LAWS20058 – AUSTRALIAN COMMERCIAL LAW TERM 1, 2018

– ASSESSMENT 1 – INDIVIDUAL ASSIGNMENT

Marks: 40% of the overall assessment for the course

Submission:  Online via Moodle Format: One file in .doc or .docx (MS Word) format.  Submissions in any other file format (e.g. .zip) will be treated as a non-submission.

Your file should contain: Cover sheet – Contains your name, student number and word counts for Questions 1, 2 and 3. Part A – Answer to either Question 1(a) OR Question 1(b) Part B – Answers to Questions 2 and 3.

References should be footnoted, using the Australian Guide to Legal Citation.

There should be no need for a concluding Reference List or Bibliography.

Due date: 17:00pm, Wednesday 2 May 2018 (Week 8)

Writing format: using “IRAC”

“I”: Issue, “R”: Rules, “A”: Application, “C”: Conclusion

Word limit: Word limits are set out below for each question.

Reference: AGLC (use full note reference, do not need to prepare reference list)

Extensions policy: The university policy on extensions of time will be strictly enforced.  Extensions will only be considered if made via the online system and must be based on medical or compassionate grounds.  Any extension application should be made before the due date for submission. 

Plagiarism: The university’s plagiarism policy will also be strictly enforced. If plagiarism is found, a minimum penalty is likely to be zero marks for the assessment.  It could be worse.

PART B (30 marks)

Barry was sick of his day job, and wanted to buy a business so he could become his own boss.  He saw that a fruit and vegetable store was up for sale at his local shopping village.  The owner had posted an advertisement on the notice board at the shopping village as follows:

Highly profitable venture in bustling suburban shopping centre with turnover of $20,000 per month. No competitors. $250,000 plus stock-in-trade. Ring Angelo on 0434 123 456.

Barry telephoned Angelo and asked about the store. He asked what the expenses of the business were, and Angelo told him that they were $8,000 per month.  Barry liked what he had heard, so he decided to check out how busy the shopping centre was.  On the weekend, when he wasn’t working, he went to the shopping centre a few times and noticed that it was open all day Saturday and Sunday and was busy most of that time. He negotiated with Angelo and eventually agreed to buy the business for $200,000. To save money, he did not hire a lawyer, and signed a contract which included the following term:

The sale includes the following plant and equipment:

Item Value

Delivery van $15,000

Loader $2,000

Barry paid for the business and took over running it on 1 January 2018.  When he took over the store, he discovered the following problems:

• Although the shopping village was busy on the weekends, it was very quiet during the week.  In the first two months the turnover was only $13,000 per month.

• There was a grocery store in the shopping village that sold a wide range of fruit and vegetables.

• After six weeks, a man from a finance company arrived at the shop and repossessed the delivery van.  It turned out that the van was only leased by the previous owner, and since Barry had not made the lease payments, the lease was in default.  Barry’s expenses at the shop had been below $8,000 per month, but if he had paid the van lease, the expenses would have been on average about $8,500 per month.

• The loader, which was a small motorised machine for putting pallets on and off the back of the van, was broken down and could not be fixed for less than the cost of replacing it.

You are providing a written report to your supervising partner. To impress him, you want to show that you worked hard at university by demonstrating your knowledge of law and your ability to use it. You need to provide a written report providing the following advices.

Question 2 (10 marks, about 800 words)

Advise how Barry might challenge the validity of the contract on the basis of the statements made by Angelo before the contract was entered into.  You should consider both common law and statute law.

Question 3 (10 marks, about 800 words)

Assuming Barry does not get out of the contract, advise on the possibility of an action for breach of contract.

NOTE: These are questions where the focus is on your reasoning processes, so you should use the IRAC method. You do not need to repeat the facts unnecessarily, so only refer to the facts of the case to support your argument. Also, only refer to cases to illustrate or support the legal points you are making or the argument you are putting.  If you do refer to cases, you need to demonstrate how they are relevant to the facts or argument. Your supervising partner will not be impressed by you simply reciting law without purpose.

For Answer Q2:

Explain two aspects:

1. How can you get out of the contract?
2. Challenge: (a). Common Law; (b). Statute Law (consumer law)

Each question should write from these two law.

For example :

Introduction

(1). Common Law

Issue: which one can challenge at

Rules: 1. Explain, 2. refer to the cases

Application: Using Misrepresentation (remedies for innocent misrepresentation) and Explain

Conclusion:

(2). Statute Law

Issue: which one can challenge

Rules:  for this point can refer “Australian consumer law section 18”

1. Short description in follows which particular law, 2. refer to the cases

Application: Explain

Conclusion:

MARKING

All parts of the assignment will be marked in accordance with the university’s Grades procedure (which can be accessed via the Unit Profile).  The following marking rubric incorporates that procedure.

THE MARKING RUBRIC IS ON THE FOLLOWING PAGE