Business Law Assignment: Duty of Care, Contracts, ACL

This document presents a comprehensive solution to a law assignment, addressing various legal concepts. It begins with a negligence case involving duty of care, breach of duty, and potential defenses, including contributory negligence. The assignment then delves into contract law, analyzing offer, acceptance, and the postal rule with reference to the case of Adams v. Lindsell. The third question examines Australian Consumer Law (ACL) concerning product liability, specifically focusing on a defective hoverboard and the remedies available to consumers. Subsequent questions explore ACL provisions related to faulty products and misleading advertising. Finally, the assignment concludes with a discussion of defenses in negligence actions and the legal treatment of restraint of trade clauses. This assignment provides a thorough exploration of key legal principles and their practical application.

Question 1 (15 marks) 2 pages
Jason had been at a work Christmas party and he had drunk 8 beers. He decided to drive
home as it was raining heavily outside.
Kylie was also at the Christmas party and saw that Jason was having a good time and a little
drunk.
Jason lived in the same suburb as Kylie.
As it was raining heavily Kylie asked Jason if she could get a lift home.
Jason smelled of alcohol and started driving erratically on the way home. He lost control of
the car on a corner and crashed into a tree injuring himself and Kylie.
a) Does Jason owe Kylie a Duty of care?
b) Has Jason breached his duty of care?
c) Are there any defences Jason can raise in the matter to reduce or limit Kylie’s claim?
d) If another driver had forced Jason off the road as he/she was on the incorrect side of
the road would that alter your answer and how?
[Answer here]
a) Jason do have duty of care as even knowing after he is drunk was driving with Kylie as her
co-passenger which shows a negligent act as well as strictly against the motor vehicle
principles.
b) Yes Jason breached duty of care by negligent act.
c) Kylie saw Jason was drunk still she chooses to be in his care which shows contributory
negligence on his part.
d)
Question 2 (15 marks) 2 pages
Jarrod sent a letter to his cousin Billy who lived on a farm offering to sell him his ride on
lawnmower for $500 (it was valued at $2000). Billy received the letter and immediately wrote
a letter accepting the offer and put the letter in the mail box when he went to town on
Monday the 1st of August.
On Wednesday the 3rd of August Jarrod was talking to his friend Colin and mentioned that he
was trying to sell his ride on lawnmower as he no longer needed it. Colin offered to buy it for
$700 and Jarrod accepted. Colin gave Jarrod the $700 and Jarrod said he would arrange for
delivery the next day. That afternoon Jarrod received the letter from his cousin Billy which
said he was happy to buy the mower for $500.
Advise Billy,
a) Does he have a legally enforceable contract?
b) What are the principles of law that are relevant in this case?
c) Are there any cases that assist your arguments?
[Answer here]

a) There is a contract on Billy’s part as no date limit was mentioned in Jarrod’s letter for
acceptance
b) The doctrine of postal rule for offer and acceptance will be applicable here.
c) Adams v. Lindsell (1818) 106 ER 250
Question 3 (15 marks) 2 pages
Victor buys a hover board from Clever Hovers Pty Ltd based in Australia.
One night when Victor is charging the battery of the hover board a fire starts as a result of
the battery getting too hot.
The fire destroys the hover board and all Victor’s furniture.
Advise Victor
a) What provisions of the Australian Consumer law would be best used to claim
damages?
b) Why is using the ACL a better legal remedy than suing for negligent
manufacture?
c) Are there any cases that assist your arguments?
d) If only the battery didn’t charge properly, what would be the most relevant
provisions of the ACL that Victor could use to get a replacement Battery?
[Answer here]
a) Seller has a duty to sell defect free product rule will be applicable.
b) This is a better remedy because the liability of the seller regarding sale of good is specifically
mentioned in ACL.
c) Victor can choose to replace the same under the seller’s warranty clause.
Question 4 (15 marks) 2 pages
“Fizzy Mineral Water Pty Ltd” manufactures bubbly mineral water. They have a contract with
Jamison’s Bottle tops to supply all the lids to the bottles.
A batch of the lids has a fault in the thread of the lids allowing air to enter the bottle of
mineral water and causing the mineral water to lack any bubbles.
a) What provisions of the Australian Consumer law could Fizzy mineral water use in
an action against Jamison’s bottle tops?
b) Are there any cases that assist your argument?
c) If the tops were not faulty and yet Fizzy mineral water advertised as lightly sparkling
but there were no bubbles what provisions of the Australian Consumer law could
the Australian Competition and Consumer Commission seek to rely on?
d) Are there any cases that are similar?
[Answer here]
a) Mnaufacturer’s liability to make products that matches with the purpose of making it and make
defect free product.

b) The seller’s duty is to sell product to the consumer which matches with the description of the
product, breach of which makes the seller liable for damages.
Question 5 (8 marks) 1 page
In a negligence action which are the most important defences that are likely to be used by
the lawyer for the defendant and what is the outcome with each defence if used
successfully?
[Answer here]
The four elements that a plaintiff must prove to win a negligence suit are 1) Duty, 2) Breach, 3)
Cause, and 4) Harm
Question 6 (7 marks) 1 page
How does the law treat a “restraint of trade clause”?
[Answer here]
Restraint of trade come in cases of termination of employment where the employee is restrained to
get involved in similar business like of his previous employer for a particular period of time and within
a specified geographical limit.