Multiple Choice Questions
There are 10 questions in this part of the exam. Each question is worth 1 mark.
It is recommended that you allocate approximately 15-20 minutes to these multiple-choice questions.
Question 1
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The Electronic Transactions Act 1999 (Cth) requires electronic signature method to be:
Select one:
a. Sufficient to identify the person
. As reliable as is considered appropriate for the proposal in question
c. Sufficient to indicate the person’s intention regarding the information communicated
d. All of these answers are co
ect
Question 2
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Co
espondence with description, acceptable quality and co
espondence with sample are all examples of:
Select one:
a. non-excludable statutory consumer guarantees as to the quality of goods
. excludable statutory consumer guarantees as to the quality of goods
c. non-excludable statutory consumer guarantees as to the provision of services
d. excludable statutory consumer guarantees as to the provision of services
Question 3
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Cuddly Towels Pty Ltd manufacturer a range of towels and other bathroom products. They make an agreement with Rarget Pty Ltd that they will supply them with towels to sell but that they cannot offer them for sale below a price of $30 a towel. This is an example of:
Select one:
a. price fixing
. resale price maintenance
c. a legitimate business practice
d. exclusive dealing
Question 4
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What is the doctrine of precedent? Which of the following is co
ect?
Select one:
a. A court will follow a precedent or principle in law set by a court which is superior to itself in its own hierarchy
. Precedents refer to the decisions of a parliament
c. Only the High Court of Australia is able to set a precedent; all other courts merely make decisions which are not precedents
d. Precedent means that the High Court of Australia is bound to follow decisions of the English courts
Question 5
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What does ‘separation of powers’ mean?
Select one:
a. It means that legislative, executive and judicial powers should not be exercised by the same body
. It means that Federal and State parliaments have different legislative powers
c. It means that Federal courts can exercise State jurisdiction
d. It means that Commonwealth legislative powers are separated from English legislative powers
Question 6
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Which of the following is a co
ect statement about consideration?
Select one:
a. Consideration is required in all formal contracts
. Parties to a contract must provide something in return for the promise of each other, otherwise the contract will not be binding
c. Parties to a contract must think seriously about entering into it otherwise it will not be binding
d. The consideration of each party must be equal to the consideration of the othe
Question 7
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What are the two forms of law in Australia?
Select one:
a. Judge-made law and common law
. Legislation and common law
c. Acts of Parliament and Statutes
d. Legislation and statute law
Question 8
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What is meant by the term ‘privity of contract’?
Select one:
a. Only a person with a copy of the contract can enter into it
. If consideration is paid to a third party then the promisee cannot enforce the promise
c. Only a person who is a party to a contract may enforce the contract
d. If a person is privy to a contract they can enforce it even if they have not paid consideration for the promise
Question 9
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Which of the following ranks as the highest court in Australia?
Select one:
a. Supreme Court of Victoria
. High Court of Australia
c. Full Court of the Federal Court of Australia
d. New South Wales Court of Appeal
Question 10
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Partners have:
Select one:
a. no liability for the actions of all members of a partnership
. limited liability for their own actions within a partnership
c. limited liability for the actions of all members of a partnership
d. unlimited liability for the actions of all members of the partnership
Short Answer Questions (Part A)
There are 2 random short answer questions in this part of the exam. Each question is worth 3 marks.
It is recommended that you allocate approximately 5 minutes to each question.
Question 11
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With reference to s.18 of the Australian Consumer Law, outline and describe what is misleading or deceptive conduct? Support your answer with reference to a case.
Question 12
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What is Rescission and explain it’s purpose.
formation
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Short Answer Questions (Part B)
There are 3 random short answer questions in this part of the exam. Each question is worth 3 marks.
It is recommended that you allocate approximately 5 minutes to each question.
Question 13
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A real estate agent contracted with a property magazine to prepare a monthly real estate column for the next five years. The magazine undertook that the column would appear on the centre pages. Due to industrial troubles, and after the contract had run for three years, the journal printed the column on page three for three successive weeks. Can the real estate agent now treat this as
each of a condition of the contract, and consider herself no longer bound by it?
Question 14
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A landlord agreed to rent a flat to a tenant. After the tenant signed the lease, and before the tenant moved in, the flat was destroyed by fire. Is the lease contract discharged? If so, why?
Question 15
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Able agrees to sell a widget to Belinda. At the time of the contract, the widget was in storage in a warehouse. Neither knew that the warehouse had been destroyed by fire. Can Belinda hold Able to the agreement? Explain your answe
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Problem Questions
There are 2 problem questions in this part of the exam. Each question is worth 20 marks.
There is also the ability to upload a file should you require additional space for your responses.
Question 16
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Joyce recently purchased a house, on a large block of land, in inner Sydney from Star Properties Ltd. Her dealings were with Phillip, the sales manager of Star Properties Ltd. Her plan was to demolish the house and build four small townhouses on the land; one to live in, one for her sister to live in and two for sale.
Joyce had little experience at property development and prior to purchasing the land she explained her plans to Phillip. She asked Phillip whether she would have any problems gaining a permit to build four townhouses. Phillip said to her, “You won’t have any problems”. Joyce again stated her needs in relation to the land, and suggested that perhaps she should discuss her plans with her architect before proceeding with the purchase. Phillip reassured her that everything would be fine. He told her that he was a property agent, had bought and sold land in the area for many years, and that he was very well informed about building laws and council regulations. Satisfied by this, Joyce signed a contract of sale to buy the house for $500,000. No mention of her requirements for a permit to build four townhouses was made in the written contract. The contract did however contain a clause that said:
“Entire Contracts Clause: The written contract contains the entire agreement between the parties. Any other statements made by agents or employees of the company or included in advertising material are of no effect unless they are included in this written agreement.”
After discussions with the local council, Joyce has now learned that the council will only grant a permit to build two townhouses instead of the four she had planned.
Joyce approaches you for advice in relation to the above matter. She has had the house valued and discovered it is now estimated to be worth only $450,000. She has also discovered that land in the area satisfying council requirements for four townhouses is difficult to find and would cost at least $750,000.
1. Advise Joyce of her contractual rights against Star Properties Ltd in relation to the purchase of the house. Your response should comprehensively discuss all of the contractual principles involved including an estimate of damages. Support your answer with reference to at least two (2) court cases.
2. Discuss the application of the Australian Consumer Law to this situation. Are there any other non-contractual remedies available to Joyce in this situation?
3.
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Question 17
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Jenna entered Buntings Pty Ltd shop. She said to the salesperson, “Look, I am going climbing in the Himalayas and I need a suitable sleeping bag. I’ll be there in the climbing season, but I’ll be attempting several 7,000 metre peaks so the sleeping bag needs to be waterproof, and also very warm, as the temperature falls at night to around -30 degrees Celsius. What have you got?”
The salesperson showed Jenna three sleeping bags, one of which was manufactured by X-Treme Sports Ltd. While the salesperson was called away, Jenna selected X-Treme Sport’s sleeping bag and paid the cashier $750. Jenna went to the Himalayas and suffered frost-bite because the sleeping bag was totally inadequate. In fact, it was designed for use in milder climates. When Jenna returned she ho
led into Buntings Pty Ltd store and demanded an explanation and compensation.
The store manager said: “It’s not our problem. You selected the sleeping bag and what’s more the sign at the cashier’s desk clearly states that Buntings Pty Ltd shall not be liable for any damages except for the replacement of goods proved to be faulty at the time of sale.” Jenna remembered reading the sign at the time she bought the sleeping bag.
a. Does Jenna have any action against Buntings Pty Ltd for damages under the ACL Explain your answer and include at least one (1) case reference.
. Would it make any difference to your answer in (a) above if Jenna had been an expert climber with many years of experience, and this fact was known to the salesperson?
c. What are Jenna’s rights against the manufacturer