BAC111/BBS106/BHM204/MPA604 Introduction To Business Law/Hospitality Law/Commercial Law - S1, 2018

Case Study 2

Timmy has been wanting to buy his mother a special present for when she turns 40 this year and had been looking for something special all last year. Unfortunately he didn't have much money except for about $700 which he has saved by doing odd jobs on weekends and after school.

He decides that if he is to get something special he will need to borrow some money off his Uncle Sanjay. Timmy catches up with Uncle Sanjay at a family gathering at Christmas. Uncle Sanjay is happy to help out and so lends Timmy $3000 on the understanding that Timmy can start paying him back when he starts his apprenticeship this year.

Timmy is still undecided about what to buy but sees an advertisement in theHerald Sunwhere Tiger Bikes, in order to boost sales, is offering to pay $6,000 to the first person in the upcoming year to ride a new brand Tiger lightweight bicycle from Melbourne to Apollo Bay and back to Melbourne.

Timmy decides that if he could get $6000 he could buy his mother a great gift and also throw a big birthday party for his mother and pay off his Uncle Sanjay, so he buys the new Tiger lightweight bicycle for $500 and starts riding to Apollo Bay straight away on 1 January, 2015.

When he gets to Apollo Bay on 3 January 2015, he sees a great Baby Grand Piano in the lounge of the Budget Bed and Breakfast in which he is staying overnight before returning to Melbourne. His mother used to love playing the piano and he asks about the piano with the owner Ethel.

Ethel has arthritis and can't play anymore and offers to sell the piano to Timmy for $4000. Timmy thinks about it and figures out that he has $2000 and if he wins the $6000 from Tiger bikes he would still have enough to pay off the piano and throw a party so he says to Ethel. "It's a great piano and I'd like to buy it. I can afford it if I can pay for it in two instalments." Ethel smiles. Nothing further is said.

Two days later, while on his way back from Apollo Bay, Timmy stops briefly at the Geelong RSL club for a meal, a drink and a rest. While at the club, he reads that day’s issue ofthe Herald Sunand sees a notice that Tiger Bikes had cancelled its offer of the $6,000 prize.

Timmy decides then to send off a letter to Ethel dated 5 January 2015 saying he accepts her offer to sell the piano and continues riding into Melbourne. Ethel sells the piano to her friend Myrtle May on 6 January 2015 for $5000 and receives Timmy's letter on 7 January 2015.

Timmy continues with his ride and when he returns to Melbourne, he finds out he was the first and only person who attempted and finished the bicycle ride.

Timmy decides to make the arrangements for his mother's birthday party andcontacts function caterers and decides on the menu and music and other party needs. Timmy pays a deposit and spends the rest of Uncle Sanjay's money on the party.

Timmy decides to go to University instead of doing an apprenticeship and at present can't pay off Uncle Sanjay.

All students:Advise Timmy on whether he has any claims for breach of contract against Ethel or Tiger Bikes.

Postgrad students additional question:Advise Uncle Sanjay on whether he has any claim against Timmy.

Give detailed reasons for your answers and cite relevant case law.

INSTRUCTIONS FOR RESEARCH ASSIGNMENT

1.When the research question, ensure that you:

·identify the issue(s) raised by the facts

·identify the relevant legal principles

·apply the relevant legal principles to the facts

·reach a conclusion

2.You may, and are encouraged to, hand in an introduction or outline of how you propose to answer the questions so that feedback will be provided to you from the communication and study skills staff before you complete the assignment.

Guide to Formal Presentation of the Assignment

General

1.The assignment should be typed on A4 paper, on one side of the paper only, and with a margin of at least 5 cm.

2.Formal language should be used so avoid jargon, slang and colloquial abbreviations such as “don’t”. Ensure that you use correct spelling.

3.Headings and subheadings may be used if you think that this would assist the presentation of your material.

Referencing sources of information

4.Avoid plagiarism by referencing your sources. Sources must be referenced where:

·You are using someone else’s ideas

·You are quoting directly from a source

·You are paraphrasing someone else’s views

(See Crosling G.M. and Murphy H.MHow to Study Business Law- Reading, Writing and Exams, 3rded, 2000, p 122).

Citation of cases

5.When you first refer to a case, you should cite the case in full, either in the text or in a footnote e.g.Mabo v Queensland (No 2) XXXXXXXXXXCLR 1. The case name should be italicised or highlighted in some other way e.g. underlined or placed in bold letters.

6.When subsequently referring to the case, it is acceptable to use a common name for the case, such as “Mabo’scase” or “Mabo”.

7.Where a particular page or paragraph in the case is referred to, then the page number or paragraph number must be given e.g. “Mabo’s case at 9” indicates that the information came from page 9 of Mabo’s case. There is no need to write “page” or an abbreviation of the word page.

Citation of statutes

8.When citing a statute, the name of the statute should be italicised and the jurisdiction should appear in brackets after the name e.g.Commonwealth of Australia Constitution Act 1900(UK).

9.When a particular section in the statute is being relied on, then the section should be specified e.g. section 1. It is acceptable to use the abbreviation “s” for “section” or “ss” where more than one section is being referred to e.g. s 1 or ss 5, 6 and 7. However, when a sentence begins with a reference to a section, the word should always be written in full e.g. “Section 1 of theCommonwealth of Australia Constitution Act 1900(UK) provides that ...”

Secondary sources

10.When initially referring to secondary sources such as books, the author’s name and initials, full title of the book, edition (if relevant), publication date and page number should be given e.g. Crosling G.M. and Murphy H.MHow to Study Business Law- Reading, Writing and Exams, 3rded, 2000, p 122.

Bibliography

11.A bibliography listing all books and articles (not cases or statutes) used in the preparation of the assignment should appear at the end of the assignment.

Guidance from textbooks

12.Use your prescribed textbook and recommended texts as a guide to the way in which cases, statutes and secondary sources are cited and the manner in which legal arguments are structured.