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LAW10004 Introduction To Business Law

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Questions:

One

Jenny started her own business many years ago and bought a Volkswagen Beetle to be used for getting her to work and back. Recently the car has been giving her problems and as a consequence she has been turning up late for work and her appointments with clients. She decided that she would sell the car and get a new one. She sent an email on 1st June to Hayley, her good friend who had always been interested in Jenny’s old car. In her email, Jenny stated ‘My old Volkswagen is for sale. The price is $4000. Please let me know by 10th June’.

Hayley only read the email on 3rd June but wanted some time to think about it. She wrote back on the same day and in her email, she said that she was very interested and asked Jenny not to sell it to anyone else.

In the meantime, Jenny has found that her car has been working perfectly. She now changes her mind about selling her car. She sends an email to Hayley on 5th June stating that she no longer wished to sell her car to her. Hayley did not read this email as it had gone straight to her spam folder.

On 7th June, Jenny’s car gives her problems once again. She is so frustrated that she sends an email to Hayley on that day and tells Hayley to ignore her previous email and that her offer is still open.

Hayley in the meantime had sent a letter on 6th June with a cheque for $4000 enclosed. This letter only reached Jenny on 12 June.  Jenny, not having received a favourable response from Hayley till the 10 June, sold the car to Herbie on 11 June.

Advise Hayley of her rights in Contract law.  

Two

Bill Jobs was a keen competitor in the computer industry. The name of his company was Winpple Computers. His products did reasonably well in the market but lately his profit margin has been declining. This was partly because his company had not come up with anything new. He then decided to make a small laptop in a tablet form and call it HiPad. Apple Computers, a major player in the industry had released a similar type of handheld computer in the market a year ago and it was called IPad.

Winpple’s HiPad was manufactured in Australia but when it was sold, all advertisements concerning the product were set against an American background and the packaging for the product also omitted to mention that it was manufactured in Australia. The packaging came in red, white and blue colour with white stars surrounding the edges. The product has become very popular in the market. Its pricing was also comparatively lower than the IPad. One of his legal associates has recently told Bill Jobs that there might be legal implications because of the product and packaging.

There was also concern raised by some purchasers that the tablets developed problems after a period of six months and could not be fixed. The sale and purchase terms of the contracts for HiPads contained the following clause.

“The company excludes liability for breaches of the contract relating to product suitability and quality that occur after a period of three months after the purchase of the product.”

Advise Bill Jobs and dissatisfied purchasers whether there have been breaches of the Australian Consumer Law and the remedies that may be sought.

 
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