Q-1

Silcraze City Council owns and operates a Gym. It charges $20 per month as membership fees. On the Gym Membership Card, it is written that the Cardholder has the right to use all the equipment in the Gym. The Gym contains various sorts of fitness equipment. One day the only Bench Press (One Gym Equipment) breaks down and the Gym Owners place a sign in 'red' beside the Bench Press, which states; "Do Not Use This Equipment. It is Broken."

Advise Silcraze City Council of its liability in each of the following situations i.e. with James, Ben and Mary who are all Members of the Gym.

a. James uses the Bench Press and is injured as the equipment is broken.

b. Ben who is blind does not see the sign and uses the Bench Press and gets injured.

c. Mary who comes to the Gym only to use the Bench Press sees the sign, then looks at her Membership Card and uses the Bench Press. She gets injured.

Q-2

Trevor is a Lecturer at an Institute of Further Education. He is horrified to read an Article by Raymon Bolgersberg in the "Daily News", a local newspaper claiming that his undergraduate degree was forged in order to get a job. While the Article did not expressly mention Trevor's name, it did describe the background and his position at the Institute of Further Education in considerable detail. Trevor is concerned that the article may cause him to lose his job.

Advise Trevor of his legal rights if any, against the Author of the Article; and the Newspaper Company.

Q-3

Three friends, X Y and Z decide to form a partnership to carry on a business trading in used cars. X has experience working as a manager and salesman. Y is a skilled motor mechanic. Z is wealthy. The general idea is that Z will be a sleeping partner whose only role is to supply capital for the business. X will be responsible for sales and day to day management of the firm's business. Y will be responsible for purchases of cars and repair work.

The firm has a written partnership agreement that contains the above information and further provides;

the firm will carry on business using the name XYZ Motors

profits and losses shall be shared equally

X and Y shall give their full time and attention to the business

Continuing partners shall be entitled to buy-out any partner wishing to retire at an agreed price or failing agreement on price at a figure determined by an independent valuer.

After the firm has been in operation for several months Z is served with writs for three legal actions.

1. Customer sues Z as a partner in the firm XYZ Motors claiming compensation for loss suffered in consequence of relying on false statements made by X when selling a car to Customer.
2. Dealer sues Z as a partner in the firm XYZ Motors claiming payment for two used cars purchased by X on behalf of the firm.
3. Buyer sues Z as a partner in the firm XYZ Motors claiming return of a 'refundable deposit' paid to X on behalf of the firm when Buyer was considering purchasing a used car from the firm.

Inquiries by Z establish that allegations made in the three claims are all true. Z also discovers that X had obtained refundable deposits from a number of prospective buyers and all the deposit money has been used by X in romancing his girlfriend.

Advise Z whether the claims made against him personally are likely to be successful.