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Assessment Task:
MLC101: Law for Commerce Assessment Answer

CASE STUDY: MR TWADDLE AND PIPPOP LTD.

Scenario One Mr Twaddle is a businessman and is looking to purchase a new printing machine which will be able to output more than 10,000 sheets of paper per day. He contacts PipPop Ltd (PipPop), the largest company in Warrnambool that, among other businesses, manufactures printing machinery. PipPop’s sales representative suggests the Speedway machine, which she says, in her opinion, should be able to output 15,000 sheets per day. Based on that statement, Mr Twaddle bought the Speedway machine and secures several large printing jobs, which require him to be able to print between 12,000 and 15,000 pages per day. Once it is in use, the Speedway machine is only able to print 10,000 pages per day. Mr Twaddle contacts PipPop to obtain a refund. PipPop deny any liability and point to their written contract, which states that the printing capacity of Speedway is 10,000 pages per day.

Can Mr Twaddle hold PipPop to the verbal statement of the sales representative? Advise Mr Twaddle. Please use case law to support your answer. DO NOT DISCUSS FRAUDULENT OR INNOCENT MISREPRESENTATION, IMPLIED TERMS OR THE AUSTRALIAN CONSUMER LAW

 

Scenario Two Mr Twaddle decided to acquire a sushi bar business. He borrowed heavily to purchase the business. The business was located in the premises leased from the landlords, who happened to be PipPop. The lease of the premises was due to expire but it contained an option to renew, which Mr Twaddle knew about. Nevertheless, after Mr Twaddle took over the business from the seller of the sushi bar, he failed to exercise the option to renew the lease. As a consequence, he was left with the prospect of substantial loss. PipPop initially refused to extend the time for the exercise of the option. However, after negotiations, PipPop agreed that they would extend the option for a sum of $50,000. Mr Twaddle made the payment in protest and then renewed the lease. Mr Twaddle knows that you are studying Law for Commerce at Deakin University and comes to you for advice as to whether he has a strong case against PipPop for unconscionable conduct.

Advise Mr Twaddle. Please use case law to support your answer. DO NOT DISCUSS THE STATUTORY PROVISIONS IN THE AUSTRALIAN CONSUMER LAW.

Scenario Three PipPop also sells its printers overseas. Mr Twaddle’s brother runs a very successful printing business in Singapore called UltraPrint. UltraPrint requests that PipPop designs and manufactures three special commercial printers that will be able to output more than 50,000 sheets of paper per day to keep up with demand. PipPop is very excited about the project, having yet to design and manufacture anything that can print more than 20,000 sheets of paper per day. PipPop is aware of its liability under the Australian Consumer Law, but the contract with UltraPrint specifically states that ‘international legal conventions in relation to the sale of goods must be adhered to’. PipPop comes to you because it would like to know the following: 1. Which international convention will apply to its contract for the sale of printers to UltraPrint; 2. Whether that Convention is applicable to the contract; 3. Whether PipPop can exclude the application of the Convention, or at least vary the effect of its provision; and 4. They are also curious as to whether PipPop can take its time to manufacture the printers as the contract did not stipulate the date of delivery.

Advise PipPop. Note: Both Australia and Singapore are treaty members of the relevant Convention.

 

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  • Posted on : December 10th, 2018

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