LAW OF CONTRACT May 2018 Resit Paper

Transcription

1 LAW OF CONTRACT May 2018 Resit Paper Candidates answering the questions from the Scottish or Welsh law viewpoint: Please ensure you write Scottish or "Welsh" on the front of your examination booklet. The examiners may expect candidates to show knowledge of legislation which is in place but not in force (i.e. has been enacted) and regulations which have been made but are not yet in force, if they are directly relevant to the subjectmatter of the examination. There are three sections to the examination paper: Section A Section B Section C Consists of five questions. Candidates should attempt to answer all questions. Total allocation of marks is 25 marks. Suggested time allocation is 45 minutes. Consists of two questions. Candidates should attempt to answer one question. Total allocation of marks is 25 marks. Suggested time allocation is 45 minutes. Consists of three questions. Candidates should attempt to answer two questions. Total allocation of marks is 50 marks. Suggested time allocation is 90 minutes. Total time allowed three hours (plus ten minutes reading time). MATERIALS PERMITTED Candidates are permitted to take into the examination room their own unannotated copies of: Consumer Law Statutes (Monitor Press); Consumer Law Statutes (Sweet & Maxwell); Butterworths Commercial Law Handbook; Butterworths Commercial and Consumer Law Handbook; Blackstone s Statutes on Commercial and Consumer Law; Core Statutes on Commercial & Consumer Law (Avizandum); Statutes on Scots Commercial & Consumer Law (Avizandum); or OPSI original copies of: Sale of Goods Act 1979; Sale and Supply of Goods Act 1994; Supply of Goods & Services Act The examination paper has six pages, including this front sheet. 1

2 Section A Candidates should attempt to answer all questions - total of 25 marks. 1. With examples, briefly describe two ways in which a term can be implied into a contract. 2. English and Welsh candidates only: Explain briefly, using examples, the difference between a condition, a warranty and an innominate term, under contract law. 2. Scottish candidates only: Explain the circumstances in which a breach of contract will be considered material. 3. Mr and Mrs Pecuniary want to encourage their daughter, Meanie, to pass her GCSE examinations. They offer her 100 for every grade she achieves above a C. Meanie takes nine GCSEs and passes them all with grade B or A. Sadly, Mr and Mrs P cannot afford to pay her 900 and offer her 200 instead. Can Meanie do anything in the courts to get the money owed and why / why not is this possible? 4. English and Welsh candidates only: Using examples, briefly describe what, in contract law, can be considered as consideration. 4. Scottish Candidates only: Using case law, explain the difference between a void and a voidable contract. 5. In the law of tort/delict, we often hear the phrase The man on the Clapham Omnibus (Lord Justice Greer, 1932). With the aid of examples, describe what you think is meant by this man. Section A total of 25 marks. End of Section A. 2

3 Section B Candidates should attempt to answer one from two questions - total of 25 marks. 6. Answer both parts. The civil law provides protections for the contracting consumer; they have been outlined in the Consumer Rights Act (a) What are the main rights of consumers in relation to goods? (15 marks) (b) Outline the remedies that consumers have within the legislation when goods prove to be faulty. (10 marks) (total 25 marks) 7. Compare and contrast making a claim under the laws of contract, negligence [or delict, in Scotland] and Part 1 of the Consumer Protection Act (25 marks) Section B total of 25 marks. End of Section B. 3

4 Section C Candidates should attempt to answer two from three questions - total of 50 marks. 8. Doogit Deep was a keen gardener. He needed a new rotovator, for tilling the soil, as he had a large garden and enjoyed growing vegetables. He went to Ploughs R Us, advertised as having the best in new technological rotovators. Doogit bought the Tillit 5, which was the latest in its class. It stated in the literature that it was a self-drive machine and could break up the soil to a fine crumb. All you had to do was programme into the control box the approximate size of the garden and its shape, and the sensors on the Tillit 5 would carefully plough the soil without any other human intervention. The salesman stated that it was foolproof and, after it had been programmed, you could go away and do other tasks; when the Tillit 5 finished, it would turn itself off. Doogit was delighted with his purchase, although it cost 4000; well over twice the price of other rotovators. He was 58 years old and it would save inflaming the painful arthritis in his fingers. Doogit took delivery of the rotovator on the next day and, after an explanation and demonstration by the salesman, he set up the control box and carefully put in the dimensions and shape of his garden. It started beautifully and merrily went around the external perimeter of his garden. Satisfied, Doogit went inside to make himself a coffee. Ten minutes later, he went outside, just in time to see the rotovator veer off course and plough into his 1000 new greenhouse. The rotovator then went through the fence into the garden of Tom, his next-door neighbour, where it fell into his pond, the blades killing Tom s very expensive, ornamental fish. Investigation by an independent engineer stated that the control box was faulty and subject to outside electrical interference. The engineer noted that not to be left unattended, was stated at the back of the instruction book. Using the laws of product liability and contract, analyse the above scenario and advise Doogit and Tom of their remedies, if any. (25 marks) Section C is continued over the page. 4

5 9. Stanton Deliver is a parcel delivery firm. Advertised on its website is: Next day delivery anywhere in the UK or your money back. However, next to this is an asterisk which states: Please read our terms and conditions. In Stanton s terms and conditions, it states that, subject to parcels being collected before 12 noon, they will be delivered anywhere within the UK before 8pm on the following day. They also state: All packages are delivered at the customer s risk and no refunds will be given for damaged or lost parcels. Please tick the box if you accept these terms. Maggie Cal lives in Laindon, Essex and wants to send a birthday present to her sister in York, to arrive on her birthday 6th March. She contacts Stanton Deliver via the internet and arranges for the parcel to be collected on the following morning (5 th March) between 10am and 11am. The cost of the delivery is 14, and Maggie was not allowed to complete the transaction until she ticked the box accepting the terms; no alternative was available. Stanton did not arrive until 2pm on the 5th. Her parcel, a watch which cost 90, was collected. The parcel is marked by Maggie: Fragile, handle with care. The next day, after work, Maggie phoned her sister at around 10pm to wish her a happy birthday and asked how she liked her present. Her sister, Prudence, told Maggie that she had no present; nothing had been delivered. Three days later, the parcel arrived but the watch is badly damaged. Analyse the above scenario and advise Maggie of her rights and remedies under contract law. (25 marks) Section C is continued over the page. 5

6 10. Answer all parts. Analyse the situations below, using the law of contract, and advise all parties. (a) Jim Antonic wanted a pair of Jimmy Chow boots and went into town to look for some. He found a pair for 400 in Clobber for Chaps, tried them on and bought them for cash. He decided to go for a coffee and, as he passed Cheapskin Shoes Ltd, he noticed an identical pair of boots in the window for 250. He immediately went back to Clobber for Chaps and demanded that they refund him the difference of 150, as they had overcharged him. Advise Jim and Clobber for Chaps. (b) Emma Strange was on her way to the gym. Walking past Stig Lebootin Footwear Emporium, she noticed, in the window, a pair of court shoes in gold for They had them in a seven, her size, but it was the last pair in that size. As she had no money on her, she asked if the shop would hold them for her until later in the day, when she would come in with the payment. The shop agreed and Emma left. Later that day, Samantha also saw the shoes in the window. She went in, said that she was a size seven and asked to try on the shoes. They fitted and she offered payment on her debit card, which the shop accepted. Two hours later, Emma returned only to be told that the shoes had been sold. Advise Emma, Stig Lebootin Footwear Emporium and Samantha. (10 Marks) (c) Flash Harry s was a store in the High Street that sold designer-wear goods. All of the clothing that the store sold were top-end and quite expensive. Tim Hardup loved such clothes, but he also loved a bargain. He saw an Armammy t-shirt on the rack for 300. He tried it on and it fitted him perfectly. When he got to the counter, he said: Look, I cannot afford 300 but I will give you 250 cash. There was a lot of discussion between the Manager of the shop and the salesman but the Manager agreed that sales that day had been slow, and he sold the t-shirt for 250. Tim said that he loved Armammy shirts and left his mobile number so that they could ring him if they received any more in stock, in different styles. Later that day, Tim received a call from the Manager at Flash Harry s who said that they had made a mistake in selling him the t-shirt for 250 and they would sue him if he did not return it. Advise Flash Harry s and Tim. (10 Marks) (total 25 marks) Section C total of 50 marks. END OF EXAMINATION PAPER. 6