a) Identify and describe the commercial law concept.

b) Quote the relevant law (section and rule #).

c) Discuss and apply the law quoted (above) to the scenario.

d) Provide a brief conclusion.

Introduction

LAW501: Commercial Law mainly drives that it is essential that businesses and/or a person must comply with the law of the land, in this case, legislations covered in Fiji.

The legislations that must be covered particularly in this assignment are:

1. Sale of Goods Act 1985 (Revised Edition)

2. Consumer Credit Act 1999

3. FCCC 2010 Decree

Implied Terms

You are a well-known mechanic in your community and you agree to buy a car from Mervin. However, Mervin insists that you have to carry out repairs on the same car engine prior to its delivery. You agree to the engine works and also pay 30% of the price as deposit money. In the meantime, Mervin carries out the repair works himself but fails to notify you. The car eventually gets destroyed in a fire in Mervin's garage. You are not insured and subsequently demand money back from Mervin for non - delivery.

Apply the Statutory and Possession

You own a computer shop in outskirts of Tavua town. Your current stock take reveals that you have 600 desktops ready for sale to potential customers. The next day, you sell 100 computers to Jesus, 200 to Desmond and 500 to Pinto. All the buyers make advance cash payments; however, none of them are aware that your stock of PCs was in fact limited. In a twist of events, your business winds up without any delivery to any of the customers. A receiver is appointed to handle this winding up process. All the three customers are now claiming the computers they had bought from the appointed receiver.

Evaluate Remedies

As a newlywed couple, you take your wife to a romantic dinner out at "Bears on the Grill". Once you get a decent table by the pool, you decide to order a bottle of red wine for your wife, Raina. She consumes half of the drink and discovers some extraneous particle in the wine glass. She became ill and is placed under continuous treatment. The bottle of the wine has no identification marks on it to determine who the manufacturer is.

Apply Product Liability

You are a Lecturer in Graphic Designs at the local University and have recently obtained a travel brochure from "A to Z" travel agency for your trip to Kingdom of Tonga. During your stay in a 5 star hotel (described in the brochure) in Tongatapu, you fall through the plate-glass balcony doors and sustain serious injuries. You initiate claims and other damages against "A to Z" travel agency.

Credit Agreements

You have recently acquired a loan of FJD $30 000 from TSB Bank to buy a car. The loan agreement states that loan term is for 5 years with equal monthly installments of $250 per month. By the end of third year, you are able to clear 45% of total installments, however, you default the upcoming next two month's installment and then plan a week long holiday in Singapore when next (3rd month) installment is due. When you return from your trip, your loan officer communicates to you that the bank has terminated the agreement.