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LAWS20058 Australian Commercial Law

Question

Answered

Task

Assignment Questions

 Background Facts

After completing his undergraduate marketing studies, Baez worked for Instant Advertising Pty Ltd, a large national advertising company in Australia.  He recently completed his postgraduate business degree at ABC University and resigned from his job to start his own advertising agency. Baez registered a company called Boutique Advertising Pty Ltd in accordance with Australian corporations law.  Baez’s education and work experience are limited to business.  He has limited understanding of the Australian legal system and the relevant commercial laws that will govern his new business. 

You have completed your postgraduate studies and now work as a legal expert in the legal team at Expert Consulting Pty Ltd in the Australian State where you are undertaking your degree at CQUniversity.  Baez is your new client and you are required to provide him with legal advice on all four questions in Parts A, B and C of this assignment.

Part A – Starting a New Business and the Law

Baez is not familiar with the legal system and laws in Australia that will regulate his new business.  For your first meeting with your new client you need to advise Baez how Australian law will affect the operation of his business.  In your legal advice to Baez you must:

  1. Identify three online research sources which a business can use to identify current Australian laws that apply to businesses.
  2. Evaluate the research sources in relation to whether the key elements and commercial implications of a law are clearly explained for businesses.
  3. Describe how three legal rules, principles or concepts in the Australian legal system influence the commercial activities of Australian businesses.

10 marks – maximum 500 words 

Part B – Commercial Agreements and Contract Law

(1) The common law of contract

Baez is negotiating the first advertising deal for Boutique Advertising Pty Ltd with an Australian business called Happy Snaps Pty Ltd, who uses a consumer’s photographs from their device or smart phone to print traditional photographs, create collectible items such as t-shirts and coffee cups and make electronic products such as calendars, invitations and greeting cards.  Boutique Advertising conducts business exclusively in Australia.  Baez is preparing to enter a contract between Boutique Advertising Pty Ltd and Happy Snaps Pty Ltd and seeks your advice the Australian contract law system.

Your legal advice to Baez must identify and describe the key legal rules and principles of the common law of contract that make a contract legally enforceable in Australia.

8 marks – maximum 400 words

(2) Terms of the contract and remedies

Boutique Advertising Pty Ltd and Happy Snaps Pty Ltd completed their negotiations and entered a contract on 3 March 2020.  The legal obligations of the parties under the contract begin on 1 April 2020.  The contract requires Boutique Advertising Pty Ltd to provide online advertising services to Happy Snaps Pty Ltd for a period of two years from 1 April 2020.  The contract states that the advertising campaign is to use social media and other online platforms to promote and generate consumer interest in customer’s products and services in Australia. 

The contract requires Boutique Advertising Pty Ltd to advertise the customer’s business on Twitter, Snapchat and the Chicago Tribune’s website.  The parties can negotiate the use of other social media and online platforms during the term of the contract.  Under the contact there are performance requirements every three-months that require Boutique Advertising Pty Ltd to increase the customer’s social media presence from the previous by 20 per cent and sales by 10 per cent from the previous three-month period.  The target for the first three-month period is based on the social media data and sales figures as at 1 April 2020. 

Baez seeks your advice on the terms of the contract and the remedies available to the customer if Boutique Advertising Pty Ltd breaches the terms of the contract. 

In your legal advice to Baez you must:

  1. Identify one legal reason and one commercial reason why Baez must understand terms of the contract with Happy Snaps Pty Ltd.
  2. Describe whether the terms of the contract with Happy Snaps Pty Ltd are conditions, warranties or intermediate terms and refer to relevant Australian legal rules, principles and cases.
  3. Identify and describe the contractual remedies available to either party to the contract if there is a breach of a term and refer to relevant Australian legal rules, principles and cases.

12 marks – maximum 600 words

Part C – Advertising Campaign for Happy Snaps Pty Ltd

Your manager in the legal team at Expert Consulting Pty Ltd has asked you to write a case review on Australian consumer protection law that governs representations made by businesses in selling their goods or services.  Your case review will be used to advise Happy Snaps Pty Ltd on how their legal obligations under the misleading and deceptive conduct provisions in the Australian consumer protection law.  You must select an Australian case on misleading and deceptive conduct that was decided under s 18 of the Competition and Consumer Protection Act 2010 (Cth) (Australian consumer protection law) or previously under s 52 of the Trade Practice Act 1974 (Cth). 

Your case review must:

  1. Identify the key elements of misleading and deceptive conduct.
  2. Describe how the business or organisation in the case either complied with or breached the legislative requirements of misleading and deceptive and conduct.
  3. Evaluate the impact of the case on the commercial activities of other Australian businesses.

10 marks – maximum 500 words

LAWS20058 Australian Commercial Law

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