Reference no: EM133583559

Business and Corporations Law

Task - Apply the IRAC legal analysis structure to resolve Business and Corporations Law issues.

A structured, analytical approach to Corporations Law issues is the basis of effective management and resolution of legal problems. It demonstrates a graduate's proficiency in legal research, critical thinking, problem-solving, and attention to detail, skills highly valued by employers in the corporate environment.

Learning Outcome 1: Describe the key specific areas of law that regulate commerce in Australia

Learning Outcome 2: Determine the rights and duties of different parties to a commercial transaction based on analysis of case law and legislation

Learning Outcome 3: Understand the principles of business and corporations law and how they apply to you as business advisers and accountants

Case Study

Jenny is an Australian supermodel who began an intensive fitness program to prepare for her appearance in a TV Commercial for gym equipment. She knew that she needed to be very fit. In addition to her fitness program, she decided to consult a dietician about what sort of food she should eat. The dietician suggested that she have at least one protein smoothie every day. Jenny researched a range of blenders that might suit her needs. At her local electrical store, she found that the only blenders for sale there did not meet her needs as they were not powerful enough to produce smoothies.

Jenny kept looking. She had heard good things about the Kitchenware Store so she decided to go there to purchase a blender that met her needs. She was very happy to find that a blender was on sale at the Kitchenware Store. A sign advertising the blender stated:

It is high quality, superb, safe and durable.

You won't regret it.

She purchased the blender and kept her receipt. Once home, she unpackaged the blender and as soon as she plugged it in, the upper lid came off and the sharp blades flew out, badly injuring her right hand.

At the hospital, a doctor explained to Jenny that she would need stitches in her hand, and she would be unable to use her hand for four weeks unless the cut had healed, so the stitches could be removed. Jenny was very upset when she realised that she would not be able to participate in the planned TV Commercial and that another supermodel would have to take her place. This also meant she would lose the $12,000 fee that she would have received for the commercial.

QUESTION 1

Use the IRAC method to advise Jenny if she entered into a contract with Kitchenware Store.

You will need to address the essential elements of a simple contract including offer and acceptance, intention to be legally bound, and consideration.

QUESTION 2
Use the IRAC method to advise Jenny if the contract is voidable or void.

You will need to address the elements of a valid contract including capacity, legality, genuine consent, mistake, misrepresentation, duress, undue influence and unconscionability.

QUESTION 3
Use the IRAC method to advise to advise Jenny about the remedies she may seek under Contract Law in Australia.