Introduction to Business Law -

Introduction to Business Law

 Sample Assignments

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Law Assignment Question

Problem 1 (5 marks) (Topic 3)

Emma is a university student who works as a gardener on weekends for extra income. On Wednesday Emma agrees to mow Bill’s front and back yard on Saturday morning for $50. On Friday night she rings Bill and tells him that she has had a recurrence of a bad back and she isn’t sure she will be able to mow his yard. Bill is desperate to get the job done because he is holding a big garden party on Saturday afternoon so promises to pay Emma an additional $70 if she will do the job. Emma decides that the money is too good to pass up so she agrees to undertake the mowing.  After completing the job Bill hands Emma $50 telling her that that was all he was contractually required to pay. 

a) What is/are the issue/s you need to consider? (1mark) 

b) What is/are the relevant legal rule/s relating to this problem? (1 mark) 

c) What is/are the main case/s related to this problem? (1 mark)

d) Based on this information, if Emma sues Bill for breach of contract, will she win in court? What is your answer – yes? or no?  Explain your answer. (2 marks) 

Problem 2 (5 marks) (Topic 3)

Police Constable Smith was on his daily foot patrol when he heard on a shop radio that a man had robbed Mrs Verity Rich of her diamond rings worth $50,000. The radio report went on to say that a reward of $1,000 was being offered to whoever helped her get her rings back.  Soon afterwards Rex saw someone acting suspiciously and led PC Smith to the man who had robbed Mrs Rich. PC Smith arrested the thief and took possession of the jewellery.  Mrs Rich, although delighted with the return of her jewellery, refused to pay the reward to PC Smith.

a) What is/are the issue/s you need to consider? (1mark) 

b) What is/are the relevant legal rule/s relating to this problem? (1 mark) 

c) What is/are the main case/s related to this problem? (1 mark)

d) Based on this information, if PC Smith sues Mrs Rich for the reward, will he win in court? What is your answer – yes? or no?  Explain your answer. (Ignore all areas e.g. employment law – just consider contract law)  (2 marks)  

Problem 3 (5 marks)     (Topic 3) 

Mary and her husband Tim are Australian citizens who live in the USA because Tim is a manager of a business there. Mary hates living in the USA so Tim agrees that she should return to their home in Australia and he will provide her with a weekly allowance of $500. Mary returns to Australia but after three months Tim stops paying her the allowance. One year later she divorces Tim and sues him for all the payments he promised to pay her but did not.

a) What is/are the issue/s you need to consider? (1mark) 

b) What is/are the relevant legal rule/s relating to this problem? (1 mark) 

c) What is/are the main case/s related to this problem? (1 mark)

d) Based on this information, if Mary sues Tim for breach of contract (common law), will she win in court? What is your answer – yes? or no?  Explain your answer.  (2 marks) 

Problem 4 (10 marks) (Topic 4)

Guy had been offered a ticket to the NRL Grand Final at the Olympic Stadium. As Guy approached the stadium, he joined a long line of traffic edging its way slowly towards the car parking area. When Guy’s car reached the entrance to the car park he paid a parking fee of $30 and was handed a parking ticket containing information on each side as follows:

(FRONT SIDE)


OLYMPIC STADIUM



Admit one vehicle to CAR PARK



Good for date of issue only 



$20

(REVERSE SIDE)


CONDITIONS OF ENTRY


Car or vehicle accepted subject to the following conditions:


The NRL will not accept responsibility for any loss or damage whatsoever of or to the vehicle, its accessories or contents. Vehicles and goods are left at Customer’s risk.

He then drove his car to a designated parking area, parked it and then walked to the ground and watched the match. 

Scenario 1 

On his return he found that their car had been badly damaged by another car using the car park. 

a) What is/are the issue/s you need to consider? (1mark) 

b) What is/are the relevant legal rule/s relating to this problem? (1mark) 

c) What is/are the main case/s related to this problem?(1mark)

d) Based on this information, if Guy sues the NRL for breach of contract will he win in court? What is your answer – Yes? or No? Explain your answer.  (2 marks) 

Scenario 2 (NB assume that the conditions of entry were part of the contract)

On his return he discovered that an elephant (that had escaped from a nearby circus) had destroyed their car by sitting on it. 

a) What is/are the issue/s you need to consider? (1mark) 

b) What is/are the relevant legal rule/s relating to this problem? (1mark) 

c) What is/are the main case/s related to this problem?(1mark)

d) Based on this information, if Guy sues the NRL for breach of contract will he win in court? What is your answer – yes? or no? Explain your answer.  (2 marks) 

Problem 5 (5 marks) (Topic 4)

Sellers of goods make many oral statements (representations) during negotiations. Not all of those statements, however, will be promissory (terms of the contract). Consider the following negotiations involving the sale of a motor vehicle:

a) Seller:  “This price cannot be beaten anywhere in the world!”

Is the seller’s statement most likely to be a mere puff, mere representation or term of the contract?  Explain.  (1mark)

b) Seller (a car salesman):  “The car has no rust” 

Buyer: That’s great news! I’ve had nothing but trouble from cars with rust and I never, ever want to own another.

Is the seller’s statement most likely to be a mere puff, mere representation or term of the contract? Explain.  (2 marks)

c) Seller:  The sound system is brand new

Buyer: I’ll think about it and get back to you soon, maybe later next week.

Is the seller’s statement most likely to be a mere puff, mere representation or term of the contract? Explain.  (2 marks)

Law Assignment Solution

Case Study 1

Problem 1: Facts of the case 

  1. Emma agrees to mow Bill’s garden for 50$ initially. 
  2. She isn’t well, so she cancels but Bill in dire need of the mowed garden promises to pay extra 70$. 
  3. Emma needs money and doesn’t want to pass up off the offer, so she accepts the offer at 70$. 
  4. Emma mows the lawns and finishes her side of the contract 
  5. Bill only pays her 50$ and says that he isn’t obliged to pay under contractual liability. 
  6. The issues that need to be considered in this question are, whether there was a valid contract at additional 70$ or not? Whether Emma is in a position to receive the additional money which was promised by Bill? Which contract should be applicable?
  7. The relevant rule relevant here is the formation of a contract (Sweeney et al., 2016, p.199). A contract is formed when an agreement is made through mutual consensus and about the same things in question.  The first contract was abandoned when Emma said that she couldn’t mow the lawn but when Bill offered her an additional 70$ and Emma agreed, a second contract came into picture. 
  8. The case law that will be followed here is Hyde V. Wench. In this case, it was ruled that once a counteroffer is made, the initial offer stands suspended. In our case also because there was a counteroffer made by Bill for additional 70$, the first offer stood suspended. 
  9. Yes, Emma will win the case as this is a breach of contract. The first contract was suspended when Emma said that she couldn’t mow the lawn. The second contract came into place when Bill offered her the additional 70$. There was a new consideration. According to the Contract law, a contract is not made in mutual consensus is voidable, under this the term was for Emma to be paid an additional 70$. Bill was also bound to pay Emma that sum and this information was very clear to both of them; hence there was a breach of contract, and Emma can sue Bill.

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