BLO1105 Business Law

BIBLIOGRAPHY, REFERENCES AND FOOTNOTES ARE REQUIRED!

REFERENCING: AGLC

NOTICE: Support your answers with legislation and case law where relevant.

Question 1 (15 marks)

Mekala is the nanny for Mr. and Mrs. Perera who takes care of their children and helps clean the house. Mrs. Perera has promised $10 per hour. Mekala usually works for 5 hours per day.

On Friday the 20^th of November Mrs. Perera requests Mekala to work for 1 hour extra as she has to go to the office early on that day. Mrs. Perera promises she will pay Mekala extra for the hour. But, later Mekala gets paid $50 as usual on the day.

Next Friday Mrs. Perera requests Mekala to stay for an additional 5 hours to help her get the house ready for a party she is organizing. Again Mrs. Perera promises additional pay for these hours. On that day also Mekala gets $50 for which she is very upset as she believes she deserves an extra payment; but Mrs. Perera refuses.

Required

(a) Explain how the contracts made between Mekala and Mrs. Perera are formed.

• You will need to address all the essential elements of a contract as well as analyse the legal status of each step or event that led Mekala working overtime. In this part, do not discuss the impact, if any, of consumer protection laws. Please explain your answer with at least two legal references, such as cases or legislation.
• If there is a valid contract, what remedies are available to Mekala? Please explain your answer with at least two legal references, such as cases or legislation.
• You may, but are not obliged to use the IRAC format for this part, given that each step or event must be analysed separately.

Question 2 (15 marks)

Vinu decides to hire some ladders and planks from VH Hardware Shop (VH) to repair his house. When he collects the hired goods, he is asked to sign a hiring agreement. Vinu signs on it as requested by the employee. Whilst Vinu is using the equipment, one of the ladders collapse as the ropes holding the ladder steps are badly worn, and Vinu is seriously injured.

When Vinu recovers and tries to sue VH he notices a clause in a small font on the back of the printed agreement which he signed stating "the hirer accepts no responsibility for personal injuries suffered by persons using our equipment during the period of hire, irrespective of whether such injuries are caused by breach of contract, negligence or any other cause whatsoever."

(a) Explain whether the VH is legally entitled to rely on the clause printed on the ticket to avoid liability in relation to Vinu's mishap.

• For the purposes of this part you should consider both common law as well as consumer protection legislation. Please also confirm whether Vinu qualifies as a 'consumer'.
• Please use IRAC.