| August 31, 2016



Due date: the assignment is due onWednesday, December 17, Week 10

Location for submission: submit to teacher in your first class of Week 9.

Word limit guide:1000 (one thousand) words, including words in footnotes.

A word count – the total number of wordsin your assignment should be noted on the title pageof your assignment. Answers with a word count of 40% above or below will be penalised.

Presentation will be taken into account when your assignment is marked. Assignments must be typed, double line spaced andsize 12 font.

Ensure that you place your Name and student number, as well as your Teacher’s name and your Group number at the beginning of your report. This is in addition to the required “Statement of Authorship” page.

Method of analysis: You should use the IRAC method of analysis.

Reference material: You may use and cite laws from your textbook but should also use other references to assist in the analysis of the two case studies given.

ALL laws used to analyse cases must be cited.

Use of lecture notes is not permitted as a reference.

Use of precedents is expected and their source must be cited.

Use of online material is permitted but must be fully cited.

Footnotes used should be on a page by page basis.

Do not include a bibliography.

Note that citations form part of the word length.

Use the CITATION RULES attached on page 4.

Total value:this assignment is worth40 marks (being 20% of the total result in the unit). The final examination counts for 60% of the marks in the unit.

The marks allocated are as follows:

Presentation and following instructions given = 8 marks

Cases 3 (10 + 12 + 10) = 32 marks

Total marks = 40 marks / 2 = 20%



When referring to an Act of Parliament the statute’s title should be in italics,for example:

· Section 18 of the Goods Act 1958(Vic) or

· The Goods Act 1958 (Vic) s 18 or

· The Competition and Consumer Act 2010 (Cth) Schedule 2, Australian Consumer Law s 54

An abbreviation for later reference to the same act can then be use, for example:

· S 18 GA

· ACL s 54


When referring to the common law the case should be provided and in italics,for example:

· Causer v Browne (1952) VLR


The citation of a book should identify the author’s first-name initials and surname(s), the title of the book in italics, the publishers details – name, place, date of publication, and finally the page number that is being quoted or used..docx#_ftn1″ title=””>[1] Refer footnote 1 below.


The citation of an online authority should name the authority in addition to giving that authority’s web address and link, for example:

· Australian Competition and Consumer Commission (ACCC)


· Full citations are required only once. Do not repeat full citations.

· If a citation is identical to the one immediately preceding it, then use the phrase “ibid” or “id’, for example: .docx#_ftn2″ title=””>[2]

· If citing a different page for the same source then add the different page number, for example: .docx#_ftn3″ title=””>[3]

· If a citation is identical to one that has been previously cited but not the immediate preceding one, then simply repeat the author’s surname and the footnote number that records the full citation.

· Use footnotes on a page by page basis, no bibliography is required.

Case 1. Peter recently graduated from University and now wishes to start a new business importing electrical goods from China. He intends to resupply these electrical goods to Australian retailers. Peter is 23 and has no financial resources so asked his elderly uncle Ji, to assist him. He asks Ji to take out a loan of $200,000 from Ji’s bank. Peter assures Ji there is no risk and he (Peter) will repay the loan each month. Ji migrated to Australia from China 20 years ago but still has difficulty in understanding English. He has had no business experience himself but worked hard in a manual labouring job to finally buy and pay for his own house in Bundoora currently valued at $480,000. Ji, has become very dependant on Peter for financial and legal advice, so agrees to his request.

The XZA Bank Pty Ltd agrees to lend Ji $200,000 but require that he enter a mortgage contract as security for the loan. The bank manager fails to advise Ji of the consequences if he fails to repay the loan. The manager is aware that Ji has no other assets and is dependant on the old age pension for all living expenses. The Bank manager wishes to complete the contract of loan quickly as he is going on 3 weeks holiday and asks Ji to sign the loan contract immediately. Ji wants to check the details with Peter, but the Manager persuades Ji to sign the contract so he is unable to obtain any independent advice as to the details of the loan contract. The loan contract details the monthly repayment at the amount of $1,500 with the house used as security in case of default by the borrower. After six months, Peter’s business has failed and neither he nor Ji can continue the monthly loan repayments. XZA Bank Pty Ltd now advise Ji that they will start legal action to recover the outstanding amount of the loan by selling his house as agreed in the loan contract he signed.

Advise Ji of any common law action he could use to prevent XZA Pty Ltd selling his house.

(12 marks)

Case 2

Lauren was employed as a professional model. All her life she had suffered from a severe allergy to chemicals found in cosmetic products and therefore only used products with natural ingredients. A week before her wedding day she went to a Beauty Parlour for a facial. She informed Pippa, the owner of Just Beauty Pty Ltd, of her severe allergies to chemically based beauty products and told her that she could only use products made from natural ingredients. Pippa said that she could provide a beauty treatment for Lauren’s requirements. Relying on this assurance from Pippa, Lauren agreed to the suggested treatment. Nina, an employee beautician was allocated to do Lauren’s facial. Nina had poor language skills and had not clearly understood Pippa’s instructions and used a mild chemical based facemask on Lauren. Pippa failed to supervise Nina and four hours later Lauren developed an allergy. Her face became very swollen and her skin split in several places. She had to postpone her wedding day and forfeit the deposit of $25,000 for the reception. She also incurred medical costs totalling $900. Due to the permanent scars on her face, Lauren would be unable to continue her modelling profession. When Lauren enquired about compensation from Pippa, she was told that the clause “No liability for any damage or injury however caused to clients by unsuitable treatment will be accepted by management.”

Advise Lauren about her possible success in legal action for compensation using the Australian Consumer Law (12 marks)

Case 3

Vince won the Melbourne Grand Prix in 2013. He signed a contract with Oz-Oil Ltd. to display their trademark on the front of his racing car at all Australian Motor Racing events that he would participate in for the next four years. This was estimated to be 10 major events each year. The agreed consideration for this contract was $255,000 per year, payable once at the end of each year. The colour of the trademark of Oz-Oil was green and yellow on a white background. The trademark colours were chosen to emphasize the Australian ownership of Oz-Oil Ltd. and were perfect for the display on Vince’s white car, but before the end of one year he purchased a new car, coloured green He changed the trademark colour to white and brown so the trademark would still be noticed. Several directors of Oz Oil Ltd. noticed the change at an event in which Vince was competing and were most unhappy. A week later they terminated the sponsorship contract and refused to pay any money to Vince. They claimed that Vince had changed the colour of the trademark substantially, which was a breach of contract. Vince is very upset because it cost $1,500 to put the trademark on the new car and he had recently rejected an offer from another company to display their trademark. He doesn’t believe that Oz-Oil Ltd is entitled to terminate their contract.

Use the common law to advise Vince of his legal rights. (10 marks)

Car 1 OZ-OIL

Car 2 OZ-OIL

.docx#_ftnref1″ title=””>[1] T Ciro, V Goldwasser, R Verma, Law and Business,Oxford University Press, Melbourne 2011, Page xx

.docx#_ftnref2″ title=””>[2] Ibid

.docx#_ftnref3″ title=””>[3] Ibid at 62

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