Description

OBJECTIVE:

ASSIGNMENT (40%) BUSINESS LAW

 Upon completion of this assignment, students are expected to:

1. Understand the basic elements of the law of tort and its classification

2. Identify the basic elements contract and remedies available and apply the basic

elements of contract as well other laws in other business transactions.

Assignment Format:

a. Use double space and 12-point of Times New Roman font.

b. This assignment should contain 4 – 5 pages.

c. Provide references. References should use the American Psychological Association

(APA) format

Question 1

 Mary painted the office at her home with a new plant-based “environmentally friendly” paint that her sister bought for her. The instructions on the paint tin label included a warning to wait at least 24 hours before moving back into the room. Mary was under pressure to complete an important research project, for a client, Lemon Marketing Ltd., and moved back into the room to begin working on her computer after 15 hours only. Within a short time she experienced breathing problems and collapsed across her computer, wiping out the entire research file, for which she had no back up. 

She spent five days in hospital, and a further two weeks off work. The doctors discovered that Mary is one of those very rare people who are allergic to fumes from the plant used to reproduce the paint. Mary was unable to complete the research project and lost the contract worth $4,000 with Lemon Marketing Ltd. Explain what tort action that Mary can base on to claim damages and she should take legal action against whom. Discuss fully.

Question 2:

Belinda, a 19 year-old student, decides that she wants to buy a car. She visits “Lora’s Tough Cars” and spots a second hand car of the make and model she likes. 
Belinda discusses buying the car with Lora and stipulates that the car must have done only 50,000 kilometers (the odometer shows the car has done 47,000 kilometers). They agree that Belinda can pay half the price in cash and that credit arrangements will be provided for the balance. Lora prepares a written agreement and Belinda signs it even though certain details regarding the engine number have yet to be filled in. Lora keeps it so that these details can be added later. Arrangements are made for Belinda to attend the next Wednesday to pay the cash portion of the purchase price and pick up the car.

After Belinda leaves, Lora starts to worry about Belinda buying on credit (she thinks Belinda might not be able to make the regular payments) and she inserts into the contract a provision stating that Belinda’s parents have to act as guarantors for the amount provided by credit. She rings Belinda but she is not at home and Lora speaks to Belinda’s elder sister. Lora explains the amendment she has made to the agreement and Belinda’s sister says that Belinda will probably not mind because she has said how much she likes the car. Belinda’s sister forgets to tell her about the telephone conversation. In addition, while Lora is preparing the car for delivery she discovers that the odometer has been wound back by a previous owner and the 47,000 kilometers reading considerably understates the actual distance the car has travelled. She inserts another clause into the contract stating that the odometer reading is incorrect and that the true reading is considerably more. She does not tell Belinda about this amendment.

Three days before the Wednesday, Belinda decides that she cannot afford the car and wants to get out of the arrangement to buy it. Can Belinda get out of her agreement with Lora? Discuss fully.