LAWS20058 Australian Commercial Law

Assessment Task 2 - Instructions and Questions

Term 2 2024

Marks:  35 per cent of total grade.

Due date:  Week 9: before 11.00 pm AEST Monday 9 September2024

Submission: Students must submit the assessment as a Word file(‘.doc’ or ‘.docx’) via the submission link in the ‘Assessment’ tile in Moodle for LAWS20058. 

Extensions: The CQUniversity extension policy will be strictly enforced.  Late submissions without an approved extension may incur a penalty of 5 per cent of the total marks available per day. Extension requests must be made in Moodle before the due date.  Extension requests will only be considered if made in the online form in Moodle and in exceptional circumstances that are supported by appropriate documentation. 

Word count:  Assessment task 2 must not exceed a total of 1,500 words.  The word count excludes citations and the reference list.  Students may transfer unused words in a question’s recommended word count to another part of the assessment.

Content: The assessment examines unit content covered in Weeks 5 to 8.

Format: The student’s name and student identification number must appear on the first page of the assessment and in the footer of each page.  The assessment is to be formatted in a clear size 12 font (Calibri, Cambria or Times New Roman), double-spaced and include page numbers.  The total word count must be stated on the first page of the assessment.                              

Students must use the appropriate answer structure from the workshops to answer all questions in Parts A, B and C.  The answer for each part must start on a new page, clearly state the question number and include the word count for the part. 

Academic integrity: This assessment task is an individual assessment. In completing the assessment students must comply with the CQUniversity academic integrity policies that can be accessed via Moodle. The use of Artificial Intelligence is not permitted and improper use constitutes a breach of academic integrity policies.  Breaching these policies will result in a student being subjected to the University’s student misconduct proceedings and related penalties. 

Referencing:  Students must use a consistent style of referencing and cite the relevant research source when appropriate. Students mustuse in-text referencing in the American Psychological Association style guide (APA 7th ed).  Footnotes may be appropriateto cite cases and legislation.  At the end of the assignment students must include a reference list of all research sources used in the assignment.   

Resources: You will need to actively engage with the Academic Learning Centre (ALC) tutorial sessions in LAWS20058 workshops for assessment task 1, whose resources for this unit can be accessed at the ALC companion Moodle site.

BACKGROUND FACTS

You recently completed your postgraduate studies and started a graduate position in the corporate services groupat Globex Corporation Pty Ltd.After your manager learned that you studied LAWS20058, you were assigned to the ‘Start-Up’ team as a business law specialist.  You will assist clients to understand the legal requirements of establishing a new business.

Your first client is Lisa, a recently retired sports consultant who migrated to Australia from the United States.  Lisa lives in Brisbane and is embarking on a new business career in gardening. Lisa has started a nursery called Scorpion Shrubs in Brisbane’s suburbs. The business will sell a range of trees, shrubs, vegetable and fruit seedlings, garden supplies and decorations and equipment. While Lisa is very knowledgeable about the sporting industry in the United States, she knows little about Australian contract law. 

YOUR TASK

After your first consultation with Lisa, she has returned seeking advice on contract law.  You must write a business report forLisathat provides advice on all contract lawquestions in Parts A, B and C of this assessment.  The report will be given to Lisa at your second meeting as a resource he can use in conducting contract practices in his business.  Lisa can use the report to seek further advice on any specific legal issues.

ASSESSMENT TASK QUESTIONS

PART A – TERMS OF CONTRACTS

Lisa requires advice on how to identify and manage the commercial and legal risk associated with entering business agreements as he is unfamiliar with Australian contract law. You must advise Daniel how contract terms and remedies impact business arrangements.  Lisa will use your advice as the basis for developing contracts related to her commercial and activities.

In Part C.1 of your report you must:

1. Identify one legal reason and one commercial reason why Lisa needs to understand the terms of contracts entered into by Scorpion Shrubs Pty Ltd. 
2. Evaluate the legal differences between the classification of a term of a contract as either a condition or a warranty.  In your answer describe each type of term and identify the relevant legal remedies available for breaching that type of term. Your answer must be supported by common law of contract legal principles and cases.  Do not discuss statute law.   
3. Identify the types of contracts that the Australian Consumer Law applies to. Describe two guarantees that the Australian Consumer Law implies into contracts that are relevant to Lisa selling plants and garden supplies.  Your answer must be supported by relevant legislation.

450 words – 10 marks

PART B - CONTRACTUAL LIABILITY AND DISCLAIMERS

Central to running a successful modern nursery is allowing people to wander the grounds to inspect and then purchase the different plants and gardening products.  However, Lisa is worried about the potential liability of Scorpion Shrubs Pty Ltd if someone is injured at the nursery.  The specific risks are related to the operation of different hydroponics in several greenhouses and outdoor gardens.  Then there is the hustle and bustle of many shoppers and stock deliveries throughout the day.  When doing online research into potential liability for any injuries suffered by customers, Lisa found a website that stated she can potentially exclude her liability via a disclaimer (also known as an exclusion clause or exemption clause).Lisa proposes to exclude his liabilitybyputtinga disclaimer on a sign inside the entrance gate at the nursery.

Based on her internet research Lisa drafted the following disclaimer for a sign to be placed inside the nursery: 

‘Scorpion Shrubs Pty Ltd is not liable for any injury or loss suffered by customers while on these premises.  Customers and visitors assume all associated risk and liability. Enter at your own risk!’

In Part C.2 of your report you must advise Lisaon the following matters:

1. Describe the commercial purposes of a disclaimer.
2. Advise Lisawhether her proposed disclaimer is legally enforceable under the common law of contract. 
3. Propose to Lisa a new disclaimer that is likely to meet the requirements of the common law of contract.  In your answer explain how the disclaimer complies with the requirements of the common law.

Your answer must be supported by common law of contract legal principles and cases.  Do not discuss statute law.

550 words – 15 marks

PART C –CONTRACTS AND THE AUSTRALIAN CONSUMER LAW

The Australian Consumer Law encompasses a range of behaviours and practices that are relevant to contracts.  Lisa needs to ensure the contracting practices of his business comply with the Australian Consumer Law.

In Part C of your report you must:

1. Evaluate why the Australian Consumer Law is needed in the regulation of contracts.  In your answer identify who is a consumer under the Australian Consumer Law.
2. Define s 18 of the Australian Consumer Law and describe the reasons why s 18 is the most litigated provision in the Australian Consumer Law.  Your answer must be supported by case law.
3. Identify the type of contracts where the Australian Consumer Law prohibits unfair contract terms and describe the policy basis for the prohibition.  Your answer must be supported by the Australian Consumer Law.

500 words – 10 marks