Commerical Law

(a) Does Natalie have any rights against John under the common law as a result of his statement about the fuel efficiency of the car? Your answer should refer to relevant legal principles.

(5 marks)

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(b) Advise Natalie of her rights and remedies against Happy Driving under the Australian Consumer Law and whether she is likely to be successful on the facts of her case.

(10 marks)

Total (5 + 10 = 15 marks)

QUESTION TWO

Peter is selling a pony. His old friend, John, wishes to purchase it for his daughter but he (John) can’t afford the price at which it is offered for sale. John visits Peter and asks him if he is willing to sell it for half-price. Peter says no. John is upset and says to Peter: “If you don’t sell me the pony for half-price I will tell all your clients that you have been stealing money from them”. Peter is an honest accountant who has never stolen any of his clients’ money. However, he is scared that people will believe the rumour if it is circulated. As a result, Peter agrees to sell the pony for half-price.

Pleased with his deal for the pony, Peter visits his neighbour, Harry, on the way home. Harry is an elderly man whose wife has just died after 45 years of marriage. Since her death Harry has been distraught and spends all day crying. When Peter arrives, Harry is in tears, lying on the lounge floor. Harry is so upset that it is difficult to engage him in conversation. Peter says to Harry that what will make Harry feel better is if he (Harry) takes his wife’s ashes and spreads them in Ireland, where Harry’s wife was born. Harry tells Peter he doesn’t have the money for the flight. Peter offers to buy Harry’s car for $10,000, which will enable Peter to take the flight and spread the ashes. Harry agrees to Peter’s proposal.

REQUIRED:

(a) Can Peter argue that the contract is not enforceable? Refer to relevant principles.

(4 marks)

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(b) Can Harry argue that the contract is not enforceable? Refer to relevant principles.

(4 marks)

Total (4 + 4 = 8 marks)

QUESTION THREE

(a) Mary sees a Honda Civic VTi advertised for sale from Cars4U, a local car dealership, at a bargain price of $23,000. The price is very low so Mary immediately goes to Cars4U to purchase it. When she gets there, the salesman says they are out of stock. Instead he shows her the Honda Civic RS model which costs $29,000. When she asks the salesman when they will get the Honda Civic VTi back in stock, he says that they haven’t had it in stock for a while. Does Mary have a remedy against Cars4U under the Australian Consumer Law? If so, explain why.

(3 marks)

(b) On 3 January 2021, Mary receives a modem in the mail from a new internet provider.(‘IP’) She is happy with her current internet provider, so she leaves the modem in her garage. Two weeks later, Mary receives an invoice for $350 for the modem from IP. Mary ignores it. Is IP likely to be successful in enforcing the claim for $350 against Mary under the Australian Consumer Law?

(3 marks)

(c) Assume that instead of suing Mary, IP tells Mary that it will collect the modem from Mary. Is Mary obliged to return the modem to IP under the Australian Consumer Law?

(3 marks)

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(d) Assume that Mary does return the modem to IP, and when IP open’s the box it realises the modem has been damaged. There was a leak in Mary’s garage and the modem got wet. Does IP have a remedy against Mary under the Australian Consumer Law?

(3 marks)

Total (3 + 3 + 3 + 3 = 12 marks)

QUESTION FOUR

John offers his boat for sale for $250,000. Barry offers to purchase it for $200,000. John agrees. Barry pays $75,000 in advance with the remaining $125,000 to be paid three months later. Two months later (i.e.one month before the outstanding payment is due), Barry tells John that he is unable to pay the full $125,000. He says he can only afford $75,000. John reluctantly accepts the lower price. One month later, Barry pays John $75,000. The day after John receives the $75,000, he discovers that two weeks ago Barry won $500,000 in the lottery. John immediately calls Barry and demands payment of the outstanding $50,000.

REQUIRED:

Is Barry required to pay the $50,000 under the common law?

Total (5 marks)

QUESTION FIVE

William is an avid tennis player. He has recently purchased new tennis racquets and needs to sell his old ones. On 3 February, William posts an advert on Facebook Marketplace. It reads: “Three Wilson Pro Staff tennis racquets for sale. $450. Text me if you want to buy them. You must collect them from my house, at 12 Holland Road, Singapore”.

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One of his friends, Amanda, sees the message. On 4 February, she writes him a letter which reads “I will buy your tennis racquets for $450. I will collect them on 10 February at 9am in the morning. You can call me on 0426 847 586”. She posts it that day.

On 5 February, William receives a text message from Jasper. Jasper offers to pay him $350 for the tennis racquets. William sends a text message back to Jasper telling him he will think about it. Jasper texts back, saying “That is fine. Text me when you have decided”.

On 6 February, William writes a letter to Jasper in which he accepts the offer of $350.

On 7 February, William receives the letter from Amanda. He immediately texts her back saying he accepts the offer. He then sends a text message to Jasper saying he will not be selling Jasper the tennis racquets.

Despite the reliability of the Singapore postal system, William’s letter to Jasper of 6 February in which he accepts the offer of $350 is lost.

REQUIRED:

Advise William as to his contractual obligations in respect of the tennis racquet. Explain fully, using relevant legal authority

Total (10 marks)

Assessment Total (15 + 8 + 12 + 5 + 10 = 50 marks)

<<END OF ASSESSMENT>>

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LAW2446, Exam (SIM), Semester 1, 2021