(1520) Semester 2, 2015 BULAW5914 COMMERCIAL LAW
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School of Business
EXAMINATION
(1520) Semester 2, 2015
BULAW5914 COMMERCIAL LAW
Examination Duration: 180 minutes Total Marks: 50
Reading Time: 10 minutes
Exam Conditions:
This is a THEORY examination
This is an OPEN BOOK examination.
Materials Permitted In The Exam Venue:
Normal writing materials
Printed or written materials (except li
ary books) are permitted.
Electronic devices are not permitted.
Materials To Be Supplied To Students:
2 x FedUni Standard Answer Booklet
Instructions To Students:
This exam comprises 50 marks in total.
You must answer all FIVE questions. Each question is worth 10 marks.
Student Number __ __ __ __ __ __ __ __
Family Name _______________________
First Name _______________________
DO NOT REMOVE ANY PART OF THIS PAPER FROM THE EXAM ROOM.
EXAMINATION RULES
1. Do not detach any
portion of the
examination paper.
2. Listen for all
instructions from
venue supervisors.
3. Do not begin writing
until reading time has
ended.
4. Ensure that you print
your name and
student number on all
exam papers, answer
ooklets and multiple
choice sheets.
(1520) Semester 2, 2015 BULAW5914 COMMERCIAL LAW
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EXAM COMMENCES NEXT PAGE
(1520) Semester 2, 2015 BULAW5914 COMMERCIAL LAW
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Question 1 – Business structures and relationships
Answer all of (a), (b), (c), (d) and (e).
(a) What is meant in law when someone acts as the ‘agent’ for a principal
when contracting with a third party? What duties does the agent owe, and
to whom are those duties owed? (2 marks)
(b) Abdul is Peter’s agent. Abdul, acting outside the scope of his actual
authority but representing himself to be Peter’s agent, enters into a
contract with Colin. Using at least one case authority, on what basis might
Peter be bound in the contract with Colin? (2 marks)
(c) Max, Asgar and Fatima are in practice together as an unincorporated firm
of accountants. What is the nature of the legal relationship between the
three accountants? Explain whether or not the firm is a separate legal
person? (2 marks)
(d) In what ways is the relationship between a trustee and beneficiaries similar
to the relationship between a company director and shareholders? (2
marks)
(e) Briefly explain whether or not each of the following is recognised as a
separate legal person:
(i) a joint venture;
(ii) a company;
(iii) a franchise;
(iv) a person in business as a sole trader? (2 marks)
(10 marks in total)
Question 2 – Contract law
Based on the following scenario, answer the questions below refe
ing only
to the general law, both common law and equity. Do not refer to statute law.
Mark offers specialist business consulting services for which his advertised fee
is $200 per hour. Gina, the sole director, shareholder and employee of GTX
Pty Ltd, emailed Mark and asked whether he would be willing to supply his
services to GTX at $150 per hour. Mark emailed back offering a rate of $180
per hour. Gina replied by email that the most GTX could afford is $160 per
hour. Mark sent an emailed reply stating that he could go no lower than $170
per hour. Gina sent no reply to this. However, today Mark commenced
supplying his services to GTX.
Explain your view on whether or not Mark has entered into any contract. If not,
why not? If you conclude that Mark has entered into a contract, with whom
has he entered the contract, at what rate and when was the contract formed?
(10 marks)
(1520) Semester 2, 2015 BULAW5914 COMMERCIAL LAW
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Question 3 – Contract law
Answer all of (a)-(e) refe
ing only to the general law, both common law
and equity. Do not refer to statute law.
(i) “All contracts must be in writing to be valid.” Explain your view on
whether this statement is co
ect.(2 marks)
(ii) In contract law, what is the difference between duress and
unconscionable conduct? (2 marks)
(iii) In contract law, what is the difference between rescission and
termination? (2 marks)
(iv) What does it mean in law to say that a contract has been
“frustrated”? (2 marks)
(v) Today Mandy
eaches an essential term of her contract with Luke
and the
each causes Luke to suffer financial loss. What are
Luke’s likely remedies in contract law? (2 marks)
(10 marks in total)
Question 4 – Sale of Goods
(a) Leo Pty Ltd manufactures and delivers dog and cat vaccines to animal
hospitals and clinics. The vaccines need to be transported and stored at
etween 0 to 4 degrees Celsius to remain effective. A consignment of
vaccines ordered by the Lakeland Animal Clinic (by reference to the
vaccines’ product codes) is ruined during a delivery due to failure of the
efrigerated delivery van’s thermostat. The contract of sale is silent on
the question of when property in the vaccines passes.
Outline the operation of the statutory provisions governing the sale of
goods that are relevant to this scenario. In particular, explain who
owned the vaccines at the time they were ruined? (5 marks)
(b) In property law what is the doctrine of nemo dat quod non habet? In
what ways does sale of goods legislation create exceptions to that
doctrine? (5 marks)
(10 marks in total)
(1520) Semester 2, 2015 BULAW5914 COMMERCIAL LAW
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Question 5 – Bankruptcy law
In your answer consider all the (a)-(e) transactions below.
Over the past two years Frank has experienced financial difficulties and he is
cu
ently being pursued by creditors. Frank owes over $800,000 to 10 different
creditors, including Expert Credit which holds a properly registered personal
property security interest over Frank’s boat. His creditors successfully petition for
Frank’s bankruptcy, after Frank’s failure to satisfy a valid bankruptcy notice.
In the period from the week before the day that the bankruptcy notice was served
on him to the date that the petition is accepted by the Federal Court, Frank:
(a) Sells his camper van valued at $20,000 to Linda his daughter for $5,000.
(2 marks)
(b) Sells his boat at fair market value to a stranger, Leo, who responded to an
online advertisement placed by Frank. (2 marks)
(c) Pays off a $20,000 personal loan that he owed to his long standing friend
Jessica. (2 marks)
(d) Transfers by gift (under a valid deed) the legal title of his house to his wife,
Beth. (2 marks)
(e) Gifts to George his father (by handing over physical possession) some low
value chattel property of high sentimental value. (2 marks)
Explain if the transactions (a)-(e) mentioned above will be enforceable against
Frank’s trustee-in-bankruptcy or his creditors under the Bankruptcy Act 1966
(Cth). (10 marks in total, comprising 2 marks for each transaction)
XXXXXXXXXXmarks in total)
END OF EXAMINATION