Introduction to Legal Problem Solving -

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Presentation transcript:

Introduction to Legal Problem Solving - Part 5 – Case Study Introduction to Legal Problem Solving - Topic 5 Glenn Dennett

Case Study – The parties Mavis Stewart - Our client Kylie Berg – Mavis’ daughter Chrissie Saranrap - Mavis’ client Discount Lino Barn - The flooring retailer Whitegoods World - The fridge retailer Cake Cookers - The oven retailer

Legal Problem Methodology Possible Legal Claims (Causes of Action) What disputes are there and Who are the parties? What is the loss? Use IRAC Structure for each Legal Claim (Cause of Action) What are the legal issues What are the rules of law How is the law applied What is my conclusion

Parties Chrissie v Mavis ???? Whitegoods World v Mavis $5,500 Discount Lino Barn v Mavis $45,000 Cake Cookers v Mavis $8,000

Chrissie v Mavis Issue Rules (the Law) Is there an enforceable contract between Chrissie and Mavis? Rules (the Law) Offer Advertisements are generally not considered to be offers but, instead, invitations to treat – Boots case Advertisements will only be considered offers if there is a clear intention to be bound – Carlill v Carbolic Smoke Ball Company Responding to the terms of ‘price list, in clear terms, is generally considered to be an offer – Harvey v Facey Acceptance Silence is not capable of constituting an acceptance of an offer – Felthouse v Bindley

Chrissie v Mavis Application (Law to the Facts) Conclusion Mavis had no intention to be bound by her advertisement – nothing like a bond was lodged – so no offer Mavis only sent her price list to Chrissie – so it was up to Chrissie to respond to make the offer As Mavis never received Chrissie’s message and Mavis never responded, Chrissie can’t claim that her offer was accepted. Conclusion There is no valid Contract between Chrissie and Mavis So there is no claim against Mavis under the law of contract

Whitegoods v Mavis Issues Rules (the Law) Is there an breach of contract between Whitegoods World and Mavis? Was the time of delivery date a Condition of the contact? Rules (the Law) Term or Mere Representation A statement will be in term of a contract if it was reasonably intended by the parties - Hospital Products Ltd v United States Surgical Corp Factors that would indicate a statement be a term of a contract would include the importance of the statement or any special knowledge of one party to the statement - Ellul & Ellul v Oakes

Whitegoods v Mavis Rules (the Law) Application (Law to the Facts) Condition or Warranty Whether a term in a contract is a condition or a warranty will depend on whether the promisee would not have entered into the contract unless he had been assured of a strict, or a substantial, performance of the promise, and that this ought to have been apparent to the promisor Tramways Advertising v Luna Park Application (Law to the Facts) Mavis made it absolutely clear to the shop attendant at the time of purchase that she needed the fridge delivered on the agreed day. In those circumstances, the delivery date became sufficiently important to make it at least a term of the contact.

Whitegoods v Mavis Application (Law to the Facts) Conclusion And, based on what Mavis has said, it ought to have been apparent to the shop attendant that Mavis would not have entered into the contract if the fridge couldn’t be delivered on that day – making the delivery date an essential term or a Condition of the contract. Conclusion Given the delivery date was both a term and a condition of the contract and that term was not satisfied by Whitegoods, Mavis was entitled to terminate the contract she had with Whitegoods and not accept the fridge when it turned up 1 month later If Whitegoods sued for $5,500 they would not succeed as they were in breach of the contract – not Mavis.

Discount Lino v Mavis Issue Rules (the Law) Can Mavis rely on one of the consumer guarantees under the ACL? Rules (the Law) Section 54 – Acceptable Quality Section 55 – Fitness for any Disclosed Purpose Section 56 – Supply of Goods by Description

Elements of Section 54(1) ACL Person – s2C Acts Interpretation Act – person includes a corporation Supply – s2 Australian Consumer Law – supply in relation to goods means supply by way of sale, exchange, lease, hire or hire-purchase Trade or Commerce – s2 Australian Consumer Law – means trade or commerce within Australia and includes any business. Goods – s2 Australian Consumer Law – is an inclusive definition that would include a fridge, oven, flooring Consumer – s3(1) Australian Consumer Law – a person is taken to have acquired goods as a consumer if the amount does not exceed $40,000 or the goods were of a kind ordinarily acquired for personal, domestic or household use.

Discount Lino v Mavis Application Person – Discount Lino  Supply -  Trade and Commerce -  Goods -  Consumer – Was Mavis a consumer in this transaction ? Transaction was greater than $40,000  Good of a kind ordinarily acquired for domestic, personal or household use  Carpet Call v Chan

Elements of Section 54(2) ACL Rule – s54(2) Australian Consumer Law – Acceptable quality means Fit for the purposes for which goods of that kind are commonly supplied …. Rassell v Garden City Vinyl and Carpet Centre Pty Ltd Carpet Call v Chan Acceptable in appearance and finish Free from Defects Safe Durable As a reasonable consumer fully acquainted with the state and condition of the goods .. would regard as acceptable – having regard to – s54(3) …. the nature of the goods, the price, statements made about the goods on any packaging or label on the goods … etc

Discount Lino v Mavis Application Conclusion Was the lino fit for the purposes for which goods of that kind are commonly supplied - No – wear marks and looks ‘like a race track’  Rassell v Garden City Vinyl and Carpet Centre Pty Ltd Carpet Call v Chan Was the lino durable – No  Given the nature of the goods, the price, statements made about the goods on any packaging or label on the goods –  It was expensive; and it was supposed to be a heavy grade domestic quality vinyl Conclusion Guarantee of Acceptable Quality in s54 of the ACL does apply Refund or Replace or Repair – s261 of the ACL

Cake Cookers v Mavis Issue Rules (the Law) Can Mavis rely on one of the consumer guarantees under the ACL? Rules (the Law) Section 54 – Acceptable Quality Section 55 – Fitness for any Disclosed Purpose Section 56 – Supply of Goods by Description

Elements of Section 55(1) ACL Person – s2C Acts Interpretation Act – person includes a corporation Supply – s2 Australian Consumer Law – supply in relation to goods means supply by way of sale, exchange, lease, hire or hire-purchase Trade or Commerce – s2 Australian Consumer Law – means trade or commerce within Australia and includes any business. Goods – s2 Australian Consumer Law – is an inclusive definition that would include a fridge, oven, flooring Consumer – s3(1) Australian Consumer Law – a person is taken to have acquired goods as a consumer if the amount does not exceed $40,000 or the goods were of a kind ordinarily acquired for personal, domestic or household use.

Cake Cookers v Mavis Application Person – Cake Cookers Supply -  Trade and Commerce -  Goods -  Consumer – Was Mavis a consumer in this transaction ? Transaction was less than $40,000 

Elements of Section 55(2) ACL Rule – s55(2) Australian Consumer Law – Disclosed Purposes means a particular purpose (whether or not that purpose is a purpose for which the goods are commonly supplied) for which the goods are being acquired by the consumer and that: (a)  the consumer makes known, expressly or by implication, to: (i)  the supplier; or (ii)  a person by whom any prior negotiations or arrangements in relation to the acquisition of the goods were conducted or made; or (b)  the consumer makes known to the manufacturer of the goods either directly or through the supplier or the person referred to in paragraph (a)(ii).

Elements of Section 55(3) ACL (3)  This section does not apply if the circumstances show that the consumer did not rely on, or that it was unreasonable for the consumer to rely on, the skill or judgment of the supplier, the person referred to in subsection (2)(a)(ii) or the manufacturer, as the case may be.

Cake Cookers v Mavis Application Conclusion Did Mavis specifically disclose the purpose for which she was buying the oven and patty pan holders ? Yes  Grant v Australian Knitting Mills Did Mavis rely on the skill and judgement of Cathy at Cake Cookers – Yes Ashington Piggeries v Christopher Hill Was it unreasonable for Mavis to rely upon Cath’s skill and judgement? – No  Conclusion Guarantee of Disclosed Purpose in s55 of the ACL does apply Refund or Replace or Repair – s261 of the ACL

The End