MCR009 Business Law Assessment

Question 1.Billy is a passenger on a flight from London to Sydney. Veronica is a hostess working for

Smooth Airlines. On the flight, Veronica is serving coffee when she trips on a shoe that has been left in the aisle by a passenger Jack. She falls forward and spills hot coffee on Billy who is badly scalded on the side of his face.

1. Does Billy have action and who would he sue?
2. What allegations of negligence can be made against Veronica?
3. Are there any cases that assist your argument?
4. Explain the role of Veronica's employer in any legal action.
5. If Veronica had an argument with Billy the passenger and then purposely spilled coffee on him how would that alter your answer?

Question 2.Larry wins a watch in a competition and as he already has a similar one, advertises it on the internet saying, I have won this watch (photo attached), its value is around $1500 but will sell for $15.

Jack sees the advertisement and rings Larry saying he will buy the watch that has been advertised. Larry says ok and gives Jack his bank account details. Jack transfers the money into Larry's bank account.

When Larry sees the $15 in his bank account, he realizes he made an error in the advertisement as it should have said: will sell for $150. Larry refuses to hand the watch to Jack.

1. Is there a legally enforceable contract?
2. Does it matter that the watch was worth considerably more than $150?
3. If there is a contract, is there any legal basis for Larry to argue that the contract should be void?
4. What would Larry have to establish to make the contract void?
5. Are there any cases that assist your argument?

Question 3. Blitz Broadband claims in a TV advertisement that they are the fastest provider of Broadband services in Australia according to their experts.

Jasper uses their services but after one month's use realizes it is only about half the speed they claim in the advertisement.

Please advise Jasper

1. What provisions of the ACL would be best to use to claim damages and render the contract void?
2. If the advertisement uses images of Kyle (a very fast 100-meter runner) without his permission what provisions of the ACL may assist Kyle in removing the advertisements?
3. Are there any cases that help your arguments?

Question 4.Prudence is a mother of two children and drives them to school every day in her Mercedes station wagon. The car cost $120,000 which she bought three years ago from the car dealer Perfect Merc.

Perfect Merc has a two-year warranty and a notice in the contract to say they will not be liable for any faults after two years from the purchase date.

Prudence likes to listen to classical music on the radio, but the radio no longer works.

Prudence wishes to have the radio repaired or replaced by Perfect Merc but Perfect Merc seeks to rely on the clause saying they will not be liable for any faults after two years from the purchase date.

1. Advise Prudence as to whether she would be considered a consumer under the ACL
2. What sections could Prudence use to have the radio replaced?
3. How would a court treat the exclusion clause that Perfect Merc seeks to rely on?

Question 5.Bill is a director of a company that sells cables for the use of securing footbridges over roads and highways. Bill gave a contract for the supply of cables to his son without disclosing this to his other directors and he also authorized extra payments without justification when the footbridges were completed early.

1. What fiduciary duties to the company's shareholders has Bill breached?
2. What sections of the Corporations law might the regulator (ASIC) use to prosecute Bill?
3. Are there any cases that assist your arguments?