Commercial Law : 164607

Question:

Question 1 – Sale of Goods

18 Marks

A.

What is the purpose of the Sale of Goods Act 1908?

2 Marks

B.

Lisa has a nice garden shed on her land which she no longer uses. She

advertises in the “Trade and Exchange” magazine, “Garden shed for sale, $300

or nearest offer”.

On Thursday 11 November Paul comes to look at the shed and eventually says

to Lisa, “It’s going to be difficult to remove because it’s concreted in, and also

the window is broken. Tell you what, if you drop the price to $225 and get the

window fixed I’ll come and pick it up by next Thursday.”

Lisa agrees and they sign a written contract on these terms.

i) Explain by reference to the appropriate sections in the Sale of Goods Act

1908 why this is a contract of sale of goods. ( 2 Marks)

(3 marks)

ii) Explain by reference to the appropriate sections in the Act who owns the shed

when Lisa gets the window fixed the following Monday. Paul does not yet

know this has been done (3 Marks)

(2 marks)

iii) Lisa rang Paul on the day before he was due to pick up the shed. She told

him the window had been fixed. Paul replied, “OK, I’ll come and pick it up

tomorrow, Thursday, about noon”. Before he arrived a strong wind blew down a

neighbour’s tree on the shed, smashing it into broken pieces of timber. Who

would bear the loss – Lisa or Paul? ( 3 marks)

C.

Background facts

Samantha runs an interior design store. To shift some old stock she sends a set

of Side tables packaged together in a box to auction. Before the auction Angus

makes an offer to buy the set of side tables and Samantha accepts. As part of

the contract it is agreed that Angus will make payment and collect the tables the

next day.

During the night the side tables are destroyed in a fire at the auctioneers.

Required

Applying the law to ascertain who bears the loss of the burnt tables.

5 Marks

c)

Sarah goes into a hardware store to buy paint that will stick on a certain type of wood – rimu –

that her house is made of. The person behind the counter, Bob recommends a certain brand

as “excellent for painting on that type of wood”. Sarah pays for it, takes it home and starts

painting.However three days later she notices that the paint is starting to peel. A friend of

hers who is a painter comes around and informs Sarah that she has used the wrong type of

paint. Sarah then discovers the instructions on the paint say that it will not stick properly on

certain woods – rimu is listed as one of these woods. Another person at the hardware store

(not Bob who has left) informs Sarah that they are not required to do anything to help her

because she didn’t read the instructions on the side of the paint can where it clearly lists rimu

as a wood the paint shouldn’t be used on. Sarah argues with them and finally they agree they

will order her the proper paint (they have none in stock at the present time) from their store in

Wellington. She is keen to get started again with the painting and after two weeks have gone

by she approaches them and asks them about the order. They inform her that they have

Question 2 – Consumer Guarantees

18 Marks

a.

When does the Consumer Guarantees Act Apply?

2 Marks

b.

Background facts

Alex is a keen sailor, and decides to set up a small business teaching people to

sail the type of yachts that families and hobby sailors would normally use.

Alex buys the following items for her business:

(a)

A ‘family’ yacht from Nelson Marine Limited (“NML”)

(b)

Five ‘second hand’ life-jackets from his Neighbour, Warren (who has in the

past sailed in his spare time);

A week after these purchases Alex notices some cracks in the yacht’s hull. She

calls in Clive, a marine engineer to carry out a survey of the yacht, and

equipment.

Clive reports that;

a)

the yacht is in fact parts of two separate yachts nailed together and is

not seaworthy and is a ‘death-trap,’

b)

the flotation material in the life jackets has broken down over time and

wouldn’t support the weight of a person.

Required

Explain Alex’s statutory rights against NML and Warren. You must consider

whether the supply of the yacht and/or the life jackets is covered by the

Consumer Guarantees Act and what guarantees apply (if any).

8 Marks

forgotten to order the extra paint and will do so immediately. She goes back in another two

weeks (now four weeks have gone by) but the paint still has not arrived. The store insists it is

on the way.

1.

Does the store have to remedy the problem seeing as the instructions specifically said the

paint should not be used on rimu? Explain.

(2 marks)

2.

What are the rights and remedies Sarah has available to her?

(2 marks)

3.

What can Sarah do about the fact the store insists they will receive the paint but Sarah is still

waiting?

(2 marks)

4.

Would the situation be different if there was no paint that worked on rimu wood and the store

could do nothing to help Sarah?

(2 marks

Answer:

  1. The purpose of Sale of Goods Act, 1908 was to initiate so that an agreement or contract is entered between the seller or the buyer to buy or sell the goods.
  2. Lisa agrees and they sign a written contract on these terms.
  3. As per Section 20 Rule 2 of the Sale of Goods Act, 1908 there was a contract between Lisa and Paul for sale of goods herein referred to as the garden shed. It is a contract of sale under the Act since the buyer has accepted to pay a price for the goods referred to as “garden shed”, sold by the seller Lisa (Austin & Ramsay,2012).
  4. As per Sale of Goods Act, 1908 where there is a contract for the sale of specific goods, and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done, and the buyer has notice thereof.

In the above case the buyer agreed to purchase the garden shed on the condition that the seller Lisa repairs the window and drops the price from $300 to $ 225.

  • In the case the goods was not transferred to the buyer Paul therefore in case of any mishap before the delivery of the goods to the buyer, the wind has blown the garden shed therefore he loss would be borne by the owner in the above case it will be borne by Lisa (Cassidy & Corporations Law Text &Essential Cases 2013).
  1. As per Section, 20 Rule 1 where there is an unconditional contract for the sale of specific goods, in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment or the time of delivery, or both, is postponed.

Thus in the above case where there was fire and the side table was destroyed the loss was borne by Angus, the buyer o the goods (Ciro &Symes, 2013).

  1. As per the above case Jo who is the chef of the cuisines in the restaurant orders 100 liters of Amphitrite Soybean Oil after seeing the advertisement where it was mentioned that the soybean oil was sold at 75c/liter. As the oil arrived he found that the oil was for the purpose used as lubricating oil and which cannot be used for culinary purposes. In this case since the goods are already sold and the chef did not read the purpose of the oil and ordered it. Thus he cannot get a refund on his purchase since it was his mistake. Thus in this case the loss is borne by the chef Jo (Davenport &Parker , 2012).

 

  1. The Consumer Guarantees Act applies to the normal consumers to protect them so that they can seek the repair, replacement and refunds on goods and services which are faulty.
  2. Alex can apply for statutory rights against NML and Warren. This supply of Yachts and life jackets from the company is covered under the Consumers Guarantees Act (Fisher , Anderson & Dickfos). The company guarantees that in case the goods that are provided by them is faulty then they will replace the product or repair the product within the warranty time span. Thus this Act safeguards the policy and interest of the consumers and helps them to make a perfect deal.

In the above case it is seen that the marine engineer carries the survey and found out that the yacht has two separate parts and it is not possible to sail it and it is death trap. The flotation jacket has also broken down and it is not possible to support the weight of the person (Fitzpatrick et al. 2014).

  1. In the above case the store has the remedy to seeing the problem as instruction which specifically says that the paint should not be rimu.
  2. The rights and the remedies that are available to Sarah is that she can apply to the store that she the paint immediately and the store has told that they will give her the paint at the right time.
  3. Sarah has nothing to do but to wait and get the paint from the store since she needs the paint on an urgent basis (Hahn, Peter & Meziane Lasfer (2015).
  4. If such a situation arises where Sarah could do nothing if there was no paint that worked on rimu wood and the store could do nothing to help Sarah then Sarah would go to different outlets to find out the correct paints which could used in the wood rimu

As per the act, The Fair Trading Act, 1986, protects the consumers against being misled or treated unfairly by traders or shops. The Act prohibits misleading and deceptive conduct, unsubstantiated claims, false representations and certain unfair practices (Hoad, Richard & Ramsay, 2013). No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

For the purposes of subsection (1), a false trade description shall be deemed to be applied to goods if—

(a)It is woven in, impressed on, worked into, or annexed or affixed to the goods; or

(b)It is applied to a covering, label, reel, or thing in or with which the goods are supplied (Hanrahan,  Ramsay & Stapledon, 2013).

(c)For the purposes of this section,

In the above case there was breach of the Fair Trading Act 1986 by Ice Country Limited. The company was selling thermal clothing in New Zealand. Tessa chose to purchase Clothing from Ice Country Limited, because of the Companies advertising statements that the clothing was made in New Zealand from 100% New Zealand Merino Wool. Tessa was of the view that the company was selling clothing made in New Zealand as it was given in the website when she accessed and there was Swing tags attached to the garments.

Later when she found after reading an article that the article was in North and South that when the company first started making the clothing, it was designed and made in the place New Zealand, but for the past five years and even currently, the clothing was designed in New Zealand and made in China, from 85% Australian Merino, and 15% Polyester (Harris & Adams, 2013).

Bhavin finds an advertisement in his letterbox from an Auckland company called Specialist Laboratory Services Limited. The advertisement stated that the company will be selling a slim fast tablet. As per the instruction given in the tablet it will help the consumers to lose weight and within a specified period of three months. Bhavin who was overweight HAD ordered substantial quantity of the tablets. The advertisement also stated that the tablets were manufactured in the United States of America .Late Bhavin found out that the tablets that he was taking was prescribed six months prior and it did not have any affect since he did not lose any weight. More over it was later found out that the tablets were manufactured in a backyard laboratory in South Auckland (Hung & Humphry, 2015).

This is a false statement under the Fair Trading Act, 1986.As per the Act it is mandatory for the seller to disclose the following so that there is no dispute between the consumer and the sellers. They are as follows:

The supplier must ensure that—

  1. Every lay by sale agreement entered into by that supplier—

(i)It is in writing; and

(ii)It is expressed in plain language; and

(iii)It is legible; and

(iv)It is presented clearly; and

(v)It complies with the requirements of subsection (2); and

  1. A copy of the agreement is given to the consumer at the time the agreement is entered into.

As per section 9 of the Fair Trading Amendment Act 2013, it is held that no person shall, in trade, engage in conduct that is liable to mislead the public as to the nature, manufacturing process, characteristics, suitability for a purpose, or quantity of goods and services (Lanis, Roman & Grant Richardson, 2012).

 

The potential problems this advertisement could cause Keen in the light of the provisions of the Fair Trading Act 1986:

In the case Keen being a newly qualified personal trainer so he wanted to attract the customers, and therefore Keen proposes to insert the advertisement in the local paper. He advertises to join him by writing Lose weight in weeks.

Keen advertises in writing that the personalised fitness programme of him will enable the customers to lose at least a kilo in the first week. He enhances on the strategy that it si important to lead a fitter, healthier and happier life. He also mentions that he has trained several famous athletes and now the customers may have the benefit of his skills and knowledge (Lipton,  Herzberg & Welsh, 2014).

Later it was found out that the Keen has not trained any athletes nor famous or any one.This is the breach of the Act and the person shall be penalized for false representation and breach of action.

Potential problems this advertisement could cause Keen in the light of the provisions of the Fair Trading Act 1986

Civil remedies include injunctions, orders for corrective advertising (only available to the Commerce Commission), private actions and other compensatory orders, depending on the jurisdiction of the Court.

If you bring a claim in the Disputes Tribunal or the District Court they may grant a number of orders, including:

  • The trader pay damages to you if you have suffered some loss or damage
  • A contract be altered or made void
  • Money be refunded
  • Products be repaired or services supplied.

 

 

As per the case, Hans Wagner was appointed as the lecturer of the Noname University; he only had a year experience as teaching as a lecturer. He was appointed in the University under the head of the department Professor Alan Wilson. Alan was the head of the human resource affecting the performance of the college. The performance of Hans was very poor therefore he was called by Alan and told that this was not accepted, most of the student rated him as 3 or 4 and his student rated him generally between 2.5 to 3.0 (on a scale of 1 to 5, with 5 being the lowest score). This was worse than three quarters of the staff in the School of Business.

Thus Alan told called him and asked him to explain about his teaching experience, Hans felt very humiliated and told that he would not explain the reason the reason for his poor performance, then Alan told that this was not acceptable and he would have to let go Hans. Thus the ground on which the employer has dismissed was true and correct (Li, 2012).

Alan has followed the procedural requirement and thus Hans have followed the case and the procedures have been followed since Hans were not fit for the job since he was not able to give his best and his performance was not accepted by the college.

Thompson Aluminium is characterized by high job specialization, with high levels of repetition and little variety in most jobs. There is minimal communication or transfer between the various departments. Workers have little or no control over how work is planned or carried out, and some employees are expected to work double shifts where there is pressure to complete an order in time (Redmond, 2013).

Grant and Peter followed the norms of the work and safety but one morning they were not able to handle the pressure and they unloaded the truck quickly. Grant stood on the forks of the forklift and Peter lifted him to the empty top levels of cantilever rack to store away the truck’s contents more quickly. While they were doing the risky job, the company in spite of knowing it ignored the whole activity of the employee. Thus the management ignored the activity of the employee. During this incident Grant slipped and fell on the ground which was below and it is one the top of the boxes on the top rack (Richardson et al. 2013).

It was employer’s responsibility for keeping the employee health and safety of the working environment which was required by the law. In this case the employers did not take any action and they did not take any action for not keeping the health and safety of the environment.

 

 

In the case the company approached by Thomas Aluminum and they identified the hazards in the organizations and they helped for the health and safety of the organization which was still prevailing in the organization. In this case the organization knew the hazards and even after it and after such an incident they have allowed Grant to do the same job and this made the is a fault of the company itself.

 

 

 

 

 

 

 

 

 

 

Austin R.P. & Ramsay,(2012) I., Ford’s Principles of Corporations Law, 15th Ed. Butterworths, Australia. p 201

Cassidy J., Corporations Law Text &Essential Cases (2013). Federation Press, 4th edition Sydney

Ciro T &Symes C,(2013) Corporations Law in Principle LBC Thomson Reuters, Sydney, 9th edition

Davenport, S &Parker D,(2012) Business and Law in Australia, Thomson Reuters. p 15

Fisher S, Anderson C, & Dickfos,. (2017)Corporations Law – Butterworths Tutorial Series, 3rd Ed. Sydney, Butterworths.. p 2015

Fitzpatrick, Synes, Veljanovski, & Parker,(2014) Business and Corporations Law; 2nd Ed. LexisNexis. p 387

Hahn, Peter D., & Meziane Lasfer (2015). ‘The compensation of non-executive directors: rationale, form, and findings.’15.4 Journal of Management & Governance 589-601.

Hanrahan, P., Ramsay I., & Stapledon, G (2013). Commercial Applications of Company Law. 14th Ed CCH.. p 49

Harris, J. Hargovan, A.  Adams, M (2013). Australian Corporate Law 4th Ed. LexisNexis Butterworths. p 105

Hoad, Richard, &Ian Ramsay.  (2013)”Disclosures!: Corporate governance in practice.” 10.

Hung &Humphry.(2015) ‘Directors’ roles in corporate social responsibility: A stakeholder perspective.’  103.3 Journal of Business Ethics 385-402.

Lanis, Roman, & Grant Richardson (2012). ‘The effect of board of director composition on corporate tax aggressiveness.’ 30.1 Journal of Accounting and Public Policy 50-70.

Li, G, Riley, S. (2012) Applied Corporate Law: A Bilingual Approach  1st Edition LexisNexis. p 112

Lipton, P., Herzberg, A., & Welsh, M, (2014)Understanding Company Law, 17th Ed. Thomson Reuters . 210

Parker, Clarke, Veljanovski & Posthouwer, (2012) Corporate Law, Palgrave 1st edition

Redmond, P., (2013) Companies and Securities Law – Commentary and Materials, Law Book Co., Sydney, 5th,

Richardson, Grant, Grantley Taylor, & Roman Lanis (2013). ‘The impact of board of director oversight characteristics on corporate tax aggressiveness: An empirical analysis.’32.3 Journal of Accounting and Public Policy 68-88.

  1. The purpose in this case for which the Sale of Goods Act, 1908 is applied that the it helps the parties both the seller as well as the buyer that they can apply to buy or to sell the goods under a proper medium .This has helped in the progression of trade thereby both the buyers and the seller can enter into the transaction under one platform (Hayward , 2016).

 

  1. In the following case the agreement has been drafted which has the following parts:
Answer I Answer II Answer III
In the above case it is referred to as the contract of sale since both the seller Lisa wants to sell the garden shed and also the buyer want to purchase the garden shed from Lisa thus they enter into a contract and they enter into an agreement (Andrews, 2016). The contract is entered wherein the parties can sign the agreement and enter into a sale that he will pay a price on the conditions that the goods are sold subject to the contract and if the purchase is based on the following terms that the buyer has agreed to purchase the garden shed.

 

As per Sale of Goods Act, 1908, in the following case Lisa gets the window fixed as per the terms on next Monday, but Lisa was unaware about it. Paul did not know about this before and he does not know that it has been done by the seller .In the case we can see that there was an agreement in between the two parties Paul and Lisa for selling of a garden shed which was agreed at a price of $225 and since it was concreted and the window was broken they thought that Lisa will repair the garden and make it saleable so that it can be sold to Paul (Walker, 2016). Paul has put a condition that  if the price is lowered and they remove the concretion then only it will be sold thus in this case, the window after repair on Monday was owned by Lisa and it was not sold by to Paul.

 

The contract was already prepared in this case but there was a unfortunate situation or a natural disaster which occurred and thus it led to the contract being void in that circumstance (Mason, 2015). In every contract there is clause of force majeure where the contract will be void if there if there is any situation which is unforeseen. There has been a strong wind which have blown away the garden  smashing the garden and this have broken the window and thus they Lisa will be bearing the loss made by the deal.

 

 

  1. In this case, as per section, 20 Rule 1, where there is a contract which states that there was a unconditional sale and the contract says that the specific goods was sold in a deliverable state, this enables that the property which is the goods which passes to the buyer at the time when the contract is made, the fact is immaterial in this case because the time of payment and delivery is not same and it is postponed (Act & Funding,2017). Thus it is seen in the following case that the fire is been caught suddenly and this has led to catching the fire in the side table and thus it was destroyed, this made a huge loss which was borne by Angus, who was the buyer of the goods.

 

  1. The above case study deal with the particular situation where Jo, the cook who has thought of purchasing the 100 liter Amphitrite Soybean Oil since he was following the advertisement which was required for cooking after reading an advertisement that the soybean oil would cost 75c/ liter. After the oil arrived, he saw that the oil which was received by him was not the same one and it was lubricating oil and cannot be used for cooking (Marten, 2017). He found that the advertisement which was given was not proper and it was by mistake purchased by him since the price was cheaper. This had lead to a notion that the purchase made by him is done by mistake and thus he cannot claim a refund on the purchase. Thus in this case the loss is borne by the chef Jo.

 

  1. This is a case where it deals with the Consumer Guarantees, Act. This is a particular case which applies to all the consumers so as to help the consumers to protect them which will help them to protect the consumers from the repair, replacement and refunds on goods and services which are faulty (Larsen & Lawson, 2013).
  2. In the following case Alex who was the sailor decided to set up a business where he can teach the people how to sail the yacht. Alex purchased the yacht which had cracks in the yacht hull. After that she calls the marine engineer so that repair can be done. This shows that the company can file a statutory claim against the company NML and Warren. In this case the company has applied to that the company has done wrong on him by selling a defective jackets and yacht (Twigg-Flesner, 2017). In the above case which is referred above relates to the sale of Yachts and life jackets which is covered under the Consumers Guarantees Act. The company while buying the product guarantees that there was a fault in the items and this provided that the goods should be immediately replaced or they will repair the product within the period the product is within the warranty time span. Thus this Act safeguards the policy and interest of the consumers and helps them to make a perfect deal.
  3. In the case the following are the points to be seen:
Answer A Answer B Answer C Answer D
This situation is where the Sarah gets to a shop to buy a paint which will help her to paint the wood rimu, but later she found that the paint used is wrong and not suited for rimu (Howells & Wilhelmsson,2017). The mistake was that Sarah on hearing the shopkeeper purchased the paint. As per the Consumers Act, it is seen that Sarah has blindly believed on Bob who is the seller of the hardware store, thus it is seen that Sarah is at fault.

 

The rights and the remedies which are available to the buyer Sarah is that she cannot paint the wood rimu since it was not the correct type of paint mage for the wood and this has initiated Sarah that to go to the shop and get the correct product of paint and this will help in painting (Baggott, Allsop & Jones, 2014) the wood immediately and the store has told that they will give her the paint at the right time. Sarah told the shop keeper that she wanted to replace the actual paints which were not made for the wood rimu and thus they need to change immediately for Sarah on an urgent basis. Thus she wait for the time until she get the correct product and this made her wait so that the hardware stores gets the paint from the store since she needs the paint on an urgent basis. In this situation, where Sarah had nothing to do since it was her fault and she made a mistake by ordering the wrong wood paint (Whish & Bailey, 2015). Thus she needs to wait till the shop outlets finds out the correct paints which could use in the wood rimu.

 

 

 

The Fair Trading Act, 1986, is a Fact which was initiated so as to help the people so that they are not cheated by the seller. This helps the customers to safeguard so that they are not cheated or misleaded by the traders or the seller. Initially the customers could not apply under any proper Act and therefore they got cheated by the traders or shopkeepers unfairly. After the Act has been amended it helps the customers so that they can safeguard themselves against the misleading and deceptive conduct, unsubstantiated claims, false representations and certain unfair practices (Nayak, 2015) .The Act helps to prevent the person so that no person shall be able to get involved in such a deceptive action which will enable or hall also misled or deceive the customers.

In the above case, for the purposes of subsection (1), a false trade description can lead the customer which is deemed to apply:

(a)The whole thing is that the description is annexed or affixed on the; or

(b)In the case, it applies to the covering, label, reel, or thing with which the goods are supplied  (Bently & Sherman, 2014).

In the case it is seen that there was a breach of contract under the Act and this has taken place for the company Ice Country Limited. This is a company which is renowned and it helps in the selling of a product which is made in New Zealand. This company had made a wrong advertisement that their product was made in New Zealand and produced there. Tessa has purchased the clothing from the company, thus she thought the clothing was made in New Zealand from 100% New Zealand Merino Wool (Howells & Weatherill, 2017). Tessa was of the view that the company was selling clothing made in New Zealand as it was given in the website when she accessed and there was Swing tags attached to the garments.

Tessa later on found that the company does no longer make clothing in New Zealand, but it was designed in New Zealand but made in China since the past five years and even currently, the clothing was designed in New Zealand and made in China, from 85% Australian Merino, and 15% Polyester

Bhavin gets a advertisement in the letterbox from an Auckland company called Specialist Laboratory Services Limited. In the advertisement it states that the company will be selling a slim fast tablet and as pr the instruction it will help the consumers to lose weight in a very small span of time three months. Bhavin was overweight so he ordered a huge amount of tablets from the company.The advertisement also stated that the tablets were manufactured in the United States of America .Later he found out that the tablets did not have any affect since he did not reduce any kilos even after six months. More over it was found that the tablets were manufactured in a backyard laboratory in South Auckland.

This has led the company contravening the Fair Trading Act, 1986. Every lay by sale agreement entered into by that supplier—

  • That the contract shall be in writing; and
  • It shall be expressed in plain language; and
  • It shall also be legible; and
  • It is also presented clearly; and
  • It complies with the requirements of subsection
  • A copy of the agreement shall be presented to the consumers at the time of purchase. As per section 9of the Fair Trading Amendment Act 2013, it is seen that the person engaged in trade has misled the people related to the nature, manufacturing process, characteristics, suitability for a purpose, or quantity of goods and services.

The potential problems that the advertisement caused which Keen used in the light of the provisions of the Fair Trading Act 1986:

It is seen that Keen was appointed as a new trainer and she advertised to the new clients In the case Keen who was a new trainer and thus he wanted to get new clients so he advertised himself in the local newspaper as a qualified personal trainer so that he can attract customers. He advertises to join him by writing Lose weight in weeks.

Keen has advertised in writing that a personalised fitness training was conducted which has enabled the customers so that the customers to lose at least a kilo in the first week. He was focusing on the fact that it will have the people to lead a healthier and happier life. This was done to mislead the customers and he said by saying that he has trained several famous athletes so that the customers may have the benefit of his skills and knowledge.

The customers found that he was guilty and spreading false information as advertisement in the paper since he was neither a trained athletes nor a famous one.This is the breach of the Act and the person shall be penalized for false representation and breach of action.

Answer 1 Answer 2
As per the case, it is seen that Hans Wagner who was the lecturer of Noname University; he had very less experience of a year teaching as a lecturer. He was appointed in the University. Alan being the head of the human resource had affected the performance of the college. The performance of Hans was low and was told to  resign (Burman, 2014)

 

Thompson Aluminium is characterized by high job specialization. There is very less communication between the departments. The workers have no control over the employees expectation to work double shifts where there is pressure to complete an order in time.

Grant and Peter followed the norms of the work and safety but one morning they were not able to handle the pressure and they unloaded the truck quickly. Grant stood on the forks of the forklift and Peter lifted him to the empty top levels of cantilever rack to store away the truck’s contents more quickly.

The employer shall keep and take care about the health of the employee as required by law .In this case the employers did not take any action and they did not take any action for not keeping the health and safety of the environment.

 

Answer 2

 

Answer 2

 

Alan has followed all the norms and the procedures so that they can be followed by Hans this have been followed since Hans as not able to do the best in his performance which was not accepted by the college In the case the company approached by Thomas Aluminum and there were hazards in the organization for health and safety prevailed in the organization. In this case the organization knew the hazards and thus Grant can do the same job and was at fault. (Dau-Schmidt et al .2016).

 

 

 

 

 

 

Act, J. J. C. P., & Funding, J. P. C. (2017). Administration of Justice.

Andrews, N. (2016). Sources and General Principles of English Contract Law. In Arbitration and Contract Law (pp. 165-175). Springer, Cham.

Baggott, R., Allsop, J., & Jones, K. (2014). Speaking for patients and carers: Health consumer groups and the policy process. Pan MacMillan.

Bently, L., & Sherman, B. (2014). Intellectual property law. Oxford University Press, USA.

Burman, R. (2014). Dismissal for operational requirements: the price of non-compliance: employment law. Without Prejudice14(4), 68-69.

Dau-Schmidt, K. G., Finkin, M., & Covington, R. (2016). Legal protection for the individual employee. West Academic.

Hayward, B. (2016). What’s in a Name: Software, Digital Products, and the Sale of Goods. Sydney L. Rev.38, 441.

Howells, G. G., & Wilhelmsson, T. (2017). EC consumer law. Taylor & Francis.

Howells, G., & Weatherill, S. (2017). Consumer protection law. Routledge.

Larsen, G., & Lawson, R. (2013). Consumer rights: an assessment of justice. Journal of business ethics112(3), 515-528.

Marten, B. (2017). The Contract and Commercial Law Act 2017.

Mason, K. (2015). Nostalgia and the ownership of historic transport: two cases from New Zealand. Art Antiquity & Law20(3), 261-271.

Nayak, R. K. (2015). Consumer protection law in India: an eco-legal treatise on consumer justice. Indian Law Institute, New Delhi.

Tombs, S. (2013). Corporate theft and fraud: business as usual: Steve Tombs discusses the latest chapter in a long history of financial services frauds. Criminal Justice Matters94(1), 14-15.

Twigg-Flesner, C. (2017). Consumer product guarantees. Routledge.

Walker, N. (2016). An Evaluation of the Likely Consequences of Prohibiting the Sale, Distribution and Possession of Tobacco in Britain. Manchester Rev. L. Crime & Ethics5, 94.

Whish, R., & Bailey, D. (2015). Competition law. Oxford University Press, USA.

  1. The purpose in this case for which the Sale of Goods Act, 1908 is applied that the it helps the parties both the seller as well as the buyer that they can apply to buy or to sell the goods under a proper medium .This has helped in the progression of trade thereby both the buyers and the seller can enter into the transaction under one platform (Hayward , 2016).

 

  1. In the following case the agreement has been drafted which has the following parts:
Answer I Answer II Answer III
In the above case it is referred to as the contract of sale since both the seller Lisa wants to sell the garden shed and also the buyer want to purchase the garden shed from Lisa thus they enter into a contract and they enter into an agreement (Andrews, 2016). The contract is entered wherein the parties can sign the agreement and enter into a sale that he will pay a price on the conditions that the goods are sold subject to the contract and if the purchase is based on the following terms that the buyer has agreed to purchase the garden shed.

 

As per Sale of Goods Act, 1908, in the following case Lisa gets the window fixed as per the terms on next Monday, but Lisa was unaware about it. Paul did not know about this before and he does not know that it has been done by the seller .In the case we can see that there was an agreement in between the two parties Paul and Lisa for selling of a garden shed which was agreed at a price of $225 and since it was concreted and the window was broken they thought that Lisa will repair the garden and make it saleable so that it can be sold to Paul (Walker, 2016). Paul has put a condition that  if the price is lowered and they remove the concretion then only it will be sold thus in this case, the window after repair on Monday was owned by Lisa and it was not sold by to Paul.

 

The contract was already prepared in this case but there was a unfortunate situation or a natural disaster which occurred and thus it led to the contract being void in that circumstance (Mason, 2015). In every contract there is clause of force majeure where the contract will be void if there if there is any situation which is unforeseen. There has been a strong wind which have blown away the garden  smashing the garden and this have broken the window and thus they Lisa will be bearing the loss made by the deal.

 

 

  1. In this case, as per section, 20 Rule 1, where there is a contract which states that there was a unconditional sale and the contract says that the specific goods was sold in a deliverable state, this enables that the property which is the goods which passes to the buyer at the time when the contract is made, the fact is immaterial in this case because the time of payment and delivery is not same and it is postponed (Act & Funding,2017). Thus it is seen in the following case that the fire is been caught suddenly and this has led to catching the fire in the side table and thus it was destroyed, this made a huge loss which was borne by Angus, who was the buyer of the goods.

 

  1. The above case study deal with the particular situation where Jo, the cook who has thought of purchasing the 100 liter Amphitrite Soybean Oil since he was following the advertisement which was required for cooking after reading an advertisement that the soybean oil would cost 75c/ liter. After the oil arrived, he saw that the oil which was received by him was not the same one and it was lubricating oil and cannot be used for cooking (Marten, 2017). He found that the advertisement which was given was not proper and it was by mistake purchased by him since the price was cheaper. This had lead to a notion that the purchase made by him is done by mistake and thus he cannot claim a refund on the purchase. Thus in this case the loss is borne by the chef Jo.

 

  1. This is a case where it deals with the Consumer Guarantees, Act. This is a particular case which applies to all the consumers so as to help the consumers to protect them which will help them to protect the consumers from the repair, replacement and refunds on goods and services which are faulty (Larsen & Lawson, 2013).
  2. In the following case Alex who was the sailor decided to set up a business where he can teach the people how to sail the yacht. Alex purchased the yacht which had cracks in the yacht hull. After that she calls the marine engineer so that repair can be done. This shows that the company can file a statutory claim against the company NML and Warren. In this case the company has applied to that the company has done wrong on him by selling a defective jackets and yacht (Twigg-Flesner, 2017). In the above case which is referred above relates to the sale of Yachts and life jackets which is covered under the Consumers Guarantees Act. The company while buying the product guarantees that there was a fault in the items and this provided that the goods should be immediately replaced or they will repair the product within the period the product is within the warranty time span. Thus this Act safeguards the policy and interest of the consumers and helps them to make a perfect deal.
  3. In the case the following are the points to be seen:
Answer A Answer B Answer C Answer D
This situation is where the Sarah gets to a shop to buy a paint which will help her to paint the wood rimu, but later she found that the paint used is wrong and not suited for rimu (Howells & Wilhelmsson,2017). The mistake was that Sarah on hearing the shopkeeper purchased the paint. As per the Consumers Act, it is seen that Sarah has blindly believed on Bob who is the seller of the hardware store, thus it is seen that Sarah is at fault.

 

The rights and the remedies which are available to the buyer Sarah is that she cannot paint the wood rimu since it was not the correct type of paint mage for the wood and this has initiated Sarah that to go to the shop and get the correct product of paint and this will help in painting (Baggott, Allsop & Jones, 2014) the wood immediately and the store has told that they will give her the paint at the right time. Sarah told the shop keeper that she wanted to replace the actual paints which were not made for the wood rimu and thus they need to change immediately for Sarah on an urgent basis. Thus she wait for the time until she get the correct product and this made her wait so that the hardware stores gets the paint from the store since she needs the paint on an urgent basis. In this situation, where Sarah had nothing to do since it was her fault and she made a mistake by ordering the wrong wood paint (Whish & Bailey, 2015). Thus she needs to wait till the shop outlets finds out the correct paints which could use in the wood rimu.

 

 

 

The Fair Trading Act, 1986, is a Fact which was initiated so as to help the people so that they are not cheated by the seller. This helps the customers to safeguard so that they are not cheated or misleaded by the traders or the seller. Initially the customers could not apply under any proper Act and therefore they got cheated by the traders or shopkeepers unfairly. After the Act has been amended it helps the customers so that they can safeguard themselves against the misleading and deceptive conduct, unsubstantiated claims, false representations and certain unfair practices (Nayak, 2015) .The Act helps to prevent the person so that no person shall be able to get involved in such a deceptive action which will enable or hall also misled or deceive the customers.

In the above case, for the purposes of subsection (1), a false trade description can lead the customer which is deemed to apply:

(a)The whole thing is that the description is annexed or affixed on the; or

(b)In the case, it applies to the covering, label, reel, or thing with which the goods are supplied  (Bently & Sherman, 2014).

In the case it is seen that there was a breach of contract under the Act and this has taken place for the company Ice Country Limited. This is a company which is renowned and it helps in the selling of a product which is made in New Zealand. This company had made a wrong advertisement that their product was made in New Zealand and produced there. Tessa has purchased the clothing from the company, thus she thought the clothing was made in New Zealand from 100% New Zealand Merino Wool (Howells & Weatherill, 2017). Tessa was of the view that the company was selling clothing made in New Zealand as it was given in the website when she accessed and there was Swing tags attached to the garments.

Tessa later on found that the company does no longer make clothing in New Zealand, but it was designed in New Zealand but made in China since the past five years and even currently, the clothing was designed in New Zealand and made in China, from 85% Australian Merino, and 15% Polyester

Bhavin gets a advertisement in the letterbox from an Auckland company called Specialist Laboratory Services Limited. In the advertisement it states that the company will be selling a slim fast tablet and as pr the instruction it will help the consumers to lose weight in a very small span of time three months. Bhavin was overweight so he ordered a huge amount of tablets from the company.The advertisement also stated that the tablets were manufactured in the United States of America .Later he found out that the tablets did not have any affect since he did not reduce any kilos even after six months. More over it was found that the tablets were manufactured in a backyard laboratory in South Auckland.

This has led the company contravening the Fair Trading Act, 1986. Every lay by sale agreement entered into by that supplier—

  • That the contract shall be in writing; and
  • It shall be expressed in plain language; and
  • It shall also be legible; and
  • It is also presented clearly; and
  • It complies with the requirements of subsection
  • A copy of the agreement shall be presented to the consumers at the time of purchase. As per section 9of the Fair Trading Amendment Act 2013, it is seen that the person engaged in trade has misled the people related to the nature, manufacturing process, characteristics, suitability for a purpose, or quantity of goods and services.

The potential problems that the advertisement caused which Keen used in the light of the provisions of the Fair Trading Act 1986:

It is seen that Keen was appointed as a new trainer and she advertised to the new clients In the case Keen who was a new trainer and thus he wanted to get new clients so he advertised himself in the local newspaper as a qualified personal trainer so that he can attract customers. He advertises to join him by writing Lose weight in weeks.

Keen has advertised in writing that a personalised fitness training was conducted which has enabled the customers so that the customers to lose at least a kilo in the first week. He was focusing on the fact that it will have the people to lead a healthier and happier life. This was done to mislead the customers and he said by saying that he has trained several famous athletes so that the customers may have the benefit of his skills and knowledge.

The customers found that he was guilty and spreading false information as advertisement in the paper since he was neither a trained athletes nor a famous one.This is the breach of the Act and the person shall be penalized for false representation and breach of action.

Answer 1 Answer 2
As per the case, it is seen that Hans Wagner who was the lecturer of Noname University; he had very less experience of a year teaching as a lecturer. He was appointed in the University. Alan being the head of the human resource had affected the performance of the college. The performance of Hans was low and was told to  resign (Burman, 2014)

 

Thompson Aluminium is characterized by high job specialization. There is very less communication between the departments. The workers have no control over the employees expectation to work double shifts where there is pressure to complete an order in time.

Grant and Peter followed the norms of the work and safety but one morning they were not able to handle the pressure and they unloaded the truck quickly. Grant stood on the forks of the forklift and Peter lifted him to the empty top levels of cantilever rack to store away the truck’s contents more quickly.

The employer shall keep and take care about the health of the employee as required by law .In this case the employers did not take any action and they did not take any action for not keeping the health and safety of the environment.

 

Answer 2

 

Answer 2

 

Alan has followed all the norms and the procedures so that they can be followed by Hans this have been followed since Hans as not able to do the best in his performance which was not accepted by the college In the case the company approached by Thomas Aluminum and there were hazards in the organization for health and safety prevailed in the organization. In this case the organization knew the hazards and thus Grant can do the same job and was at fault. (Dau-Schmidt et al .2016).

 

 

 

 

 

 

Act, J. J. C. P., & Funding, J. P. C. (2017). Administration of Justice.

Andrews, N. (2016). Sources and General Principles of English Contract Law. In Arbitration and Contract Law (pp. 165-175). Springer, Cham.

Baggott, R., Allsop, J., & Jones, K. (2014). Speaking for patients and carers: Health consumer groups and the policy process. Pan MacMillan.

Bently, L., & Sherman, B. (2014). Intellectual property law. Oxford University Press, USA.

Burman, R. (2014). Dismissal for operational requirements: the price of non-compliance: employment law. Without Prejudice14(4), 68-69.

Dau-Schmidt, K. G., Finkin, M., & Covington, R. (2016). Legal protection for the individual employee. West Academic.

Hayward, B. (2016). What’s in a Name: Software, Digital Products, and the Sale of Goods. Sydney L. Rev.38, 441.

Howells, G. G., & Wilhelmsson, T. (2017). EC consumer law. Taylor & Francis.

Howells, G., & Weatherill, S. (2017). Consumer protection law. Routledge.

Larsen, G., & Lawson, R. (2013). Consumer rights: an assessment of justice. Journal of business ethics112(3), 515-528.

Marten, B. (2017). The Contract and Commercial Law Act 2017.

Mason, K. (2015). Nostalgia and the ownership of historic transport: two cases from New Zealand. Art Antiquity & Law20(3), 261-271.

Nayak, R. K. (2015). Consumer protection law in India: an eco-legal treatise on consumer justice. Indian Law Institute, New Delhi.

Tombs, S. (2013). Corporate theft and fraud: business as usual: Steve Tombs discusses the latest chapter in a long history of financial services frauds. Criminal Justice Matters94(1), 14-15.

Twigg-Flesner, C. (2017). Consumer product guarantees. Routledge.

Walker, N. (2016). An Evaluation of the Likely Consequences of Prohibiting the Sale, Distribution and Possession of Tobacco in Britain. Manchester Rev. L. Crime & Ethics5, 94.

Whish, R., & Bailey, D. (2015). Competition law. Oxford University Press, USA.

Particulars 2015 2016 2017
Sales          276,000                       441,600    662,400
cost of goods sold          109,020                       158,424    211,968
Gross profit          166,980                       283,176    450,432
Selling expenses
advertisment            13,800      27,600      55,200
Sales Bonuses & Delivery              9,660            23,460      15,456                         43,056      23,184      78,384
Admin. Expenses
Insurance            11,040      11,040      11,040
Wages & Other          126,891          137,931    128,878                       139,918    129,927    140,967
Financial Expenses
Bad Debts              4,140      13,248      39,744
Interest              9,729            13,869      15,194                         28,442      22,149      61,893
Net Profit            (8,280)                         71,760    169,188
Particulars 2015 2016 2017
Current Assets
Cash – Bank              6,900                  –                  –
Accounts Receivable            27,600         66,240      132,480
Inventory              8,280            42,780         26,496       92,736         79,488    211,968
Non-current Assets
Land            82,800         82,800         82,800
Buildings          414,000      414,000      414,000
less Accum Depreciation          (16,560)          480,240      (24,840)    471,960      (33,120)    463,680
Total Assets          523,020    564,696    675,648
Current Liabilities
Bank Overdraft                     –         16,560         34,500
Accounts Payable            22,080            22,080         52,992       69,552      142,416    176,916
Non-current Liabilities
Mortgage            82,800         82,800         82,800
Bank Loan              6,900            89,700         34,500    117,300         75,900    158,700
Total Liabilities          111,780    186,852    335,616
Owner’s Equity
Capital, start          481,620      411,240      377,844
Net Profit            (8,280)         71,760      169,188
Drawings          (62,100)    (105,156)    (207,000)
Capital, end          411,240    377,844    340,032
Total OE and Liabilities          523,020    564,696    675,648
Particulars 2015 2016 2017 Industrial Average
Gross profit 60.50% 64.13% 68.00% 65.00%
Net profit -3.00% 16.25% 25.54% 20.68%
Return on equity -2.01% 18.99% 49.76% 38.98%
Current ratio                 1.94                 1.33           1.20 1.80
Liquidity ratio                 1.56                 0.95           0.75 1.05
Equity ratio 27.18% 49.45% 98.70% 58.30%
Inventory turnover times per year              14.36                 9.11           4.00                              6.08
Inventory turnover days              25.41              40.06         91.25 60
Accounts receivable turnover times per year                 5.56                 9.41           6.67 8.11
Accounts receivable turnove days              65.70              38.78         54.75 45

Related Assignment Samples

  • June 12, 2017 IT Virtualization Research:559296
  • October 11, 2017 Business Strategy(Techniques and Framework):615391
  • June 12, 2017 Dealing With Consumers:574342
  • December 26, 2017 .Produce labour and material schedules for ordering : 659895
  • April 3, 2017 Labour Legislation Law of 20th Century
  • November 28, 2017 Engineering and Technology Management : 658610
  • August 29, 2017 Perceived Risk Management:594059
  • July 17, 2017 Annotated Bibliography of Allyn and Bacon:590271
  • August 17, 2017 Business Model Development:574741
  • April 27, 2017 Unified Commercial Code
  • April 13, 2017 Bird & Bird – International Law Firm
  • June 12, 2017 Economic Principle:562140
  • May 22, 2017 Economic Principle:562140
  • March 21, 2017 Financial Statements and Analysis: Apple Inc
  • December 26, 2017 Matlab Program : 660540
  • December 22, 2017 Mechanics of Structure : 632589
  • March 24, 2017 Cost Management Process: 513239
  • June 7, 2017 Project Management:532280
  • December 26, 2017 Brexit and its Issues : 663879
  • February 13, 2018 Strategic Human Resource Management : 134437

Is this question part of your assignment?