Reference no: EM133525508 , Length: word count:9000

Question 1
Jacob notices that exotic plants are growing in his neighbour's garden and sees an opportunity to make some money.
During the night, Jacob enters his neighbour's garden without permission. He removes some of the exotic plants and sells them at a local market.
(a) Explain, with justification, two torts that may have been committed by Jacob.
(b) Identify two legal remedies available to Jacob's neighbour.

Question 2
Nicola has the following two unrelated contract issues:

Issue One
Nicola has recently signed a contract to lease a shop for five years. Nicola has now seen another shop which she prefers and has asked to be released from the signed contract. The owner of the original shop refuses, claiming the contract is legally binding.

Issue Two
Nicola's son, Adam, is 16 years of age. Without Nicola's knowledge, Adam has purchased a course of driving lessons with a local driving school for when he turns 17 years of age. Nicola is unhappy because she has already bought Adam driving lessons. Adam contacts the local driving school to cancel the course of driving lessons and they refuse, claiming the contract is legally binding.
(a) Explain, with justification, whether the five-year lease for the shop is legally binding.
(b) Discuss whether Adam has a legally binding contract with the local driving school. Refer to one statute in support of your discussion.

Question 3
XY Ltd is a theatrical production company who engaged a ticketing firm, TD Ltd, to sell tickets for various XY Ltd theatres productions.
XY Ltd has discovered that TD Ltd has been selling some of their theatre tickets at a higher price than has been agreed. XY Ltd are only being paid the original amount agreed.
XY Ltd has also learned that TD Ltd has been discounting some theatre tickets without the permission of XY Ltd. TD Ltd has defended this practice by stating that discounting of tickets is common practice in the industry.
Both of these actions have impacted XY Ltd's profits.

(a) Discuss whether XY Ltd can recover the monies raised by the sale of the theatre tickets at an increased price by TD Ltd.

(b) Explain, with justification, whether XY Ltd can successfully claim against TD Ltd for selling tickets at a discounted price.

Question 4
Yasmin owns a hotel business and intends to arrange separate insurance policies through an insurance broker for the following:
• The personal possessions of guests staying at the hotel.
• The life of Martin, the manager of the hotel.
• The life of Asif, Yasmin's brother-in-law, who occasionally helps at the hotel.
• A house owned solely by her father, Mahmood, which Yasmin hopes to inherit.
However, when Yasmin applies for the above insurance policies, she makes two incorrect statements:
• She deliberately informs the insurance broker that she is the sole owner of Mahmood's house.
• She inadvertently informs the insurance broker that Martin is five years younger than he is.
(a) Explain, with justification, the legal issues raised by Yasmin's requests to insure each of the following:
(i) The personal possessions of the guests staying at the hotel.
(ii) The life of Martin.
(iii) The life of Asif.
(iv) The house owned by Mahmood.
(b) Explain, with justification, the likely affect on the potential policies of:
(i) Yasmin deliberately claiming to be the sole owner of Mahmood's house. Refer to one relevant statute in support of your explanation.
(ii) Yasmin inadvertently giving Martin's incorrect age. Refer to one relevant statute in support of your explanation.

Question 5
AB Ltd are motor insurers. One of its policyholders, Robin, has a motor insurance policy which includes the following terms:
'AB Ltd will not provide cover in the event of a motor vehicle accident where the driver of that vehicle is under the influence of alcohol or drugs, at the time of the accident.'
Robin has recently been involved in a motor vehicle accident in the insured vehicle. He was later found to have had an adverse reaction to prescription drugs, at the time of the accident. Several third parties were injured in the accident and a number of claims have been made to AB Ltd.
It has been established that Robin was to blame for the accident. Robin was not injured, but his vehicle was damaged in the accident and he has made a claim for this damage to AB Ltd.
AB Ltd has repudiated Robin's claim. Robin argues that the policy terms are ambiguous and that his claim should be settled.
(a) Explain, with justification, whether the third parties' claims are likely to be paid. Refer to one relevant statute in support of your explanation.
(b) Explain, with justification, whether AB Ltd's repudiation of Robin's claim is valid. Refer to one relevant statute in support of your explanation.
(c) Discuss whether Robin's argument regarding the ambiguity of policy terms is valid. Refer to one relevant case in support of your discussion.

Question 6
You are a claims handler for an insurer.
A policyholder has a commercial combined policy covering their property.
A fire broke out at the policyholder's premises, which resulted in damage and led to the policyholder making a claim for the following:
• Total loss of an outbuilding.
• Damage to items stored in an adjacent building caused by water damage when the fire in the outbuilding was extinguished by the fire service.
• Theft of items stored in another adjacent building which occurred whilst the fire was being extinguished.
(a) Explain, with justification, whether the policyholder's claim for the loss of the outbuilding will be covered. Refer to one relevant case in support of your explanation.
(b) Explain, with justification, whether the policyholder's claim for the items in the adjacent building that were water damaged will be covered. Refer to one relevant case in support of your explanation.
(c) Explain, with justification, whether the policyholder's claim for the theft of the items in the other adjacent building will be covered. Refer to one relevant statute in support of your explanation.

Question 7
You are a claims handler for an insurer. One of the insurer's policyholders with property damage insurance, Desislava, has an import/export business. Desislava owns a former paper mill, which is a Grade II Listed building. Desislava uses the former paper mill for the storage of items.
The former paper mill is insured for the sum of £500,000 and its contents for £200,000, both based on expert valuations carried out in 2018. The policy has been renewed annually with no changes to the sum insured being requested by the policyholder.
The former paper mill has been extensively damaged by a recent flood and the following contents have been damaged beyond repair:
• Computers - which were due to be given to a charity for use in projects abroad, as they could not be sold on the open market.
• Paintings - which have recently become highly sought after, due to a surge in the popularity of the artist.
Desislava submits a claim for the damage to the former paper mill, the computers and paintings.
(a) Discuss the likely basis of indemnity and settlement for the former paper mill. Refer to one relevant case in support of your discussion.
(b) Discuss the likely basis of indemnity and settlement for the computers.
(c) Discuss the likely basis of indemnity and settlement for the paintings.

Question 8
You are a claims handler for CD Ltd, an insurer. One of your policyholders, WTX Ltd, are the owners and operators of a water taxi. WTX Ltd's insurance policy with CD Ltd contains a non-contribution clause.
WTX Ltd decided not to renew its insurance policy with CD Ltd and arranged for a new insurance policy with another insurer, EF Ltd. The insurance policy with EF Ltd includes a rateable proportion clause. The insurance policy with EF Ltd began on the same day as the policy with CD Ltd expired.
On the date when the insurance policy with CD Ltd expired and its insurance policy with EF Ltd began, the water taxi was involved in a collision with another boat. WTX Ltd has claimed against both insurers for the damage to the water taxi.
Both insurers decline the claim.
(a) Discuss the extent to which WTX Ltd are insured. Refer to one relevant case in support of your discussion.
(b) Discuss the legal implications for WTX Ltd of an insurance policy having a non-contribution clause, rather than a rateable proportion clause.

Question 9 - Across more than one Learning Outcome
You are a claims handler for an insurer. One of its policyholders, NMO Ltd, a hotel chain, has a commercial combined insurance policy.
You have received a claim from NMO Ltd.
NMO Ltd states that, following an inspection by the Fire Service and in accordance with its legal powers to do so, one of NMO Ltd's hotels was closed without any notice. This closure was due to inadequate fire safety provision.
During the inspection, one of the Fire Service's employees was seriously injured, due to difficulty accessing part of the structure of the hotel. The hotel accepts that better provision could have been made for access to the structure, but argues that the Fire Service employee did not need to enter that part of the building.
The Fire Service employee has made a claim for the injury they sustained at NMO Ltd's hotel.
The hotel has informed those guests with future bookings about the closure and current guests have been accommodated elsewhere. Several future guests, all of whom booked directly with the hotel, have claimed compensation in respect of the cancelled bookings.

You are now investigating the various claims submitted.
(a) Discuss the basis on which the liability might be established against NMO Ltd for the Fire Service employee. Refer to one relevant statute in support of your discussion.
(b) Explain, with justification, any defences that may be available to NMO Ltd in respect of the Fire Service employee.
(c) Discuss NMO Ltd's potential liability in respect of the cancelled bookings. Refer to one relevant case in support of your discussion.

Question 10 - Across more than one Learning Outcome
You are a claims handler for a household insurer, ABC Ltd. Mamit, one of your long-standing household insurance policyholders, has recently reported that a personal injury action was brought against him by a security guard employed at a local supermarket. This action resulted in an award of compensation. Mamit's insurance policy covers personal liability and he has made a claim to ABC Ltd to settle the security guard's award of compensation.

During ABC Ltd's investigation, it is established that:
• Mamit entered the local supermarket in order to steal goods.
• During the same visit, when trying to escape from the security guard, Mamit pushed a shopping trolley into the security guard causing the security guard to sustain an injury.
• The security guard's action was successful over 11 months ago.
• Mamit was convicted of a shoplifting offence just under five years ago, Mamit claims he thought the conviction was 'spent' and did not declare it to ABC Ltd previously.

ABC Ltd has declined Mamit's claim and Mamit has made a complaint concerning this declinature.

The security guard has taken every opportunity to tell the local community both verbally and through social media that Mamit is violent and a thief, and should not be employed. Mamit lost his job over the incident and is finding it difficult to find employment.
(a) Explain, with justification, the legal implications of Mamit's failure to disclose the shoplifting conviction to ABC Ltd. Refer to one statute in support of your explanation.
(b) Discuss the legal impact of Mamit's failure to contact ABC Ltd, immediately after the incident occurred.
(c) Explain who else the security guard could have pursued in an action for their injury.
(d) Discuss the legal liability in respect of Mamit's loss of employment caused by the security guard's comments.