Australian Legal Issues for Accountants Assignment Facts

On 3 July 2015, Mario notices that retailer Wood Ovens Pty Ltd is having a sale of commercial grade pizza ovens. Mario explains to Lee, a salesperson for Wood Ovens Pty Ltd, that he wants an oven which will be the most suitable oven for his 24 hours a day, 7 days a week pizza shop. Lee replies that the ?Deluxe A1? model pizza oven is the top of the range in terms of pizza ovens and will be the best pizza oven for Mario?s business. Lee says that Mario can have this oven for $15 500. Mario replies that he will think about it and get back to Lee later.

Mario returns to Wood Ovens Pty Ltd on 4 July 2015 and says that he is prepared to buy the ?Deluxe A1? model pizza oven for $15 000. Lee replies that she might be able to sell this model of oven to Mario for $15 000 if Mario pays cash on delivery. Mario says that he needs to decide whether he wants to pay cash on delivery and that he will call Lee the next day.

On 5 July 2015, Mario speaks to Lee on the phone and says that he will buy the ?Deluxe A1? model pizza oven from Wood Ovens Pty Ltd for $15 000 cash on delivery if Wood Ovens Pty Ltd installs the oven at his business free of charge. Lee replies that her best price for the oven with installation included is $15 250, and that Mario has one week to make up his mind.

On 9 July 2015, Mario visits his friend Jim?s pizza shop and, to his surprise, sees Lee installing a ?Deluxe A1? model pizza oven at the shop. Mario feels pressured and tells Lee, ?OK, I accept. I will pay you $15 250.? Lee replies, ?I?m sorry, but I have just sold the last of our ?Deluxe A1? model pizza ovens to Jim for $15 000.?

Assignment Questions

With reference to case law, analyse each communication between Mario and Lee and explain whether Mario has a contract with Wood Ovens Pty Ltd.

8 marks

ACCT90015 Legal Issues for Accountants Semester Two 2015 Assignment Format Text other than footnotes and headings must be 1.5 line spaced. The font size of the body of the answer must be no less than 12 points, and the font size of footnotes must be no less than 10 points. Use headings and subheadings where appropriate. Referencing must be in accordance with the requirements of the Melbourne University Law Review Association Inc and Melbourne Journal of International Law Inc, Australian Guide to Legal Citation (3rd ed, 2010) (available on-line at or successor website). Do not: provide diagrammatical illustrations; repeat the facts of the assignment; or provide a bibliography. Word Limit The word limit for the assignment is 800 words in total. Headings, references in the text and references in the footnotes do not count towards this limit. A submission that appears to be in excess of the word limit by any amount and for whatever reason will be given at most a mark of 15. Marking Marks will be awarded based on the technical detail given in the answer and on the structure and clarity of the argument. Attention to detail (eg style, setting out, spelling, grammar, punctuation, correct citation of cases and other material) will be rewarded. Your answer should refer to relevant provisions, cases and other relevant material. If you think that you need further information in order to be able to answer a question, you need to state what that information is and why it is that you think you need it. It is not sufficient merely to state that further information is required. 2 Assignment Facts On 3 July 2015, Mario notices that retailer Wood Ovens Pty Ltd is having a sale of commercial grade pizza ovens. Mario explains to Lee, a salesperson for Wood Ovens Pty Ltd, that he wants an oven which will be the most suitable oven for his 24 hours a day, 7 days a week pizza shop. Lee replies that the 'Deluxe A1' model pizza oven is the top of the range in terms of pizza ovens and will be the best pizza oven for Mario's business. Lee says that Mario can have this oven for $15 500. Mario replies that he will think about it and get back to Lee later. Mario returns to Wood Ovens Pty Ltd on 4 July 2015 and says that he is prepared to buy the 'Deluxe A1' model pizza oven for $15 000. Lee replies that she might be able to sell this model of oven to Mario for $15 000 if Mario pays cash on delivery. Mario says that he needs to decide whether he wants to pay cash on delivery and that he will call Lee the next day. On 5 July 2015, Mario speaks to Lee on the phone and says that he will buy the 'Deluxe A1' model pizza oven from Wood Ovens Pty Ltd for $15 000 cash on delivery if Wood Ovens Pty Ltd installs the oven at his business free of charge. Lee replies that her best price for the oven with installation included is $15 250, and that Mario has one week to make up his mind. On 9 July 2015, Mario visits his friend Jim's pizza shop and, to his surprise, sees Lee installing a 'Deluxe A1' model pizza oven at the shop. Mario feels pressured and tells Lee, 'OK, I accept. I will pay you $15 250.' Lee replies, 'I'm sorry, but I have just sold the last of our \"Deluxe A1\" model pizza ovens to Jim for $15 000.' Assignment Questions 1. With reference to case law, analyse each communication between Mario and Lee and explain whether Mario has a contract with Wood Ovens Pty Ltd. 8 marks 3