business law

Unit II Assignment Case Analysis The Ford Pinto case is a well-known case that is often discussed in the context of business ethics. To summarize, Ford′s design of the Pinto′s fuel tank was defective, causing fires if the Pinto was involved in even minor rear-end collisions. Ford came to learn of the defect, but the company failed to correct it; Ford then predicted, based on a cost-benefit analysis, that it would cost more to repair the defect ($11 per vehicle, or $137 million total) than it would to pay for damages resulting from burn deaths, burn injuries, and burned vehicles ($47.5 million). Consider the Ford Pinto case in light of the who-how (WH) framework for business ethics. Would Ford′s decision to forego repairing the defective design comply with these ethical guidelines? If so, why? If not, then what actions should Ford have taken to satisfy them? Explain your reasoning. Your response to this question should be a minimum of 500 words. Cite any direct quotes or paraphrased material from outside sources. Use APA format.

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BLST2BSL Introduction to Business Law and Ethics – Common Law Assignment

Contract example problem question-(using IRAC problem solving
format)
(The question is taken from Latimer P Australian Business Law 2016 Oxford University Press
Sydney)
Question
Ernest had heard that Jack was thinking of selling Jack’s farm in Dubbo, NSW. On 28 April
2016, Ernest wrote a letter to Jack, in the following terms:
‘Are you interested in selling the farm? If so, at what price?’
Jack received the letter on 29 April 2016 and replied that day by email addressed to Ernest’s
email address :
‘I will sell you the farm for $900,000. The terms and conditions will be those in the NSW
standard form real estate contract. Please reply by email before 5 May 2016.’
On 1 May 2016 Ernest sent a letter to Jack, saying:
‘I accept your offer to sell the farm and surrounding grounds for $900,000.’
However, on the same day the market went into a spectacular dive, and by 5 pm Ernest had lost
a lot of money. Feeling that he could no longer afford the farm, he sent an email to Jack, which
Jack received at 6 pm.
Ernest’s email stated:
‘I no longer wish to purchase the farm.’
On 4 May Ernest recovered all of his losses on the stock market and made a profit. He
telephoned Jack to say that he would now purchase the hall for $900,000. Jack told Ernest he
was sorry but had decided to sell the farm to Gwen who had made an offer of $950,000.
Discuss in a problem-solving format whether Ernest can insist that he has a contract
with Jack to buy Jack’s farm for $900.000.

2

Answer
Issue: Is there an enforceable contract between Jack and Ernest for the sale of Jack’s farm
in Dubbo NSW?
Rules: An enforceable contract requires:

 an intention to create legal relations
 agreement – represented by offer and acceptance, and
 consideration.
Where an agreement is made in a commercial context it is presumed that the parties intend
to create legal relations. This presumption may be rebutted by evidence to the contrary.
An offer is a clear statement of the terms by which the offeror is prepared to be bound. An
offer must be distinguished from an invitation to treat, which is an invitation to the other party
to make an offer 1 . In Pharmaceutical Society of Great Britain v Boots Cash Chemists 2
<briefly describe the facts> . The court held < briefly describe the court’s decision> An offer
may be terminated at any time prior to its acceptance. In particular, it may be terminated by
revocation of the offer, which is a formal withdrawal of the offer. It may also be terminated by
a counter-offer. A counter-offer brings the original offer to an end.
An acceptance is a final and unqualified communication of assent to the terms of the offer. 3
The offeree must, therefore, accept exactly what was offered. The addition of anything to the
terms of the offer is a counter-offer. In Hyde v Wrench 4 < briefly describe the facts>. The
court held <briefly describe the court’s decision> There must also, therefore, be sufficient
communication of the acceptance, or some external manifestation of assent by the offeree.
If no method of communication is specified, it is assumed that it will take the form of the
offer. A contract is formed at the point at which communication of acceptance occurs. Where
an instantaneous form of communication is used, that is when the assent is brought to the
attention of the offeror. Entorres Ltd v Myles Far East Corp 5 is a case in which < briefly
describe why the method of communication was instantaneous)
Where communication of assent is by letter, it occurs when the letter is posted. In Adams v
Linsell 6 < briefly describe the facts>. The court held < briefly describe the court’s decision>
Generally speaking, acceptance cannot be revoked because a contract is now in force.
Attempted revocation would be repudiation of the contract.

1 Ciro T, Goldwasser V and Verma R Law and Business Melbourne: Oxford University Press 2014
2 [1953] 1 QB 401
3 Note 1
4 )( 1840) 3 Beav 334
5 [1955] 2 QB 327
6 (1818) 106 ER 250

3
A contract also requires consideration, that is, an act or forbearance of one party, or the
promise thereof, which is the price for which the promise of the other is bought, and the
promise thus given for value is enforceable. 7
Application: The parties to this agreement are in a commercial context; it is presumed that
they intend to create legal relations. There are no facts to rebut this presumption.
The letter from Ernest to Jack of 28 April was merely a request for information. It certainly
did not have the finality of an offer.
The email from Jack to Ernest of 29 April was clearly an offer, ie a clear statement of the
terms by which the offeror is prepared to be bound. The facts which indicate this include the
specification of price, subject-matter and the nomination of terms and conditions. The offer
was expressed to lapse on 5th May.
The letter from Ernest to Jack of 2 May 2016 was expressed as an acceptance, but could
have been a counter-offer, because there was some difference in the description of the
subject-matter. If an acceptance, it was effective from the date of posting. However, Jack’s
offer clearly stated that acceptance had to be by email and since Ernest sent a letter
acceptance was not in accordance with the offer.
The email from Ernest to Jack of 2 May 2016 was expressed as a revocation of acceptance.
As this was by email then it is an effective rejection of Jack’s offer of 29 April 2016. Because
Ernest’s email is a rejection, it clearly brings Jack’s offer to an end, even if the offer is said to
remain open until 5 May.
Ernest’s telephone call of 4 May cannot be an acceptance, because the offer is dead. In
any case the telephone call is not in accordance with the terms of the offer which stipulated
that acceptance was to be by email. Jack is entitled to sell the farm to Gwen at the higher
price.
Conclusion: There is no contract between Ernest and Jack for the sale of Jack’s farm in
Dubbo, NSW.

Business Law.

ASSIGNMENT ONE

MEDIA REPORT ANALYSIS (20%)

Students are required to select one media report from the three reports provided on Blackboard
under the assessment folder.
Students are required to identify and analyse the legal issues arising in their chosen report through
answering a series of questions. Students need to apply a similar approach to that used in the Topic
1 tutorial case study, ‘The Swimming Stadium’, to their chosen media report.

Format of assignments
Assignments cannot be handwritten and must comply with the following format requirements:
• Document type: Word or pdf (pdf preferred);
• Font: Arial or similar font – no smaller than 12 point in size;
• Pages: Numbered in top or bottom margin;
• Spacing: Appropriate line spacing and paragraph spacing; and
• Margins: At least 2.5 cm top, left, right & bottom.
Assignments which do not conform with the above requirements, without prior agreement of the unit
coordinator, will either be returned to the student unmarked or will have marks deducted.
Presentation
Three marks have been allocated to the presentation of the assignment document. The following will
be taken into account when allocating marks for presentation:
• attachment of cover sheet (located on Blackboard under the ‘Assessment’ folder) must be
attached to the assignment;
• appropriate sentence structure;
• correct grammar, spelling and punctuation;
• consistent format;
• appropriate use of headings and sub-headings;
• within the acceptable word limit; and
• appropriate referencing (Chicago style or AGLC style) and acknowledgment of sources.
Word Limit
The total assignment should be a minimum of 500 words and not exceed 2000 words.

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Please provide a word count on your cover sheet. A penalty of 10% will be imposed for every 100
words that exceed the word limit. The assignment will not be assessed if it exceeds 3000 words and
will result in a ZERO mark.
The word count does not include the following:
• cover sheet;
• in-text referencing;
• list of references; and
• headings.

Referencing and appropriate acknowledgement of sources
Most often errors in referencing are incidental or clearly inadvertent. In the event of a level one
incident of plagiarism occurring, a student may be contacted by the University and required to
undertake further training or remedial work in relation to referencing. Where the lack of correct
referencing appears to contravene the University policy on plagiarism, the student’s paper will be
referred to the Unit Coordinator and dealt with according to University policy. This may amount to
academic misconduct.
An important aspect of the University Plagiarism Policy is recognition that not all plagiarism is
intentional or involves cheating. If students are not learning as expected, they will be made aware of
their difficulties and helped to improve. Those who deliberately choose to cheat by way of plagiarism,
however, will be identified and dealt with accordingly.
Students are strongly advised to understand their responsibilities in relation to correct
referencing and should consult the Unit Outline, the Business Law presentation slides on
referencing and Blackboard for more information.

Submission
Please read the submission process carefully. Students should understand that compliance with

instructions in relation to an assessment task is critical. Students MUST be aware that non-
compliance with submission instructions can result in a mark of ZERO.

All assignments must be submitted by 1PM (WST) on the Monday of the week the assignment is due,
i.e. Assignment one is due Monday, 27 March 2017 by 1PM (WST).
Students are required to submit their assignment to Blackboard through a link provided in the
‘Assessment’ folder titled ‘Assignment one’. The assignment will automatically be submitted to the
plagiarism detection program, Turnitin.
Students are given the option to submit a draft assignment into Turnitin (via Blackboard) to retrieve
an originality report of their assignment. To submit a draft assignment, students must upload their

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draft assignment to Blackboard through a link provided in the ‘Assessment’ folder titled ‘Assignment
one: Revision 1’.
For more information about the submission process or Turnitin, please refer to the detailed
submission instructions on Blackboard within the ‘Assessment’ folder.

Feedback on assignments
The teaching staff is available to assist you with your learning in this unit. You should contact your
lecturer or tutor in the first instance if you need help understanding the course material or issues
arising in the assignment. There is also a staffed discussion board available for students. It is often
helpful to share ideas and problems with other students using this forum. You can also contact the
Unit Coordinator if you are still unable to get the answer you are seeking. Please allow 48 hours
(working days) for a response to your query.
Unfortunately it is just not possible for lecturers or tutors to review draft assignments for comment
before submission (in effect double marking). If you require help with your assignment, either narrow
the question or section of work to specific questions. If you have questions relating to your writing
style (grammar etc) we suggest that you make use of the resources available at the CBS
Communications Skills Centre.
Tutors will mark and return assignments within ten days of their submission. Students will be
provided with an answer outline and individual comments on what a student had done well and
suggestions for improvement in the future.
Assessment submitted early will not be marked before the due date.
Your assessment will be returned to you via grade centre. In general your marker will provide
feedback to you by way of an audio mp3 file, which is approximately 1MB in size.
Please refer to the Unit Outline for the full procedure in relation to penalties for late submission and
requests for an extension.

Assessment breakdown

Mark allocation
Question 1 4 marks
Question 2 6 marks
Question 3 4 marks
Question 4 3 marks
Presentation 3 marks
20 marks

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Media report analysis
1. Identify the areas of law that are relevant to the chosen media report, and explain how they are
relevant to the matters outlined in the report.
Students should refer to the areas of law listed in the Topic 1 lecture presentation. Not all the
listed areas of law will be relevant, but each media report involves at least two areas of law.
(4 marks)

2. The law serves a number of different functions. It:
• Ensures reasonable predictability in daily life;
• Encourages and discourages certain conduct;
• Grants rights and powers to individuals and groups of people;
• Imposes obligations on individuals / organisations to meet their legal responsibility;
• Allows for the enforcement of recognised rights and duties; and
• Provides remedies when an injustice has been done.
Demonstrate how the law functions in these various ways, by reference to specific examples
within the chosen media report and the areas of law you identified in question 1.
You need only provide one example per point. However, you must discuss all six functions, and
where possible, each point should use a different area of law

as illustration. Be sure to explain
specifically how and why you came to your conclusions.

(6 marks)

3. By reference to the legal issues contained in the chosen media report, explain why it was
important for the relevant party/parties to know the law in the circumstances? How did, or could,
the party/parties have applied the law to their advantage?

(4 marks)
4. How do the media influence public perceptions about the law and its administration? How might
public pressure impact legislators and judges in establishing the law?