marketing
Commercial Law
Some Revision Questions from Past Exam Papers
Question
X Ltd imported television sets from Taiwan where they were manufactured by the Taiwan Toy Company. The Taiwan Toy Company has an excellent worldwide reputation for producing high quality, very safe products. One of the television sets developed an electrical fault when being shipped to Australia. The fault could only have been detected if every television set was individually tested by X Ltd.
X Ltd sold the television as one of a consignment to the SupaTV Discount Store, which has now gone into liquidation. Before it went into liquidation SupaTV sold the faulty television to the ABC Advertising Company. ABC used the television set for making presentations to its clients. Unfortunately, when ABC was presenting to one of its biggest clients, the fault in the television set caused it to explode damaging ABC’s business premises and destroying ABC’s DVD player which was attached to the television set. Fortunately, no one was injured.
Does ABC have an action(s) against X Ltd for damages? Explain fully.
QUESTION
Nutt & Bolt Pty Ltd operates a retail hardware store in Caulfield. Mr Nutt and Ms Bolt are the directors. Nutt is the managing director. He manages the retail store, while Bolt looks after the accounts. Nutt and Bolt have agreed that all company transactions involving more than $1,000 will only be made with the approval of both directors.
Nutt leased a new Ford car in the company’s name from H Cars Pty Ltd. The cost of the lease is greater than $1,000. Nutt did not tell Bolt about the transaction. Nutt used the vehicle for his own purposes and to drive to work each day.
H Cars is owned and operated by Nutt’s brother-in-law who knew that Nutt did not have authority to enter into transactions over $1,000.
When the first account from H Cars arrived, Bolt refused to pay arguing that the company (Nutt & Bolt Pty Ltd) was not liable for the debt as Nutt did not have authority
Some Revision Questions from Past Exam Papers
Question
X Ltd imported television sets from Taiwan where they were manufactured by the Taiwan Toy Company. The Taiwan Toy Company has an excellent worldwide reputation for producing high quality, very safe products. One of the television sets developed an electrical fault when being shipped to Australia. The fault could only have been detected if every television set was individually tested by X Ltd.
X Ltd sold the television as one of a consignment to the SupaTV Discount Store, which has now gone into liquidation. Before it went into liquidation SupaTV sold the faulty television to the ABC Advertising Company. ABC used the television set for making presentations to its clients. Unfortunately, when ABC was presenting to one of its biggest clients, the fault in the television set caused it to explode damaging ABC’s business premises and destroying ABC’s DVD player which was attached to the television set. Fortunately, no one was injured.
Does ABC have an action(s) against X Ltd for damages? Explain fully.
QUESTION
Nutt & Bolt Pty Ltd operates a retail hardware store in Caulfield. Mr Nutt and Ms Bolt are the directors. Nutt is the managing director. He manages the retail store, while Bolt looks after the accounts. Nutt and Bolt have agreed that all company transactions involving more than $1,000 will only be made with the approval of both directors.
Nutt leased a new Ford car in the company’s name from H Cars Pty Ltd. The cost of the lease is greater than $1,000. Nutt did not tell Bolt about the transaction. Nutt used the vehicle for his own purposes and to drive to work each day.
H Cars is owned and operated by Nutt’s brother-in-law who knew that Nutt did not have authority to enter into transactions over $1,000.
When the first account from H Cars arrived, Bolt refused to pay arguing that the company (Nutt & Bolt Pty Ltd) was not liable for the debt as Nutt did not have authority