Lindy arrived at her favourite Melbourne market by car. It was hard to get parking but, as she would not be long, she decided to park the car in a parking spot that had a visible sign stating the following:
‘Private parking. Vehicles will be towed at owner’s expense.’
As she is browsing through the stalls of the market, Lindy decides to get a bubble tea which is her favourite. However, when tasting the drink, she does not like it and attempts to talk to the shopkeeper to get a refund. However, the shopkeeper refuses and says that she has received the tea she ordered and that there are no refunds.
Lindy is annoyed but her day quickly brightens up when she finds an old painting of the Yarra River by an unknown artist in a gorgeous golden frame, which Lindy plans to use to frame another artwork. Lindy pays Mac the stallholder $25 for the painting and the frame.
Lindy is quite chuffed with herself but when she gets to the spot where she parked her car, she finds that it has been towed. Lindy calls the towing company and speaks with Andrea. Lindy expresses her frustration and explains to Andrea that she had only parked there for 30 minutes and if it was not for the argument with the bubble tea shopkeeper, the car would not have been towed. Andrea advises Lindy that she will need to pay $420 dollars to get her car back.
When Lindy finally arrives home, she removes the painting from the frame and discovers that there is an early painting by the famous Australian artist, Arthur Streeton on the reverse side. This painting is valued at $750,000 and causes much excitement and publicity in the art world. Mac sees the news and wants to rescind the contract. What particularly enrages Mac, is that he had asked his friend Luc who is an art expert to examine it and Luc had assured him that it was a mere trinket of little value.
Critically discuss the rights and obligations of Mac and Lindy using Australian common law principles.
10 marks TOTAL = 10 marks
Mrs Patel and her son Ravi farm alpacas in a remote region of Victoria at Peru Farm. The herd of alpacas were purchased for a price of $8000 per animal. The fencing has become dilapidated in some parts and the alpacas tended to escape from time to time.
Mrs Patel entered into a valid contract with Fine Fences Pty Ltd (‘FF’) about constructing a fence.
The terms of the contract included the following:
After Mrs Patel had signed the contract, she expressed concern that the fence may not be strong enough to prevent the alpacas from escaping. FF assured her that their fences were ‘animal proof.’
Advise FF if Mrs Patel is required to pay FF for the fencing, and if so, how much. Refer to relevant cases and principles of contract law in your answer.
Advise Mrs Patel whether the delay would entitle Hans to set aside the contract. Refer to principles of contract law in your answer (and assume that Australian law applies).
individual particles of a dimension below 3 mm. When the grain was delivered, some grain particles were greater than 3 mm. Ravi was unaware that the alpacas could not eat larger grains and laid out the grain in the alpaca paddock. Many alpacas ate the oversized grains and, tragically, three alpacas died. Daisy, the champion female alpaca of Peru Farm, became ill and was unable to take part in the Coolibah Agricultural Show. Daisy has won many prizes in the past and Mrs Patel had high hopes of Daisy winning the $20,000 prize for Best Breeding Alpaca at the Coolibah Show.
Advise Mrs Patel of any actions she may have against JF by referring to principles of contract law.
Ravi has always been unlucky in love, and he had come to believe that he would be single forever. Happily for Ravi, love finally came his way and he is now engaged to Lucy. Unfortunately, Mrs Patel has taken a violent dislike to Lucy and told Ravi ‘It’s me or her.’ Ravi chose Lucy and Mrs Patel has ordered him off Peru Farm, saying ‘you will get nothing from me, Peru Farm will never be yours.’
Advise Ravi of any legal interest he may have to the ownership of Peru Farm. Refer only to relevant cases and principles of general law.
5 marks TOTAL = 20 marks
The food manufacturer, Unicorn, sells a chewy stick product called “Snax” aimed at young children. The product’s box is labelled ‘Fruit and Veg Snax’ and has pictures of fresh apples, berries, corn, pumpkin, and an apple tree. Among the text on the front of the box were the words ‘100% fruit and veg’, ‘No preservatives, artificial colours or flavours’ and ‘Nutritious food for your toddler’. The back of the box included an ingredient list in small print that revealed that Snax contained 90% concentrated apple and pear paste, 5% strawberry puree and 5% corn and pumpkin puree, resulting in an overall sugar content of 85%.
The Parents Obesity Group (‘POG’) is concerned about Unicorn’s claims about the nutrition value of Snax and have sent an email to Unicorn to ask them to comment on the content in the chewy stick product.
Unicorn provided the following statement in a reply email:
It has always been the intent of Unicorn to provide healthy snacks for young children. It is further expected that parents do their own due diligence when purchasing food for their children and that children do not consume more than the recommended daily intake.
Advise POG which, if any, actions may be taken against Unicorn. Refer to relevant legislative provisions and case law in your answer.
7.5 marks Total = 7.5 marks
What business organisation are the brothers operating under? Explain your reasons.
Two days later, GW puts in their tender of a similar wine at $48 per case and won the tender. The board of FW became suspicious and investigated Rupert and Boris whereupon their activities came to light.
Advise FW of any actions they can take against Boris and Rupert.