Answer the following questions using the !LAC method of problem solving.
Question 1 115 marks]
tu4itaRlity graduated from the IvyHeath Cooking College with a major in thermo-mixing. Immediately after graduating, she set up her own cooking business ( `Thermodelicious). In early 2017 things were going really well and she was thinking about expanding her business. She melATIT.
C.1511itt, an accountant and financial adviser. They discussed Marias expansion plans and Amelia agreed to prepare abiTsiriTSTF11T1) an or aria and her growing business. Amelia advised Maria that she was in a sound position to expand and recommended that she borrow money to set up a cooking store in-a-trendy part of Bleak-heath. Maria relied on Amelia and acted on her advice. In July 2017, she borrowed $4ontipoff Credit, a small credit union that provided a loan and overdraft facilities. Maria then signed a five-year lease, bought seven additional thermomixers and hired Traceys Designs
& Graphics to design a webTiage for her. Th-en things went sour. Amelia. -that she had not
r adequately factored in her pre-existing debts, had underestimated the significant establishment costs associated with setting up a business in Bleak-heath. Amelia explained to Maria that in addition to reviewing Marias financial position, she also consulted her tarot cards on the matter and the reading showed that Marias business would reach financial glory. Maria has suffered loss as a result of this advice. She is unable to pay Ripoff Credit.
Marias boyfriend, Nathaniel, and his girlfriend Paloma were returning home after leaving their favourite pub, The Scandalous Heath. There is a pedestrian path that leads directly to the apartment where Nathaniel lives. It would take about one hour and a forty five minutes to make the journey. Because Paloma is extremely tired and Nathaniel is dying to see his other lover, Consuelo, the pair decide to borrow a couple of bikes from their friend Dan Brownie, to ride along the cycleway which runs parallel to the freeway to the city. The cycleway will enable them to reach Nathaniels apartment in about 25 minutes. Dan advised them to use the cycleway as opposed to the actual freeway. They are feeling adventurous and decide to disregard Dans advice and ride along the freeway. There are several notices which read -DANGER ! DO NOT WALK OR RIDE ALONG THE FREEWAY-. They are not wearing fluorescent or reflective garments and Nathaniels bike is missing its red rear reflector. Both bikes lack front lights although Palomas has a flashing tailing. In the meantime, a car driven by Julia comes around a bend in the freeway. Julia takes her eyes off the road for a moment as she rummages through her bag to locate her phone which alerted her that she got a new match on Fling-der, one of her many dating apps. Her car veers to the left, but Julia is unable to manoeuvre the vehicle which crashes into Nathaniel and Palomas bikes, injuring Nathaniel. He broke three of his limbs.
Advise Maria and Nathaniel on any liabilities arising from these facts, citing relevant statutory and case law authority, using the ILAC format.
Question 2 115 marks
Jay LeCrasstulua owns several Tuvaluanese restaurants in New South Wales. He and his family has
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solicited your advice as to their contractual liabilities and rights arising out of these circumstances:
(hi 20 September, Jay meets Rosita over lunch. Rosita owns a small dairy farm called The Mighty Cow-. After some negotiations, Rosita offers to sell Jay 3 kgs._of Wagyu beef for $15921 She also tells him that she will keep the offer open for the ncxt2.4Aotys.. Two hours later, Rosita receives a call from Angelo who offers $.3.1f1(lior the meat. She immediately accepts Angelos offer. Jay calls three
hours later ( within the 24 hours period) and informs Rosita that he accepts the offer, dealfadr
delivered and that lie will sue her Ibr breach of contract if she does not comply with their .
Jay agrees u) buy a new truck for home deliveries. lie approaches Marios Trucks and Motors Pty Ltd and makes enquiries about a couple of vehicles. Ile agrees to purchase a Pantech 2018 for $60,000. After the contract is signed he asks Jeff, the sales manager, if they will provide the first service free of
• charge. Jeff agrees. Two months after the purchase, the car needs to be serviced and Jeff is reluctant to
honour his promise.
Jay commenced negotiations to lease some commercial premises to be used for their new restaurant in Lettra. Part of the negotiation concerned the ability of Jay to demolish a wall in order to remodel the interior and build an oven. Nacho, the landlord, shook Jays hand and told him they had a deal and that he could go ahead and get started. Jay took a large bank loan to finance the re-modelling. Four weeks later, Jay received a letter from Nacho indicating that he did not intend to proceed with the lease. Jay has already spent $150 000 on the remodelling but has not received a signed lease as yet. He has also hired two International chefs to work at the new restaurant.
Jays parents, Mr and Mrs LeCrasstulua, migrated to Australia from Tuvalu in 1967. They are dependent on their two sons, Jay and Ricardo, for advice and support. They have limited education, no business acumen and poor language skills. Their only income is their age pension. They own their home which is valued at around $750,000. Ricardo is a charming but fleckless business man who is always on the verge of something great. In 2017, he needed $265,000 to pursue a dot corn opportunity that would make him as rich as his brother Jay. Ile is able to borrow money from The Con Bank but only after he persuades his parents to act as guarantors. He misleads his parents as to the extent and purpose of the loan. The bank is unaware of this. After investigating their financial position the bank manager meets with Mr and Mrs LeCrasstulua and go over the guarantee contract. He asks whether they had any questions and when they do riot, they signed the documents as required. Ricardo uses the money in an internet company. The company becomes insolvent and Ricardo loses his entire
investment. When he is unable to repay the loan, Corn Bank looks to the parents to honour their
obligations as guarantors.
Assume that you are Jays solicitor and that he has asked you for legal advice. Advise him as to what contractual liability, if any, he and, or his family have in the above circumstances, citing relevant case
law authority and using the ILAC format.
This assignment is designed to assess the following subject learning outcomes:
• be able to investigate the different sources of Australian law in order to contrast these
sources and explain their significance and interrelationships when applying them to legal problems;
• be able to demonstrate knowledge of tort and contract law by identifying the relevant issue(s) arising out of novel factual situations, stating the relevant legal principles, and
explaining how these relate to the legal issue(s), in addition to suggesting potential remedies when providing a conclusion;
• your ability to conduct basic legal research.
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