Business Law: Common Law Principles and Negligence in Business Scenarios

Business Law
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Table of Contents
Introduction................................................................................................................................3
Question 1:.................................................................................................................................4
Question 2..................................................................................................................................7
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
In this report, there is a discussion about the concept of the common law which is applicable
in the business scenario. In this, there is shown a clear understanding regarding the principles
of the Australian business law. All the relevant facts and the legal issues are discussed herein
to develop the good understanding. The effective business law legislation and the cases are
provided in order to support the arguments. This report is fragmented into two parts the first
part provides the discussion regarding the negotiation and the common law rights of Angela.
In the second part of the report, there is a discussion about the Andry and Sandra. Herein the
provisions regarding the negligence are also provided in contact with various cases and the
statutes.
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Question 1:
Scenario:
In the given case Angela enters into the negotiation procedure with Jessica to purchase the
restaurant. Herein the when asked by the Jessica about the profits then she told that $10,000
is an annual profit to Angela. On the basis of trusts, Angela enters into the negotiation to
purchase the contract. But it is afterwards found that the accounts show the profits of $2,000
for the last five years.
Issue:
In the given case the issue is related to the misrepresentation of the facts by the Jessica.
Hence the common law rights and the provisions are provided to safeguard the rights of
Angela.
Rule:
In the given case there is an application of the provisions of the misrepresentation. As per the
principles of common law, it is provided that the misrepresentation is a false statement of the
facts which is made by the one party to the other party. Herein the acts of the
misrepresentation take the various forms such as fraudulent, negligent and the innocent
misrepresentation. The acts of the misrepresentation are treated as an offence in terms of the
Australian consumer laws
Analysis:
In the decided case law of ACCC v Cadbury Schweppes Pty Ltd [2004] FCA 516. There is
involved the case of misrepresentation in which there is a marketing of the cordial which
claim that fruits extracts but in real terms, it is not the true. As per the provisions of
MisrepresenationAct 1972(SA), such acts are treated as an offence which induces the parties
to enter into the contract then the individual or business is liable for the fines up to $100000
for the corporates while $20000 for the individuals (Wadlow, 2011).
The misrepresentation takes the various forms such as it may be innocent or fraudulent. In the
given case of Angelia when the negotiation was made with the Jessica to purchase the
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