Highlights
(a) Gullie Bell, a computer expert, working in sales of computers, for ‘BigRam Computers’, a well-known computer company owned by multimillionaire, Justin Forthemoney. Between 2010-2013 business at BigRam had been really booming, where profits doubled the prediction for each of those years. Much of the sales of computers was due to Gullie’s resourceful hard work.
On the 2 December 2013, at the office Christmas party, Justin expresses to Gullie how wonderful her work has been in the last 3 years, and how much he and BigRam appreciates her hard work. Justin promises Gullie that he will give Gullie a bonus of $100,000 at the end of that year for all that hard work she had put in from 2010-2013, which contributed to the huge profits for BigRam.
Excited of the prospect of a huge bonus of $100,000 at the end of that year, Julie immediately, that very week, bought a brand new Audi A6 Allroad Quattro car, valued at $110,000 from Audilee Cars on hire purchase.
In January 2014, when Justin had still not yet given Gullie her bonus, Gullie asked Justin about his promise of a bonus of $100,000. Justin just laughed and told Gullie that at the Christmas party he was intoxicated and he was only joking with Gullie. He never really intended to give anyone a bonus the previous year.
Gullie is angry and disappointed. Using only the principles of Contract Law, advise Gullie if she can hold Justin to his promise and claim the bonus from him.
(b) Angry and frustrated with Justin, Gullie is determine to take revenge on him by no longer working as hard and by having a “care-less” attitude while at work. One day, in September 2014, Meg Adrive, a self-employed owner of a small financial investment business and long-time customer of BigRam Computers, comes in and places an order for new computers with Gullie. Meg specifically informs Gullie that she wants computers that could accurately perform complex financial analysis and accommodate multiple client accounts. Gullie recommends the Fire-Dragon 5000S Numbyte, saying that this version of the Fire-Dragons were created to perform complex financial analysis and well as store and work on multiple separate client accounts.
On Gullie’s recommendation, Meg purchases 5 Fire-Dragon 5000S Numbytes only to find out about 6 months later that these computers are unable to accurately perform complex financial analysis and accommodate or sustain multiple client accounts. Since Gullie had taken a “care-less” attitude at work, she had not done some simple investigation on the Fire-Dragon 5000S Numbytes. Had she done so she would have found out that the Fire-Dragon 5000S Numbytes computers had been recalled by the manufacturers as faulty computers with improper programming hardware.
Meg is furious with BigRam Computers and Gullie, who sold her the computers. Meg’s investment company has suffered considerable loss due to this bad purchase from BigRam.
(c) Gullie was fired by Justin for her actions of selling the faulty computers to Meg. Gullie, being unemployed is unable to pay the hire purchase payments for her brand new Audi, and has defaulted a number of times, despite repeated demands from Audilee Cars to pay. Audilee Cars have now repossessed her Audi and are intending to sue Gullie for the sum of $80,000, being the balance outstanding on Gullie’s hire purchase agreement.
Not wanting to see Gullie financially ruined, Gene Rous, Gullie’s close friend offers to pay Audilee Cars the lesser sum of $40,000 as full and final settlement of Gullie’s debt with them. Gene points out to Audilee Cars that Gullie has little or no money, and that even if they sue her, they will recover nothing from her. Audilee agrees to accept the sum of $40,000 from Gene as full settlement of Gullie’s debt.
Using the principles of Business Law, with reference to relevant case law and legislation, where necessary, explain the possible outcome in each scenario above.
Step 1: Identify the issues and introduce the relevant area of law to the case study
Step 2: Explain the legal rule(s) and principle(s) of law with reference to relevant precedent case authority(s) appropriate to the case study. (Remember when referring to legislation, quote the legislation and relevant section/s directly as they are. The quoting of legislation and sections will not be included in the word count, neither is it plagiarism to quote sections of a legislation directly in verbatim.
Step 3: Application of the legal rule(s), principle(s) and precedent case authority(s) to analyse the issues in the case study.
Step 4: From the application reach a logical conclusion. Be sure to explain your reasoning for your answer.
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