case study

Business Law 100

Assignment 2 Semester 1 2013

Peter is an aspiring writer who has just completed his autobiography. Before his memoirs can be submitted for publishing, he must first find a literary agent to represent him and his work. His sister’s husband, Raymond, is a literary agent, but Peter does not want Raymond to represent him because Raymond doesn’t treat his sister and their pets particularly well, and in one of the chapters of the memoir, Peter discusses these events while describing Raymond as a ‘tool’.

Unfortunately for Peter, he has led a very boring life and after contacting every literary agent in town, he can find no one to represent his work. Discouraged and desperate, Peter contacts Raymond and asks him to act as his agent for the autobiography, and for the other few manuscripts that he will produce after that. Raymond doesn’t really like Peter, but needs to get back into his wife’s good books after striking their over-energetic Labrador while reversing out of the driveway. Seeing this as a good opportunity to make good on his misdeeds, Raymond agrees to act as Peter’s agent for a small commission of 8% of the revenue on every book that Peter sells. Before sending the manuscript over to Raymond, Peter removes the parts that would likely offend Raymond and embarrass his sister.

Receiving the manuscript, Raymond thinks that he knows just the man to get the manuscript into print. Billy, who assesses manuscripts for the Booky Wooky publishing company (and has quite a boring life himself), reads a chapter of Peter’s manuscript and loves it. After not being able to put it down, he decides on the spot to offer Peter a publishing contract.

Getting Peter’s email address off Raymond, Billy sends the publishing contract through to Peter’s email on Monday for his signature. In the email Billy states that the contract must be signed, scanned and returned as an email attachment by Sunday 5pm, otherwise Booky Wooky publishing will have to find another author’s work to publish. Reading Peter’s manuscript again on Friday morning, Billy can’t help but think that he made a terrible mistake by first reading Peter’s manuscript after drinking a bottle of Tequila while listening to One Direction’s new album. Now having the clarity of mind reserved for geniuses, Billy gets on his email and sends an email to Peter communicating that the Monday offer of a publishing contract is revoked.

After taking a short trip to Bali that was inspired by ‘Eat, Pray, Love’, Peter checks his email on Friday afternoon. After reading the initial email from Billy, and breakdancing delightedly for a short while thereafter, Peter signs the contract, attaches it with a reply message to Billy and presses send. After clearing out more of his inbox, Peter then opens Billy’s email revoking the publishing contract. Confused and agitated by this occurrence, he calls Billy and forcefully tells him that they have a legal agreement because he signed and returned the contract prior to receiving the revocation email. Billy thinks that Peter is as mad as his memoirs describe and tells him that they don’t have a contract at law.

Question (a) 10 marks

Using the four-step process, discuss the element of agreement required for the formation of an enforceable contract. Have Peter and Billy (as an agent for Booky Wooky Publishing Company) reached ‘agreement’ in relation to the publishing contract? Peter’s second manuscript, which is significantly better than his first effort, is expertly negotiated by Raymond with Le Paz publishing, and sold for quite a large advance. After this book, titled ‘Trifight: the story of three bodybuilders who compete for the love of a lonely personal trainer’, hits the shelves, sales go ballistic and end up earning Peter substantial revenues of $1 million. When Raymond checks his bank balance and sees Peter’s agent fee deposit of $60,000, he approaches Peter and sternly reminds him that 8% of $1 million is $80,000. Peter, who has gone Hollywood with all of the attention received from the success of the book, tells Raymond to “chill out brother” and calmly explains that he deducted the other $20,000 as back payment for charging a reduced rent on the house that his sister and Raymond leased off him five years earlier. Raymond is angry beyond belief and tells Peter that this is not the arrangement that they came to when he agreed to be Peter’s literary agent. Question (b) 10 Marks

Assume that a legally binding agreement exists between Peter and Raymond. Using the four-step process, consider whether the other elements required for an enforceable contract are present. Can Raymond enforce the contract against Peter?  

PART B – Short answer question (5 marks)

What distinguishes a term of a contract from a mere representation? What cases do you rely on for your answer? The above is an example of a typical of short answer question you could be given in the final examination (albeit on a different topic). In the past we have found that students have answered the short answer section of the final examination very poorly, even though it is worth the same amount of marks as the four step process question. This is an opportunity for you to attempt this type of question to receive feedback on what you did well and how you might improve next time. In this question the marker will be looking for more than just “yes” or “no” answers. For example, to answer this question well you will need to describe what a term is and differentiate it from a representation. You will need to consider what else will need to be included.

Instructions to students

 Note the facts scenario used in this example are fictitious. Students are to focus on answering the questions with reference to the relevant issues raised by the question as they arise from topics 3 to 5. Not all topics 3 to 5 are necessarily assessed by this question. Students will need to identify the relevant areas.

 Students do not need to (and should not) undertake any additional research. The level of detail and information contained in the course materials is sufficient to answer the assignment.

 Note the four step process requires students to refer to case law or legislation as authority for the rules of law explained in step two. Where appropriate you will need to refer to any applicable legislation or case authorities contained in the materials for topics 3 to 5.

 Late submission of assignments

Please refer to the Unit Outline for the procedure for requests for an extension and penalties for late submission. 

 Guidelines regarding format and word limits (and penalties for going over the word limit) and submission procedures are set out in the Unit Outline and on Blackboard.

 The marking matrix is as follows. It is also provided in the unit outline and on Blackboard under the assessments tab.

MARKING RUBRIC: The case study will be made up of two questions (a) and (b). Each will be worth 10 marks. A further five (5) marks are allocated to how well the student has followed the four step process.

STEP ONE : Identify the relevant principle of law

No marks specifically (as this is usually stated in the question)

STEP TWO : Explaining the law with reference to relevant authority is the most important step.

6 marks available

STEP THREE: The rules of law explained must be specifically applied to the facts so a solution can be found

4 marks available

STEP FOUR: A logical conclusion should flow from the above steps

No marks specifically available

OVERALL USE OF FOUR STEP PROCESS AND STRUCTURE OF ANSWER

5 marks available

In relation to the marks allocated for the overall use of the 4 step process and structure of the answer, regard will be had to not just whether the answer is “set out” in the 4 steps. Consideration will be given to the clarity of the explanation of the law with regard to applicable authority where relevant. Students will be rewarded here for a detailed application of the facts to the law explained. For example, a very good use of the 4 step process would be the application of the facts specifically to every principle of law explained.

Consideration will also be given to the logical presentation, coherency and consistency of the explanation of the law, application of facts and subsequent conclusion.

As a general guide, a student who has used the 4 step process correctly for each question (a) and (b) (Has identified the relevant principle(s) of law, explained the rule(s), applied the facts and come to a logical conclusion), but the explanation of the law or application of the facts is not as detailed as it could be, or the conclusion is not a logical progression of what has gone before would be awarded a pass mark for this part of the assignment ( 2.5 - 3 marks).

 Referencing and appropriate acknowledgement of sources

Most often errors in referencing are incidental or clearly inadvertent. In the event of a level one incident of plagiarism occurring, a student may be contacted by the University and required to undertake further training or remedial work in relation to referencing. Where the lack of correct referencing appears to contravene the University policy on plagiarism, the student’s paper will be referred to the Unit Coordinator and dealt with according to University policy. This may amount to academic misconduct.

An important aspect of the University Plagiarism Policy is recognition that not all plagiarism is intentional or involves cheating. If students are not learning as expected, they will be made aware of their difficulties and helped to improve. Those who deliberately choose to cheat by way of plagiarism, however, will be identified and dealt with accordingly.

Students are strongly advised to understand their responsibilities in relation to correct referencing and should consult the Unit Outline and vodcast on Blackboard for more information.

 Tutor/Teaching Assistant feedback on assignments All of the teaching staff are available to assist you with your learning in this unit. You should contact your allocated teaching assistant/tutor in the first instance if you need help understanding the course material or issues arising in the assignment. There is also a staffed discussion board available for students. It is often helpful to share ideas and problems with other students using this forum. You can also contact the Unit Coordinator if you are still unable to get the answer you are seeking. Please allow 48 hours (working days) for a response to your query.

Unfortunately it is just not possible for teaching assistants/tutors to review draft assignments for comment before submission (in effect double marking). If you require help with your assignment narrow the question or section of work to specific questions.

If you have questions relating to your writing style (grammar etc) we suggest that you make use of the resources available at the CBS Communications Skills Centre. Their contact details are available under “The Learning Hub” tab on Blackboard.

Teaching assistants/tutors will mark and return assignments within ten working days of their submission. Students will be provided with individual comments on what a student had done well and suggestions for improvement in the future. This will include specific feedback on the use of the 4 step process.

Assessment submitted early will not be marked before the due date.

Your assessment will be returned to you via your grades on Blackboard.