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Assignment Instructions Your assignment must address two problem solving hypotheticals. You may discuss your progress on the assignment on Moodle with other students and the unit coordinator; however,...

Assignment Instructions

Your assignment must address two problem solving hypotheticals. You may discuss your progress on the assignment on Moodle with other students and the unit coordinator; however, your final submission must be your own work.

Answer both questions 1 and 2.

Question 1 (15 marks. Suggested word limit 1,000)

Question 1

Kate wished to purchase a motel on the coast of New South Wales. She contacted Jo-Anne, a real estate agent in Nelson Bay. Jo-Anne said she knew all about the local motels and that the ‘Bay View Resort’ in Nelson Bay was for sale and was a booming business. Jo-Anne said that Nelson Bay was a popular tourist spot with a high demand for accommodation and that Bay View Resort was sure to make a good profit. Jo-Anne did not disclose that the Australian Fishing Championships were held in Nelson Bay in 2016, and that had boosted the profits for the resort that year. Kate asked to see the auditor’s report for the business, which was prepared by Herb Accounting Ltd for taxation purposes in 2016. The auditor’s report showed that Bay View had made a profit of $1.2 million in 2016 but the report overstated the profits.

Based on the auditor’s report and Jo-Anne’s statements, Kate went ahead and bought the resort for $4.3 million. However, in 2017 there was a lower demand for accommodation in Nelson Bay than in 2016 and the business made a loss. Kate decided to sell it. The resort was valued at $1.5 million. Wanting to get out before she lost any more money Kate sold the resort.

Is Jo-Anne liable in negligence for Kate’s loss?

Briefly discuss whether Herb Accounting Ltd is liable for Kate’s loss.

You should support your answer with case law and legislation where relevant.


Question 2 (15 Marks. Suggested word limit 1,000 words)

Angelo was running a successful restaurant in Armidale called Fish4U. It had been selected for a television promotion featuring Angelo as a chef who was using local organic produce. One of his major suppliers of vegetables was his mother, Stella. She owned 25 acres on the edge of Armidale where she ran a successful business growing and selling organic vegetables. She was unable to read because she had never been taught how to read, and she had a mild intellectual disability.

After the television promotion Fish4U business improved, and Angelo decided to buy another restaurant in Sydney called Olley. He expected to make a good profit but needed a loan of $450,000 to buy the restaurant. He approached Westpac Bank which required a mortgage to secure the loan.

Angelo asked his mother if she would supply Olley’s restaurant with organic tomatoes each week and he would pay her $50 per kilogram (kg). Stella said that she would increase her production and could supply 5 kg per week. Angelo was delighted and agreed he would pay his mother $250 each week for 5 kg of tomatoes. He said that he wanted to make the supply a business agreement and would draw up a contract. He also planned to manipulate his mother into mortgaging her property.

He asked his mother to sign a document. She thought it was a contract for the supply of tomatoes for the next 12 months. The document Stella signed was the mortgage contract with Westpac Bank mortgaging her property as security for the $450,000 loan.

The new restaurant was not a success, and Angelo could not make the loan repayments so the bank began proceedings to recover the loan by the sale of Stella’s property.

Using the principles of contract law that you have studied in this unit, answer the following questions:

Is the mortgage contract between the bank and Stella enforceable?

Is there a contract between Stella and Angelo for the supply of tomatoes?

You should support your answer with case law and legislation where relevant.

Bibliography: Include a bibliography. The bibliography does not form part of the word count.

Footnotes: The word count excludes all footnotes unless some footnotes go beyond providing references and instead contain discussion.

Assignment Style: Please refer to the style checklist in the Essential Guide for Studying Law for details on how the assignment should be formatted.

Referencing style that the assessment must comply with: Australian Guide to Legal Citation.

Marking criteria
There is no specific allocation of marks to individual criteria. The mark awarded reflects the overall quality of the written assignment taking into account all criteria.

In order to pass, assignments must present a clear and well-reasoned attempt to answer the questions. Each assignment answer will be assessed on the following criteria:

Is it a planned and organised answer?
Is it communicated clearly?
Are the legal issues correctly identified?
Have the legal principles been explained?
Has the law been correctly applied to the facts?
Have the propositions been supported by appropriate case law, precedents or legislation?
Has a conclusion been reached, and is the conclusion reasonably supported by the facts and the law?
Is the answer properly referenced? i.e. AGLC referencing. (Please see the University Plagiarism policy)
Please also review ‘Assignment’, ‘Notes on the Assignment’, ‘A Guide to Answering Legal Problems’ and ‘Marking Criteria’ sections in the study guide.

Learning Outcomes

Demonstrate a broad understanding of the Australian legal system and its operations in specific commercial areas; the range of business organisational options; and be able to describe and explain the legal rights, duties and responsibilities of parties in a business context;
Use initiative and judgement to identify and demonstrate an understanding of the application of the law regulating business relationships (negligence, contract, sale of goods, consumer protection and agency) to recommend and communicate resolutions to fact based problems; and
Use cognitive and communication skills to demonstrate an ability to communicate coherently an independent opinion on a legal issue relevant to business.

Oct 07, 2019

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