Question
You are the contract manager for trucking company EZ Trucks Pty Ltd (EZ). EZ has been quite successful recently. It has 25 employees and a
You are the contract manager for trucking company EZ Trucks Pty Ltd ("EZ"). EZ has been quite successful recently. It has 25 employees and a turnover of around $5million per year. EZ wants to make sure that it keeps up to date with employment law and matters and to ensure that it has proper employment contracts, policies and procedures. It does not want to have any claims made against it at the Fair Work Commission - the government agency that deals with employment complaints. CEO of EZ, Ryder Long, googles 'Fair Work Commission' and at the top of the search results he sees the following advert by On Guard Pty Ltd: Fair Work Commission Advice Free 24/7 Employer Advice We provide a free advice service for all employers on all Fair Work topics! Contact us now on 123 456 789 or email e..songuard.com.au Ryder calls On Guard to enquire about the free advice service and speaks to salesperson Maida Tupp. Maida says that the free service is for businesses that subscribe to On Guard's services and the free service is an add-on to this. Maida says that in return for a monthly fee, On Guard will provide all employment paperwork and polices which will be updated every 3 months. They also will then provide a free phone advice service 24 hours a day, 365 days a year. Maida says that the best deal is a 5-year subscription because the price is cheaper and EZ will be listed as a priority customer in On Guard's monthly newsletter. Whilst Ryder is annoyed about the lack of a truly free service, he considers that since On Guard is affiliated with the Fair Work Commission and he can cancel at any time, he may as well sign up. He signs On Guard's Consulting and Advice Contract containing the terms below (). After a year of paying the monthly subscription, Ryder is not happy with On Guard: The paperwork and polices, whilst excellent, were only updated every 6 months. The phone advice service, though able to be called 24 hours a day, 365 days a year had a bot responding after business hours that ultimately refers the caller to the Fair Work Commission website. The monthly fee for a 5-year subscription was cheaper than a 2 or 3 year subscription but only by $10 per month! 3 On Guard had omitted to mention that EZ was a priority customer in one of the monthly newsletters. On Guard was not affiliated or endorsed with the Fair Work Commission. When he had called On Guard to cancel, he was told that he could but, according to clause 6 of the contract, EZ would need to pay out the remaining total fee upfront ($72,000). On Guard also warned him not to stop paying the monthly fee because, according to clause 7 of the contract, EZ would then be liable for the remaining total fee upfront too! Ryder asks you to review the information and draft a letter to On Guard dealing with the situation and requesting that the contract be terminated with no further fees. The format of the letter is not important, but he wants you to make sure that you explain the law to On Guard and that you give AGLC format references to law or cases so that it is clear to On Guard that you know what you are talking about. The letter does not need to use the 4-step process explicitly but you should explain the law and any key cases and apply the law for each section of the letter. A final conclusion in the letter should request that the contract be terminated immediately with no further cost to EZ.
On Guard Pty Ltd Consulting and Advice Contract Term (initial contract period): 5 years Monthly Payment: $1,500.00 Total Fee $90,000.00 _______________________________ 1. The contract Term shall be for the duration of the initial contract period. 2. At the end of the initial contract period, the contract will automatically renew for the same period as the initial contract period (Renewed Contract), unless terminated by either party giving written notice within the period set out in clause 8 to expire at the end of the initial period or any subsequent renewal period. 3. On Guard reserves the right to increase the Total Fee for any Renewed Contract, as follows: a. if the initial contract period is 2 year or less, the Total Fee will increase by 2%; b. if the initial contract period is between 2 year and 3 years, the Total Fee will increase by 6%; or c. if the initial contract period is greater than 3 years, the Total Fee will increase by 10%. 4. The Renewed Contract will otherwise be on the same terms as this contract, including the same automatic renewal provision. 5. Time for payment of the Monthly Payment shown shall be of the essence in the contract. 6. The contract can be cancelled by paying out upfront the Total Fee for the remaining balance of the Term. 7. Failure to make any Monthly Payment on time will result in the remaining balance of the Total Fee for the becoming payable immediately in full. 8. The required written notice period is dependent on the length of the initial contract period, as follows: a. if the initial contract period is 2 year or less, the required written notice is 1 month; or b. if the initial contract period is greater than 2 years, the required written notice is 3 months.The current legislation refers to a small business as one that has fewer than 100 employees or a turnover of $10m per annum, state that EZ is a small business and thus eligible for unfair contract terms protection.
In the letter, using separate headings for each section address the following: -
a)Only with reference to laws and cases in Module 7, Performance, discuss whether or not On Guard has satisfactorily performed its obligations, write in detailed paragraph-
b) Only with reference to Misleading or Deceptive Conduct legislation and cases in Module 9, Fairness, discuss whether or not On Guard's advert and the statements by Maida Tupp are misleading or deceptive. write in paragraph and detailed
c) Only with reference to Unfair Contract Terms legislation (no cases needed) in Module 9, Fairness, discuss whether or not any of On Guard's contract terms below are unfair. write in detailed paragraphs
d)Conclusion - setting out brief conclusion to each section above and asking for immediate termination of the contract
using academic references,Whilst it is meant to be a business type document and you are communicating with someone who may not have knowledge about the law, your aim is to also explain the relevant law and key cases to the recipient of the letter in a way that they would understand before you tell them how it applies to each section above, use a first person or third person writing style but be consistent.
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