Sale of Goods Act Case Study: Sale of Garden Shed
a. The purpose of Sale of Goods Act, 1908 was to initiate so that an agreement or contract is entered between the seller or the buyer to buy or sell the goods.
b. Lisa agrees and they sign a written contract on these terms.
i. As per Section 20 Rule 2of the Sale of Goods Act, 1908 there was a contract between Lisa and Paul for sale of goods herein referred to as the garden shed. It is a contract of sale under the Act since the buyer has accepted to pay a price for the goods referred to as “garden shed”, sold by the seller Lisa (Austin & Ramsay,2012).
ii. As per Sale of Goods Act, 1908 where there is a contract for the sale of specific goods, and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done, and the buyer has notice thereof.
In the above case the buyer agreed to purchase the garden shed on the condition that the seller Lisa repairs the window and drops the price from $300 to $ 225.
iii. In the case the goods was not transferred to the buyer Paul therefore in case of any mishap before the delivery of the goods to the buyer, the wind has blown the garden shed therefore he loss would be borne by the owner in the above case it will be borne by Lisa (Cassidy & Corporations Law Text &Essential Cases 2013).
c. As per Section, 20 Rule 1 where there is an unconditional contract for the sale of specific goods, in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment or the time of delivery, or both, is postponed.
Thus in the above case where there was fire and the side table was destroyed the loss was borne by Angus, the buyer o the goods (Ciro &Symes, 2013).
d. As per the above case Jo who is the chef of the cuisines in the restaurant orders 100 liters of Amphitrite Soybean Oil after seeing the advertisement where it was mentioned that the soybean oil was sold at 75c/liter. As the oil arrived he found that the oil was for the purpose used as lubricating oil and which cannot be used for culinary purposes. In this case since the goods are already sold and the chef did not read the purpose of the oil and ordered it. Thus he cannot get a refund on his purchase since it was his mistake. Thus in this case the loss is borne by the chef Jo (Davenport &Parker , 2012).
2. a) The Consumer Guarantees Act applies to the normal consumers to protect them so that they can seek the repair, replacement and refunds on goods and services which are faulty.
Consumer Guarantees Act Case Study: Purchase of Yacht and Life Jackets
b. Alex can apply for statutory rights against NML and Warren. This supply of Yachts and life jackets from the company is covered under the Consumers Guarantees Act (Fisher , Anderson & Dickfos). The company guarantees that in case the goods that are provided by them is faulty then they will replace the product or repair the product within the warranty time span. Thus this Act safeguards the policy and interest of the consumers and helps them to make a perfect deal.
In the above case it is seen that the marine engineer carries the survey and found out that the yacht has two separate parts and it is not possible to sail it and it is death trap. The flotation jacket has also broken down and it is not possible to support the weight of the person (Fitzpatrick et al. 2014).
c. i) In the above case the store has the remedy to seeing the problem as instruction which specifically says that the paint should not be rimu.
ii) The rights and the remedies that are available to Sarah is that she can apply to the store that she the paint immediately and the store has told that they will give her the paint at the right time.
iii) Sarah has nothing to do but to wait and get the paint from the store since she needs the paint on an urgent basis (Hahn, Peter & Meziane Lasfer (2015).
iv) If such a situation arises where Sarah could do nothing if there was no paint that worked on rimu wood and the store could do nothing to help Sarah then Sarah would go to different outlets to find out the correct paints which could used in the wood rimu
3. i) As per the act, The Fair Trading Act, 1986, protects the consumers against being misled or treated unfairly by traders or shops. The Act prohibits misleading and deceptive conduct, unsubstantiated claims, false representations and certain unfair practices (Hoad, Richard & Ramsay, 2013). No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
For the purposes of subsection (1), a false trade description shall be deemed to be applied to goods if—
(a) It is woven in, impressed on, worked into, or annexed or affixed to the goods; or
(b) It is applied to a covering, label, reel, or thing in or with which the goods are supplied (Hanrahan, Ramsay & Stapledon, 2013).
(c) For the purposes of this section,
In the above case there was breach of the Fair Trading Act 1986 by Ice Country Limited. The company was selling thermal clothing in New Zealand. Tessa chose to purchase Clothing from Ice Country Limited, because of the Companies advertising statements that the clothing was made in New Zealand from 100% New Zealand Merino Wool. Tessa was of the view that the company was selling clothing made in New Zealand as it was given in the website when she accessed and there was Swing tags attached to the garments.
Later when she found after reading an article that the article was in North and South that when the company first started making the clothing, it was designed and made in the place New Zealand, but for the past five years and even currently, the clothing was designed in New Zealand and made in China, from 85% Australian Merino, and 15% Polyester (Harris & Adams, 2013).
Consumer Guarantees Act Case Study: Purchase of Paint and Remedies Available
ii. Bhavin finds an advertisement in his letterbox from an Auckland company called Specialist Laboratory Services Limited. The advertisement stated that the company will be selling a slim fast tablet. As per the instruction given in the tablet it will help the consumers to lose weight and within a specified period of three months. Bhavin who was overweight HAD ordered substantial quantity of the tablets. The advertisement also stated that the tablets were manufactured in the United States of America .Late Bhavin found out that the tablets that he was taking was prescribed six months prior and it did not have any affect since he did not lose any weight. More over it was later found out that the tablets were manufactured in a backyard laboratory in South Auckland (Hung & Humphry, 2015).
This is a false statement under the Fair Trading Act, 1986.As per the Act it is mandatory for the seller to disclose the following so that there is no dispute between the consumer and the sellers. They are as follows:
The supplier must ensure that—
Every lay by sale agreement entered into by that supplier—
(i) It is in writing; and
(ii) It is expressed in plain language; and
(iii) It is legible; and
(iv) It is presented clearly; and
(v) It complies with the requirements of subsection (2); and
Acopy of the agreement is given to the consumer at the time the agreement is entered into.
As per section 9 of the Fair Trading Amendment Act 2013, it is held that no person shall, in trade, engage in conduct that is liable to mislead the public as to the nature, manufacturing process, characteristics, suitability for a purpose, or quantity of goods and services (Lanis, Roman & Grant Richardson, 2012).
ii. The potential problems this advertisement could cause Keen in the light of the provisions of the Fair Trading Act 1986:
In the case Keen being a newly qualified personal trainer so he wanted to attract the customers, and therefore Keen proposes to insert the advertisement in the local paper. He advertises to join him by writing Lose weight in weeks.
Keen advertises in writing that the personalised fitness programme of him will enable the customers to lose at least a kilo in the first week. He enhances on the strategy that it si important to lead a fitter, healthier and happier life. He also mentions that he has trained several famous athletes and now the customers may have the benefit of his skills and knowledge (Lipton, Herzberg & Welsh, 2014).
Later it was found out that the Keen has not trained any athletes nor famous or any one.This is the breach of the Act and the person shall be penalized for false representation and breach of action.
Potential problems this advertisement could cause Keen in the light of the provisions of the Fair Trading Act 1986
Civil remedies include injunctions, orders for corrective advertising (only available to the Commerce Commission), private actions and other compensatory orders, depending on the jurisdiction of the Court.
Fair Trading Act Case Study: Misleading Advertising of Clothing
If you bring a claim in the Disputes Tribunal or the District Court they may grant a number of orders, including:
- The trader pay damages to you if you have suffered some loss or damage
- A contract be altered or made void
- Money be refunded
- Products be repaired or services supplied.
1. As per the case, Hans Wagner was appointed as the lecturer of the Noname University; he only had a year experience as teaching as a lecturer. He was appointed in the University under the head of the department Professor Alan Wilson. Alan was the head of the human resource affecting the performance of the college. The performance of Hans was very poor therefore he was called by Alan and told that this was not accepted, most of the student rated him as 3 or 4 and his student rated him generally between 2.5 to 3.0 (on a scale of 1 to 5, with 5 being the lowest score). This was worse than three quarters of the staff in the School of Business.
Thus Alan told called him and asked him to explain about his teaching experience, Hans felt very humiliated and told that he would not explain the reason the reason for his poor performance, then Alan told that this was not acceptable and he would have to let go Hans. Thus the ground on which the employer has dismissed was true and correct (Li, 2012).
2. Alan has followed the procedural requirement and thus Hans have followed the case and the procedures have been followed since Hans were not fit for the job since he was not able to give his best and his performance was not accepted by the college.
1. Thompson Aluminium is characterized by high job specialization, with high levels of repetition and little variety in most jobs. There is minimal communication or transfer between the various departments. Workers have little or no control over how work is planned or carried out, and some employees are expected to work double shifts where there is pressure to complete an order in time (Redmond, 2013).
Grant and Peter followed the norms of the work and safety but one morning they were not able to handle the pressure and they unloaded the truck quickly. Grant stood on the forks of the forklift and Peter lifted him to the empty top levels of cantilever rack to store away the truck’s contents more quickly. While they were doing the risky job, the company in spite of knowing it ignored the whole activity of the employee. Thus the management ignored the activity of the employee. During this incident Grant slipped and fell on the ground which was below and it is one the top of the boxes on the top rack (Richardson et al. 2013).
It was employer’s responsibility for keeping the employee health and safety of the working environment which was required by the law. In this case the employers did not take any action and they did not take any action for not keeping the health and safety of the environment.
2. In the case the company approached by Thomas Aluminum and they identified the hazards in the organizations and they helped for the health and safety of the organization which was still prevailing in the organization. In this case the organization knew the hazards and even after it and after such an incident they have allowed Grant to do the same job and this made the is a fault of the company itself.
References
Austin R.P. & Ramsay,(2012) I., Ford’s Principles of Corporations Law, 15th Ed. Butterworths, Australia. p 201
Cassidy J., Corporations Law Text &Essential Cases (2013). Federation Press, 4th edition Sydney
Ciro T &Symes C,(2013) Corporations Law in Principle LBC Thomson Reuters, Sydney, 9th edition
Davenport, S &Parker D,(2012) Business and Law in Australia, Thomson Reuters. p 15
Fisher S, Anderson C, & Dickfos,. (2017)Corporations Law – Butterworths Tutorial Series, 3rd Ed. Sydney, Butterworths.. p 2015
Fitzpatrick, Synes, Veljanovski, & Parker,(2014) Business and Corporations Law; 2nd Ed. LexisNexis. p 387
Hahn, Peter D., & Meziane Lasfer (2015). ‘The compensation of non-executive directors: rationale, form, and findings.’15.4 Journal of Management & Governance 589-601.
Hanrahan, P., Ramsay I., & Stapledon, G (2013). Commercial Applications of Company Law. 14th Ed CCH.. p 49
Harris, J. Hargovan, A. Adams, M (2013). Australian Corporate Law 4th Ed. LexisNexis Butterworths. p 105
Hoad, Richard, &Ian Ramsay. (2013)”Disclosures!: Corporate governance in practice.” 10.
Hung &Humphry.(2015) ‘Directors’ roles in corporate social responsibility: A stakeholder perspective.’ 103.3 Journal of Business Ethics 385-402.
Lanis, Roman, & Grant Richardson (2012). ‘The effect of board of director composition on corporate tax aggressiveness.’ 30.1 Journal of Accounting and Public Policy 50-70.
Li, G, Riley, S. (2012) Applied Corporate Law: A Bilingual Approach 1st Edition LexisNexis. p 112
Lipton, P., Herzberg, A., & Welsh, M, (2014)Understanding Company Law, 17th Ed. Thomson Reuters . 210
Parker, Clarke, Veljanovski & Posthouwer, (2012) Corporate Law, Palgrave 1st edition
Redmond, P., (2013) Companies and Securities Law – Commentary and Materials, Law Book Co., Sydney, 5th,
Richardson, Grant, Grantley Taylor, & Roman Lanis (2013). ‘The impact of board of director oversight characteristics on corporate tax aggressiveness: An empirical analysis.’32.3 Journal of Accounting and Public Policy 68-88.
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