- BUSINESS AND CORPORATION LAW
LENGTH 1200 WORDS
You must use the ILAC format when writing your answers.
**In this subject, assignments are marked on-line, using an adapted MS Word programme. You therefore MUST submit your assignment in Word format, NOT as a PDF document. If you submit in PDF it will not be able to be marked.**
Steve runs a car hire business. Steve is a sole trader - his business is not a corporation. He tells you about the following events:
- Steve’s friend Tom runs a trucking company. Tom phones Steve and says ‘I need to hire a truck capable of carrying 10 tons of cargo’. Without checking the specifications of the vehicles he has available, Steve says ‘I have just the thing for you - a Hino Cargo Master - it can carry 12 tonnes’. Tom agrees to hire the truck at $ 200 per day, and picks it up. He loads it with 10 tonnes of cargo, but on its way to make a delivery, the suspension collapses. As a result, he is unable to use it and loses $ 5 000 per day in profits.
Pamela has often watered Steve’s garden when he (Steve) has been away on holiday. Pamela phones Steve and says ‘I’ve got a problem - my car is being fixed and I am going on holiday tomorrow, but I can’t afford to hire one. Can you help me out?’. Steve says ‘Sure - you looked after my garden last month, so I’ll lend you a car for the weekend because you did that’. When Pamela comes to collect the car, however, Steve tells her that he hired it to another customer. Pamela says that they had a deal and will be consulting a lawyer.
- Danny telephones Steve and says ‘I would like to hire the Toyota Corolla I used last week’ Steve says ‘The charge will be $ 40 per day plus fuel and you can collect the car tomorrow’. Danny says ‘That’s great, I will be there at 9 am’. When Danny arrives at the car lot, Steve says that when he had been speaking to Danny, he was unaware that the vehicle had already been destroyed in a crash while being driven by another customer the previous day. Danny refuses to take a different car.
- Steve is thinking of putting in a new airconditioning unit in his premises. He has been in negotiations with Cool It Aircon Ltd, owend by Trisha. One Monday morning he comes into his office and sees the latest draft contract from Cool It Aircon, with details of specifications of the airconditioners, price and installation date. The top sheet of the contract contains a space which says “I agree to these terms of supply” and with a space for a signature and date. Steve sets the contract aside on his desk, and it soon gets mixed up with piles of other paperwork. Later during the day, he signs the form, thinking that it was the front page of another contract he had been sent by a supplier of microchips. He gives it to his office manager, Tim, and says “Send this by fax”. A few days later a truck from Cool It Airon arrives at Steve’s business. Steve phones Trisha and says he never agreed to the installation. When Trisha tells him about the fax, he realizes his mistake and tells her that he had sent it by accident. She says “Too bad, we have a deal – I have already spent several thousand dollars making customized components for your system”.
- Advise Steve on his legal position in relation to each transaction, backing up your answers with relevant rules of law.
Please note that the word limit of 2 000 words is a total for both question 2 and 3, (ie, it is not 2 000 words for each question). I would however expect that students should be able to answer both questions in far less than 2 000 words. Your bibliography is not included in the word limit.
Question 2 (10 marks)
- Tina appoints Brad as checkout operator at her independent garage which she operates as a sole trader. The business operates both as a service station and as a used-car lot.
- Tina contracts glandular fever, and during the four months she is off work, she tells Brad that he can order petrol while she is sick. During this period, Brad negotiates supplies with Caltex. Brad orders fuel from Caltex every fortnight. Tina returns from her illness, and tells Brad that he should no longer order petrol and that matters will be conducted as they were before she was ill. However Brad, who enjoys the increased status of dealing with the oil companies, ignores Tina’s instruction, phones Caltex and orders 30 000 litres of fuel. When the truck arrives to deliver the fuel, Tina is furious (as she has already entered into a more advantageous arrangement with BP). She phones Caltex, and denies that there is a contract between her and Caltex, stating that Brad was acting contrary to instructions when he placed the order.
- Tina employs Paul as a salesman of the used vehicles. Paul has several years experience in the second hand vehicle market. Tina has a number of vehicles on display, including a 2012 Holden Commodore Wagon, priced at $ 19 000. She does not realise that the vehicle could easily fetch $ 25 000. Paul however does know this, and also that his next door neighbour, Fred, wants to purchase just such a vehicle. Paul says that he needs a vehicle himself, and buys the wagon from Tina for $ 19 000. He then sells it to Fred for $ 25 000. Tina is furious when she finds out what has happened.
Advise Tina as to her legal position in relation to the above situations, citing relevant authority.
Question 3 (10 marks)
Simon, George, Sara and Mary were all employed by different IT companies. However, they felt that they could do better if they went into business themselves. They pooled their available cash and drew up a partnership agreement, which stated that each partner had authority to enter into transactions on behalf of their IT firm, which they called Computer Solutions. The firm operates in Sydney and provides a service of storing data for customers. The agreement states that partners have authority to enter into contracts of up to $ 10 000, but that any contract for more than that must be approved unanimously by all partners.
George, Sara and Mary approach you for legal advice in relation to two transactions entered into by Simon, who had acted without referring back to the partners. On was for a 500TB storage drive, bought by Simon on behalf of Computer Solutions, from Sunstar Computer Hardware Ltd, costing $ 12 000. The other was for a second-hand ute, costing $ 9 000, which Simon ordered for the firm from You Beaut Ute Ltd, on the basis that the partnership should branch into the freight business. George, Sara and Mary have refused to accept delivery of both the storage drive and the ute and the partnership has been sued by both Sunstar Computer Hardware Ltd and You Beaut Ute Ltd. Give George, Sara and Mary legal advice, referring to relevant statutory and case law authority.
This assessment item will allow you to demonstrate:
• Your knowledge of the law of contract formation;
• Your ability to apply legal rules to hypothetical practical situations;
• Your ability to conduct research using provided materials as well as other resources;
• Your ability to structure your answer and use a clear writing style by identifying issues, stating the law, applying the law and reaching a conclusion; and
• Your ability to apply academic standards of presentation and referencing
• Your ability to undertake an assessment task relevant to the workplace and professional practice.
• Marking criteria
• The assignments in LAW504 Business and Corporations Law are designed to give students the opportunity critically to evaluate legal problems and to apply the law to them. Problem questions will be marked taking into account the following criteria:
CRITERIA FL P CR DI HD
Students are required to answer two problem type questions in order to demonstrate: At this level you will obtain a mark of 0-49%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 50-64%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 65-74%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 75-84%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 85-100%. A mark in this range indicates that a student:
- Identification of relevant legal issues
- Identifies no relevant issues or only a few of them. Some of these may be unclearly formulated. Clearly identifies some legal issues. May or may not formulate them correctly. Identifies and correctly formulates most major legal issues. Correctly identifies legal issues and formulates them with precision, with only minor errors. Comprehensive coverage and identification of all legal issues, which are formulated with precision.
- Explanation of law and citation of relevant legal authority
- Provides incorrect or limited explanation of the law using no, or only a limited range of, authority. Provides a basic explanation of the law, but with significant errors, substantiated by some legal authority. Provides a substantial explanation of the law but with some errors, substantiated by significant legal authority. Provides a comprehensive explanation of the law with few errors, substantiated by comprehensive authority. Provides a complete explanation of the law, fully supported by authority, with no errors.
- Application of legal principles to the facts
- Paper does not correctly apply law to the facts and / or applies incorrect law. May be descriptive, rather than putting forward a reasoned argument. Makes a basic attempt to apply the law to the facts, but applies wrong law and / or contains significant errors in the application. Applies the law correctly to most issues arising from the facts, but with some errors. Applies the law correctly to the facts so as to address all issues, with only minor errors. Applies the law to the facts so as to reach a correct conclusion on all issues, with no errors.
- Compliance with the Style Guide and overall structure.
Poor, inconsistent or inaccurate use of Style Guide. Poorly structured. Inadequate or no use of paragraphs. May have disregarded the ILAC model. Limited or inconsistent use of Style Guide. Some attempt at use of ILAC model and at structuring of answer. Adequate use of Style Guide, with some errors or lapses. Uses ILAC model and is clearly structured. Uses Style Guide accurately and with only minimal errors.
Uses ILAC model. Well structured, with one main argument introduced per paragraph. Uses Style Guide comprehensively, accurately and consistently. Uses ILAC model. Extremely well structured and organised, with one main argument introduced per paragraph, supported by well-written supporting sentences.
- Written expression and editing. Poor grammar, spelling and/ or punctuation. Paper gives no evidence of having been proof-read. Significant spelling, grammar and punctuation errors but the paper is readable and demonstrates some attempt at proofreading. Uses appropriate academic writing which is formal and impersonal, with a few spelling, grammar and punctuation errors. Paper demonstrates evidence of proofreading. Uses appropriate academic writing which is formal, and impersonal with only very minor spelling, grammar and punctuation errors. Paper demonstrates careful proofreading. Uses appropriate academic writing which is formal, impersonal and which contains no spelling, grammar and punctuation errors. Paper demonstrates careful proofreading.
• STYLE GUIDE
• Please comply with the following rules:
• 1. Do not re-state the question.
• 2. Use in-text referencing. Do not use footnotes.
• 3. Names of statutes should be italicised, and followed by the jurisdiction not in italics, for example: Acts Interpretation Act 1901 (Cth). Note the abbreviation for ‘Commonwealth’ is ‘Cth’ not ‘Cwlth’.
• 4. The names of the parties must be italicised, but the citation must not, for example: Smith v Jones (1967) 345 CLR 34.
• 5. An in-text reference to a book should be structured as follows: (Latimer, 2010, p. 75). There is no need to put the author’s initial. Note the positioning of brackets, stops and commas. You use ‘pp.’ only if referring to more than one page. If you are referring to a book with more than one author, the in-text reference would be as follows: (Smith et al, 2002, p. 78).
• 6. An in-text reference to the subject's Modules should be structured in brackets as per the following example - obviously you will alter the reference depending on the subject, year of study and Module number : (CSU LAW220 Modules, 2015, Topic 7).
• 7. Do not start a new line simply because you are starting a new sentence.
• 8. Be careful of apostrophes: director's = of a director, directors' = of many directors, directors = many directors. Also particularly prevalent is confusion between its (it possessive) and it's (contraction of -it is-).
• 9. The following words always start with a capital letter: Commonwealth, State, Act, Bill, Regulation, Constitution, Parliament. Do not unnecessarily capitalise other words.
• 10. One should not use terms such as can't, won't, don't and shouldn't, neither should one use -ie- and -eg- in formal writing.
• 11. A sentence must always begin with a full word and a capital letter – so a sentence would start ‘Section 55 says…’, not ‘S 55 says…’ or ‘s 55 says…’
• 12. Start each paragraph on a new line, and leave a clear line gap after the preceding paragraph.
• 13. You must put page numbers on your assignment.
• 14. Quotations, and excerpts from legislation should be indented from the rest of the text in a separate paragraph. The text in quotations should not be in italics.
• 15. You must end your assignment with a bibliography that is divided into three separate parts, listing statutes, cases and books / articles / on-line Modules.
• 16. A listing of a book in a bibliography should appear in accordance with the following format: Latimer, P (2010). Australian Business Law, 29th ed, North Ryde: CCH. If listing a book with multiple authors, do so as follows:
• Heilbron, G, Latimer, P, Nielsen, J and Pagone, T (2008). Introducing the Law, 7th ed, North Ryde: CCH.
• 17. When listing statutes at the end of your assignment you should conform to the format: Acts Interpretation Act 1901 (Cth). List the statute only once – you do NOT list individual section numbers relied on. You should not list textbooks as the source of Acts – the Act itself is its own source.
• 18. When listing cases conform to the format: Gordon v Richards (1976) 123 CLR 32.
• 19. When listing article conform to the format: Jones, J 'The new analysis of law' (2010) 4 Journal of Recent Law 34.
• 20. When listing CSU Modules conform to the following format: CSU LAW220 Modules.
• 21. Make sure that your sentences are grammatical – it may be useful to read your assignment out loud if you have any doubts about this.
PLEASE NOTE THAT YOU WILL LOSE MARKS IF YOU DO NOT COMPLY WITH THIS STYLE GUIDE. I WILL REFERENCE NON-COMPLIANCE BY ANNOTATING YOUR ASSIGNMENT “2”, “5” ETC TO INDICATE WHICH OF THE ABOVE RULES NUMBERED 1 – 21 YOU HAVE BREACHED.