Introduction to Business Law
LEGAL PROBLEMS & SHORT ANSWERS
Marking criteria for all short answer questions
You will be assessed on your ability to:
• identify and state the relevant rule or rules;
• identify and cite the relevant case or cases;
• discuss the above in relation to the question.
Marking criteria for all problem questions
You will be assessed on your ability to:
• identify the legal issue or issues;
• apply your knowledge of the law to identify and state the relevant rule or rules or statutes; • identify and cite the relevant case or cases; and
• reach a conclusion and explain your reasoning.
Q 1 Short answer (4 marks) 200 words limit
You are a Justice of the NSW Supreme Court. How will the High Court’s decision in Ermogenous v Greek Orthodox Community affect your future decisions regarding intention and the presumptions regarding social/domestic and commercial agreements?
Q 2 Short answer (2 marks) 100 words limit
Discuss the difference in effect of the following clauses:
(a) “This document does not give rise to any legal relationship and shall not be subject to legal jurisdiction in the law courts.”
(b) “No court shall have power or jurisdiction to arbitrate in respect of any matter arising out of this agreement or any breach thereof.”
Q 3 Problem (6 marks)
Donald borrowed $2000 from Ace Finances Ltd. The agreement stated that the full amount plus interest of $500 was payable on 30 November. Shortly after arranging the loan, Donald lost his job and has been unemployed ever since.
Advise Donald in each of the following scenarios: (Note – the issue will be the same in each part)
(a) On 10 November, Donald approaches the company, saying: “I have scraped up $2000 but that is all I have. If you take that in full satisfaction and agree not to sue me for the remaining $500 you can have it now.”
(b) Donald informs the company that he will sell his car if the company will take the proceeds in lieu of the amount owed. The company agrees even though it plans to sue him at a later stage for the difference. Donald sells his car for $2000,
hands over the money on 30 November and, 6 months later, the company sues him for the remaining $500.
(c) Donald’s daughter, Ivanka, offers to pay the company $2000 if they agree not to sue her father for the remaining $500. The company agrees so Ivanka hands over the money on 30 November.
Q 4 Problem (3 marks) 150 words limit
Bill promised his daughter, Chelsea, that he would give her a Ferrari as a birthday gift on her 21st birthday. The big day arrives but Bill tells Chelsea that he’s changed his mind and gives her a used Mazda instead.
Advise Chelsea. (NB - ignore issue of Intention)
Q 5 Problem (6 marks)
Bob, had been offered tickets to the NRL Preliminary Final at Sydney Stadium. As Bob, with his son Mario, approached the stadium, he joined a long line of traffic edging its way slowly towards the car parking area. When Bob’s car reached the entrance to the car park he paid a parking fee of $30 and was handed a ticket containing information on each side as follows:
Front facing side Reverse side
Admit one vehicle to CAR PARK
Good for date of issue only 15-09-18
Car or vehicle accepted subject to the following conditions:
The NRL will not accept responsibility for any loss or damage whatsoever of or to the vehicle, its accessories or contents. Vehicles and goods are left at Customer’s risk.
He drove his car to the designated parking area, parked it and then, with his son, walked to the ground and watched the match. On their return they found that their car had been badly vandalised by unhappy supporters of the losing team.
a) Is Bob bound by the clause on the ticket? (4 marks) and
b) Would your answer to (a) be different if Bob had been to Sydney Stadium on ten other occasions in the previous two years and on each of those occasions he had received a similar ticket in the same circumstances? (2 marks)
Q 6 Short answer (3 marks) 150 words limit
In determining whether a statement is a representation or a term the courts consider a number of factors including the special skill or knowledge of either of the parties. Explain this with reference to a relevant case.
Question 7 Problem (6 marks)
David bought a quantity of paper from Super Paper Products Ltd. He told the store employee he wanted paper for wrapping gifts. The price of the paper was well above that of wrapping paper but about the same as for printing quality paper. When David got home he decided to print on the paper, but he found that it would not hold the ink and was useless for printing on.
Referring only to the Goods Act (1958) Vic, advise David.