LAWS 1018 Business Law

Task:

Question 1 – Contract Law 

Rob decides to sell his computer. He puts up a sign on the noticeboard at his University which reads: ‘For Sale. Special Offer. 2018 MacBook Pro. Excellent Condition. $2,500 negotiable.’  

Nicole saw the sign and was very interested in the computer. She recently had a Macbook and wanted to upgrade. Nicole telephones Rob. 

She says, ‘I am very interested in purchasing your MacBook Pro that you have advertised at uni. I am happy to pay $2,000 for the computer. Would you accept that?’ 

Rob then responds, ‘the computer is in very good condition, it has hardly been used. $2,000 is too low. I would really like to sell it for $2,500’. 

Nicole then says, ‘I will have to think about it. Can you please hold the computer for me until tomorrow 5pm. I will call you before then’. Rob replies, ‘Yes, that’s fine. I will hold the computer for you until 5pm.’ 

The next morning, Nicole has decided that she really wants the computer and is willing to pay $2,500. She phones Rob and says, ‘Hi Rob. It’s Nicole here. I am happy to pay $2,500 for the MacBook Pro. I would like to purchase it please.’ 

Rob then responded, ‘I am sorry Nicole. After I spoke to you last night, Stephen called and offered me $3,000 for the computer … which I accepted. I am sorry, but I do not have the computer anymore.’ 

Nicole then responded, ‘But you promised to hold the computer for me until this afternoon. You have broken your promise. We had a contract for the sale of the computer.’ Nicole is very upset. 

Using relevant principles of contract law, including cases, discuss whether Nicole and Rob have a contract for the sale of the MacBook Pro. In your answer, make sure to consider all elements of a contract 

Question 2 – Employment Law

Fred works at Hot Pizza, a pizza shop in Adelaide. He works in the store and also delivers pizzas. Hot Pizza guarantees that pizzas will be delivered within 20 minutes or the order is free. 

Fred signed a written agreement when he started working at Hot Pizza. The written agreement labels Fred as an independent contractor. The written agreement includes that Fred must provide and maintain his own vehicle for the deliveries, and the written agreement says that Fred must comply with all policies and procedures of Hot Pizza. The delivery policy states that if a pizza is delivered after 20 minutes, then the delivery driver is required to pay the cost of the order. 

Fred is paid an hourly rate of $15.00 per hour, and he is not paid any penalty rates. Fred normally works 5:30pm – 10:30pm, four days a week. The days he works vary. He is also required to put a Hot Pizza sign on his car when he makes deliveries, and he wears a Hot Pizza uniform. 

One night, when Fred is delivering a pizza to Joe, he accidentally drives his car into Joe’s front fence. Joe is very upset. Joe calls up Hot Pizza and speaks to the manager, and demands that Hot Pizza pay for the damage to his fence. The manager responds that Fred is only an independent contractor, and not an employee, and therefore Hot Pizza is not liable for Fred’s actions. 

Using relevant principles of employment law, including cases, discuss whether Fred is an employee of Hot Pizza, and who is liable for the cost of the fence, is it Fred or Hot Pizza?