LEGL1003 2022 T1 Introduction to Business Law Final Exam Solution

This document presents a comprehensive solution to the LEGL1003 Introduction to Business Law final exam. The solution covers various aspects of business law, including contract law, agency, and consumer law, with specific focus on the Australian Consumer Law. Part A provides answers to multiple-choice questions, while Part B and Part C offer detailed responses to essay questions. The solutions analyze key legal concepts like ostensible authority, consumer rights, minor breaches of contract, and the application of relevant legislation and case law. The document provides analysis of various scenarios, including situations related to consumer transactions, breach of contract, and the implications of the Australian Consumer Law. Relevant case studies are used to illustrate and support the answers. The document includes a table of contents and a list of references, which includes books and journals. This solution is designed to help students understand and prepare for business law exams, providing a valuable resource for studying and reviewing the course material.

LEGL10032022T1 Introduction to
Business Law final exam

TABLE OF CONTENTS
PART A...........................................................................................................................................2
A1................................................................................................................................................2
A2................................................................................................................................................2
A3................................................................................................................................................2
A4................................................................................................................................................2
A5................................................................................................................................................2
A6................................................................................................................................................2
A7................................................................................................................................................2
A8................................................................................................................................................2
A9................................................................................................................................................2
A10..............................................................................................................................................2
A11..............................................................................................................................................3
A12..............................................................................................................................................3
A13..............................................................................................................................................3
A14..............................................................................................................................................3
A15..............................................................................................................................................3
A16..............................................................................................................................................3
A17..............................................................................................................................................3
A18..............................................................................................................................................3
A19..............................................................................................................................................3
A20..............................................................................................................................................3
PART B...........................................................................................................................................4
Question 3....................................................................................................................................4
Question 4....................................................................................................................................4

PART C...........................................................................................................................................6
Question 5....................................................................................................................................6
Question 7....................................................................................................................................7
REFERENCES................................................................................................................................8

PART A
A1
d. All of these are examples of frustration
A2
a. Found for Bancks on the basis that Associated Newspaper’s undertaking was a condition
A3
c. The postal rule applies to both offer and acceptance
A4
b. In Lumley v Wagner, the court made an order for specific performance on the grounds that it
was a contract for personal services.
A5
b. Be a contract
A6
d. Edward΄s stating his willingness to buy the computer for $4000 is a counter offer
A7
d. Thomas v Thomas
A8
a. That a court will presume that in a commercial situation the parties intend to be legally
bound to their agreement unless evidence to the contrary is present\
A9
c. Directing the consumer to the manufacturer to deal with the problem
A10

b. Is the promise by Fred to mow David’s lawn
A11
D. Krakowski v Eurolynx Properties Ltd
A12
C. An exclusion clause can be incorporated into a contract after the contract has been concluded.
A13
C. Hyde v Wrench
A14
A. A Porsche car sold for $400,000 by a Brisbane luxury car company.
A15
A. Injunction
A16
B. Means that the courts will presume that an exemption clause was intended to only cover
those matters within the four corners of a contract.
A17
D. The consumer guarantee provisions of the ACL cannot be excluded or limited.
A18
D. Taylor v Caldwell & Codelfa Constructions v/s State Rail Authority of NSW
A19
D. The statutory guarantees will apply to this contract.
A20
A. counter offer

PART B
Question 3
Ostensible authority is all about where a principal represent words where an agents has an
authority to enter on behalf of a principal with some compass. Also, different elements also
reflect to prove that before entering into a court one must have a knowledge of the facts and good
faith belief for an authority and principal actually acquiesced in another party’s exercise of
authority. If such things are passed then court is agreed that an agent has an ostensible authority
(Rossi, 2019). With the reference of Freeman & Lockyer v Buckhurst Park Properties, it has
been analysed that the Diplock LJ bound to pay Freeman and Lockyer for their architecture work
and that is why, a condition need to be fulfilled like a person has no actual authority to act on a
company’s behalf then the contract can be enforced. If this condition is fulfilled on the facts then
Mr. Kapoor general activity and permit him to engage in this kinds of activities. This shows that
he has a power and knowledge to be an agent of the case and that is why, they are the case
performed. Hence, it can be stated that an actual authority is a legal relationship between
principal and agent which is created by a mutual agreement in order to express the words so that
court will accept the person as an agent and then perform the case.
Question 4
a.
Yes, Harry, is considered as a consumer because under section 3 of ACL of Acquiring
good as a consumer, if a person is acquired a particular good treated as a consumer only if the
good consisted of a vehicle or trailer that is further acquired for a use of transport of good
(Pretorius, 2021). The same has been performed by Harry where he buys a truck and then trailer
to transport goods between Perth and Brisbane. That is why, it can be stated that harry is treat as
a consumer.
b.
Yes, Harry is also treat as a consumer because under section 3 of ACL when the gift is
offered by any beloved one but it does not use for the purpose of re-supply, use for personal use
then the person is treated as a consumer. In the same way, for the present scenario, Harry is also

given a brand new Ferrari car by his father who buy the same in previous week. Therefore, the
clause of ACL reflected that Harry is considered as a consumer because he gets a gift and he will
be going to consume the same.
c.
In the third case, Harry is treat as a consumer because he buys an original painting from
an art auction in order to use for their own purpose. So, under section 3 of ACL, it has been
identified that when a good acquired for the purpose of personal, domestic and household
consumption, a person is recognized as a consumer (Hardy and McCrystal, 2022). Hence, Harry
is treated as a consumer in this situation because he buys the painting for own consumption.
d.
Yes, Harry is a consumer because as per section 3 of ACL, it has been analysed that
when a person purchases or acquire any good for their trade and commerce, then individual is
recognized as a consumer. That is why, in the case of Harry who purchase timber to make tables
and then sell the same to their furniture store. Therefore, for the purpose of using timber for
transforming the same in trade is recognized as a consumer, as it related to the purpose of
production.
e.
Harry is recognized as a consumer because acquire a product and then sell the same for
commerce or trade purpose is termed as a consumer as stated under section 3 of Australian
Consumer Law. In the case of Harry, it has been analysed that he buys 2001 Commodore in
EBay auction which later use for the car showroom. Therefore, he used the same for own
purpose and along with the same he is used for a trade purpose.

PART C
Question 5
Issue: In the case of Emma and Tom they have made a contract for renovation of the house. In
this Emma has to give its house to Tom for completing of work as well as but there has been
breach in contract that tom took additional 4 weeks which was not sated in the agreement (Sobel-
Read, Anderson and Salminen, 2018). Along with this, due to this issues Emma had to pay extra
rent and had to live near local council which was going through road construction. Due to all the
noises Emma faced another issue of not able to sleep properly and it has suffered from constant
headaches.
Rule: In the above case the minor breach of contract will be applied in the above case as party to
agreement has perform substantial part of the contract but it has fail to satisfy a minor
condition. Unlike total breach a minor breach is does not alter the terms and condition of the
contract. Although Emma is liable to get compensatory damages as due to delay in the contract
it has to suffer from bad health and has to pay additional rent.
Analysis: From the case of Emma and Tom it has been analyzed that there has been delay in the
contract from one party and due to that owner of the house has to suffer from financial and health
damage. Along with this, it been identified that Emma can sue Tom for creating minor delay in
the contract and for the damages it has to go throw (Bant and Paterson, 2019). In this case
contract law act of Australia can be applied in order to settle the dispute between the parties.
Conclusion: The case of Emma and Tom summarized that there has been minor breach from
tom in the agreement such as it was not able to complete the task on time. Due to this delay
Emma had to pay extra charges of rent and had to live near local council for several weeks.
However, due to construction work near the local area Emma was not able to sleep well and it
has cause headache. So in this case compensatory damage will be filled as due to delay Emma
had gone through loss of financial and emotional loss. The consumer right of Emma has also
been damaged of not getting the work on time.

Question 7
Issue: In the case of Kathleen it purchases the shoes from Brisbane leading outdoor clothes store
and it has also discussed about the plan with store owner in order to get right pair of shoes.
Along with this, in the present case scenario the issues faced by Kathleen has stated that it has
test the boots but after wearing the shoes for one day the left heel separated from the boot and
Kathleen has abandon the climb and was in great emotional distress due to pain.
Rule: In the above case Australian Consumer Law will be applied as the main aim of the act is
to protect the customer from any unlawful trade practice. It is generally applied to anyone
conducting business in Australia. It also provides rights to the customer such as right to safety,
right to information, right to choose, right to representation, right to consumer education. Thus,
in the above case Kathleen can sue the shopkeeper as the material provided by them was not of
good quality and despite of asking it has not double check the material (Warren-Myers, Bartak
and Cradduck, 2020). Although right to information of Kathleen has been breached and
shopkeeper will have to pay compensation.
Analysis: It has been analyzed from the above case that Kathleen has advice and purchase the
alpine brand boots on the advice of the shopkeeper. However, it has also checked the condition
of the boots by itself in the store. In this case both the shopkeeper and Alpine brand will be held
liable as the material provided by them was not in good condition and it did not even cover the
warranty period (Manwaring, 2018). Along with this Kathleen right to information has been
breached as well as it has also got faulty product. Thus, both brand and shopkeeper will be held
liable for compensation.
Conclusion: From the above case it has been summarized that Australia has implemented
consumer protection act which contributes in providing rights to the individual as well as protect
them from any unlawful activity conducted in the business. In the above case Kathleen will be
held liable for the compensation from the shopkeeper as it consumer right has been breached.

REFERENCES
Books and journals
Bant, E. and Paterson, J. M., 2019. Exploring the boundaries of compensation for misleading
conduct: The role of restitution under the Australian consumer law. Sydney L. Rev.. 41.
p.155.
Hardy, T. and McCrystal, S., 2022. The importance of competition and consumer law in
regulating gig work and beyond. Journal of Industrial Relations,
p.00221856211068868.
Manwaring, K., 2018. Will Emerging Technologies Outpace Consumer Protection Law? The
Case of Digital Consumer Manipulation. Competition and Consumer Law Journal,
pp.141-181.
Pretorius, C.J., 2021. Authority by representation--a rule lacking a theory: A reappraisal of
Makate v Vodacom (Pty) Ltd 2016 (4) SA 121 (CC). Acta Juridica. 2021(1). pp.297-
320.
Rossi, G., 2019. Representation and ostensible authority in medieval learned law. Vittorio
Klostermann.
Sobel-Read, K. B., Anderson, G. and Salminen, J., 2018. Recalibrating Contract Law: Choses in
Action, Global Value Chains, and the Enforcement of Obligations Outside of
Privity. Tul. L. Rev.. 93. p.1.
Warren-Myers, G., Bartak, E. and Cradduck, L., 2020. Observing energy rating stars through the
Australian Consumer Law lens: How volume home builders’ advertising can fail
consumers. Energy Policy. 139. p.111370.