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Margaret owned an antique store that specialised in rare porcelain dolls. When sheopened the business in 1989, it was at a shop in an eastern suburb of Melbourne. In 1999she started to advertise on the Internet and by 2006 the business had grown to the pointwhere she needed help to keep the business going. After a family discussion one night atthe kitchen table in July 2006, it was agreed that Margaret would probably keep thebusiness going for another couple of years and then retire. Emily, her youngest daughterand aged 16, would work in the shop as long as was needed and in return, she wouldreceive any unsold dolls. When Margaret retired at the end of 2009, she decided that shewould give the unsold stock to charity and they could auction it and keep the proceeds.Advise Emily.2. Richard, an impoverished university student, and his millionaire father enter into anarrangement where Richard agrees that he will keep the front- and backyards of thefamily property mowed, and he will 'do a bit' to keep the gardens looking tidy. In return,his father agrees to pay him a weekly allowance of $200. His father had previously used agarden contractor to do the job and paid him $350. They live on a one-hectare property,and the mowing alone takes half a day a week. After four weeks, Richard's father tells himthat he can't afford to pay $200 a week. He says that Richard should be doing the workfor nothing, as it is the responsibility of the whole family to look after the property;besides, he says, Richard is getting free board and lodging. Advise Richard.3. Jenny received a circular from Beauty and the Beast Hair Salon advertising massages andmanicures for $10. Realising that this was an exceptionally good deal, but not surprisedbecause she knew that they had only just opened and were running a number of goodopening specials, she rang and made a booking. When Jenny arrived at the salon she wastold that there had been a mistake on the circular and it should have said $100. Themanager of the salon explained that this was still a good price because normally amassage and manicure would have cost $150. Jenny was furious, as it had taken her 30minutes to get to the shop by car and if she had known it would cost $100, she wouldnever have made the booking. Advise Jenny. Would your advice have been any different ifJenny had the massage and manicure before being told that the cost was $100? Wouldshe have to pay the full price?4. Bruce, while he was so drunk that he didn't know what he was doing, bid successfully atan auction for the purchase of a house. It was clear to the auctioneer that Bruce didn'tknow what he was doing. However, after Bruce sobered up he confirmed the contractwith the auctioneer. He then subsequently refused to complete the contract. Is Brucebound?
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