CX551001 Commercial Law Assignment: Sales, CGA, FTA, Employment Law

This assignment solution addresses key areas of commercial law, encompassing the Sale of Goods Act, the Consumer Guarantees Act (CGA), the Fair Trading Act (FTA), and Employment Law. The document begins with an overview of the Sale of Goods Act, including contracts of sale, ownership transfer, and liability for loss. It then delves into the CGA, explaining consumer rights regarding faulty goods and services, and provides examples of remedies. The assignment further explores the FTA, analyzing breaches related to misleading advertising and false representations. Finally, it examines employment law principles, including fair dismissal processes and workplace conduct. The assignment presents several case studies to illustrate the application of these legal principles and concludes with a discussion of employee rights and employer responsibilities.

Bachelor of Applied Management
CX551001 Commercial Law
Jan 2019
Student number:_______________

TABLE OF CONTENTS
Question 1...................................................................................................................................................3
Part A......................................................................................................................................................3
Part B.......................................................................................................................................................3
Part C.......................................................................................................................................................3
Part D......................................................................................................................................................4
Part E.......................................................................................................................................................4
Question 2...................................................................................................................................................4
Part A......................................................................................................................................................4
Part B.......................................................................................................................................................5
Part C.......................................................................................................................................................5
Part D......................................................................................................................................................6
Question 3...................................................................................................................................................6
Part 1.......................................................................................................................................................6
Part 2.......................................................................................................................................................7
Part 3.......................................................................................................................................................7
Question 4...................................................................................................................................................8
Case 1......................................................................................................................................................8
Case 2......................................................................................................................................................8
Case 3......................................................................................................................................................8
Case 4......................................................................................................................................................9
Case 5......................................................................................................................................................9
Case 6......................................................................................................................................................9
Question 5...................................................................................................................................................9
Part A......................................................................................................................................................9
Part B.....................................................................................................................................................10
References.................................................................................................................................................12
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QUESTION 1
Part A
The Sale of goods Act 1908 is defined as a contract wherein the seller agrees to the transfer of goods to
the purchaser for the consideration of money known as price. The purpose of the Sale of Goods Act is to
offer default rules for the responsibilities and remedies for parties to the contract (ADLS, 2018).
Part B
1) This is a contract of sales of goods because the seller made an agreement to transfer the property to the
buyer, and section 15 is applied to this term that the supplied goods satisfy the given description.
2) Unless and until the shed is delivered to Paul, ownership of shed is in the hand of Lisa. It is because the
Act states that when the property is eventually transferred to the other party, then only they are considered
as the owner of it.
3) In this case, the loss would be born by Lisa; it is because the goods is not in good condition, according
to the agreement. In addition to this, the shed is still in the ownership of Lisa, so she shall bear the loss.
Part C
In this case, the auctioneers will be responsible for bearing the loss, because it was their duty to keep the
tables safe and secured. In accordance with the applicable laws of Sale of Goods Act 1908, till the time
goods are not delivered to the buyer, there is the duty of the present owner to bear the loss associated with
damage of goods. Thus, consumer protection legislation, i.e. Consumer Guarantees Act 1993 is developed
to offer special rules in contracts for the sale of goods and services to customers, in this way the
auctioneers are liable for the ultimate loss (New Zealand Legislation, 2019).
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Part D
Jo would not be able to justify the rejection of oil, as under the Sales of Good 1908. It is because; Section
15 - states terms for sale by description, as per which Jo was required to ask for the description of product
from the seller, and on the other hand, the seller was required to mention the specific details about the
product such as its nature, use and purpose. Similarly, nor Jo can justify its reasoning neither the
company, as they have a collective mistake.
Part E
1) In accordance with the Sale of Goods 1908, it was the responsibility of the company to keep
the roll safe. The customer cannot be charged for this; it is because the product was under the
possession and control of the company, so they have the ownership of the roll and they will be
liable for the damage and bear.
2) Under the Sale of Goods 1908, unless and until the product is not delivered in the hand of the
customer, they would not be responsible for any loss if anything happens to it. The roll was
under the possession and control of the company, so keeping it safe and secure was their
responsibility, plus the damage is to be borne by company.
3) In this case, Pat was responsible for the damage that held to sound system, as he took the same
for trial under his responsibility, and he did not take full care of the system.
QUESTION 2
Part A
The Consumer Guarantees Act (CGA) secures customers by enabling them to seek for any repair, refund
or replacement if there is a fault in delivered goods or services (Nicoll, 2017). This set minimum
guarantees that are applicable to contracts associated with the sale of goods as well as services. This law
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is applicable on each and every business which is engaged in selling products are meant for household or
individual use, inclusive of small or second-hand business, common Trade Me seller, auctions and pop up
shops.
Part B
The statutory right available against NML and Warren is to seek for repair, replacement, as well as a
refund in case of it, has received faulty goods as per the Consumer Guarantees Act. The supply of yacht
and life jacket is covered by the Consumer Guarantees Act and guarantees applied to same are guarantee
relating to products. An individual can claim as per provision of CGA in case he or she purchases a
product and ascertains that they don’t work, break too easily, or they are not for the purpose which was
expected (Consumer Guarantees Act, 2018). It comprises second-hand goods as well as all kind of
personal property, software, animals, plant and mineral. In the present case, as the yacht and life jackets
which were purchased by NML and Warren cannot be used for the purpose for which it was expected.
Thus the same will be covered by consumer guarantee for products as per CGA.
Part C
(i)
The store requires remedying the issue as it is responsible for providing products as per the requirement
of the customer. Further, even when a customer has specifically asked for the paint for the wood –rimu,
the owner of the shop is required to provide the same or deny if it is not available and should not provide
wrong product in any case.
(ii)
Consumer Guarantee Act provides the following rights in case of faulty goods:
• Repair of good.
• Replacement of product.
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• Refund.
(iii)
Sarah can file a case against the store in court or can claim for refund.
(iv)
In case there is no paint which worked on rimu therefore store will require refunding the amount paid by
Sara. As she demanded the paint which can be applied on (rimu) wood and product provided by store
specifies that it cannot be applied on the same.
Part D
Consumer Goods Act specifies rights to a customer in case faulty product is provided to the customer.
This right comprises repair, replacement or refund of the product which depends on individual case. In
the present case as the product provided by Auckland, Fridge Supplier is not fit for the purpose for which
it was purchased because after one month only it stop to work and leaked water. Thus, the product
provided by AFS is faulty, and Lucky has the right relating to repair, replacement and refund for the
product purchased. The likely hood of remedies available depends on the type of product purchased and
in case they don’t serve the purpose for which they were bought by the buyer.
QUESTION 3
Part 1
There has been a breach of Fair Trading Act 986 by Ice Country Limited in case it has changed the
changed the manner of making of clothing and not updated the same on swing tags as well as website.
The main intent of the Fair Trading Act comprises assuring consumers to get accurate information prior
to purchasing product and services. Further, it also specifies that it is illegal for a business to mislead or
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deceive and require on a compulsory basis to provide accurate information to the customer regarding the
product sold.
Part 2
(a)
Issue
Specialist Laboratory service sells “a slim fast tablet,”, and it has been stated in the advertisement that
they were manufactured in the USA. However, it is discovered that the same is manufactured in a
backyard laboratory in South Auckland. Is this breach of law? Further, even though Bhavin has taken the
tablet in a prescribed manner for six months, he has not loosened any weight too. However, the
advertisement assures that a significant weight loss within three months in a case taken in a specified
manner.
Relevant Law
In the present case, there is a breach of the Fair Trading Act 1986. In accordance with the provision of the
specified act, it is illegal to deceive about the products which are sold by the company. Further, it
comprises an advertisement, as well as information which has been provided for creating false
information (Armstrong, Edwards and Bowie, 2019). Thus, as Special Laboratory Services has provided
deceptive information and the product have not worked for the intended purpose, it has breached the
provision of Fair Trading Act 1986.
(b)
The potential problem with the advertisement which could cause Keen in the light of the provision of Fair
Trading Act 1986 is the misleading information provided that keen has trained famous athletes. Further, it
has also stated at the end that he has not trained any athletes. Thus, the information provided in the
advertisement result into misleading as well as confusing the customer because it has not been provided
in an appropriate manner which is a breach of provisions of the Fair Trading Act 1986.
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Part 3
There has been a breach of FTA 1986 because the specified law asserts trader behavior illegal in case
deceptive or misleading conduct along with false representation has been made by any organization. It
comprises statements about the nature of the manufacturing process, nature, price, quality of the service
(Consumer Protection., 2017). In the present case, as wrong information relating to the nature of product
available in the store have been provided by Food Storage Ltd, thus the same results into the breach of
FTA 1986.
Question 4
Case 1
1) Yes, because performance is the significant criteria for teaching and over the time the ratings of Hans
are declining, and students are experiencing low grade due to which employer has the right to dismiss
Hans.
2) Before employee dismissal, the employee is provided with the opportunity to hear; in this case, they
can provide their statements and justifications so that there is no unfairness (Wilkinson, 2016). But in this
case, Hans did not answer and not provided any reasoning, so in this case, the company followed the
proper procedure of employee dismissal.
Case 2
The company is required to keep the workplace free of discrimination and harassment; it must take the
step of considering the opinions of Sextus and Lucretia with proper communication. The company in this
scenario must convey that such behavior is not acceptable, and a warning will be given to the Sextus not
to repeat this conduct again if he does so than the company has the right to terminate him.
Case 3
In the present case, Rob must be provided with the fair opportunity and a chance to be heard; he should be
not be dismissed directly rather than this he should be provided with the chance to improvise his actions
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and behavior. However, the behavior and actions of Rob were wrong; he should have treated customer
with patience and respect (Sanders, 2016).
Case 4
In the given case scenario, the employee dismissal of Mary was not fair, as the concern cited by the
employer was too minute. She has right to have a fair opportunity of being heard and get the opportunity
to improvise her performance prior to the final decision of dismissal more than that it was the
responsibility to discuss all the terms prior to her joining. Thus, the term cited the 90 days trial period is
not valid.
Case 5
This case of employee dismissal is not fair. It is because it was not the mistake of Mary as this action was
not related to her work performance plus the car was also parked at a blind spot. In addition, the employee
dismissal procedure was not properly followed by the company, she was not provided with the
opportunity to provide her statements, and without any opportunity to be heard she was dismissed
(Thompson, 2016).
Case 6
Mary has full rights to complain about the misconduct, as this kind of behavior is not intolerable. Mary
has the right to take action against the customers, and on the men who were passing sexual remarks to
her, the complaint can be made to senior supervisor, and Mary is in the state of victimization for this
immediate action must be taken in her defense to support positive and harass free work environment
(Oktafianto, Fitrian, Zulkifli, Wulandari&Pringsewu, 2018).
Student number:_______________

QUESTION 5
Part A
1) The existing hazards present in the organization include the manually lifting and attachment of
aluminum components of varying weights and sizes on racks, plus this work is highly repetitive that
resulted in discomfort for women employees. They faced an immense amount of pressure and threat of
losing a job, for this aspect they never communicated the same. Moreover, the use of a forklift truck and
much heavy lifting or manual materials handling was another risky task, if performed under pressure can
lead to severe damage, so in the case of Thomas Aluminium.
2)It is the responsibility of the employer to safeguard the health, safety, and wellbeing of their employees
and the involved individual who might be impacted by their business environment. In this case,
employers must undertake health and safety laws and regulations to assess and address the risks in the
workplace. It is the duty of the employer to provide a positive work culture that is not pressuring to
employee and maximum of safe and risk-free practices must be adopted in order to eliminate any kind of
injury (Giovannone, 2016). In addition, it is the duty of the employer to assess whether there is proper
supervision of risks present in business while checking the adequate accessibility of all facilities and
complying with all reasonable practices to maintain maximum health and safety at the workplace.
Part B
1)The reasons for the fine and prosecution of owners of Thomas Aluminium were that they had not
maintained an appropriate work environment for their employees, for which they suffered from severe
injury and damage. They put higher pressure on employees due to this aspect that they have introduced a
new culture of reducing costs and increasing production, for this they have downsized the workforce
amount, subsequently putting higher pressure on existing employees (McLachlan, 2017). The rationale
for the fine was that workers had faced such injury that would not be able to work again; some of them
faced the problems of discomfort and pain due to the unfair behavior and conduct by the company.
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2)
Hazard Notification Form
Your name: Date: Location: Notification to:
Thomas Aluminium
23 February
2019
New Zealand Floor Manager
Date
observed:
Description of hazard including
significance in
your opinion:
Higher risk, lack of training,
inappropriate guidance, poor
supervision, utmost pressure
Any immediate
action is taken
to mitigate:
(please describe)
Change in
supervision
policy and
Your
recommendations
to control or
eliminate
the hazard:
To develop
positive work
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providing
former training
to employees
regarding their
operational
tasks.
environment
from senior
managers to
employees so
that they can run
their operations
smoothly
without dealing
with work
pressure.
Signature of health and safety
representative:
Student number:_______________

REFERENCES
Books and Journals
Giovannone, M. (2016). Vulnerable workers: health, safety and well-being. CRC Press.
McLachlan, M. (2017). Focus: Health and Safety. Public Sector, 40(4), p.9.
Nicoll, C. (2017). Consumer sales law in New Zealand. In Comparative Consumer Sales
Law (pp. 103-120). Routledge.
Oktafianto, M. R. A. A., Fitrian, Y., Zulkifli, S., Wulandari, A. M., &Pringsewu, S. T. M. I. K.
(2018). Dismissal Working Relationship using Analytic Hierarchy Process
Method. International Journal of Pure and Appliedlaw, 118(7), 177-184.
Sanders, K. (2016). HRM process approach: attribution of HRM. In Encyclopedia of Human
Resource Management. Edward Elgar Publishing Limited.
Thompson, P. (2016). Labour process/theory. In Encyclopedia of Human Resource Management.
Edward Elgar Publishing Limited.
Wilkinson, A. (2016). Employee voice. In Encyclopedia of Human Resource Management.
Edward Elgar Publishing Limited.
Online
ADLS, (2018). Sale of Goods legislation for beginners (and those who have forgotten what they
know). Retrieved from <
https://www.adls.org.nz/for-the-profession/news-and-opinion/2018/11/16/sale-of-goods-
legislation-for-beginners-and-those-who-have-forgotten-what-they-know)/>.
Armstrong S., Edwards J. and Bowie M. (2019). Product liability and safety in New Zealand:
overview. Retrieved from < https://uk.practicallaw.thomsonreuters.com/ >
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Consumer Guarantees Act. (2018) Consumer right and your guarantees. (2018) Retrieved from<
https://www.consumerprotection.govt.nz/general-help/consumer-laws/consumer-
guarantees-act/ >.
Consumer Protection. (2017). Fair Trading Act. Retrieved from <
https://www.consumerprotection.govt.nz/general-help/consumer-laws/fair-trading-act/ >
New Zealand Legislation, (2019). Sale of Goods Act 1908.Retrieved from<
http://www.legislation.govt.nz/act/public/1908/0168/latest/DLM173958.html>.
Student number:_______________