LAWS20058 Australian Commercial Law

Individual Assignment Instructions and Question

Term 3 2023

 

Marks:                  40 per cent of total grade.

Due date:            Week 7: before 11 pm AEST Friday 5 January2023

Extensions:        The CQ University 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. 

 

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

 

Word count:      Assignments must not exceed a total of 2,000 words.  The word count excludes citations and the reference list. 

 

Format:          The student’s name and student identification number must appear on the first page of the assignment and in the footer of each page.  The assignment 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 assignment. 

                               

Students must use the appropriate answer structure from the workshops to answer all questions in Parts A, B and C.  The assignment examines unit content covered in Weeks 1 to 6.The answer for each part must start on a new page, clearly state the question number and include the word count for the part. 

 

Referencing:  Students must use a consistent style of referencing and cite the relevant research source when appropriate. Students may either use in-text referencing in the American Psychological Association style guide (APA 7^th ed) or the Australian Guide to Legal Citation (4^th edition).  Footnotes may be appropriate to cite cases and legislation.  At the end of the assignment students must include a reference list of all research sources used in the assignment.  

 

Plagiarism:   This assessment task is an individual assignment.  In completing the assignment students must comply with the CQ University academic integrity policies that can be accessed via Moodle.  Breaching these policies will result in a student being subjected to the University’s student misconduct proceedings and related penalties.

 

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 Pty Ltd 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 the Australian legal system, contract law and dispute resolution. 

 

YOUR TASK

 

You must write a business report for Lisa that provides advice on all business law questions in Parts A, B and C of this assignment.  The report will be given to Lisa at your first meeting as a resource she can use in setting up and then operating her business.  Lisa may also use the report to seek further advice on any specific legal issues.

 

ASSIGNMENT QUESTIONS

 

PART A – FINDING LAW

 

An important aspect of starting and operating a new business is finding relevant laws.  There are now numerous online legal resources, many of which vary in quality.  Therefore business people need to be able to locate and evaluate the reliability of a vast array of legal materials.  This allows the most suitable legal resource to be identified and used.

 

In Part A of your report you must:

 

1.      1. Locate the websites for one State/Territory government regulator and one federal government regulator that has statutory responsibility for enforcing legislation in Australia.

2.     2. Identify one law in each online research source located in Part A.1 of your answer and then (1) identify whether the law is legislation (statute law) or case law (2) identify the relevant jurisdiction (3) briefly describe the key features of the law.  

3.    3. Evaluate the user experience for each website located in Part A.1 from the perspective of business people.  Your evaluation may include the format of the website, the use of visual aids, explanations of laws and legal processes and links to additional information or support.

 

500 words – 10 marks

 

Part B – business, law AND THE AUSTRALIAN LEGAL SYSTEM

 

Many entrepreneurs who start a small business possess limited knowledge of the Australian legal system and how legal rules and principles shape their daily operations.  When undertaking the process to ‘start-up’ and then operate business, it is important for entrepreneurs and their staff to understand how the key features of Australia’s legal system will impact their activities.

 

In Part B of your report you must:

 

1.     1.  Identify the doctrine of terra nullius and describe two legal examples of how this doctrine has been overturned in the Australian legal system.

2.      2. Describe the principle of the ‘rule of law’ and identify two examples of its importance in the operation of law for businesses in Australia.

3.   3. Identify and describe the key features of federalism in the Australian legal system.  In your answer refer to two relevant laws and evaluate how federalism effects the commercial activities of Australian businesses.

 

500 words – 10 marks

 

PART C – OPERATING A BUSINESS AND CONTRACTS

 

In developing and implementing a business plan, your client needs to understand Australian contract law. To manage commercial and legal risks, business people need to recognize the legal obligations created by the common law of contract in creating a legally enforceable contract.  Your answer in Part C must answer the following two questions.

 

1.Terms of a contract

 

As Lisa is unfamiliar with Australian contract law, she requires advice on how to identify and manage the commercial and legal risk associated with entering business agreements.  You need to provide advice that explains how contract terms and remedies apply to operating a business.  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.      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.     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.    3. There are multiple forms of dispute resolution for resolving commercial disputes. Describe litigation and mediation.  In your answer describe the feature of each type of dispute resolution.  Then, evaluate the benefits and limitations of each method of dispute resolution.

 

500 words – 10 marks

 

2.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 liability by putting a disclaimer on a sign inside the entrance gate at the nursery.

 

Lisa drafted the following disclaimer on a sign based on his internet research:

 

‘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.       1. Describe the commercial purposes of a disclaimer.

2.      2.  Advise Lisa whether her proposed disclaimer is legally enforceable under the common law of contract. 

3.    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.

 

500 words – 10 marks