introduction to business law

There are three (3) questions and all questions must be answered.

Questions:

 

  1. Would you consider a newspaper report which stated that Malcolm Somebody (his real name) had been charged with a sexual offence defamatory? Explain your answer.                                                                                                        (5 marks)

 

 

 

  1. Bees is a nightclub in Parramatta, popular with students. Entrance charges were $45.00 on Friday and Saturday evenings, and large crowds came each weekend. Peter, the manager of Bees, was being pressured by Keith, the owner, to maximize profits. Many of the customers saved money by refilling their water bottles and glasses from taps in the toilets, so Peter decided to boost bar sales by cutting off water supplies to the toilet handbasins. In order to provide some minimal notion of hygiene he arranged that buckets of ice were placed in the toilets during the evening sessions.

 

Julia and Wayne visited Bees for the first time one Saturday evening, to celebrate the end of their exams. They spent all their money on theentrance fees, and were enjoying the music and atmosphere, even though a fault in the air conditioning meant that the temperature on the dance floor was around 43°. When both had become overheated from dancing they visited the toilets to get some water, discovered the taps had been cut off and were told by other patrons that the only water available was from the bar, at $10.00 per bottle.

 

Wayne was so desperate that he took some of the ice from the bucket he saw in the toilets. He did not realize that other patrons had been washing their hands in the bucket. Julia was not so lucky as the bucket in the women’s toilets was missing. She told the floor manager she was feeling sick, but he refused to help, thinking she was just trying to get a free drink. As she stumbled away to find a seat she tripped over a bucket, which had been taken from the women’s toilets and dropped near the bar. The club was so dark and so crowded that she had not seen it. When Wayne found her she was hysterical, and he had to get a fellow patron to call an ambulance on his mobile phone, as the manager would not let Wayne make phone calls from the club.

 

At the hospital Wayne and Julia had to wait several hours before seeing a doctor, as financial cuts had forced the hospital to cut back on the number of staff usually rostered for Saturday night. Julia was diagnosed as having extreme dehydration from lack of water, as well as a fractured ankle from the fall. She will probably have a permanent limp. Wayne developed hepatitis, which the doctors suggested may have been contracted from the ice he took from the bucket.

 

Advise Wayne, Julia, Peter and Keith of any rights and liabilities they may have in this situation, considering also any relevant defences which could be argued and giving full legal reasons for your answer.                                              (15 marks)

 

 

 

  1. A house is advertised for sale in the following terms:

 

For Sale:

“Waterview House”

Luxury home on the harbour,

Includes mooring for a large boat.

 

Prior to making an offer on the house, Mr and MrsBright sought confirmation from the real estate agency that Waterview House definitely includes a suitable mooring for a large yacht. Confirmation is given.  The Brights also phone their solicitor, Mr Potters, asking him to check the mooring licence conditions. They indicate to him that they will only consider buying a house that comes with its own mooring because their yacht is due to arrive in Australia in two months’ time. The solicitor tells them not to worry because the Waterview House title includes a valid mooring licence.

 

However, the rules of the mooring licence state that all licence rights expire and are subject to transfer if the mooring is not used for a period of more than three months. On the day the Brights speak with the agent and the solicitor, the mooring had not been used for four months because the current owner is away sailing around the world.

 

The Brightspurchase the house. They are furious when they discover that at the time of their discussions with the agent and solicitor, the mooring licence had already been transferred to a third party. They seek your advice.

 

Advise the Brights if they have any claims against the agent and solicitor in negligence law.                                                                                                                (10 marks)

 

 

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