Question 1 – Contract Law (8 marks)

Michael runs a pizza takeaway store. He is looking to update the staff uniforms. One day, he walks past a small clothing store. In the window, he sees a fantastic baseball hat which has a picture of a cartoon pizza slice on the front. Next to the hat is a sign saying, ‘Special Offer $10.00 each’. He goes into the store and says to Fran, the shop assistant, ‘Hi, I really like that pizza hat in the window. I would like to buy 10 please.’ Michael hands Fran $100 (10 x $10.00).

Fran says, ‘I’m sorry. The hats are $30.00 each.’ Michael replies, ‘but the sign in the window says they are $10.00 each. I want the hats for $10.00 each.’ Fran says, ‘Sorry, that sign is an error’.

Using relevant principles of contract law, discuss whether Fran is required to sell the hats to Michael for $10.00 each.

Question 2 – Contract Law (12 marks)

Joel’s very expensive watch is broken. He takes his watch into Clocks & Watches, a business which sells and repairs a large selection of clocks and watches.

Joel shows Beth (the owner of Clocks & Watches) his watch. Beth says that she will be able to repair the watch; it will cost $500 and it will take 3 weeks. Joel is happy with this.

A service form is then filled out. Joel fills in his details (name and phone number), and Beth fills out the remaining details (description of the watch, that she will perform a repair on the watch, the date it will be ready for collection, and the price of $500).

At the bottom of this document in red lettering it says ‘Clocks & Watches will not be responsible for any damage to any product we have serviced regardless of how that damage is caused.’ Just below this statement, is a place for the customer’s signature. Joel signs the document without reading it, and leaves the store.

3 weeks later, Joel goes into Clocks & Watches to collect his watch. He speaks to Beth. Beth says, ‘I am so sorry Joel. But unfortunately, a few days ago we had a robbery and your watch was stolen out of our safe storage area. I do not have your watch to return to you.’

Joel is absolutely furious. He demands that Clocks & Watches compensate him for his watch. Beth refers Joel to the exclusion clause at the bottom of the service form.

Using relevant principles of contract law, discuss the following:

a) has the exclusion clause been incorporated into the contract?

b) if the clause has been incorporated, will it protect Clocks & Watches from liability?

(Note: Do not discuss consumer law in this question)

Question 3 – Employment Law (10 marks)

Leon is a university student and enters into a working arrangement with Shoes Plus. The arrangement is that Leon can work at Shoes Plus during his university holidays.

During the university holidays, Leon can choose what days he works, but he must work at least 3 days per week. On the days he works, he must arrive by 10:00am and is expected to work until at least 2:00pm. Leon gets paid $75 per day, and this is paid to him at the end of every week. He performs a variety of tasks that are given to him by the store manager on the day (e.g. cleaning, serving customers, unpacking stock, setting up displays). When he is in the store he is expected to wear his name badge. Leon has signed a document where he is identified as an ‘independent contractor’. In this document it also states that he must comply with all Shoes Plus policies and procedures.

Using relevant principles of employment law, discuss whether Leon is an employee or an independent contractor.

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