legal study (business law) question 1 and question 2

legal study (business law) question 1 and question 2

Question 1 (13 marks)
Colin took his dinner suit and his wife’s silk dress to the Soono Dry Cleaners, a firm his family used whenever they had dry cleaning to be done.
He was handed a docket and as usual he placed it in his wallet without reading it.
When Colin called to collect the clothing he was told that his dinner suit was missing and his wife’s silk dress was badly stained. No explanation was given about the stained dress. However, one of the assistants recalled handing the dinner suit to a customer who had apparently lost his docket but was able to identify the dinner suit when allowed to sort through the rack.
Colin demanded compensation but the owner of Soono Dry Cleaners referred Colin to a clause on the docket which read: “We will not be liable for any loss or damage to clothing left for cleaning”. The owner also pointed to a sign at the back of the shop which had been displayed there for some time. The sign said: “We take all care in the dry cleaning of our customers’ clothing but we regret we cannot take any responsibility for loss or damage however caused”.
Colin protested that he had never read the sign or the docket.
1. Advise Colin whether he is entitled to compensation from Soono Dry Cleaners (7 marks).
2. Would it make any difference if Colin had noticed the clause on the docket and the assistant had said: “That excludes liability for damage to buttons and zippers” (2 marks).
3. Assume that Colin is entitled to compensation for the loss of his dinner suit and the stained silk dress. He now tells you that because of what has happened his wife has suffered emotional distress because the dress was a family heirloom. He also tells you that he and his wife had to hire, at considerable expense, a dinner suit and a dress for a formal occasion because of the loss and damage (4 marks).
Discuss only the legal position under the common law. In your answer refer to relevant legal authority.
Question 2 (12 marks)
Tanya is an intelligent 17-year old who operates a courier business. She decided that she needed a car?for her personal use as well as for occasional business use when her delivery van (which she uses in the business) is being serviced or repaired. She estimated that such service or repair would occur about three months out of each year.
She went to Dan’s Quality Cars Pty Ltd (DQC) in Sydney and after she discussed the matter with the managing director she chose an Italian Cassino sedan priced at $49,000. Dan said to her: “This car will give you worry-free driving for at least twelve months. You won’t need any major repair work in that time.” However, Tanya does not have sufficient cash to cover the purchase. Dan suggested that he could provide finance through his company DQC.
LAW00720 – Unit Information 19

Tanya and DQC signed an agreement which provided that Tanya would pay to the company the full price of the car (plus interest at a rate of 25% per annum) over twelve equal consecutive monthly instalments. However, Dan also required further security and requested a guarantee of Tanya’s contractual obligations from her parents, Zoltan and Suzanne. They had recently migrated to Australia from eastern Europe. Zoltan is an accountant and has a good knowledge of English but Suzanne, although intelligent, has little education and can barely speak English.
Tanya told her parents that the amount of the finance was $22,000 and that her repayment obligations would not extend beyond a few months. “I will then be able to obtain finance from my bank and pay off the loan I got from DQC”. Dan knew of this conversation but did not know about the level of English?of either parent, or that, in fact, they were close to divorce. The parents signed the guarantee in the company’s office and were given a copy of the guarantee for their records.
Several months after the purchase of the car it needed major repairs. Tanya complained to Dan who said: “Bad luck, that’s life. I can’t do anything about it”. Tanya was furious and refused to pay any further instalments under the agreement with DQC.
DQC now threatens legal proceedings against Tanya, and also against Zoltan and Suzanne.
DQC has sent a letter to each of them which said (among other things): “If you do not pay all the instalments within seven days DQC will sue you for the whole debt”.
You are required:
To advise Tanya, Zoltan and Suzanne of their possible legal rights and liabilities:
. (a) under common law; and
. (b) under statute law.
Assume all the relevant events take place in NSW.?Do not discuss the parent’s possible rights/actions against Tanya. In your answer refer to relevant legal authority.

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