200432 Commercial Law Assessment Two

Commercial Law (PG) Unit Code 200432 Q3 2020 – Assessment Two
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200432 Commercial Law
Quarter 3 2020
Assessment 2: Problem question (essay) (1500 words) (25 marks)
This document consists of 6 pages including this page.
The answers are to be completed by an individual student. This assessment task has a
maximum of 1500 words. Students who do not submit their own work, appropriately
referenced, may be subject to student misconduct proceedings. Further information about
referencing including resources are set out below.
All students are required to learn how to use Turnitin well in advance of the due date for
submission. Difficulty using Turnitin at the last minute will not be accepted as an excuse for
missing the deadline (except in the event of a verifiable problem with our systems at the
relevant time).
Students MUST KEEP A HARD COPY of the answer submitted to Turnitin.
11 pm Friday 21 August 2020.
Your answer(s), with feedback, can be viewed on vUWS once they are released. Students will
be notified via vUWS when this occurs.
The following will be assessed in your answer:
Learning Outcomes 2 and 3:
2. Identify and demonstrate understanding of key legal concepts.
Commercial Law (PG) Unit Code 200432 Q3 2020 – Assessment Two
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3. Apply knowledge and understanding of common law and statutory tortious, contractual
concepts in order to analyse and solve practical problems.
Presentation & style:
• Organises a clear and coherent answer
• Write clearly, accurately and grammatically
• Punctuates appropriately.
Content and knowledge:
• Identifies and explains the relevant area of common law and statutory legal systems
• Integrates relevant cases and legislation to support their answer to the legal problem
• Applies the legal principles and legislation to the facts of the legal problem
• Concludes the answer to the legal problems, including any defences, remedies or
Submission requirements:
Word length A word limit of 1500 words has been set, which excludes references. The
word limit will be strictly enforced. There will be a 1-mark penalty for every
100 words in excess of the word limit, or part thereof. For example, an
essay that is 1851 words long will be deducted 4 marks. Please
remember that this essay has been structured so that a well-considered
and scholarly written essay may be achieved within the prescribed word
Format There are strict formatting requirements with which students are required
to comply. The unit coordinator reserves the right to refuse to mark
essays that are not submitted in accordance with formatting
 Do not manipulate the margins of the page.
 Use Arial 12-point font.
 Essays must be one and a half spaced or double spaced.
 Ensure your full name and student number appears on the
footer of each page.
 Number all pages consecutively.
 Provide a reference list or bibliography.
 Answer format: Students should use the IRAC/ILAC method of
answering the question, ie, Issue, Rule/Law, Application and
 NOTE: You must use decided cases and/or statutes to support
your answers.
Referencing Referencing must be in accordance with the Harvard WesternSydU
style. See:
Students are required to keep a hard copy and electronic copy of all
written work, which is submitted. The essay must be submitted
electronically via the Commercial Law (PG) Essay Turnitin link on the
vUWS site for this unit. Please read the Turnitin Instruction Manual prior
to submission. Students may not hand in hard copies. No other method
of essay submission will be accepted. Further information in regard to the
Commercial Law (PG) Unit Code 200432 Q3 2020 – Assessment Two
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submission of the essay will be posted in the assessment folder of the
vUWS page.
NO Essay cover sheet
Please do NOT affix an Essay Cover Sheet to your essay. By uploading a
submission into Turnitin students certify that: (1) they hold a copy of the
essay, if the original is lost or damaged; (2) no part of this essay or product
has been copied from any other student’s work or from any other source,
except where due acknowledgement is made in the essay; (3) no part of the
essay/product has been written/produced for the student by any other
person, except where collaboration has been authorised by the unit lecturer
concerned; and (4) they are aware that this work may be reproduced and
submitted to plagiarism detection software programs for the purpose of
detecting possible plagiarism ,which may retain a copy on its database for
future plagiarism checking.
Late essays must be submitted to the Late Commercial Law (PG) Essay
Turnitin link on the vUWS site for this unit. No other method of late essay
submission will be accepted.
A student, who submits a late assessment without approval for an
extension, will be penalised by 10% per day up to 10 days, i.e. marks
equal to 10% of the essay’s weight will be deducted as a ‘flat rate’ from
the mark awarded. For example, as the essay has a possible highest
mark of 25, the student’s awarded mark will have 2.5 marks deducted for
each late day. Saturday and Sunday are counted as two days.
Assessments will not be accepted after the marked assessment task has
been returned to students, who submitted the task on time.
Extension of
due date for
The essay is to be submitted via Turnitin by the due date and appointed
time. Extensions will only be granted in the event of serious illness or
serious misadventure (proved to the satisfaction of the unit coordinator)
that prevents you from completing the assessment by the due date.
If students need to apply for a short extension of time to complete an
assessment item, they should complete the ‘Request for Extension’ form
available from the vUWS website at Student Forms. This form needs to
be submitted three days before the due date of the essay. An
application for an extension does not automatically mean that an
extension will be approved. Please notify your unit coordinator via email that you have applied, as notification of e-forms can take up to 48 hours.
Where special consideration is sought for circumstances involving more
than three consecutive days or more than five days within a teaching
period, students should complete a ‘Special Consideration During
Teaching Session’ application available through eForms via MyUWS.
Marking criteria and standards:
Fail (0-49%) The student’s performance fails to satisfy the learning requirements
specified. For example, poor knowledge or application of the law, irrelevant
discussion, poor standard of presentation and inaccurate referencing.
Pass (50-
The student’s performance satisfies all of the basic learning requirements
specified and provides a sound basis for proceeding to higher-level studies
in the subject area. The student’s performance could be described as
Credit (65-
The student’s performance, in addition to satisfying all of the basic learning
requirements specified, demonstrates insight and ability in analysing and
applying relevant skills and concepts. The student’s performance could be
described as better than competent.
Commercial Law (PG) Unit Code 200432 Q3 2020 – Assessment Two
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The student’s performance, in addition to satisfying all of the basic learning
requirements, demonstrates distinctive insight and ability in analysing and
applying relevant skills and concepts, and shows a well-developed ability
to synthesise, integrate and evaluate knowledge. The student’s
performance could be described as distinguished.
The student’s performance, in addition to satisfying all of the basic learning
requirements, demonstrates distinctive insight and ability in analysing and
applying relevant skills and concepts, and shows exceptional ability to
synthesise, integrate and evaluate the law. The student’s performance
could be described as outstanding.
QUESTION 1 15 Marks
Mojo Animals Pty Ltd owns and operates a small travelling show which it takes on
tour throughout regional Australia. It employed Pablo Ramirez as an animal trainer.
He has been working with the show for the past five years. As part of his
employment agreement with Mojo, he provides and maintains the animals and
equipment he uses in his act.
In August last year the travelling show manager, Elita Milano, insisted that Pablo
make his act more exciting. She also directed that Pablo should use her 19-year-old
nephew, Jeremy, in his act to help make it more exciting. She said that Jeremy was
a born acrobat and was very passionate about animals. She also added that
although Mojo was not prepared to employ any new person for the show, the
experience would be very helpful for Jeremy to find a job he would love in the future.
Part of Pablo’s act involved the use of elephants who paraded around the ring while
chimpanzees balanced on their backs doing various tricks. To make the act more
exciting Pablo decided that Jeremy should do handstands and other acrobatic
manoeuvres on the back of the lead elephant. The changes to the act were very
successful and Jeremy became more and more daring in his acrobatics. However,
during one of the performances Jeremy fell from the back of the elephant. He
suffered serious knee injuries and had several fractured ribs. Jeremy would not have
fallen if Pablo had provided him with a safety harness. He was unconscious when he
was rushed by ambulance to the Sunnydale Hospital. Jeremy’s mother, Lauren, who
was in the audience during Jeremy’s performance, suffered a profound shock and
developed a recognised psychiatric illness.
After admission to the hospital, Jeremy underwent a major surgery of knee
replacement. During this surgery the surgeon caused significant damage to his
nerves and incorrectly inserted the prosthesis which rendered him unable to walk.
Jeremy and Lauren have approached you for advice as to who they can sue in these
circumstances and the likelihood of success if they sue in the tort of negligence.
Advise the parties.

Commercial Law (PG) Unit Code 200432 Q3 2020 – Assessment Two
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QUESTION 2 10 Marks
John and Natalie are a married couple, who wished to purchase a country motel
business. They had no previous experience in motels or in running a business of any
kind. They attended a seminar at which experts from the motel industry and
professional people spoke of its brighter aspects but also warned of the importance
of occupancy rate to financial viability. John had worked for many years in the
accounts payables department of a large company. Although not a qualified
accountant his duties provided him with bookkeeping experience, some
understanding of figure work and costing. Natalie previously worked as a receptionist
for some nine or more years. They had available $40,000 together with the proceeds
of sale of their family home.
After an initial contact over some other proposition which did not come to anything,
Mrs Wentworth offered John and Natalie, on behalf of a Mr Holgate (the seller) the
business at Burradoone for $100,000 of which only $15,000 was for goodwill.
Early in their encounter Mrs Wentworth told John and Natalie that she had owned
motels herself and had a lot of experience in the motel business and that she would
find them a motel. She told them that she had sold a lot of motels, had not sold a bad
one, and could help them by recommending a finance broker. John told her that he
would also be “relying on an accountant’s opinion”.
The motel at Burradoone comprised 15 units which were newly built by the seller,
together with a shop. The seller had operated the business for a mere 12 weeks.
The reason for the sale was that Mr Holgate was recently diagnosed with cancer and
was severely affected by his illness.
Mr Holgate owned the land and had built the shop and motel encouraged by the
demand expressed to him by tourists. However, at the time of the sale of the
business it was operating unprofitably. All the figures were disclosed to John and
John and Natalie were told and knew that the business had to be built up to be a
In the promotional material disseminated by John and Natalie after taking
possession, Burradoone was described as “offering activities such as bowls, tennis,
golf, a winery and day trips to historic and quaint places. Burradoone is a quiet little
rural town nestled on the arm of Lake Edon amidst some of New South Wales’ most
beautiful countryside. Lake Edon offers a sporting paradise of fishing, skiing, sailing
and swimming. The beautiful countryside provides scenic drives, horse riding and
bush walking.”
The area had all these attractions or at least might be thought to have had them. The
trouble was that at the time the business was purchased there was very little water in
Lake Edon.
Commercial Law (PG) Unit Code 200432 Q3 2020 – Assessment Two
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Before signing the contract Mrs Wentworth told John and Natalie that buying the
business was a once in a lifetime opportunity, that Mr Holgate would not be selling it
save for his ill health, that the business had year-round trade because December to
February was a holiday season, April was Easter time, then there were school
holidays. She told them the business had great potential, that if she was not
otherwise currently engaged she would consider buying it herself, that it was a
bargain basement price and that once you get going it will be a gold mine.
Unfortunately within six months John and Natalie cannot afford to pay the outgoings
let alone make some money to live on.
Advise John and Natalie fully of their chances of pursuing negligence claims only
against Mrs Wentworth.

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