Question 1 Amy was invited to attend a wedding by her best friend Sally who will get married very soon. To attend this wedding, Amy returned from the UK to Hong Kong with a luggage. While she was taking the Airport Express from the Hong Kong International Airport to Kowloon Station, Amy discovered that her luggage was damaged with a hole. She later discovered the jewellery case which contained a pearl necklace and a gold bracelet was gone missing. The pearl necklace and the gold bracelet were both in fact borrowed from her aunt in UK. Amy tried very hard to look for the jewellery, but without any success. So, she decided to approach the Airport Express service counter for enquiry and put an advertisement in the newspapers "Standard". The advertisement started on 23 April 2020 and read as follows: 'A pearl necklace and a gold bracelet in a jewellery case were missing when travelling the Airport Express to Kowloon Station from Hong Kong International Airport on 20 April 2020. If found, please contact at email . HK$5,000 will be awarded.' Cheng, a regular passenger of Airport Express saw Amy's advertisement. He paid a lot of attention every time when he took Airport Express. On 25 April 2020, Ben, a first-time visitor who just arrived Hong Kong, discovered the pearl necklace was placed in a very hidden corner underneath a passenger seat while he was travelling the Airport Express. After getting off, Ben brought the pearl necklace to the service counter of Airport Express and left right away. After waiting for a few days without any good news, Amy was desperate. She decided to phone her aunt, who lent her the jewellery and told her the whole story. During their conversation on 26 April 2020, Amy was told that the jewellery which was bought in a flea market was fake. She breathed a sigh of relief. So, the next day, Amy put another advertisement with "Standard" and stated that the reward was no longer existed. On 2 May 2020, Cheng found the gold bracelet in the station. He wrote an email to Amy asking for the reward on the same day. Advise Amy as to her obligation to pay any reward. Use case law and ordinance to support your answers. (Total 25 marks) Question 2 Ken is a shop owner running a furniture business in Happy Valley. The shop has been wellknown for selling furniture in town, especially antique shelves. With good reputation in the community, Ken's business has been growing rapidly. Mike, a new fresh graduate of PolyU in Business Studies, works in Ken's shop as a part-time salesman. One day, Alex went into Ken's furniture shop and looked for an antique shelf for his vase collection. Alex is a big fan of vintage vase, in particular Chinese vase. While Alex was inside the furniture shop, he was attracted by a very large set of wooden antique shelf manufactured by the brand, BestWood. Alex was very interested, and so he asked Mike how much weight could the antique shelf support. Mike, who worked in Ken's shop for less than a week, told Alex that he was a new staff and had no clue on the exact weight of such antique shelf. Then, Alex turned back, examined the antique shelf and saw the price tag, HK$30,000. Alex really liked the size and the design of the antique shelf, but was a bit shocked about the expensive price. So, Alex left the shop and wanted to have a second thought before making any final decision. 5 days later, Alex decided to purchase that antique shelf and phoned Ken's shop. Ken was on the phone and so Alex told Ken that he was interested in buying that antique shelf. To make sure that the antique shelf could support the weight of his Chinese vase collection, over the phone, Alex asked Ken again about the capacity of the antique shelf. Ken quickly searched the records and told Alex that it could hold approximately 100kg. Alex was contented about that, because he knew his Chinese vase collection only weighed about 50kg. Upon evaluating on Ken's words, Alex decided to buy that antique shelf. After the payment was made, the antique shelf was then delivered in a week's time to Alex's home. Alex was delighted as he could fill in the antique shelf with his vase collection. While he was putting some of his vases, the antique shelf suddenly collapsed and some of the Chinese vases were broken into pieces. Alex was not injured, but felt very upset. The next day, Alex met his neighbour, Don, an experienced trader in the furniture industry. Don told Alex that each shelf made by BestWood would normally be issued with a unique specification which was also available online. So, after the conversation with Don, Alex quickly made an online search and realised that such antique shelf could just hold 20kg in weight. Advise Alex about his claim under the law of misrepresentation and any remedies available. Use case law and ordinance to support your answers. (25 marks) Question 3 Lim visited the show room of Cool Ltd. to purchase a refrigerator. He told the sales assistant, Tan that he owned a restaurant and needed to increase his food storage capacity. Tan assured Lim that a Freezomatic brand refrigerator was a good choice for the restauranter. The original price of the Freezomatic refrigerator was HK$ 15,000 but Tan allowed Lim to purchase a Freezomatic refrigerator for HK$12,000. Tan informed Lim that he was reducing the price because the refrigerator was a display model and might be scratched or dented. Lim did not examine the refrigerator prior to purchase. The refrigerator was delivered the following day. Lim instructed his kitchen staff to fill the refrigerator with food. During the night the rubber seal, which was hidden inside the door of the refrigerator, broke and all of the food in the refrigerator became unfit to eat. While the kitchen staff were removing the spoilt food, they noticed a large scratch on the outside of the refrigerator. Advise Lim: (i) as to his rights against Cool Ltd. under the Sale of Goods Ordinance; (15 marks) (ii) his remedies against Cool Ltd. under the Sale of Goods Ordinance. (10 marks) Use case law and ordinance to support your answer. (Total 25 marks) Question 4 Alfred who is a carpenter contracts with Lee to make 4 wooden doors, 4 frames, 6 chairs and a table in 30 days in Lee's work shed in the forest. The items are to be made out of a very rare wood. The price agreed upon is HK$150,000, to be paid on delivery of all items before the expiry of the 30-day period. Alfred invests his money in buying the material and the rare wood required and has it delivered to Lee's work shed. (No further stock of the rare wood is available in Hong Kong). By three weeks, he has been able to complete making 4 wooden doors, 4 frames and 1 chair. Alfred delivers these finished articles to Lee. Unfortunately, on the 22nd day, due to an extended period of temperatures, the forest catches fire and Lee's work shed is burnt. Alfred returns to find ashes and a few pieces of metal. He, anyway, goes to Lee to demand payment for the work done and the cost of the wood and other materials, which had been destroyed in the fire. Advise Alfred as to his legal position. Use case law and ordinance to support your answer. (25 marks) Question 5 Jimmy works as a deliveryman for a company that delivers packages. He is posted to a new district in March 2020. On 15 March 2020, on his first day of duty in the new district, he goes to a house occupied by Gracey to deliver a parcel. When he arrives at the house, he opens the gate which is not locked and walks in. Suddenly Gracey's dog, Bebe, rushes out from the back garden and attacks Jimmy. Gracey comes rushing out but before she can control her dog Bebe, it has bitten off Jimmy's left thumb. Jimmy is rushed to hospital where he needs 50 stitches to reattach the thumb. Jimmy, who wishes to recover damages in negligence from Gracey, has since discovered that he is the second person to be bitten by Bebe. (a) Advise Jimmy. (15 marks) (b) Would your advice be different if Jimmy had seen a notice on Gracey's gate reading, "BEWARE OF DOG" but Jimmy ignored the notice, opened the gate and walked in to deliver the parcel because he needed someone to sign for the parcel? (10 marks) (Total: 25 marks) Question 6 Wonderful World Limited ("WWL") is a market survey company and has employed many part time interviewers to help with the market research and survey. Daisy also works as an interviewer for WWL for the past two years. They have no written contract with her but WWL calls Daisy from time to time for interviewing. Daisy has been given extensive training and also given clear instructions every time as to who to interview, what to ask, etc. She is also told in advance about the period of interviews, i.e. whether days, weeks or months for her to work. Daisy is free to work for others during the time she is not working for WWL. Daisy is not entitled to any sick leave or holidays, and she is supposed to work on days and times determined by WWL. If Daisy is not able to work on any of the days, WWL will find a replacement and she is not paid for those interviews. Based on the period she would work, and the number of interviews, Daisy is paid every month. Recently, WWL has decided to pay bonus salaries to all the employees based on their working years with the company. This bonus will be paid every year during Christmas. The longer an employee has worked for WWL, the higher their bonus will be. Daisy noted that her name is not on the list of employees. She went and spoke to the Human Resource manager and the manager told her that she is not entitled to the bonus as she is not an employee. Daisy has come to you for advice. Advise Daisy as to whether she is an employee of WWL under employment law. Explain your answer. (25 marks)