Order Description
AUSTRALIAN ENGLISH
BUSINESS LAW 1018
SP2 2017
ASSESSMENT 2
LEGAL ANALYSIS /CASE STUDY 2
DUE FRIDAY 5
10th JUNE 2017 11.00PM
You do not need to submit a cover sheet with the assessment.
You must submit your assignment via learn online. No other form of submission will be
accepted.
You must submit it as a Word document. If you submit it as a PDF you will receive no feedback.
Please see the Course Outline for more assessment information.
Please include the marking sheet with your document, it is at the end of this document.
Question 1 is weighted at 60%
Question 2 is weighted at 40%
**You must use the IRAC problem-solving method for all questions.
BUSINESS LAW – ASSESSMENT 3
LEGAL ANALYSIS 2
Your Friends Essential Beauty establishments have now been running for 6 months.
Question 1 – Contracts
1.1 You have placed an advertisement in the paper for your “Friends Moisturiser”
The advertisement reads like this:
“Friends Essential Beauty will give anyone 5 years free beauty treatment to any person who
gets pimples after using our “Friends Moisturiser” twice daily for 6 months….Come into one
of our saloons to see the “Friends Voucher” it is on display reflecting $100,000 that is the
value of the offer’
In your three saloons you have extra large vouchers on display each one showing $100,000
dollars.
Rosanne has tried the moisturiser and followed closely the instructions on the jar. She has
made a daily blog about it for the 6 months she used it. On her last blog she shows a face
covered in pimples. Rosanne claims the 5 years worth of beauty treatment.
Does the advert and Rosanne’s actions create a valid contract?
1.2 You have decided to sell FRIENDS ESSENTIAL BEAUTY T-Shirts as a promotion for the salon.
Ursula is given the job of setting up the display in Phoebe’s salon. Ursula puts up a sign with
the price of the T-Shirts at $5.00. The price for the T-shirts should have been $35.00. Sally
decides since the T-shirts are such a good buy she would buy 5. She approaches Ursula with
her money.
Is Ursula obliged to sell the t-shirts at $5.00 to Sally.
1.3 Essential Beauty have agreed to sell six massage beds and upgrade to new massage beds.
The GOT Beauty Parlour in the next suburb is just setting themselves up and you know that
Emily the owner is looking for massage beds. Monica sends her an email at 5pm on
Wednesday night asking her if she is interested in your six beds for a total of $3,000. Emily
responds at 5.30pm saying “Will only pay $2,500. What say you?”
At 9.00am the next morning Monica sends Emily an email saying “Okay, good, we can agree
on a price of $2,500.” At about the same time Emily sent an email to Monica saying “Cancel
my earlier counter-offer. I will take the beds for $3,000 as I need them as soon as possible
and I cannot bother with haggling over the price.”
According to the electronic records
? Emily’s email “in” box received your email accepting the price at $2,500 at 9.40am and
she looked at it at 9.45am.
? You received Emily’s email stating that she was willing to pay $3,000 at 9.30am but you
did not look at it until 10.00am.
According to the electronic records have the massage beds been sold?
1.4 You have had enough of Ursula’s mistakes. You terminate her employment. As she is leaving
she fires off the following words to you, “I am going to join GOT Beauty Parlour and
wherever I go I am going to help make it so much better than your silly Friends business.”
You point out to Ursula that when she was hired you put into her contract an express clause
that says: “I, Ursula, agree, upon my leaving the employment of Friends Essential Beauty,
not to work at any other beauty salon within five kilometres radius of any Friends Essential
Beauty, for a period of 24 months.”
She has signed the contract at the end and remembers reading that clause.
Is Ursula bound by the ‘restraint’ clause in the letter? If so, why? If not, why not?
Question 2 – Leasing and Property
2.1 The gift shop next door has closed down and the landlord of that premises has approached
you to see if you are interested in expanding to this space. You are very keen. You have
been supplied with a standard leasing contract.
What else does the landlord need to provide to you, and identify 5 pieces of information
that must be included, in relation to the rental property?
2.2 The standard lease provided to you by the landlord for the new premises contains the
following clause:
Clause 5.1 Lessee’s Consent
Where, pursuant to any Act or requirement of any relevant authority, the Lessee’s consent is
required to any process, step or dealing by the Lessor with its interest in the Land, the
Lessee shall give its written consent to such proposed process, step or dealing within seven
(7) days of receipt of a written request from the Lessor to do so, provided that such
proposed process, step or dealing does not materially detrimentally affect the Lessee’s use
of or access to the Premises;
The landlord wants to install an inside wide arch between the two spaces so he can continue
to offer you (and subsequent lessees) ‘double’ space. However, the modifications will mean
that you cannot trade (other than waxing) for at least two weeks due to the noise. You are
unhappy. You point out that you are quite happy with the amount of access you have to the
second salon via the connecting door. You don’t want to give the landlord permission to do
so.
What are your obligations and liabilities under Clause 5.1?
TOTAL WORD COUNT PERMITTED: 2,500 WORDS
