Legal Decisions : Making Decisions in a Legal Context - Business Law Assignment

Internal Code:MAS6100

Business Law Assignment

Questions : 1.John, Paul and George are aware that negligence actions against businesses can cause both financial loss and loss of reputation. George is a computer and IT specialist and it is expected that in addition to the ‘retail’ consumer business, he will contribute to the business by providing expert, professional advice to business clients regarding their workplace and business IT needs. (a) Explain to John, Paul and George what elements must be proved by the plaintiff on the balance of probability to establish negligence. (b) John considers that their business will be most at risk from actions of occupiers’ liability negligence and negligent misstatement. Is he correct? Give reasons for your answer. (c) John puts forward the following situation: Some renovation works are being carried out in the Futuretronics shop. Both the builders and Futuretronics have carefully put warning signs at the front of the shop to warn customers not to enter the areas under renovation. The builders have placed one metre high ‘rope and bollard’ barriers around the area affected, and have put further signs warning against entry just before and on those barriers. Josie is a customer who has entered the shop to purchase a computer. Josie is a carpenter, currently studying a Cert IV in Building Construction so she can be a building supervisor. Her real dream is to be a famous singer and she has managed to obtain an entry level audition for the reality television show ‘The Voice’. Josie is curious and decides to have a look at what is happening with the renovation, and before the builders or retail staff can stop her, she has slipped under the barrier and into the renovation area. Unfortunately, she takes two steps and falls into an excavated area of floor, breaking both her ankles and her right wrist. Consequently, she is unable to work or study for 4 months. She is also unable to attend her audition. Josie intends to sue Futuretronics for her loss including her failure to attend the audition and become a famous singer. John wants to know;

•  the type of negligence action Josie would bring,
•  if liability was established, the damages she would successfully claim and;
•  whether Futuretronics could successfully defend such an action, and if so, how?

(d) An insurance contract imposes obligations of ‘utmost good faith and disclosure’ on both the insurer and the insured. These obligations fall most heavily on the insured. Why? (e) What would be the possible consequences if Futuretronics did not provide full disclosure upon entry into an insurance contract and then made a claim upon that insurance contract? Consider both innocent and fraudulent non-disclosure. 2.John, Paul and George have noted that during their previous employment in the retail industry they have had to comply with various consumer laws, but as traders and employers, they will now bear prime responsibility for compliance. They have the following queries: (a) Who must comply with the Australian Consumer Law? Who is protected by the Consumer Guarantees under the Australian Consumer Law? (ACL) What national statutory body is responsible for ensuring compliance with the ACL? (b) Can Futuretronics exclude the provisions of the ACL from their contracts with consumers if they put up very clear signs to inform consumers prior to their entry into contracts? Can they exclude the provisions of the ACL from their online business if this is very clearly stated on the website? Explain your answer. (c) Would Futuretronics be complying with the ACL if a customer ordered computers after seeing and examining the one they liked in a Futuretronics shop, but the computers supplied by Futuretronics pursuant to the order were a different model or size? Explain your answer. Would your answer be the same or different if the customer had ordered the computers after seeing them displayed on the Futuretronics website, but the computers provided were a little different than those displayed, (e.g. a different model or size)? Explain your answer. (d) John recently purchased a digital camera from a rival electronics shop, Live Wire. The camera was advertised at a reduced sale price of ‘was $900/now $700’ and as being ‘made in Germany’. John, a keen amateur photographer, bought it happily, used it according to instructions but was furious when it ceased to work entirely after only 6 weeks. On returning to Live Wire he was informed that as it was a sale item, he was not entitled to a refund, and in any event, he should have contacted the manufacturer directly and not bothered them at the shop. He has also now found out that the ‘before price’ was actually $500 and that whilst designed in Germany the camera was actually made in China. Has Live Wire breached the ACL in any way, and can it provide any remedies to John? Give reasons for your answers. (e) Futuretronics intend to operate a competitive pricing policy but are concerned what may happen if they do not sell their stock at recommended retail prices. Can the manufacturer of a product refuse to supply Futuretronics if they continuously sell the product to consumers at 10% less than the recommended retail price? Explain your answer. (f) Futuretronics has been approached by 4 other retail suppliers of electronic goods to join together with other retail suppliers of electronic goods and agree to supply goods to consumers for no less than a certain price? Explain your answer. 3.Two years later, Futuretronics is a thriving business. John, Paul and George understand the importance of debt and credit management and Paul is responsible for debt and credit management within Futuretronics. Paul requires information on the following matters. (a) Yoko is an outstanding debtor of Futuretronics who currently owes Futuretronics $4 500 and Paul has already telephoned her and sent  her two reminders. The payment date for the invoice was 5 months ago. Paul thinks his next step should be to send Yoko a ‘letter of demand’. What are the purposes of a letter of demand? (b) If Yoko does not respond to the letter of demand within the required time, what choices does Paul have in relation to the debt? (c) Paul has already obtained a judgement against another debtor Brian, with the court holding that Brian owes Futuretronics $40 000. Brian has not paid the judgement sum. Paul is considering taking bankruptcy proceedings against Brian. Briefly advise Paul: i. What steps must Paul take to send Brian bankrupt? ii. What is the role of the trustee in bankruptcy? iii. Paul has learned that 3 months ago, Brian sold his antique collection worth $80 000 to his sister for only $5,000. If Paul is successful in sending Brian bankrupt will this transaction be relevant to the bankruptcy and if so, how? (d) Futuretronics is also owed $20 000 by Ringo Pty Ltd. What should Paul’s first step be to recover the amount owed from this company? (e) Futuretronics is also owed $10 000 by Starr Pty Ltd which has now ‘gone into voluntary administration’. Explain what this means for the company and what this means for Futuretronics as a creditor.