ACBUS201A Commercial Law I
ACBUS201A Commercial Law 1 – Semester 1, 2021
Assessment 2: Case Study – 25% weighting – Due Week 10
The annual Australian Financial Advisors Association members conference will
be held in Perth, Western Australia this year. Josie is the Sales & Events Co-
ordinator for the Association which is headquartered in Sydney and she has the
responsibility for arranging everything in connection with the conference. This
year’s conference will focus on ‘Superannuation and Tax Concessions’ and
Josie’s role is to ensure that all of the conference attendee’s requirements are
met including accommodation, travel, food and clothing.
Josie begins her task by looking up the website of A-Class Tours Pty Limited in
order to book a bus for the purpose of the delegate’s travel to and from the
hotel to the conference centre during the 5 day visit to Perth. The website clearly
states that all bookings must be made online. Josie telephones the company on
11 January 2021 and has a general discussion with Jackson, the company
representative, about a number of related matters including the availability of a
bus, the dates and prices. She does not specifically confirm a booking or pay a
deposit during that conversation.
A week later on 18 January 2021, Audrey posts a letter to A-Class Tours Pty
Limited office in Perth stating that she would like to proceed with her booking
as discussed with Jackson.
In addition to the ‘booking’ that she makes with A-Class Tours Pty Limited, Josie
books all the accommodation and other conference and travel activities through
‘Best Ever Travel’, a travel agency. On 25 February 2021, Josie realises that she
has not yet organised any of the specially made polo shirts which the delegates
will wear during the conference. She goes to ‘Shiny Promotions” to make these
arrangements. She orders the polo shirts to be made with ‘Australian Financial
Advisors Association – Annual Conference 2021’ to be embroidered on the
sleeve. Josie agrees to buy the polo shirts for $75 each after the shop owner says
“I’ve been in business for 28 years and my clothes are made from the finest
quality cotton and workmanship. Trust me, you will have no problems with
them. Look at this quality. Feel this material. I guarantee you that nothing will
go wrong.” Josie is so disappointed and stressed that she has left things to the
last minute and tells the shop owner that if he does not provide the clothing
ACBUS201A Commercial Law I
within 14 days she will destroy him and his business. When the clothing finally
arrives, Josie discovers the polo shirts are not made from cotton and the logo
embroidered on the sleeve says “2020” rather than “2021”.
One week before the delegation is due to travel from Sydney to Perth, the West
Australian Premier declares a state of emergency as a result of the worsening
coronavirus pandemic and spreading infections, and decides to close all the
borders. All flights into the State are cancelled and all roads into Western
Australia are closed. As a result, all conferences and event gatherings are
prohibited until further notice.
Part A – 1,000 words (15 marks)
Based on the above information and your knowledge of Australian contract and
consumer law, answer the following questions (Note: Question 4 includes
additional facts that must be considered when dealing with that question).
1. Outline and describe any legal contractual issues in relation to Josie’s booking
with A-Class Tours Pty Limited and whether or not she and/or the Australian
Financial Advisors Association have a contractual arrangement with them. Use
relevant cases to support your answer.
2. Outline and describe whether or not Josie’s conduct towards the shop owner
at ‘Shiny Promotions’ has any impact on the contract she has agreed to for the
manufacture of the delegate’s polo shirts. Use relevant cases to support your
3. Advise Josie if her contract with ‘Best Ever Travel’ is enforceable, given the
state of emergency declaration, worsening coronavirus pandemic and the
subsequent cancellation of all conferences and event gatherings. Use relevant
cases to support your answer.
4. Due to great disappointment following the cancellation of their annual
conference in Perth, the Australian Financial Advisors Association decides to
reschedule the conference to Batemans Bay on the NSW south coast.
Unfortunately, this trip is a terrible disaster, as the travel agency used by Josie
failed to make bookings adequately to accommodate the whole delegation, did
not book enough tickets for the scenic Clyde River boat tour and failed to
adequately cater for all attendees at the closing dinner to be held at the Soldiers
ACBUS201A Commercial Law I
With reference to this additional information, outline whether or not Josie
and/or the Australian Financial Advisors Association is entitled to sue for
damages? Fully explain your answer and use relevant cases to support your
5. For the purposes of the Australian Consumer Law (ACL) discuss whether or
not Josie would be a ‘Consumer’ in relation to her dealings with ‘Shiny
6. Has the shop owner of ‘Shiny Promotions’ committed a breach of the
Australian Consumer Law (ACL) in relation to his statement “I’ve been in
business for 28 years and my clothes are made from the finest quality cotton
and workmanship. Trust me, you will have no problems with them. Look at this
quality. Feel this material. I guarantee you that nothing will go wrong” and the
circumstances surrounding the polo shirts received by Josie? Use relevant cases
to support your answer.
PART B – Research Task – 500 words (10 marks)
Businesses within Australia operate within a legal framework based on the
fundamental common law principle of legal precedent, and an adversarial
approach to dispute resolution. Some other countries also use similar common
law systems, however many do not.
First, research the legal systems of other countries, and then choose a country
that does not use the common law system.
Compare and contrast how the legal system of your chosen country and explain
how it differs from the Australian legal system, specifically regarding the role of
precedent, and the role of judges in dispute resolution. You must include
examples of each to support your comparison. You must include relevant
legislation and/or case law (as applicable).