business law

Law for New Zealand Business

LAWS 541

FINAL EXAMINATION (Time-Constrained/Take-home)

Date: 19th June 2020

Time allowed: 3 hours.

Instructions:

· This examination accounts for 50% of the final grade for this paper.

· The examination consists of four questions.

· You are required to answer all four questions.

Exam Summary:

Section	Marks
Question 1	20
Question 2	10
Question 3	10
Question 4	10

Question 1 (20 Marks)

Fair Trading Act 1986 Question

Fred finds an advertisement in his letterbox from an Auckland company called Specialist Laboratory Services Ltd. The advertisement states that the company is selling “a slim fast” tablet. The instructions are that if taken as prescribed the tablet will cause significant weight loss within three months. Fred, who is overweight responds to the advertisement and buys a substantial quantity of the tablets. He has been using them as prescribed for the past six months without losing any weight. Independent laboratory results show that the said tablets do not have weight loss effects. The advertisement had also stated that the tablets had been manufactured in New Zealand, but evidence shows that the tablets had been imported from the USA.

Task:

Identify and explain two possible breaches of the Fair-Trading Act 1986, which arise from these facts.

Explain what Specialist Laboratory Services Ltd ’s criminal liabilities are as a result of its actions.

(4 marks)

John, who manages a rival company which also manufactures tablets wonders whether he can stop Specialist Laboratory Services Ltd from continuing to advertise its “slim fast” tablet. Explain to John how this may be done under the provisions of the Fair-Trading Act.

(4 marks)

Consumer Guarantees Act 1993 question

Janet buys a washing machine from an appliance store. There is a sign on the wall in the store that says: " No refunds "

The first time Janet uses the washing machine it damages all her washing. She returns the machine to the store and says she wants her money back.

The owner of the store, Jim, refuses to refund Janet, arguing that the “no refunds” notice on the wall of the appliance store means that he is not liable.

Task:

What are Janet's rights against the store under the Consumer Guarantees Act 1993?

Does the “no refunds” notice on the wall of the appliance store have any effect on Janet’s rights?

Question 2: (10 marks)

With detailed analysis, compare patents, copyrights and trademarks based on the following factors:

a) purpose of grant;

b) requirements for grant;

c) duration of protection. (10 marks)

Question 3: (10 marks)

Discuss the following as regard the agency as a legal mechanism:

a) Identify and explain the factors that give rise to agency by estoppel.

b) Under what conditions would an agent be personally liable to third parties for contractual and tortious wrongs.

c) What does agency by ratification mean?

d) Distinguish between express and implied authority of an agent

e) Why are agents important in commercial life—give a practical example of an agency arrangement

Question 4: (10 marks)

Michael, Adele, and Quinn are siblings. They have inherited $1,500,000 from their grandparents. Michael is a medical doctor; Adele is a qualified accountant with IT skills; and Quinn is medical laboratory scientist. The three of them are interested in owning and running a jointly owned healthcare business. Advise them on the available business structure options they can choose to actualise their business aspirations. Discuss the comparative advantages and disadvantages of the business organisation options you consider available to them.