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BUSI 2301 Business Law

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Vincenzo Franco and his family had come from Italy to visit relatives in Australia, decided that they would like to book a trip to Mount Hotham (Ski Resort) in Victoria.  They had done a lot of research online about the activities and services available at Mount Hotham. They found a resort called “Scenic Views”, it advertised (invitation to treat) that all their guest suites had open-fire places, TV’s and Cable, a spa bathroom and spectacular panoramic views from a private balcony looking out on the snowfields and the snow covered mountains. As Vincenzo Franco, did not speak very good English, he was having difficulty understanding the terms and conditions relating to booking at the resort.  He decided that it was better if he went to see one of the marketing managers from Scenic Views at offices that they had in Melbourne rather than make the booking on the website.  When Vincenzo arrived at the offices of Scenic Views, he spoke directly to Mr George Smith (Marketing Manager). Vincenzo with his broken English explained to George that he wanted to book one guest suite at Scenic Views.  George provided Vincenzo with a lot of detail about the hotel booking process and his options but he was not sure whether Vincenzo actually understood  what he was saying.

Vincenzo asked about the price for 7 nights all inclusive and George responded $350 per night.  Vincenzo thought it sounded quite expensive but because it was all inclusive he decided to book for the 7 nights.Despite the information that George provided when Vincenzo and his family arrived they discovered that not all the rooms had private balconies or panoramic views. Vincenzo was very upset as this was not what he was expecting. Instead of the private balcony and panoramic views that he was expecting, his room was facing a grey wall from another building and had no balcony at all. Vincenzo called George to complain and asked for and upgrade to a suite with a private balcony and panoramic views. George advised him that because it was peak season everything was fully booked. Vincenzo was very unhappy and not satisfied with the level of service and did not want to stay there and get a refund for the 7 nights that he paid for. However George explained to Vincenzo that according to the terms and conditions from Scenic Views Hotel they could not refund the money and that there was normally a cancellation fee of 3 nights accommodation.Vincenzo was very angry but did not know what  to do... He was becoming increasingly frustrated because of his English. He was convinced that George, the Marketing Manager was not acting in good faith.


1. Required

Please advise Vincenzo  Franco if he entered in a contract with Scenic Views and if this contract can be invalidated  under the principles of Contract Law.

(a) Explain how the ELEMENTS to be satisfied in order to make a simple contract  valid

  • You will need to address all the essential elements of a contract including (Offer and acceptance, intention and consideration) as well as elements of a valid contract (Capacity, Legality, Genuine Consent Mistake,Misrepresentation, Durres, Undue Influence and Unconscionability.
  • You will need to address and explain the methods by which a contract is ended.
  • You will need to address and explain Remedies available for Vincenzo Franco

Note : You must identify  relevant case studies in order to support your legal argument .

(b) Explain the construction of the contract .

  • For the purposes of this part you should distinguish between representations and terms.
  • Explain the importance of a collateral contract
  • Distinguish between conditions and warranties

Note: You must address these questions according to the case scenario provided and do not forget to provide relevant cases studies to support your legal argument.

2. Required

Explain to Vincenzo what are his Australian Consumer Law Guarantees under the Competition and Consumer Act 2010 (Cth) .

  • You need to justify your view as to whether these guarantees are available. You will also need to explain the meaning and significance of the implied consumer guarantees.
  • Explain the consumer’s rights in the event of the supplier’s failure to comply with a consumer guarantee.
  • In addition, Explain the remedies available to Vincenzo Franco and the penalties that can be imposed to Scenic Views under the Act against  a trader in breach of the Australian Consumer Law.
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