LAWS20058 AUSTRALIAN COMMERCIAL LAW
ASSESSMENT 1 TERM 3, 2015
Total : 20 Marks
Case Study 1
12 Marks
Arnold is purchasing officer of Jamco Pty Ltd, a company that makes and markets variety of
fruit jams. Arnold meets Grace, the sales manager of Glassco, a company manufactures glass
products.
Arnold says to Grace: “Can you supply Jamco with 100,000 standard bottling jars?
Grace agreed to supply the required quantity of bottling jars.
Arnold further said to Grace that he would prefer jars that contain some recycled glass which
Grace agreed as she said their all glass jars are made with up to 10% recycled glass.
Arnold and Grace then both sign a written contract on behalf of the Company. It states that
Glassco agrees to supply Jamco with 100,000 standard bottling jars for a price of $5,000. The
contract also states: “The jars must be delivered to the buyer within 10 days of the agreement.”
There are no other terms in the written agreement.
The 100,000 jars are delivered on time and Jamco pays for them. But when Jamco tries using
them to bottle jam, the jars crack and break as soon as the hot jam is poured in. Arnold
discusses this problem with Grace. She says standard jars are successfully used for many
food products but they are not thick enough to resist the high temperature of freshly made jam.
Arnold discovers that the jars delivered to Jamco were made with only 2% recycled glass. He
says this is not what was expected. And, since the jars are useless for bottling jams, Jamco
does not want to keep them. Arnold wants to return the jars to Glassco and get back the money
Jamco paid for them.
Question 1:
In this circumstances outline in the case which area of law provides Jamco with its most likely
cause of action?
Question 2:
Assume that Arnold wants to prove what Grace said about Glassco jars containing upto10%
recycled glass became an express term of the contract for the purchase and sale of the glass
jars. Does it matter that no such promise was included in the written contract?
Question 3:
Assuming what Grace said about the percentage content of recycled glass did become an
express term of the contract, is this term likely to be treated by a court as a condition or a
warranty? Do the facts show that there has been a breach of this term?
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Question 4:
Assuming that Jamco can establish a breach of warranty by Glassco, what remedies are
available to them?
Question 5:
Assume Glassco is in breach of a contractually binding promise that the jars were heatproof
and that, as a result of this breach, Jamco is unable to bottle a batch of jam which has cost
$5000 to make. Jamco offers to sell the whole batch to a biscuit maker at cost price, but the
biscuit maker only offers $2000. If the jam had been bottled, the bottled jam would have been
sold to retailers for $10,000.
Question 6:
If Jamco were able to establish only substantial performance of a condition of the contract,
rather than complete performance, what remedies are available to Jamco?
Required:
With reference to relevant cases and legislation explain the above questions.
Case Study 2
8 Marks
HDFC Bank approved a five year fixed rate loan for Leo and Diana. At the time of the loan,
the bank’s lending policy was to assess a borrower’s repayment capacity at 30% of their gross
income. The bank knew that Leo and Diana’s repayments exceeded this amount, but notes
on the application shows that this was discussed at the time and they both were comfortable
with the required repayments. Leo and Diana had a good savings record and were able to
prove appropriate security. Consequently, the bank approved the loan. Shortly afterwards,
Leo lost his job.
Leo and Diana now argues that the bank should not have granted the loan as its terms were
unreasonable and that the loan should be discharged.
Required:
With reference to common law and relevant cases discuss the rights and
remedies for:
1) Leo and Diana
2) HDFC Bank
2
Assessment Criteria
The term assignment will use the following assessment criteria:
Problem solving: The focus of many parts of the assignment is upon developing
applied problem solving skills. This requires students to read and analyse fact scenario
matrix and identify legal issues and apply these in conjunction with case law and or
provisions of legislation to develop a reasoned outcome to the issue presented by the
problem matrix.
Critical thinking: Students are required to critically analyse and evaluate information,
facts and law in a problem solving context. The skills being emphasized involve the
critical appraisal and reflection of legal issues and the application of case law and
legislation against a factual matrix.
Information literacy: The assignment tests understanding and comprehension of
critical legal knowledge and legal concepts discussed in the course in topics covered
prior to submission of the assignment. Students need to develop understanding and
familiarity with legal terms and words introduced in topics covered prior to submission
of the assignment. This information understanding and literacy is tested in an applied
rather than a descriptive context.
Information technology competence: This assignment tests student’s aptitude and
capability to access web-based information and resources. Competence in producing
academic written work with use of technology forms part of this assignment exercise.
Ethical practice: In formulating response to questions in the assignment students are
exercising judgement and weighing possible courses of action in resolving on
particular outcomes to legal problem solving questions. This process indirectly applies
ethical practice in action.
Student are expected to go beyond textbooks to answer their assessment questions.
Use of online databases such as Austlii is recommended for your research.
Students are expected to go beyond their textbooks to answer this assessment
questions.
The word limit is maximum 2000 words and is due on Thursday 17 December
2015 at 5.00pm AEST on Moodle.
Students please note that there is no extension to this due date. If you cannot submit your
assessment on time you should be prepared to miss 20 marks. All extension applications will
be handled by the Course Coordinator only.
3
Student:
Case Study : /12
Case Study 2
/08
Total
/20
The benchmark for each criterion includes each of the benchmark levels before it, for
example to achieve a distinction you also need to meet the criteria for a credit and pass.
Students must achieve ALL the minimum benchmark criteria at a particular grade level to be
awarded an overall final grade at that level. Marks are not divided among each individual
criterion, but are benchmarked to minimum standards.
Assessment 1 Mark sheet
Criteria – Case
Study 1
Case Study 2
Pass – 6
Pass – 4
Professionalism Basic compliance
Evidence Based
Problem
Solving
Argument and
Structure
with all assessment
criteria and
deadlines.
Acceptable standard
of presentation and
expression.
Addresses the
problem questions
and presents
evidence of research
supporting the
solution.
Argument is
presented in a logical
sequence.
Credit – 7.8
Credit – 5.2
Distinction –
9.0
Distinction –
6.0
High Distinction
– 10.2
High Distinction
– 6.8
Full compliance with
all assessment
criteria and
deadlines.
Good presentation
and thorough
referencing
Weighs up
competing evidence
and applies this
balanced
understanding to
solving the problem
questions.
No errors in
assessment or in
compliance with
directions.
Excellent
presentation.
Superior level of
presentation that
demonstrates an
understanding of
the professional
context.
Presents
additional
evidence from
beyond the
course materials,
expected
additional reading
and directed
research.
Multiple
perspectives are
included, compared
and weighed.
Argument is well
structured in a
way that
enhances its
persuasive
strength.
Solution is aligned
with most
persuasive
position.
Research is
extremely
thorough and
applied to the
problem in a way
that demonstrates
mastery of
discipline
knowledge and
conventions.
Demonstrates
critical reflection
on defects in your
own argument and
strategies for
handling these.
Comments:
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