SAMPLE QUESTIONS.

NOT A PART OF THE FINAL ASSESSMENT

1. Mark and Anthony have developed a new engineering technique and

business model which they anticipate would bring new innovation in the
design of solar panels for generation of electricity by individual households
to be fed back into the national grid. They propose to get government
funding through the Innovation Fund Co start-up operations in the new
High-Tech Industrial Park where the rents are much lower than in any other
location. Anthony is a civil engineer who has done all of the technical work
on the project and will be responsible for the operations arm of the
business. Mark is a chartered accountant who has developed the business
plan to start up the operations and Avill manage the financial and
commercial arm of the business. Advise both Mark and Anthony on the
appropriate corporate / legal structure that would suit their business plan
as they are not familiar as the difference between a partnership and a
company.

2. David Who lives in Station Hill, Saint James wrote to Jerry in ChancelY Lane,
Saint John offering to sell his Toyota Corolla for $40,000.00. One receiving
David's offer, Jerry telephoned him in order to accept. David told him that
since such a large sum of money was involved, he wanted written
confirmation of the acceptance from him by registered mail. He stated that
if Jerry got the letter of acceptance to him by 10:00 a.m. the next day which
was Wednesday, he would go ahead with the sale at $40,000.00. Jerry at
 once wrote back and posted letter of acceptance which David received at
10:30 a.m. on the Wednesday morning. In the meantime, however, David
had received a better offer for his Corolla, and wrote to Jerry withdrawing
his offer to him. This letter was posted at 5:00 p.m. on the Tuesday evening,
and was received by Jerry at 8:30a.m. on Wednesday. Advise Jerry and
David. Cite relevant cases to support your answer.

3. Joseph has entered into a contract to have an air-conditioning system

installed into his house by Coolflo Ltd. at a cost of $40,000.00. He pays
$4,000.00 as a deposit and the work will start the following week. Consider
the rights and liabilities of Joseph and Coolflo Ltd. in relation to this
contract if the following events:
a. Joseph’s house accidentally caught fire

b. The government announces that due to a scare of legionnaire’s disease,

air-conditioning systems of the kind that Joseph is having installed will

become illegal

c. Joseph takes a huge financial loss in his business and sells the house

two days before the work commences

d. Joseph attempts to do some wiring while the workers are on a break

with the result that the entire system has electrical problems for which

Joseph refuses to finish paying.

 e. The firm making parts which are essential to complete the system goes
out of business for two months, with one other source of supply.
However this source will increase Coolflo Ltd. expenses by $500.00, and
they refuse to complete.

4. Jasmine parked her Toyota Corolla car in a customers’ car park of “The Croc
Restaurant” at a cost of $10.00. Upon entering the car park she was given a
receipt. On the back of the receipt were the words “Management is not
liable for any injury or loss suffered by its patrons on the compound.”
Additionally at the entrance of the car park there were two notices. The
one placed on the right of the entrance was not visible because two vans
owned by the restaurant were parked in front of it. This read “Cars parked
at the owners’ risk. While Jasmine was parking the car in one of the vacant
spaces, two employees of the restaurant who were cleaning the upper
windows negligently dropped a bucket of water through the windscreen of
Jasmine’s car causing her extensive facial injury and completely ruining
some other goods which Jasmine had previously purchased. Advise Jasmine
as management states that they owe her no liability due to the Exclusion
Clauses

5. Sue appoints Ian as her agent to buy furniture and to sell it to her trade
customers. She informs her suppliers and customers of Ian’s appointment.
Sue tells Ian that he is not to buy any red sofas as she doesn’t think they are
good sellers. Ian visits Sofas Ltd, one of Sue’s main suppliers and,
 purporting to act for Sue, agrees to purchase 20 red sofas for $15,000. In
fact, Ian knows that he can sell these sofas to his friend Bob for $20,000
and keep the profit for himself. The following day, Ian enters into an
agreement with Bob to sell the sofas for $20,000 without telling Bob that
he is Sue’s agent. Shortly afterwards, Sofas Ltd find out what Ian was up to
and tells Sue that they will not honour the agreement to sell the red sofas.
Fearing a loss of business, Sue then purports to ratify the purchase with
Sofas Ltd as well as the sale to Bob. Advise the parties.

6. Briefly discuss the manner in which the Electronic Transactions Act has
affected business transactions and discuss the electronic contracts
recognized by Law.