LAW541 Law for New Zealand business Assignment

Question 1:

On January 25, 2020, Emma Harper decided to dispose of her only set of emerald earrings. That set of earrings had been passed on to her by her grandmother, and they qualify as antique items. On the same day, at 10:20 am, Emma made the following post on Facebook (accompanied with photos) concerning the earrings: "Antique earrings for sale. High-quality emerald. $2000 for both pieces. Send me a message via emma.harper@seller.com. Emails must be received before 4 pm today".

Liam Chao wrote to Emma 4 mins via Facebook messenger after she had made her Facebook post to express his interest. Emma replied him, saying: "Wowti That was quick. You are the first to respondti Greatti" Liam then asked Emma to give him payment instructions as he was ready to pay the $2000 price, but Emma did not respond. By 4 pm that day, Emma had updated her Facebook post concerning her earrings to read: "Antique earrings for sale. High-quality emerald. $4000 for the set. The first to pay $4000 into my OpenBazaar account becomes the owner. To pay, follow the following OpenBazaar link........."

Liam is disappointed that Emma chose to revise the Facebook post, particularly increasing the offer price and refusing to acknowledge him as the lawful buyer of her earrings. He accuses Emma of breaching the contract they had struck.

Question 2:

The Rooks is a hotel in Rotorua. They advertised their business facilities as follows: "Home away from Home. Palatial suites. Situated in a serene environment. Moderate-size swimming pool available to residents. 25% price discount available for all lodgers from June 11 to August 21 2020". Milton and Vanessa were excited by the advertisement. For this reason, they decided to book a suite at the hotel for their weekend getaway. This was from July ft to July 5. While the hotel price was indeed 25% discounted as advertised, the swimming pools were currently under repairs, and a section of the hotel premises was undergoing reconstruction. The ongoing improvement works made the swimming pools inaccessible to them, and the sound of the reconstruction made it difficult for them to enjoy their much-desired long morning sleep.

The couple has now requested a forty per cent refund. They made this demand on the 5th of July, the last day of their lodging. According to them, the management of The Rooks had misrepresented the state of the hotel to them.

Question 3:

The Daily Crumb is a bakery in Auckland. On July ft1 they entered a contract with Proud Mills for the supply of flour. By the said contract, Proud Mills are required to supply 20 bags of flour to Daily Crumb before August 16. On August 10, the manager of Proud Mills gave a call to the Daily Crumb to explain to them that they would not be able to supply the flour as promised but that they are happy to advise the Daily Crumb on how to get good flour from other suppliers. The Management of the Daily Crumb responded with an email, demanding the agreed number of flour bags must be supplied by August 16. However, as Proud Mills refused to reply the said email by August 15, Daily Crumb had to order bags of flour from Delicious Grains. Daily Grains agreed to sell at a price which was 20% higher than what Proud Mills had agreed. Also, Daily Crumb was only able to get ten bags of flour instead of 20 bags as desired. Further, they claim that the quality of the flour bought from Delicious Grains was significantly lower than that which Proud Mills had agreed to sell.

They have decided to sue Proud Mills for the following heads of losses:

1) The 20?ditional cost paid for ten bags of flour;
2) Their inability to serve all their customers for the last two weeks of August due to the shortage of flour, which has cost them $20,000 in lost revenue; and
3) Future loss of revenue due to a reduction in customers and customer loyalty since their production reduced for two weeks in August.

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