Task 1

In order to prevent illegal import of ivory products, the government places the following advertisement in several newspapers:-

"A reward of $100,000 will be offered for information given to the Customs and Excise department that leads to successful conviction of persons who without a license import ivory products into this country."

Dave sees the advertisement in a magazine and suspects his colleagues Ellen has been smuggling ivory product from South East Asia. He informs the Customs and Excise department immediately. After giving the information to the department, the Customs officer thanks him but tells him that the government will no longer pay any reward since last month. The advertisement that Dave sees is from a magazine published 3 months ago.

1a. Explain the requirements for the formation of a valid contract. Apply the rules on offer, acceptance and consideration and advise Dave as to whether or not he has a claim against the government for providing the information required in the advertisement.

1b. How does the law approach the issues of consideration, intention to create legal relations and the capacity to contract. Use the above scenario to give examples to illustrate your answer.

Task 2

Alvin saw an advertisement from Sea Restaurant which offered two buffet dinners for the price of one person but guests must purchase the discount coupon two weeks before the dinner. Alvin went to Sea Restaurant the next day and paid for the dinner coupon. At the back of the coupon is a clause stating:

"Sea Restaurant is under no liability for any injury, loss or damage caused to any person in connection with the use of this restaurant."

Two weeks later, Alvin and his friend had their buffet dinner in Sea Restaurant. But on the next day, Alvin vomited and had diahorrea. It was discovered later that the food in Sea Restaurant was contaminated.

2a. The clause in the coupon is an example of an exclusion clause. Explain what is meant by an exclusion clause and what effect a valid exclusion clause generally will have.

2b. Exclusion clauses like this one are often found in standard form contracts. Explain what is meant by a standard form contract and give other business examples. Do you think that standard form contracts need to be regulated?

2c. How do both the courts and statute seek to ensure that exclusion clauses are fair and reasonable?

2d. Will Sea Restaurant be able to rely on this exclusion clause?

Task 3

3a. For a successful claim in negligence, a claimant must prove

- A duty of care exists
- The duty of care was breached
- The damage is both direct and foreseeable

Explain and illustrate with case law what is required in establishing each of these requirements.

3b. In what ways is the legal relationship between the parties in tort different to the relationship in contract law?

Task 4

Mike is employed in a Milky Salon as a hair stylist. He is popular as he often advises customers on the do's and don'ts regarding hairs. He also styles hairs for some important fashion shows. Two weeks ago, Milky Salon bought a batch of hairdryers from Nathan Ltd.

Ada is Mike's customer. This afternoon when Mike set Ada's hair, the hairdryer exploded, badly singeing Ada's hair and burning her scalp. She was hospitalized immediately and the doctor estimated that the cost of scalp tissue replacement operation and consequential treatment would be tremendous.

4a. What is meant by the term vicarious liability? Explain the rules that the courts will apply in deciding if the blame for a negligent act can be shifted from the employee to the employer.

4b. Apply the rules on both negligence and vicarious liability to consider who would be liable for Ada's injuries.