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BLO1105 : Business Law

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  • Course Code: BLO1105
  • University: Victoria University
  • Country: Australia

Question:

Magda is a highly acclaimed professional photographer focussing on celebrities in the fashion, entertainment and sports industries.  

Magda advertises and sells prints of her works via her website: www.madgaportraits.com.au, but she also sells directly to the public from her home studio.

The website sets out various categories of works including one entitled ‘Elite Sports’ where she has thumbnail photos of limited edition, framed, photographic portraits that she has taken, showing prices (including postage and handling).

There is also a notice on the website indicating that these portraits are numbered and signed by Magda, and are printed on archive quality, acid-free paper.

Avinash visits her website and admires a photographic portrait of an Australian Olympic champion, Paris Stilton. The advertised sale price is $2,000 and it is described as ‘a limited edition of only 3 prints’. According to the website only one of these portraits remains unsold.    

As described below, a number of exchanges take place between Magda and Avinash.  

a). Advise Magda and Avinash whether they had formed a binding contract with one another.

You will need to address all the essential elements of a contract as well as analyse the legal status (if any) of each step or event that occurred, including information on the website. Refer to relevant case law and provide definitions of legal terms. In this part, do notdiscuss the impact, if any, of consumer protection laws.

You may, but are not obliged to use the IRAC format for this part, given that each step or event needs to be analysed separately.

b). Assume Elton discovered that the portrait he had purchased had only been printed on low quality photographic paper and was therefore susceptible to colour degradation (already occurring) which would not happen had high quality archive quality paper been used. Furthermore, he has discovered that recently, Magda had sold ten of the so-called limited edition prints of Paris Stilton to other buyers.

 Advise Elton of his rights under the Australian Consumer Law (‘ACL’).

 By reference to the ACL, explain whether

  • Elton qualifies as a consumer
  • Magda has breached any terms
  • Magda has made any misstatements   
  • Refer to specific sections of the ACL and any relevant cases
  • For your information, ‘limited edition’ most commonly refers to the publication of an edition of a book, or reproduction of a print or object, limited to a specific number of copies.
 
2). Consideration provided under a contract is not always valid. This can have unfortunate consequences for a party seeking to enforce the ‘contract’.    

REQUIRED

Discuss this statement referring to relevant case law.  

Include:

An indication of whether you agree or disagree with the statement, justifying your viewpoint

Identification of the type of consideration exchanged between Magda and Elton ( from question 1)   

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