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BU1112 / 1812 / 2111 Business Law

Formal Exams CBLG TRI 3, 2021

Examination

College of Business, Law & Governance

QUESTION 1:

(ANSWER BOTH PARTS OF THIS QUESTION)

(a) Jamie’s print business over the past few years has become very successful. As a result of this growth in his business Jamie has been able to employ an apprentice printmaker, Ned. While working on an order for programs for a local theatre company Ned injures his hand in the industrial printer.

Jamie knows that Ned has been careless in putting his hand into the industrial printer when it was in operation.  Ned has also lied to him about his previous experience and competence in the operation of the industrial printer.  He had stated in his job application and in his interview that he had previously worked with industrial printers similar to the one at Jamie’s print business.  In fact, this is not true.

Advise Ned as to whether he can sue Jamie in the Tort of Negligence.   In answering the question explain:

(i)       What a ‘tort’ is;

(ii)      What ‘negligence’ is;

(iii)      What the elements of negligence are and how each of them operates within the law; and

(iv)      How the courts would apply each of those elements to the facts above to determine whether the Jamie is liable to Ned. (10 Marks)

(b) What are the defences available to a claim of negligence and would Jamie be able to rely on any of these possible defences in the example in (a) above. Give reasons for your answer. (5 Marks) [Total for question: 15 Marks]

QUESTION 2:

(ANSWER BOTH PARTS OF THIS QUESTION)

Kim is in the process of selling her handbag business and the freehold building that she operates from in the city. The person buying the business and the building intends to continue with operating the handbag business. The shop is very well- decorated and it contains many items that are personal to Kim. She wants to know if she can take the following items with her before she hands over the keys to the shop:

A special counter at the back of the shop which is made of rosewood with pearl inlaid designs. The counter is fixed to the floor by four large bolts. If the counter is removed it will leave four holes in the floor;

A painting of her mother designing handbags that was painted by a famous artist and is worth $50,000. The painting is attached to the wall by a picture- hook;

A statue of a half dragon and half lion made from solid silver that has been secured by a large screw to a special stand that is attached to the floor by even larger screws so that it cannot be stolen. The statue is valued at $150,000;

Special silk curtains that were made specially for the front windows of the shop so that handbags can be displayed in the best light possible;

A machine that repairs the leather in handbags that have been damaged.

The machine is very heavy and is bolted to the concrete floor by 4 very large bolts.

(a)  Explain the difference between a fixture and a chattel and the tests employed

to determine whether an item is a chattel or a fixture. (7.5 Marks)

(b)  Using those tests, which you have identified in (a), explain whether each of the

items listed above would be a fixture or a chattel. (7.5 Marks) [Total for question: 15 marks]

QUESTION 4:

(ANSWER BOTH PARTS OF THIS QUESTION)

(a)  Bev is a cooking expert who loves to buy the latest appliances. She has heard

about a new appliance on the market which cuts up vegetables into the shapes and sizes required.   Bev goes to Best  Kitchens to  buy this new appliance. Bev is served by Kaz the sales assistant.  Bev is a bit sceptical about the vegetable cutting appliance but Kaz tells her that ‘it is the best appliance she will ever buy’ . Desperate for the sale Kaz also tells her that ‘it has a 30-day money back guarantee’ knowing in fact it only has a 7-day money back guarantee.  Bev then buys the appliance. When Bev tries cutting vegetables at home with her new appliance, she finds that it is useless and does not cut the vegetables consistently. A fortnight later Bev goes back to Best Kitchens and sees Kaz. Kaz tells Bev that it is too late to get her money back. Bev is not happy with her new appliance and seeks your advice.

Advise Bev of her options in contract law. (10 Marks)

(b)  Describe the important legal areas that need to be considered when starting a

business. (5 Marks) [Total for question: 15 Marks]