Business Law Assignment – Business & Corporations Law – Law Assignment

Case Study : Part A – Legal Problem

Derrick runs his own private transport business. He owns a semi-trailer truck. He uses it to deliver shipping containers direct from ships at Outer Harbour to businesses around Adelaide. He uses the truck loading bay at Outer Harbour (owned and operated by CLM Pty Ltd) at least once a week. There is a very large visible sign by the gate that states in bold font: ‘CLM Pty Ltd assumes no responsibility for any damage that may be caused to any vehicles in the loading area. All truck owners enter this site at their own risk.’ He has never bothered to stop and read it. On Wednesday, Derrick drives up to the gate where he is given a permit ticket which must be returned to the attendant upon exiting. He then parks his truck and walks to get some lunch, as the container he is picking up is not yet ready for him. While he is away, another truck, owned by CLM, accidently collides with his truck causing $3,000 damage to Derick’s truck. An hour later, whilst Derrick is still away enjoying some lunch, a prison escapee enters the loading bay. The prison escapee drives Derick’s truck to the exit booth where he is required to return the permit ticket before the parking attendant can lift the boom gate. As the prison escapee does not have this permit he tells the parking attendant he has lost his ticket. Feeling tired of her job, the attendant simply lifts the boom gate and allows the truck out of the loading bay without the permit ticket. Derrick’s truck is driven to a small town in Victoria where the prison escapee abandons it (causing no further damage to it)…..

Questions:

a) is the clause part of the contract? b) what is the meaning of the clause: does it protect the party seeking to rely on it?

Part B – Legal Problem

Zen is a delivery driverfor fruit shops operating in the Central Market. He has his own business and uses his vehicle (a van) to complete his daily delivery rounds delivering fruit orders to market stall owners. One morning Zen’s delivery van refuses to start. He is very good at fixing cars and realises that he can fix the problem himself. However, he needs a replacement part. Zen contracts with Bo, a carrier, to collect from the mechanic and deliver the replacement part that afternoon. Zen waited and waited. Bo did not deliver it for 7 days. Because of the delay, Zen lost $7000 in fees (he earns $1000 revenue per day on average). In addition, Zen missed out on being awarded a delivery contract worth $10,000 because his van was out of action. Zen has suffered mental distress and great disappointment as a result of Bo’s inability to deliver on time as per the contract. Zen wants to claim compensation for Bo’s breach of contract in the amount of $20,000: $7000 for lost earnings, $10,000 for missing out on the government contract opportunity and $3000 for mental distress. ‘Section 18 is a highly significant provision in the Australian Consumer Law because it supports ethical behaviour—good ethics is good business.’