Business Law case question(Australian Law. prefer AU WRITER!)
Order Description
ONE REFERENCE for each question. DONT write over the WORD LIM for EACH question.
Question 1
In May 2013 the Queensland Government passed the Commercial Leases Act 2013 (Qld) [fictional] to regulate commercial leases within Queensland. Section 4 of the Act provides that a retail shop is only permitted to open on Sundays, or a declared public holiday in Queensland, between the hours of 10.00am and 4.30pm. Section 5 of the Act provides that when opening on Sundays, a retail shop must only use staff that have volunteered to work on that day.
Roderick is the owner and operator of two duty free shops: one located in Brisbane City and the other located at Brisbane Airport on Commonwealth land. Roderick’s lease for Brisbane Airport requires the duty free shop to trade on a continuous 24 hour basis to cater for the arrival and departure of international travellers. The Brisbane City shop opens for trade on Sundays between 9.30am and 3.00pm.
The Brisbane Airport lease is made under the Commonwealth Airports Administration Act 2008 (Cth) [fictional] which operates in relation to all Commonwealth owned airports. Under Section 13 of the Act, the Federal Aviation Corporation may enter into a retail lease in respect of any airport terminal owned by the Commonwealth; and may do so on such terms as the Corporation may determine for the benefit of the travelling public.
Required
(a) What is the effect of section 109 of the Commonwealth of Australia Constitution Act (“The Constitution”); and how does section 109 operate in relation to an Act passed by the Queensland Parliament? ( 3 Marks)
(up to but not exceeding 250 words)
(b) What power/s does the Commonwealth Parliament have under The Constitution to enact the Commonwealth Airports Administration Act 2008(Cth)? As part of your answer, explain where constitutional disputes might be heard. (3 Marks)
(up to but not exceeding 250 words)
(c) Does the Commercial Leases Act 2013 (Qld) impact upon the trading operations of either of Roderick’s two duty free shops? (6 Marks)
(up to but not exceeding 350 words)
(Sub-total 12 marks)
Question 2
Sydney Harbour Rescue Pty Ltd (Sydney), a privately owned company, provides sea patrol and rescue services to the NSW Government under a highly profitable ten year contract.
In January 2014, Sydney contracted with Brisbane Marine, a Queensland-based boat manufacturer, to build and supply a newly designed high speed wave-piercing catamaran. The contract price was $650,000. The contract specified that the new catamaran must be able to operate at a continuous speed of at least 50 knots full of fuel, with a crew of five; and have an operational range of at least 250 nautical miles. The contract also specified that the catamaran was required to be finished and delivered to Sydney by 30 June 2014; otherwise Brisbane Marine would pay liquidated damages of $80,000 per day up to the date of delivery.
Four months into to the contract Brisbane Marine informed Sydney that it would not be able to complete the project on time without payment of an additional $85,000. Brisbane Marine indicated they would use the money to engage additional contractors to work on the catamaran. In a brief face-to-face meeting, Sydney initially informed representatives of Brisbane Marine that it had a binding contract and would claim liquidated damages if the catamaran was not delivered on the specified date.
Three days after that meeting with Sydney representatives, Brisbane Marine informed Sydney in writing that no further work on the catamaran will be undertaken until the $85,000 is paid. Reluctantly, Sydney pays the additional money, to ensure delivery of the catamaran by 30 June 2014 and to meet its contractual obligations with the NSW Government.
After delivery of the catamaran, Sydney found that it proved quite unsuitable for harbour patrol and rescue use. The new catamaran was very unstable in bad weather: it was slow and couldn’t exceed 30 knots, fuel consumption was excessive, and the engine broke down several times requiring expensive repairs of $30,000. After just five months use, Sydney had little option but to withdraw it from service. The catamaran was sold for just $200,000.
To avoid the risk of breaching its demanding harbour patrol and rescue contract, Sydney then bought a larger, more capable $1.3 million patrol boat from TasKat, a Tasmanian boat manufacturer.
Required:
(a) Is the liquidated damages clause in the contract with Brisbane Marine valid? (3 Marks)
(up to but not exceeding 250 words)
(b) Could Sydney claim economic duress in relation to the additional payment? If not, would the additional payment be recoverable for lack of consideration? (4 Marks)
(up to but not exceeding 300 words)
(c) Sydney seeks your advice as to whether it can sue Brisbane Marine for damages under Australian common law contract rules. (5 Marks)
(up to but not exceeding 350 words)
(Sub-total 12 marks)
Question 3
Common law misrepresentation overlaps with the statutory misleading conduct provisions.
(a) Explain how section 18 of The Australian Consumer Law differs from an actionable claim for misrepresentation under general common law.
(up to but not exceeding 250 words)
(3 Marks)
(b) Explain how remedies under The Australian Consumer Law for a breach of section 18 differ from the remedies available for misrepresentation under general common law.
(up to but not exceeding 250 words)
(3 Marks)
(Sub-total 6 marks)
Question 4
ABC Limited (“the Company”) is a small goods manufacturer in Brisbane. The company wants to appoint an agent to source international buyers specifically in the Asian market for the purchase of its small goods. The agent will have authority to enter into contracts up to $5 million on behalf of the Company.
(a) What general advice would you give to the Company regarding the agency appointment? Include in your answer advice regarding the duties and rights of the incoming agent. (3 marks)
(up to but not exceeding 250 words)
(b) Outline the significance of any restrictions of the agency appointment. Include in your answer any remedies available to the Company if the agent exceeds the restrictions. (3 Marks)
(up to but not exceeding 250 words)
(cont.)
In January 2014, ABC Limited appointed Xerxes under a two year express agency agreement, to the advertised position of sole agent for the Asia region.
In April 2014, Xerxes obtained, on her own initiative, a highly profitable twelve month contract for an Icelandic company, Chilled Invested Limited to purchase a variety of small goods from ABC Limited. The contract was to commence 1st June 2014. The contract sum was $5 million.
In September 2014 ABC Limited had second thoughts about continuing to sell the goods to Chilled Invested Limited.
(c) Is ABC Limited able to withdraw from the agreement? Is there a valid purchase contract in place? (4 Marks)
(up to but not exceeding 300 words)
(Sub-total 10 marks)
TOTAL 40 Marks
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