Commercial law assignemnt Please find details in attachment. please ensure to follow all given guidelines. references should be added properly.. the given

Commercial law assignemnt Please find details in attachment. please ensure to follow all given guidelines. references should be added properly.. the given answers are just for reference. they are neded to be written accordingly Summary of the assignment
SECTION
TOPIC
A
B
C
D
Sales of Goods Act
CGA
FTA
Employment Law
TOTAL MARKS
100
MARKS
24
22
14
40
GENERAL INSTRUCTIONS
•
This assignment is to be completed in students’ own time and must be
each student’s own work.
•
Students should endeavour to answer questions in their own words. Where
Text Books or other resources are directly quoted from, then students are
expected to appropriately reference their source(s). Please use an APA
style of referencing and a hand-out is available from the Student Learning
Services in the Library explaining this. Please apply the relevant
law/cases where applicable.
•
The Student’s name and ID should also be included on the footer of each page.
•
The assignment must be word processed in a size 12 font and 1.51ine spacing.
•
Each new Section should be started on a new page. Students must ensure that
they show clearly which question they are answering.
•
The assignment is to be submitted to the TURNITIN electronic drop box on
the course Moodle site by 1.00pm on the due date. IN ADDITION, a hard
copy of the assignment is to be submitted to the Lecturer in class.
Due date WEEK 8 (Wednesday 1.00pm)
Word limit between 2200
Section A (Learning outcome 4)
Question 1 – Sale of Goods
A.
What is the purpose of the Sale of Goods Act 1908?
24 Marks
2 Marks
The Sale of Goods Act 1908 gives people the right to findthe refund or some
damages if you are sold goods which the seller, unknown to you, they did not
have the right to sell any thing. The seller did not have any clear title in selling
ways. This act can have protection.
B.
Lisa has a nice garden shed on her land which she no longer uses. She
advertises in the “Trade and Exchange” magazine, “Garden shed for sale, $300
or nearest offer”.
On Thursday 11 November Paul comes to look at the shed and eventually says
to Lisa, “It’s going to be difficult to remove because it’s concreted in, and also
the window is broken. Tell you what, if you drop the price to $225 and get the
window fixed I’ll come and pick it up by next Thursday.”
Lisa agrees and they sign a written contract on these terms.
i) Explain by reference to the appropriate sections in the Sale of Goods Act
1908 why this is a contract of sale of goods. 2 Marks
ii) Explain by reference to the appropriate sections in the Act who owns the
shed when Lisa gets the window fixed the following Monday. Paul does
(3 marks)
not yet know this has been done. 3 Marks
(2 marks)
iii) Lisa rang Paul on the day before he was due to pick up the shed. She told
him the window had been fixed. Paul replied, “OK, I’ll come and pick it up
tomorrow, Thursday, about noon”. Before he arrived a strong wind blew down
a neighbour’s tree on the shed, smashing it into broken pieces of timber. Who
would bear the loss – Lisa or Paul? 3 marks
According to the sale of goods act in section 20 (1), it is a unconditional
contract for the sale of special goods. Paul find that the window has been
brouken. If lisa can repair it he will buy. The contract has heen written. Drop
price and fiexed window, pick it in next days. Lisa has notice thereof. She must
has some deliverable state. Paul must to check this. If there is nothing to do is
lisa response.
According to section 19, under the contract, the property in the goos must
intend in to pass. The both decisied together, paul will pick next week. The
contract has been down before. Paul is the owner.
C.
Background facts
Samantha runs an interior design store. To shift some old stock she sends a set
of Side tables packaged together in a box to auction. Before the auction Angus
makes an offer to buy the set of side tables and Samantha accepts. As part of
the contract it is agreed that Angus will make payment and collect the tables
the next day.
During the night the side tables are destroyed in a fire at the auctioneers.
Required
5 Marks
Applying the law to ascertain who bears the loss of the burnt tables.
Side table is a special goods that is known in the public. According to the law( sale of goods
act) section 20, this is an unconditonal contract for the sale. Angus accepted this, the treat has
been finished. There is no relationship betwwen payment and not. The fire happend before,
the side tables ownership has been transfferd to angus. Eventhought there is no payment.
Angus should laible for this special goods. He will bears the loss of the table.
D.
Jo is the chef de cuisine in a busy restaurant. Jo sees an advertisement in a national
newspaper for bulk Amphitrite Soybean Oil at 75c/litre, and e-mails an order to the supplier
for 100 litres of Amphitrite Soybean Oil. When it is delivered, Jo discovers that it is a
lubricating oil totally unsuitable for culinary purposes. Would Jo be justified in rejecting the
oil? 3 marks
E) Explain with reasons who will have to bear the loss in the following circumstances:
i) On Tuesday Charles purchases 12 m of carpet from Carpetland Ltd. The carpet is a bulk
roll and the 12 m is to be cut from the bulk and the delivered to Charles’s office on
Thursday. On Wednesday morning before the 12 m has been cut, there is a fire at
Carpetland and the entire roll of carpet is destroyed. 2 marks
ii) On Tuesday Charles purchases 12 m of carpet from Carpetland Ltd. The carpet is a bulk
roll and the 12 m is to be cut from the bulk and the delivered to Charles’s office on
Thursday. On Tuesday afternoon an employee of Carpetland cuts 12 m from the bulk and,
having rolled it, labels it ‘For Charles Thursday’. On Wednesday morning, there is fire at
Carpetland and the 12 m roll of carpet is destroyed. 2 marks
iii) Pat goes to Rick Jones Electrical Ltd (RJEL) in order to look at home entertainment
systems. As part of a promotion, RJEL allows potential purchasers to take a system home
for 48 hours to try before deciding whether or not to make the purchase. On Friday, Pat
takes home a SUPASYSTEM Mark X which is on sale for $5 000. On Saturday night Pat
throws a party to really try out the system. One of Pat’s guests accidently pours a gin and
tonic over the central part of the system which explodes with a loud bang and bursts into
flames. 2 marks
Question 2 – Consumer Guarantees
a.
When does the Consumer Guarantees Act Apply?
b.
Background facts
22 Marks
2 Marks
Alex is a keen sailor, and decides to set up a small business teaching people to
sail the type of yachts that families and hobby sailors would normally use.
Alex buys the following items for her business:
(a) A ‘family’ yacht from Nelson Marine Limited (“NML”)
(b) Five ‘second hand’ life-jackets from his Neighbour, Warren (who has in
the past sailed in his spare time);
A week after these purchases Alex notices some cracks in the yacht’s hull. She
calls in Clive, a marine engineer to carry out a survey of the yacht, and
equipment.
Clive reports that;
a) the yacht is in fact parts of two separate yachts nailed together and is not
seaworthy and is a ‘death-trap,’
b) the flotation material in the life jackets has broken down over time and
wouldn’t support the weight of a person.
Required
Explain Alex’s statutory rights against NML and Warren. You must consider
whether the supply of the yacht and/or the life jackets is covered by the
Consumer Guarantees Act and what guarantees apply (if any).
Alex can ask the NML to pay the loss of money. it is fit for the purpose. Alex
8 Marks
want to buy it for teaching people. But, it is useness. The yacht must have two
separtate together not seaworthy. It is dangerous for people. It is death-trap.
The particual purpose is not requried in this condition. NML must show the
information to buyer. NML must descrip something. So , there ia an implied
condition there must show the merchantable quality. According to consumer
guarantees, the NML must ensure that the quality is requried. They have duty
to finished. For warrent, alex can do anything for him. Because, we known that
second hand life-jackets is not good in quality. Who can be responsible for it.
Alex must relised that there is a problem in safe. Alex was laible fot it.
c) Sarah goes into a hardware store to buy paint that will stick on a certain type of wood
– rimu – that her house is made of. The person behind the counter, Bob recommends
a certain brand as “excellent for painting on that type of wood”. Sarah pays for it,
takes it home and starts painting.However three days later she notices that the paint is
starting to peel. A friend of hers who is a painter comes around and informs Sarah
that she has used the wrong type of paint. Sarah then discovers the instructions on the
paint say that it will not stick properly on certain woods – rimu is listed as one of
these woods. Another person at the hardware store (not Bob who has left) informs
Sarah that they are not required to do anything to help her because she didn’t read the
instructions on the side of the paint can where it clearly lists rimu as a wood the paint
shouldn’t be used on. Sarah argues with them and finally they agree they will order
her the proper paint (they have none in stock at the present time) from their store in
Wellington. She is keen to get started again with the painting and after two weeks
have gone by she approaches them and asks them about the order. They inform her
that they have forgotten to order the extra paint and will do so immediately. She goes
back in another two weeks (now four weeks have gone by) but the paint still has not
arrived. The store insists it is on the way.
i.
Does the store have to remedy the problem seeing as the instructions specifically said
the paint should not be used on rimu? Explain. (2 marks)
ii.
What are the rights and remedies Sarah has available to her?
(2 marks)
iii.
What can Sarah do about the fact the store insists they will receive the paint but Sarah
is still waiting? (2 marks)
iv.
Would the situation be different if there was no paint that worked on rimu wood and
the store could do nothing to help Sarah? (2 marks)
d) FACTS:
Lucky, an engineer, has a practice with offices in his home in Mount Albert.
He has recently purchased a small “Freezit” fridge from Auckland Fridge Suppliers (AFS) for
the reception area which has drinks and snacks for his clients while they wait.
After only a month the fridge suddenly stops working and leaked water in the expensively
carpeted reception area.
Mani, an electrician and a client of Lucky’s, who was in the reception at the time tells Lucky
that he has tried to repair similar “Freezit” model fridges and that they are known to be
unreliable and difficult to repair. He looks at Lucky’s fridge and says that it will be difficult
to repair and it would be better for Lucky to get a new one.
Lucky takes the fridge back to AFS and says he wants his money back and compensation for
drying and cleaning the reception area carpet. The owner of AFS says he will not refund the
money.
Explain what rights, if any, Lucky has against AFS under the Consumer Guarantees
Act 1993. [ 4 marks]
Question 3- Fair Trading Act
Q1) Tessa Black is a professional multi-sport athlete. For the past three
(3) years she has purchased her ‘thermal’ clothing from a New Zealand
Company, Ice Country Limited. Tessa chose to purchase Clothing from
Ice Country Limited, because of the Companies advertising statements
that the clothing was made in New Zealand from 100% New Zealand
Merino Wool. These statements were on;
(a) their website when she accessed it immediately before making
her first purchase; and
(b) Swing tags attached to the garments that she looked at in the
shop when selecting the clothing she wanted to buy.
Tessa has just found out from an article in North and South that when
the company first started making the clothing, it was designed and
made here, but for the past five (5) years (and currently), the clothing
was designed in New Zealand and made in China, from 85% Australian
Merino, and 15% Polyester.
Required
Determine whether there has been a breach of the Fair Trading Act
1986 by Ice Country Limited (4 marks)
14 Marks
The case has been a breach of the Fair Trading Act 1986 by Ice
Country Limited. The advertising show that the clothing was made in
New zealand from 100% New Zealand Merino Wool. Why tessa want
to buy . The condition has been given. Made in new zealand, 100% new
zealand wool. Because of this can attractive more people. If it is not
made in new zealand . Who will buy it from tessa. The company must
tell the tures for all people. It is unfair traade behaviour. The
manufacture must show the quality or some changing. According to
section 13. The breach has been made. The company promotion is not
ture. The article illustrate that the clothing was designed in new
zealand. But made in china the wool is not belong to new zealand.
From 85% AUSTRALIAN and 15% Polyester. Not 100% in
newzealand. The two typles has complict for consumer, they can not
know what is ture. So it breach the law in section 13.
Q2) FACTS:
a) Bhavin finds an advertisement in his letterbox from an Auckland company called
Specialist Laboratory Services Ltd. The advertisement states that the company is
selling “a slim fast tablet.”
The instructions state that if taken as prescribed the tablet will cause significant weight loss
within three months. Bhavin, who is overweight responds to the advertisement and buys a
substantial quantity of the tablets, He has been using them as prescribed for the past six
months without losing any weight. The advertisement also stated that the tablets were
manufactured in the USA. Bhavin discovered that the tablets were manufactured in a
backyard laboratory in South Auckland.
Required:
a. Outline the issue. [1 mark]
b. Explain the relevant law in relation to the above scenario. 3 marks]
b)
Keen is a newly qualified personal trainer. In order to attract customers, Keen proposes to
insert the following advertisement in the local paper.
Lose weight in weeks!!
With my personalised fitness programme, you will lose at least a kilo in the first week. You
will also be fitter, healthier and happier. I have trained several famous athletes and now you
may have the benefit of my skills and knowledge.
Ring D Keen 122 3456
Keen has not trained any athletes, famous or otherwise.
Required: Briefly outline the potential problems this advertisement could cause Keen in the
light of the provisions of the Fair Trading Act 1986 (3 marks)
Q3) Food Storage Ltd puts up large notices at the entrances to its supermarkets which states:
NONE OF THE PRODUCTS SOLD IN THIS STORE
CONTAIN GENETICALLY MODIFIED FOOD
PRODUCTS
In fact, several of the foods they sell, including some packets of dried fruits and soyabean-based meals, do in fact contain genetically modified content.
Comment whether there has been a breach of FTA 1986
(3 marks)
It has been breach of FTA 1986. It is clear showing that none of the goods sold in there. But
in the fact, contain gentically modified content. There must have the ture information for
consumers. They can known it. The food storage Ltd should be responsible for it . It is not
ture infirmation for cunsumer.
Learning outcome 5
Question 4- Employment Law – Dismissal
25 Marks
Read the cases below and the questions.
Case 1
Dr Hans Wagner was a lecturer in Marketing at Noname University. He was 29 years old,
and had one year’s experience as a lecturer. Hans had only been in New Zealand for one year,
having emigrated from Germany where he had been a student at the University of Berlin.
Professor Alan Wilson was Hans’ head of department. As head of department, Alan was in
charge of all human resource decisions affecting his staff. Part of his job included monitoring
the staff’s research and teaching performance. Unfortunately for Hans, his teaching
performance had been relatively poor, with student ratings of generally between 2.5 to 3.0
(on a scale of 1 to 5, with 5 being the lowest score). This was worse than three quarters of the
th
staff in the School of Business. However, in a recent 4 year course which he had not taught
before, his ratings were even worse that usual. Most students rated him as either 3 or 4 on the
criteria in the student evaluations.
Alan was very concerned about this development. He had already told Hans that he ‘needed
to improve’ during a discussion about his teaching performance in the previous semester. He
called Hans to his office, explained to him that this performance was ‘not acceptable’ and
said that he would have to ‘let Hans go’. Hans felt humiliated. When Alan asked him to
explain his poor performance, Hans, not wanting to drag out the interview longer than
absolutely necessary, said that he could not. Two months later, Hans lodged a personal
grievance and returned to Germany.
1) Did Alan the employer have substantive grounds to dismiss Hans? Explain (3 marks)
Alan did not have substantive grounds to dismiss Hans . Under the law, Hans did not have
any serious misconduct. The only problem. Is that Hans just have 1 year in new zealand.
How we can make sure that he has good ecperence in teaching. It is differcult for him.
Hsi teaching performance is bad. He has only i year experence as a lecturer. Alan di not
have the right to dismiss Hans who just have 1 years experence in teaching ways.
2) Did Alan follow the procedural requirements in dismissing Hans, if not, what
procedures should have been followed in this case? (5 marks)
he did not follow the steps. First , he should give the first warning to Hans. It must show
the problem in his teaching ways. If he known the problem. He may have some change in
poor performence. But there is no information told him. If there is no improvement for
Hans. Second, alan should give the formal written. In fact alan just discussion about his
performance. It is not legal under the law.
Case 2
Sextus is employed as a systems designer by Tarquin Industries Ltd. Sextus is a
cheerful, outgoing person. Lucretia is also employed as a systems designer by TIL.
Lars, the systems manager, puts Sextus and Lucretia on a project team to redesign
the payroll system for TIL. The task is complex and there is a deadline which means
that Sextus and Lucretia are required to spend a good deal of time in each other’s
company. Because they often work late they frequently have a meal together as a
break. While at local restaurant on one of these ‘breaks’ Sextus puts his hand on
Lucretia’s knee and asks her to come back to his place after work. Lucretia is
shocked and upset and goes home. The next day Lucretia complains to Lars about
Sextus’s behaviour.
Required: Draft an opinion for Lars setting out the obligations of TIL in this matter
and how the affair should be handled to avoid a personal grievance being taken by
either Lucretia or Sextus ( 5 marks)
Case 3
Rob is a delivery driver. He has a good work record and has been with the company for five
years. A motorist has complained that two weeks ago Rob broke the law by double parking
and blocking the road when unloading parcels and that he was arrogant and rude in his
response to the motorist.
The report from Rob states that, as is normal practice, he had the vehicle’s hazard lights
flashing at the time. He said that he was extremely busy with deadlines he was required to
meet by the company. He said he did not apologise to the motorist but just looked at him and
kept unloading the parcels as quickly as possible.
His manager calls Rob into his office and advises him that he is dismissed because of his
actions. Discuss. (4 marks)
Case 4
Mary started working in a local supermarket. At the time she began, she was told what the
hours of work would be, and that an agreement would be signed later. One month later she is
called in to see the manager. He says she has been on trial for the first 90 days and that he has
decided that she is not suitable because she does not smile a…
Purchase answer to see full
attachment