Reference no: EM132330817

PROBLEM QUESTIONS -

Q1. Ming runs a hair salon called Australian Hairlines [Hairlines]. Ming decides to promote the business by advertising a 'special offer' in the local paper. The advertisement he places in the local newspaper states that 'Hairlines' will, on the production by the customer of the advertisement, give that customer a haircut at the low price of $10.

The day after the advertisement is published, some 50 people arrive at the salon asking for the special haircut at $10. Ming is overwhelmed by the response and realizes that the salon will lose a lot of money if this promotion continues. Ming decides to put up a sign in the salon's window that states "THE OFFER OF HAIRCUTS AS ADVERTISED HAS NOW FINISHED"

Questions (350 WORDS) -

A) Could Ming argue that the payment of $10 is insufficient for the promise of what would normally be a $60 haircut, and consequently, there are no legal obligations on the business?

B) Ming believes he has now withdrawn the promotion and has no further obligation to provide cut-price haircuts. Is this correct?

Q2. Lucy, Seamus and Koo are students who are keen to earn an income in their spare time to finance their studies. Lucy has a truck, Seamus owns a lawnmower and Koo has a computer. They print flyers advertising LuSeKo Mowing Service [LuSeKo], their registered business name, which they drop in to neighbourhood letterboxes.

Within a short time, LuSeKo has a list of regular clients. Seamus cuts the grass, Lucy removes the clippings in hertruck and Koo keeps the accounts.

Seamus decides that they need an industrial ride-on mower and orders one from FastCut Mowers in the name of LuSeKo.

Lucy and Koo were not consulted about this purchase. Meanwhile, Lucy develops a separate business relationship with many of LuSeKo's clients by removing rubbish from their properties on weekends while Seamus and Koo are busy studying. These clients pay Lucy in cash, which she deposits into her personal bank account. Lucy does not disclose these jobs to Seamus and Koo.

When FastCut's bill arrives, Koo is particularly upset when she realises there is insufficient money in the LuSeKo bank account to pay for the ride-on mower.

Then, while operating the ride-on mower, Seamus hits a stump and is flung under the rotating blades. He later dies as a result of his injuries.

QUESTIONS -

(a) Are Lucy, Seamus and Koo carrying on a partnership? (120 WORDS)

(b) Assuming that Lucy, Seamus and Koo are in partnership, would Lucy and Koo be liable to contribute to the purchase of the ride-on mower? (120 WORDS)