Highlights
Scenario
Kate is the owner of Harmonie Notes (Harmonie) a music publishing business. Harmonie has an established reputation in the music industry having been in operation for over twenty years. While walking along George Street in the Sydney CBD Kate is struck by the sounds of Jai, a young man strumming his guitar while singing his own compositions. Kate informs Jai that she owns a music publishing business and believes that he would make a substantial profit if he allowed Harmonie to publish his compositions. Jai, being a naive 19 year-old, says ‘that would be OK so long as I get some money to help pay my rent.’
Kate arranges for a contract to be prepared which:
gives Harmonie exclusive rights to Jai’s compositions for a period of five years;
allows Jai a 5% fee for songs published and sold ; and
provides that Jai must compose at least one song a month during the five year period.
The contract also provides that if Harmonie decides not to publish any of Jai’s songs within a month he will not be paid anything. In addition, Jai is not allowed to provide his compositions to any other music publisher.
Kate presents the contract to Jai who tells her he is a musician and not interested in reading legal documents. Kate tells Jai there is nothing untoward in the contract and that he will make a lot more than he is earning busking on the street. Jai signs the contract.
One year later Harmonie is making a huge profit from the sale of Jai’s compositions. The demand for Jai’s music is so high that Jai has to give up busking which is his only other source of income. In some months he is unable to compose because of illness associated with the mental stress of composing one song a month. He receives no payment for these months.
Jai is approached by Mack, the owner of Harmonic Tunes (Harmonic). Mack is just starting in the music publishing business and regards employing Jai as an important boost to get the business off to a good start. Mack offers Jai a fee of 40% for sale of his compositions with 50% going to Mack and the remaining 10% going to a charity to support struggling young composers. There is no stipulation that Jai must compose a minimum number of songs in any period.
Jai wants to terminate the contract with Harmonie so that he is free to provide his songs to Harmonic. Kate insists that Jai honour his contract with Harmonie.
Weighting: 35 marks
Question 1 (900 words) (20 marks)
Discuss, in a problem-solving format, whether Jai can get out of the contract with Harmonie and provide his compositions instead to Harmonic.
Your answer should be based on the common law of contract (specifically the rules and case law on unconscionable contracts and restraint of trade)
Question 2 (600 words) (15 marks)
Kate complains to the Competition and Consumer Commission (ACCC) regarding the similarity of Ken’s business name (Harmonic Tunes) to that of Kate’s business name (Harmonie Notes)
Discuss, in essay style, whether Ken has breached section 18 of the Australian Consumer Law (ACL) by using the business name Harmonic Tunes and, if so, the remedies available for the breach.
Question 1 is to be answered on the common law of contract. A problem-solving format should be used.
Question 2 is to be answered on s18 of the Australian Consumer Law (ACL) (in the schedule to the Competition and Consumer Act 2010 Cth). Essay style should be used. (
The topics for Question 1 are unconscionable conduct and restraint of trade. These topics are covered in Week 5.
The topic for Question 2 is s18 of the ACL and will be covered in Week 7.
The case study is to be submitted by the deadline on Turnitin in UTS online. A cover sheet should be attached to the case study indicating your name, student number, the subject name, and the word count for your case study. Please ensure you keep a copy of the case study for your records.
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