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Business and corporation law

1. Use the IRAC method to answer this question.
A good answer will
(a) Identify the issue/s in the question by discussing them in order of importance
(b) Be structured in a clear and logical manner that it is easy to read and understand.
(c) Cite relevant authority to support your arguments
(d) Present good arguments that demonstrate clear understanding of the legal principles raised in the questions

Bismark, a merchant ship collided with a lobster fishing trawler owned by Larry
Sponge Pty Ltd that had been fishing near Abholros Island off the coast of Western
Australia where the best lobsters are caught. There is usually a member of the crew on
lookout duty on the Bismark. At the time of collision the FIFA World Cup finals was on
and the captain had made special arrangements for the game to be watched via satellite,
so he allowed the sailor on lookout duty to join the rest of the crew to watch the game.
Nobody was on lookout duty at the time of collision.
There was much damage to Larry Sponge’s trawler and all the lobster catch was lost.
Larry Sponge is the sole supplier of lobsters to Dependable Goumand Pty Ltd who
supplies lobsters to all the major restaurants in Australia and Japan.
(a) Will Larry Sponge Pty Ltd be successful in suing Bismark’s owners in
negligence? (15 marks)
(b) Dependable Gourmand wants to know if it can sue Bismark’s owners as they
are now unable to supply their restaurants with Larry Sponges’s lobsters and
have incurred significant financial loss.
Does Dependable have an action against Bismark’s owner?
What will be your advice if the sole supply arrangement between Larry
Sponge and Dependable was made known to Bismark’s owners? (5 marks)

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