Question attached in the file
ACBUS201A – Commercial Law I ACBUS201A Commercial Law 1 – Semester 2, 2021 Case Study / Research Report – 25% Weighting Refer to the http://courses.highered.tafensw.edu.au for the specific requirements of this assessment task. This assessment involves complex scenarios involving multiple areas of law requiring in depth analysis, problem solving and judgement with reward for the use of properly referenced academic and other independent sources beyond those presented in tutorials [1,500 words]. All submissions must address two [2] questions. Student submissions should include a simple cover page that includes word counts for each question. In-text citations must be in the Harvard AGPS style. A single Harvard AGPS Reference List at the end of the submission should include all relevant references cited in both questions. Students should note the PDF file on acceptable legal abbreviations, available on the Moodle. Students should note the word limits for each question, and the need to write concisely. Responses must be within 10% +/- of each word limit. Students must clearly state the word count for each question, on their cover page. Note that the reference list and footnotes (if any) does not form part of the word count. Students are encouraged to start writing early; editing typically takes more time than writing. Part A - Case Study - 1000 words [15 marks] Jack owns a café in Ultimo. Last week Jack purchased a ‘Coffee-2000’ espresso machine for $75,000 from Coffee Co Pty Ltd to use in his business. The machine seemed perfect for Jack’s café, with the ability to make 4 shots of coffee at once, and two milk-frothing nozzles for cappuccinos. The final sale agreement included Jack paying an immediate $8,000 deposit, with ongoing weekly payments of $2000 required for six months. When buying the machine, Jack told the sales person [Margaret] that he needed it for his café, and that it was important the machine was reliable. Jack explained how many staff worked at the café, how many customers were served each day, and that the café was open for business seven days per week, from 5am to 8pm. Margaret assured Jack the Coffee-2000 was the ideal machine for his café, good stocks are on hand, and immediate delivery & installation can be arranged. Finalising the sale, Margaret prepared the Coffee Co order form, which Jack signed. Immediately above the signature field was a printed statement in bold text which said: “This agreement is subject to the terms and conditions on the reverse side of this page.” ACBUS201A – Commercial Law I Jack was very busy and did not read the terms and conditions. Margaret told Jack that the form was their ‘standard sales order form’ for all sales of coffee machines. Among the various terms and conditions on the reverse side of the page was term Clause 4 which said: “Clause 4. Coffee Co Pty Ltd accepts no liability for any loss or damage, whether physical or economic, due to breach of contract, failure to perform, or any other reason whatsoever.” The machine is delivered to Jack’s café and installed. A few days later, customers start complaining about a bitter aftertaste in their coffee. Consulting a coffee machine technician, Jack learns that the Coffee-2000 has filters that require cleaning after 4 hours of operation. Each filter takes over an hour to remove, clean, and replace, and the machine cannot produce coffee during this time. Jack is furious that his expensive purchase is not suited to his business. Researching the Coffee-2000, Jack also learns the manufacturer recommends the Coffee- 2000 be used in cafes for the morning ‘coffee rush’ period only, to allow for daily cleaning of the filters, and to limit use to 5 days per week preferably in small cafés, to extend the life of the internal plumbing and mechanical parts. The Coffee-2000 is only expected to last one year in a high-volume café, and will then require an expensive refit. The manufacturer also sells a Coffee-4000 model for use in high volume cafés, with a completely different filter design and mechanical lifespan. The manager at Coffee Co Pty Ltd refuses to provide Jack a refund, and as his machine has been used and also refuses to trade it in on a Coffee-4000 model [priced at $105,000]. The manager shows Jack the terms and conditions from the sale, which Jack claims not to have known about. Jack insists term #4 is not part of their agreement. They argue, with Jack threatening not to make any payments and the manager threatening to take legal action to recover the payments from Jack, plus interest. Required: 1. Discuss the contract law issues in relation to Jack’s situation, including the remedies available and the likely outcome. 2. Discuss the Australian Consumer Law (ACL) issues in relation to Jack’s situation, including remedies available and the likely outcome. Part B - Research Task - 500 words [10 marks] Is common law and precedent still useful in regulating modern business practices or should we simply use legislation? Discuss this statement by:- (a) comparing the characteristics of common law and legislation and the role of the courts and legislature in relation to the regulation and facilitation of business conduct; and (b) contrasting the role of precedent and judges in dispute resolution, in civil law systems.