HI6027 | Business and Corporate Law | Online Exam

Student Number: (enter on the line below)
NEC2080
Student Name: (enter on the line below)
HARIKRISHNA MUKKALA
HI6027 Business and Corporate Law
Online Exam
Trimester 3 2019
Instructions:
The exam consists of five (5) questions divided into three (3) Sections.
Answer all questions in the answer boxes provided in this paper.
Section A – 1 Short Answer question (10 marks)
Section B – 3 Case Studies / Problem-type questions (30 marks)
Section C – 1 Critical Thinking question (10 marks)
Assessment Weight:
This exam accounts for 50 percent (50%) of total marks.
Question 1 10 marks
Question 2 10 marks
Question 3 10 marks
Question 4 10 marks
Question 5 10 marks
Total marks 50 marks
HI6027 Online Exam T3 2019

Part A – Short Answer Question (10
marks)
Question 1
List the characteristics of what would be considered to be a good legal
system. Give an example of an actual law which you would consider fulfils
the requirements of ‘good law’.
ANSWER: ** Answer box will enlarge as you type
Law is a set of rules that controls the human conducts. It actually
differentiates between a simple act and a legal act. Law can be said
to be comprise of various Acts, guidelines, policies and provisions. It
is necessary for human being to follow the guidelines and principles
stated by the legal framework, otherwise adequate punishment or
penalty or both will impose upon the person. A good legal system
can be referred to such system where there exist transparency
between the legal principle and decision. It is an accepted fact that,
people goes to the court in case there right guaranteed by one or
more legal guidelines has been breached or loss, damage or
detriment caused to the person due to some misconduct of another.
Therefore, it is necessary for the person dealing with the legal right
of another to maintain justice and fairness. Furthermore, there
should not be any biased intention or conduct while dealing with
these legal rules as these may result in detriment to another
person’s interest who has some right and who came before the
court of law with an expectation that court will secure and promote
such right. However, a good legal system is that, where there is
proper hierarchy of courts. That means there should be three layers
of court; lower court, high court and Supreme Court. Further, a good
legal system must ensure its rule and regulations are not influenced
by any superior authority and there exist fairness in the same.
A good law example can be Constitution of Australia, which was
enacted in 1900. It is the pillar of the whole Australian legal rules
and regulations. This is said to be one of the good law because it
distributes power concurrently in various aspect upon both the
Commonwealth and State Government. It further contains existence
of local laws in upon many subjects. The constitution talks about
equality, equal distribution of power of people and also guarantees
various rights of the citizens of Australia.
Part B – Case Studies / Problem-type questions (30
marks)
Instructions: Your answers must be supported by legal reasoning
and case law or legislation in order to gain a passin. g grade.
Question 2 (10 marks)
HI6027 Online Exam T3 2019

Belinda wants to buy a second-hand car and visits a number of car dealers
before deciding to purchase an as new 1998 Ford Mustang from American
Car Sales. The sales person, Jaxson, tells Belinda that the car was
manufactured in 1998 and had only done 54,000 kms.
Three months later, Belinda has the Mustang serviced with her local
mechanic who was a Mustang enthusiast. He comments on the fact that
the car was in pretty good condition for a 1994 Mustang, though he was
surprised that it had only done 54,000 kms. He would not have been
surprised if it had done 100,000 kms.
Belinda makes further inquiries and discovers that the Mustang was in fact
made in 1994 and she has paid about $5,000 more than the actual market
value of the car. Belinda intends to approach American Car Sales about
this issue.
Does Belinda have any contractual rights against American Car Sales?
Required:
You are expected to discuss legal rules learned regarding terms of a
contract, in particular statements and representations, and conditions and
warranties.
Do not answer this question based on Australian Consumer Law
principles. No credit will be given if you do so.
ANSWER:
Belinda can sue the American Car Sales for fraudulent misrepresentation
where the company even after knowing the reality that the car has
actually fact made in 1994 instead of 1998, fraudulently misrepresented
the same and sold it to Belinda by stating that the car was made in 1998.
It has been held by the court in
Derry v Peek (1889) App Case 337, that
whenever, a person fraudulently, or knowing the actual truth or recklessly
represented some fact to another, it is said to be fraudulent
misrepresentation. Further, under the warranty term of a contract, Belinda
was supposed to believe that the statement made by the American Car
Sales about the car is true. This because in case of warranty, the buyer
acts upon the fact of due diligence that each information provided by the
seller about the subject of sale is said to be relevant.
Therefore, in this case, Belinda can either repudiate the contract or claim
damages for such false representation. However, under the contract of
warranty, Belinda can only claim damages for such breach
HI6027 Online Exam T3 2019