Commercial Law, Consumer Guarantees Act, Fair Trading Act, Employment Law, Health and Safety

Running head: COMMERCIAL LAW
Commercial Law
Student Name
Name of university
Author note

1COMMERCIAL LAW
Answer 1 – Sale of Goods
A. The Sale of Goods Act was implemented to monitor all transactions that amount to
sale. Sale however is limited to that of goods and the quality and quantity of the same.
The act extends its application to establishing what are the rights and obligations of
the buyers and sellers.
B.
i. In a contract for Sale of Goods it is essential to establish definite terms of the
contract in terms of price, quantity, mode of transaction and all other
requirements under Section 3. Having fulfilled all the criteria, it is a valid
contract under Section 5.
ii. As per provisions of the Act the property rests with the seller until possession
is transferred. In this instance though Lisa does an act for Paul to make the
product deliverable as per Section 20 Rule 2, Paul has no knowledge of the
same. The absence of knowledge of fixing the window ensures that the
property is still owned by Lisa.
iii. The given instance is one of frustration of contract and applying Section 9
provides that when a good perishes without fault of wither the seller or buyer
the agreement can be avoided. As per Section 22 the seller is responsible for
the goods till they are transferred to the buyer. Lisa must therefore bear the
loss and is no longer compelled to fulfil the contract with Paul
C. As the current situation stands Angus has made no payment and as per Section22 all
the risks still lie with the seller of the goods, that is Samantha. Section 9 also ensures
that when the subject matter of the sale perishes the contract comes to an end due to
frustration or force majeure (Bridge 2017). Also, the case of Taylor v Caldwell has
established the concept of impossibility which arises is situations like this. As the
contract stands annulled all the loss is borne by Samantha.
D. The Sale of Good Act ensures that when sales are made on the basis of description,
whether the same is made through an advertisement or by a sales agent the goods
subsequently delivered must comply with such description – section 15. The
description must also ensure that it is reflective of the quality of the good and fits the
purpose for which it is to be used. On seeing the advertisement Jo ordered for
Amphitrite Soybean Oil, the delivery made was for lubricating oil. As Jo had relied on

2COMMERCIAL LAW
the description of the advertisement only he can reject the delivery as it does not
comply with it applying the principle set in Harlingdon V Christopher (1900).
E.
i. The principle of unjust enrichment ensures that even when a contract is
frustrated the same should not allow one person to benefit from it while
another suffers. This principle was established in Fibrosa Spolka Akcyjna v
Fairbairn Lawson Combe Barbour Ltd. Therefore, Carpetland Ltd must
reimburse Charles for any payment made by him.
ii. There is no distinction between this instance and the first, despite the store
making express provision for Charles. As there is no delivery of the good the
responsibility still lies with the seller under Section 22. The loss of the amount
that Charles pays to Carpetland must be borne by them.
iii. Continuing the concept of unfair enrichment, the destruction of the
Supasystem is only detrimental to RJEL as they allow their customers to trial
products, they give the same with faith and expect them to take care of the
same. Pat must pay RJEL $5000 for the loss that he has caused them.

3COMMERCIAL LAW
Answer 2 – Consumer Guarantees Act 1993
a) The act applies to all instances of sale of goods and services. Goods must be of
acceptable quality and adhere to their description while services should be carried out
by skilled and responsible individuals. The act does not apply to goods and services
obtained for business purpose and those taken from charitable institutions. The act
applies to all instances of online sale, including auctions by websites.
b) A distinction needs to be established between the goods purchased from NML and
Warren as they differ in their characteristics. The act does not apply to second-hand
goods unless the same are bought from a second-hand dealer which Warren is not,
therefore Alex has no remedy for the life jackets.
Section 7 of the act lists durability and safety as one of the essential elements of
acceptable quality, ss the yachts are unsuitable for sailing and can cause accidents and
death the same fails to fulfill the requirements of a durable good. Alex can receive
redressal under Section 18 and 19 and has several remedies against NML. He can
claim a refund as the goods are beyond repair or ask for a replacement. The option
that NML picks is their prerogative but what holds true is that Alex is entitled to
remedy under this Act as his guarantee has been violated.
c) i. The general rule of caveat emptor or let the buyer beware does not apply in
situations where the buyer relies on the expertise of the seller and specifies to him the
intention behind making the purchase. Here as Sarah was relying on Bob’s expertise
and description of the good and bought the paint he suggested under Section 9 the
store must remedy the situation.
ii. Sarah had bought the paint relying on the description made by the sales agent of the
store and therefore the store is liable to either refund the cost of the paint or replace
the same and to give a product that is more suitable.
iii. It is the duty of the store to provide speedy remedy when they have failed to
comply with the guarantee of description. As they fail to do so Sarah can purchase the
paint that she thinks she needs and claim that cost from the store under Section 18.
iv. even if there was no paint that worked on rimu wood, the store had to provide that
information to Sarah instead of misguiding her. In such an instance the store should
refund the money that Sarah has spent on the paint as per provisions of Section 19.