BLST2BSL Business Law ASSIGNMENT

BLST2BSL
Business Law ASSIGNMENT TRIMESTER 3 2014INSTRUCTIONS Due date: the assignment is due onWednesday, December 17, Week 10Location
for submission: submit to teacher in your first class of Week
9.Word limit guide:1000 (one thousand)
words, including words in footnotes. A word
count – the total number of wordsin
your assignment should be noted on the title pageof
your assignment. Answers with a word count of 40% above or below will be
penalised.Presentation
will be
taken into account when your assignment is marked. Assignments must be typed, double line spaced
andsize 12 font. Ensure that you place
your Name and student number, as well as your Teacher’s name and your Group
number at the beginning of your report. This is in addition to the required “Statement of Authorship” page.Method
of analysis:
You should use the IRAC method of analysis.Reference
material: You may use and cite laws from your textbook but
should also use other references to assist in the analysis of the two case
studies given. ALL laws used to analyse
cases must be cited. Use of lecture notes is not permitted as a reference. Use of precedents is
expected and their source must be cited.Use of online material is
permitted but must be fully cited.Footnotes used should be on a page
by page basis. Do not include a
bibliography.Note that citations form
part of the word length.Use
the CITATION RULES attached on page 4.Total
value:this
assignment is worth40 marks (being
20% of the total result in the unit). The
final examination counts for 60% of the marks in the unit.The marks allocated are
as follows:Presentation and
following instructions given = 8 marksCases 3 (10
+ 12 + 10) = 32 marksTotal
marks = 40 marks / 2 = 20%HOW TO CITE LEGAL AUTHORITYLEGISLATIONWhen
referring to an Act of Parliament the statute’s title should be in italics,for example:·
Section 18 of the Goods Act 1958(Vic) or·
The Goods Act 1958 (Vic) s 18 or·
The Competition and Consumer Act 2010 (Cth) Schedule 2, Australian Consumer Law s 54An abbreviation for later reference to the
same act can then be use, for example:·
S 18 GA·
ACL s 54CASESWhen
referring to the common law the case should be provided and in italics,for example:·
Causer v Browne (1952) VLRBOOKSThe citation of a book should identify the
author’s first-name initials and surname(s), the title of the book in italics,
the publishers details – name, place, date of publication, and finally the page
number that is being quoted or used..docx#_ftn1″ title=””>[1] Refer footnote 1 below.ONLINEThe citation of an online authority should
name the authority in addition to giving that authority’s web address and link,
for
example:·
Australian Competition and
Consumer Commission (ACCC)http://www.accc.gov.au/content/index.phtml/itemId/956980GENERAL
POINTS·
Full citations are required
only once. Do not repeat full citations.·
If a citation is identical to
the one immediately preceding it, then use the phrase “ibid” or “id’, for
example: .docx#_ftn2″ title=””>[2]·
If citing a different page for
the same source then add the different page number, for example: .docx#_ftn3″ title=””>[3]·
If a citation is identical to
one that has been previously cited but not the
immediate preceding one, then simply repeat the author’s surname and the
footnote number that records the full citation.·
Use footnotes on a page by page
basis, no bibliography is required.Case 1.
Peter recently graduated from University and now wishes to start a new business
importing electrical goods from China.
He intends to resupply these electrical goods to Australian retailers. Peter is
23 and has no financial resources so asked his elderly uncle Ji, to assist him.
He asks Ji to take out a loan of $200,000 from Ji’s bank. Peter assures Ji there is no risk and he
(Peter) will repay the loan each month. Ji migrated to Australia from China 20 years ago but still has
difficulty in understanding English. He
has had no business experience himself but worked hard in a manual labouring
job to finally buy and pay for his own house in Bundoora currently valued at $480,000. Ji, has become very dependant on Peter for
financial and legal advice, so agrees to his request. The XZA Bank Pty Ltd agrees to lend
Ji $200,000 but require that he enter a mortgage contract as security for the
loan. The bank manager fails to advise
Ji of the consequences if he fails to repay the loan. The manager is aware that
Ji has no other assets and is dependant on the old age pension for all living
expenses. The Bank manager wishes to
complete the contract of loan quickly as he is going on 3 weeks holiday and
asks Ji to sign the loan contract immediately.
Ji wants to check the details with Peter, but the Manager persuades Ji
to sign the contract so he is unable to obtain any independent advice as to the
details of the loan contract. The loan contract details the monthly
repayment at the amount of $1,500 with the house used as security in case of
default by the borrower. After six
months, Peter’s business has failed and neither he nor Ji can continue the
monthly loan repayments. XZA Bank Pty Ltd now advise Ji that they will start
legal action to recover the outstanding amount of the loan by selling his house
as agreed in the loan contract he signed.Advise
Ji of any common law action he could use to prevent XZA Pty Ltd selling
his house.(12 marks)Case 2Lauren was employed as a
professional model. All her life she had
suffered from a severe allergy to chemicals found in cosmetic products and
therefore only used products with natural ingredients. A week before her wedding day she went to a
Beauty Parlour for a facial. She
informed Pippa, the owner of Just Beauty
Pty Ltd, of her severe allergies to chemically based beauty products and
told her that she could only use products made from natural ingredients. Pippa
said that she could provide a beauty treatment for Lauren’s requirements.
Relying on this assurance from Pippa, Lauren agreed to the suggested treatment.
Nina, an employee beautician was allocated to do Lauren’s facial. Nina had poor
language skills and had not clearly understood Pippa’s instructions and used a
mild chemical based facemask on Lauren. Pippa failed to supervise Nina and four
hours later Lauren developed an allergy. Her face became very swollen and her
skin split in several places. She had to postpone her wedding day and forfeit
the deposit of $25,000 for the
reception. She also incurred medical
costs totalling $900. Due to the
permanent scars on her face, Lauren would be unable to continue her modelling
profession. When Lauren enquired about
compensation from Pippa, she was told that the clause “No liability for any damage or injury however caused to clients by
unsuitable treatment will be accepted by management.” Advise
Lauren about her possible success in legal action for compensation using the
Australian Consumer Law (12
marks)Case 3Vince won the Melbourne Grand Prix in
2013. He signed a contract with Oz-Oil Ltd. to display their trademark on the
front of his racing car at all Australian Motor Racing events that he would
participate in for the next four years.
This was estimated to be 10 major events each year. The agreed
consideration for this contract was $255,000 per year, payable once at the end
of each year. The colour of the trademark of Oz-Oil was green and yellow on a
white background. The trademark colours
were chosen to emphasize the Australian ownership of Oz-Oil Ltd. and were perfect for the display on Vince’s
white car, but before the end of one year he purchased a new car, coloured
green He changed the trademark colour to white and brown so the trademark would
still be noticed. Several directors of Oz Oil Ltd. noticed the change at an
event in which Vince was competing and were most unhappy. A week later they
terminated the sponsorship contract and refused to pay any money to Vince. They claimed that Vince had changed the
colour of the trademark substantially, which was a breach of contract. Vince is
very upset because it cost $1,500 to put the trademark on the new car and he
had recently rejected an offer from another company to display their
trademark. He doesn’t believe that Oz-Oil
Ltd is entitled to terminate their contract. Use
the common law to advise Vince of his legal rights. (10 marks)Car
1 OZ-OILCar
2 OZ-OIL

.docx#_ftnref1″ title=””>[1] T Ciro, V Goldwasser, R Verma,
Law and Business,Oxford University
Press, Melbourne 2011, Page xx
.docx#_ftnref2″ title=””>[2] Ibid
.docx#_ftnref3″ title=””>[3] Ibid at 62