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FNSTPB503 Apply Legal Principles In Contract and Consumer Law Assignment - Contract and Consumer Law Implications to Clients
Open Colleges, Australia
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Scenario 1 -
Nimrod is a director of a company which sells a wide range of electronics. Nimrod negotiated for the purchase of 1,000 GPS navigation devices which had just been recently released into the market. He made the purchase after reading a review of the GPS device in a trade magazine. Unfortunately, there were major problems with this new technology and all the GPS devices failed. As a consequence the company suffered major losses, and the board of directors is looking to Nimrod for compensation.
Anne is an executive purchasing officer with the same company. She has received secret payments from suppliers in exchange for agreeing to purchase their products. Anne does not believe that she has done anything wrong. The products she purchased on behalf of the company were of a good quality and competitively priced. And they have sold well. Anne is now anxious however, as a work colleague has reported her to the board of directors.
Advise Nimrod and Anne.
Answer to Scenario 1
According to the scenario, it has been identified that Nimrod the director mainly purchased 1000 navigation devices for the development of the company. The director generally saw a review of this device in the trade magazine before purchasing the devices. Later it has been identified that all the devices are failed. For that reason, the board of directors of this organization looking to the director for compensation because the company faced huge loss for these devices and company don't have other options. The purchasing officer also got permission from the higher authority and he also received the secret payments from the suppliers. The quality of the product is good and the price is also average. They have sold these products and reported to the board of directors. According to corporation act, it has been recorded that the board of director of an organization mainly responsible for setting the organizational goals and strategy. The director needs to consult with the board of directors before taking any decision for organizational development. Concepts relating to directors’ duties and corporate governance are also discussed in Company Law Assignment Help. But Nimrod did not consult with the board of directors before purchasing. All the business organization has a specific budget and the board of directors mainly approve the budgets so that managing director needs to inform the other director before taking this vital decision. That means it is a breach of duty so that the other members are looking for the compensation.
The director has the duties to maintain the financial performance of an organization. That means this is the case of negligence and the director also sold the products efficiently so that the director needs to apply for the assessment of damages and that only can reduce the level of compensation. The sale of this GPS device and received the secret payments from suppliers will reduce the compensation of these staffs and it will be the contributory negligence. Similar legal principles are covered in Introduction to Business Law Assignment Help.
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Scenario 2 -
Kea Stores publishes a catalogue in which it mistakenly prices a 24 piece silver cutlery set at $50 instead of $500. Seeing this exceptionally good price in the catalogue Blyth drives to the closest Kea store and asks for one of the dinner sets in the advertisement. The shop assistant explains that there was an error in the catalogue and that the price is in fact $500. Blyth demands that she be sold the cutlery set for $50 or she will sue the store.
Advise Kea Stores.
Answer to Scenario 2
According to the scenario it has been recognised that the Kea store publishes a catalogue with some wrong information such as this organization set the price of silver cutlery set as $50 instead of $500. Blyth came into the closest Kea Store to buy the product but the assistants said to her that there is a mistake in the catalogue but the customer demand the cutlery set for $50. According to the Australian consumer law if an organization provide the wrong price in the advertisement than the organization is legally obliged to sell the product in advertised price. Consumer protection obligations and related legal frameworks are discussed in Contract Law Assignment Help. For that reason, if Blyth forced the organization to buy the product for $50 then Kea Store needs to sell the silver cutlery set at the advertised price.
At the same time, if the organization declares that it is a mistake then it is not the case of false advertising. The assistant of this store declares that there is an error in the catalogue so that there is no contract between seller and buyer. According to Australian Competition and Consumer Commission, a business cannot publish the wrong information about quality, style and history of the products, sponsorship, performance, benefits, and availability and repair facilities of the products (Mondaq, 2019). The Kea store did not provide any offers but the price provided in the catalogue is a mistake so that it is not a legal issue or breach of contract. Apart from that, Bait advertisement is not misleading if the business is clear and run in a proficient manner. But the organization needs to make a correction in their catalogues and republish it to reduce the number of legal obligations.
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Scenario 3 -
Contracts are the basis of commercial transactions and underpin the viability of any business organisation. The business operations of Ethical Trading Group involve a wide range of contracts including the sale and distribution of a variety of products, through both retail outlets and wholesale sales.
Your task: Research and briefly outline the legal principles governing contracts, and in particular contracts for the sale of goods. Please make sure that you have dealt with the following points:
(i) The six elements required for the existence of a legally enforceable simple contract
(ii) The difference between a 'simple' contract and a contract under seal (i.e. a deed)
(iii) The Guarantees implied in contracts with consumers under the Australian Consumer Law and consumers' remedies for breach.
(iv) Whether it is permissible when selling its products to wholesalers for a seller to impose a minimum resale price.
Answer to Scenario 3
The major six elements of the contracts are Offer, Acceptance, Consideration, Mutuality of Obligation, Competency or Capacity and a written instrument. The offer mainly signifies the expression of readiness by one party on the terms provided by another party. The acceptance is the definite expression of approval by one party on the terms provided by another party. Both the parties must be competent to enter into a new contract. Additional guidance on enforceable agreements can be found in Contract Law Assignment Help.
According to the Australian Competition and Consumer Commission, it has been recognised that every business must guarantee the goods and services they sell under $40000 and over $40000 that are normally used in the households. A business can provide the customers with three types of guarantee such as repair, replacement or refund. These consumer rights are closely related to topics covered in Foundations of Company and Commercial Law Assignment Help.
Maintenance of resale price is vital for all the business organization and the seller cannot offer the product price below than the supplier price (Lawteacher, 2019). At the same time, the organization can offer some rebate on the products but needs to maintain the minimum resale price and that is higher than the supplier price rate. At the same time, it is also illegal if suppliers pressure the business to change its retail price.
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Scenario 4 -
The structure of a business organisation affects the ways in which the organisation enters into contracts. Ethical Trading Group is a proprietary limited company, a common form of business organisation in Australia.
Your task: Research and briefly outline the legal principles governing the ways in which companies enter into contracts. Please make sure that you have dealt with the following points:
(i) The contractual capacity of a company: s124 Corp Act.
(ii) How a company contracts directly: s127 Corp Act.
(iii) How a company contracts through an agent: s126 Corp Act.
(iv) The statutory assumptions: s128, 129 Corp Act.
Answer to Scenario 4
According to the corporation act s 124, it has been identified that if a company registered, it is also grated the legal capacity and powers to enter into contracts in its own name. The company can make a contract with the third parties directly. The organization also has the power to make both direct and indirect contracts with several parties. Corporate contracting powers and statutory assumptions are also examined in Company Law Assignment Help.
Based on section 127 of corporation act 2001, it has been recognised that an organization can make a contract if the document is signed by two directors or director and secretary of the organization. In case of a proprietary company the sole director or secretary needs to sign in the contract paper. This section does not limit the methods that an organization can execute the documents.
According to section 126, an organization has the power to make, ratify or discharge the contract may be exercised by the individual interim with the company's express or on behalf of the company (Anderson, 2018). The power of the agent may be exercised without using the common seal. This particular section generally does not affect the legal operations that are related to the contract.
The section 128 states that the organization is not entitled to declare in proceedings if any of the assumptions are incorrect before dealings. That means a person can make an assumption before dealings with an organization (Lawteacher, 2019). An individual also can make an assumption before dealing with another person. A person can make the assumption if the officer or agent acts fraudulently during dealings. At the same time, a person is not entitled to make the assumption if the individual suspects that the assumption was incorrect.
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Frequently Asked Questions
Q1. What is FNSTPB503 Apply Legal Principles in Contract and Consumer Law?
FNSTPB503 is a unit that focuses on contract law and consumer law principles. Students learn how legal rules apply to agreements, consumer transactions, business obligations, and dispute resolution processes in professional environments.
Q2. What topics are covered in FNSTPB503 assignments?
Assignments commonly include contract formation, contractual obligations, breach of contract, consumer protection legislation, misleading conduct, warranties, remedies, and legal compliance requirements relevant to business operations.
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Yes. Academic experts can assist with case study analysis, legal research, interpretation of legislation, and the application of contract and consumer law principles to assessment scenarios while following academic guidelines.
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