ONLINE ASSESSMENT (MAIN)

(DIPLOMA PROGRAMMES)

Date : 28 January 2021

Module : LAW0115 Business Law

Time : 19:00 – 21:00

Duration : 2 hours

E
Total no. of pages : 5 pages + 9 pages of Case Studies List
(including the cover page)

INSTRUCTIONS TO CANDIDATES:

1.
PL
The assessment carries a total of 100 marks. Answer ALL questions:

Section A (50 marks): 2 questions

Section B (50 marks): 2 questions

2. Answer ALL the questions in the answer template provided. Fill in the cover page
M
carefully.

3. All answers must be clearly written using the answer template provided.

4. A NINE (9)-page Case Studies List is included in the assessment.

SA

5. Please note that the answer template will be submitted through Turnitin to detect
plagiarism.

At the end of the assessment:

Please save the answer template using the file name LAW0115XXXX (where XXXXX is
your full name) and upload the answer template in eGlobal. Please note that this has to been
done within the 2-hour duration.

SIM GLOBAL EDUCATION RESERVES THE RIGHT NOT TO MARK

YOUR SCRIPT IF YOU FAIL TO FOLLOW THESE INSTRUCTIONS.

DIPL/LAW0115/Jan2021/MainTest Page 1 of 5
SECTION A

Question 1 (25 marks)

In Jan 2020, Marcy visited a nail spa called “Pretty Steps Nail Spa” (PS) and bought a
package from PS amounting to $1800. The package entitled her to 10 sessions each of
premium manicure and pedicure. She was subsequently unable to visit PS due to the
COVID-19 restrictions. In Sep 2020, when Marcy tried to contact PS to book an
appointment to get a nail treatment, she found out that PS had already stopped operating.
Marcy had only used one session of her package. Marcy would like to know what legal
options she might have to cover her money.

(a) Advise Marcy on the jurisdiction and process of starting legal action in the Small
Claims Tribunal and state TWO (2) advantages of using the Small Claims Tribunal.

E
(10 marks)

(b) Apart from the Small Claims Tribunal, advise Marcy on another court that might be
PL
appropriate for her to file the claim at.
(4 marks)

(c) Discuss Alternative Dispute Resolution (ADR) in Singapore and suggest an

appropriate option under ADR for Marcy.
(11 marks)
M
SA

DIPL/LAW0115/Jan2021/MainTest Page 2 of 5
Question 2 (25 marks)

Lily recently bought a new Zenzoong Note21 5G mobile phone when she re-contracted her
mobile plan. Since she did not need a new phone, she decided to sell her new phone to the
highest bidder. On 2 Jan 2021, she posted an advertisement on Quiksale, an online
community marketplace cum classifieds platform. In the advertisement, Lily stated “Special
Offer! Brand new Zenzoong Note21 5G mobile phone in elegant rose gold. Highest bidder
secures. Call or WhatsApp: 82353535. Hurry! Offer expires on 10 Jan 2021.”

On 3 Jan 2021, Dash saw Lily’s advertisement and called her to ask if he could view the
phone. He also asked Lily what was the highest bid she had received to date. Lily replied
that the highest bid received was $688 but added that she will not accept any price lower
than $988. They agreed to meet on 5 Jan 2021 for Dash to examine the phone. On 4 Jan
2021, Dash sent a WhatsApp message to Lily stating that he would like to buy Lily’s phone
for $888. Lily replied by WhatsApp that she would only sell the phone for $988.

E
On 5 Jan 2021, Lily was not able to meet Dash because she was not feeling well. They
agreed to reschedule. On 11 Jan 2021, she received a WhatsApp message from Dash stating
that he would like to buy her Zenzoong Note21 5G mobile phone for $988 and he could

(a)
PL
meet her that afternoon to exchange the phone for cash.

State the definition of a contract and ALL the elements required to form a valid
contract.
(5 marks)
M
(b) Advise Lily whether she had an obligation to sell her mobile phone to Dash. In your
answer, you should provide all relevant LEGAL PRINCIPLES and case laws to be
APPLIED to the facts of the case to reach your CONCLUSION.
(16 marks)
SA

(c) Advise Lily how she might be able to revoke an offer using case law.
(4 marks)

DIPL/LAW0115/Jan2021/MainTest Page 3 of 5
SECTION B

Question 3 (25 marks)

Diana and Steve decided to use their SingapoRediscovers vouchers and booked a staycation
at a 4-star boutique hotel, “Singa Inn” for the weekend. Their package included high tea at
the hotel’s café and a tour of the Singapore River area by rickshaw. After they check in ,
they were delighted at the decoration and amenities within their room. Steve started to take
pictures of the room and the surroundings while Diana unpacked.

They left the room at 3pm for their high tea and the rickshaw tour. While they were on their
tour, Diana realised that she did not have her mobile phone (a brand new iPhone 12 pro)
with her. She recalled placing her phone on the bedside table in the room. Steve took out
his mobile phone to check the photos he had taken. In one of the photos, they saw that
Diana’s mobile phone was indeed on the bedside table. After the rickshaw tour and dinner,

E
Diana and Steve returned to their room at about 9pm.

Diana immediately looked for her mobile phone but was unable to find it on the bedside
table. She then kneeled beside the bedside table to search behind and under the bed. As she
PL
was getting up, her left hand brushed against the sharp corner of the bedside table and started
bleeding profusely. Steve quickly wrapped a towel around Diana’s left hand to stop the
bleeding and called the front desk to ask for the Manager, Max Loh.

When Max Loh arrived at their room, he pointed the couple to a signboard behind the room
door and explained that the hotel would not be liable to them in any way. The words in bold
on the signboard stated, “Singa Inn shall not be responsible or held liable for all or any
personal injuries to the hotel guests during their stay in the room, whether the injury
M
is caused by the negligence of the hotel or otherwise. Singa Inn shall also not be
responsible or held liable for articles lost or stolen from the room. It is the
responsibility of the hotel guests to hand over their valuables to the front office for
safekeeping.”
SA

Advise Diana and Steve on whether Diana can claim for:

(a) injury to her left hand; and

(b) the loss of her mobile phone.

In your answer, you should consider ALL factors and provide all relevant LEGAL
PRINCIPLES and case laws to be APPLIED to the facts of the case to reach your
CONCLUSION.

(25 marks)

DIPL/LAW0115/Jan2021/MainTest Page 4 of 5
Question 4 (25 marks)

Sophia wanted to buy a new mattress for herself. She decided to shop at Seamy Mattress
Specialist (SMS) because she heard that the sales staff at SMS were knowledgeable and
friendly. At SMS she told Michael, the sales manager, that she had been having bad
backaches and needed a firm but comfortable mattress. Michael replied that their mattresses
were all of the best quality and proceeded to show her the Seamy Posturecare Luxe Mattress.

Michael took out a folder and showed Sophia a brochure for the Seamy Posturecare Luxe
Mattress. He assured Sophia that the mattress was made of very good materials and that
Sophia would be able to get a very good rest with it. He also emphasized to Sophia the words
in the brochure, which described the mattress as being made from “premium, eco-friendly
materials with the latest innovation in coil technology and uncompromising in comfort.” He
then stated, “I guarantee your backaches would be cured after sleeping on our mattress for
2 weeks. Let me show you proof.” He proceeded to show her a review written by a doctor

E
on the benefits of the Seamy Posturecare Luxe Mattress for backaches. The review stated
that the doctor tested the Seamy Posturecare Luxe Mattress on himself because he had
chronic backaches. He found that his backaches disappeared after using the mattress for 2
weeks.
PL
As Sophia was quite desperate to get rid of her pain, she proceeded to order the mattress. It
was delivered the next day. 3 weeks after using the mattress, Sophia found that her
backaches did not improve but became worse. She saw a specialist and was told that one of
the causes of the backaches might have been due to poor support while resting. Sophia had
also found out that the review by the doctor was in fact written by one of SMS’ staff. Sophia
approached you for advice.
M
(a) Define vitiating factors and the effects vitiating factors may have on contracts.
(4 marks)
SA

(b) Advise Sophia if she might have a course of action against SMS based on the
precontractual statements that Michael had made or shown to Sophia. Support your
answer with relevant case law.
(16 marks)

(c) State FIVE (5) situations where a party might be restricted from rescinding a
contract.
(5 marks)

---- END OF PAPER ----

DIPL/LAW0115/Jan2021/MainTest Page 5 of 5