Peter, Paul and Mary are moving from Victoria to New South Wales. They contract with Friendly Movers Pty Ltd to move their household possessions to New South Wales. On the way, the truck is in an accident due to the driver taking his eyes off the road while using his mobile phone. 60% of Peter, Paul and Mary's possessions are destroyed. Friendly Movers Pty Ltd relies on the Moving Act 2011 (NSW), which states compensation is only payable where a valid insurance policy was taken out. Peter, Paul and Mary argue that the actions of the driver caused the accident and were outside the scope of reasonable behaviour, and nevertheless, the Competition and Consumer Act 2010 (Cth) applies, which provides that compensation be paid where illegal actions lead to loss of property.

Questions:

Q1. Basing your answer on section 109 of the Australian Constitution, advise Peter, Paul and Mary on which Act prevails and any compensation payable to them.

Q2. Explain what is meant by Tort of Negligence. What are the four elements which need to be considered in a case for negligence?

PLEASE ANSWER THESE TWO QUESTIONS IN A DESCRIPTIVE WAY