OHS Solutions for failing to prevent OHS Solutions from trading when it is insolvent.

YOUR TASK

Part A  -   (approx 800-1,000 words)   10 marks

Write a brief explanation about why the directors’ duty to prevent insolvent trading exists and the circumstances and consequences of the ‘veil of incorporation’ being lifted for insolvent trading.         

(Do not just repeat the words of the relevant sections in the Corporations Act).

And

Part B -  (approx 1,500-1,700 words)  10 marks

From what you know of OHS Solutions’ predicament, DISCUSS whether any of the directors may be about to breach or have already breached the duty to prevent insolvent trading.  (In order to do this you will need to compare what is happening in OHS Solutions case with other precedent cases and refer to the relevant sections in the Corporations Act.)  What will you advise Ying?

(Note:  you do not have full information, so state briefly in the essay what information you need and make reasonable assumptions that will allow you to give your advice.  ONLY DISCUSS INSOLVENT TRADING – THAT IS THE QUESTION AND YOU DON’T HAVE ENOUGH WORDS TO GO INTO OTHER AREAS)

PLEASE NOTE THE FOLLOWING INSTRUCTIONS:

References must be cited in Harvard referencing style (eg Smith 1992) .The assignment must include a bibliography (list of references used in the assignment).  The Internet may be used for authoritative reference material provided the source, author, date of access, and site address is clearly shown in footnote format. 

In addition to sources from the Internet, at least three hard-copy sources must also be used.  These can be either books or articles or both.  Materials from any common law jurisdiction may be used.