BFA706 Business Law. School of Accounting and Corporate Governance Faculty of Business

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School of Accounting and Corporate Governance

Faculty of Business


Business Law

Semester 1, 2011

Unit Outline


Monique Blackman (Unit Coordinator)


Contact details

Unit Coordinator, Hobart Lecturer and Tutor

Monique Blackman BSc-LLB, GradCertLegalPrac


Location: Hobart Campus, Commerce Building,

Telephone: Home 62251936

Facsimile: 6226 7845

Mobile phone 0431662665

Room number 421

Consultation hours: To be advised


















UNIT SCHEDULE – BFA706 SEMESTER 1, 2011 ... 19


Unit Description

This unit covers a wide range of interesting legal topics and teaches students how to analyse and solve legal problems which is essential to those wishing to work in the Accounting Profession. The subject is a necessary foundation for subjects such as Corporate Law & Regulation and Australian Tax Law.

Topics include; how law develops and changes; the sources of law in Australia; how to read and understand legislation and decided cases; business organisations; the nature and purpose of contract law; the essential components in a contract; how to analyse and understand the terms contained in contracts; how contracts are enforced if there is a breach of contract; circumstances in which contracts might be avoided; liability in tort law for injury or loss caused to other people or their property; agency and consumer law.

Campus & Mode


Learning Outcomes, Assessment Criteria & Graduate attributes

Learning Outcomes Assessment Criteria – In assessing this learning

outcome I will be looking at student ability to: Assessment Methods Graduate Attributes

Recognise, within the context of the Australian legal system, the various sources of law,

interpreting legislation, understanding the role of Parliament and the Courts in creating law

Explain and understand where law comes from, using cases and legislation as examples.

Written Tute Component Oral Tute Component Exam

Assessment task 2 – group work , oral and written components

The University has defined a set of generic graduate attributes (GGAs) that can be expected of all graduates u/generic_attributes.html. By undertaking this unit you should make progress in attaining the following attributes:


• Explain basic contract law concepts through research and the application of contract law information

• The ability to apply this knowledge to diverse contractual scenarios

• Lifelong learning skills in pursuit of professional development


• High level written communication skills in a range of formats, considering audience needs and

appropriate to real world business law situations. • Oral communication skills in a range of contexts and

considerate to audience needs.

Problem Solving:

• Interpret scenarios, identify relevant contract law issues and use contract law knowledge to justify your answers.

• The ability to apply logical thinking to a range of contract law related problems

• An awareness of when information is needed and the capacity to locate, analyse and use relevant information.

Global Perspective:

• An awareness of the different thinking and

viewpoints of diverse cultures, ages, genders, races, religions or political persuasions in relation to the Update knowledge to take account of amendments to


Access up to date legislation and case law, at both a state and federal level in order to identify what law applies to a particular set of facts or circumstances

Tutorial Participation Assessment task 2 – group work , oral and written components

Demonstrate an understanding of why there are two sources of law in Australia.

Being able to demonstrate how to correctly reference case law and legislation

Tutorial Participation Written Tute component

Know what is meant by a legal contract and identify its essential components, Identifying how a contract can be ended and the remedies available for breach of contract;

Identify and research legal issues and sub issues related to contract law

Apply your legal knowledge to a factual situation in order to provide possible solutions to a legal issue

Written Tute Component Tutorial Participation Exam Assessment task 2 – group work , oral and written components

Analyse and apply legal rules established in contract law in relation to business and legal situations.

Written Tute Component Exam Assessment task 2 – group work , oral and written components

Summarise and show an understanding about all the required elements of a contract and provide advice using these contract elements via legal rules dealing with them.

Written Tute Component Oral Tute Component Exam Assessment task 2 – group work , oral and written components

Understand and communicate advice as to what happens if a contract is breached by showing an understanding of remedies available under contract law

Written tutorial component Group work – assessment 2 task oral and written components

Understand terms of a contract and how terms

Identify how terms can be implied into a contract, showing an understanding of what these terms mean and where they come from and what effect they have to a contract .

Written Tute Component Oral Tute Component Exam


can be implied or added to a contract via

legislation and common law;

Identify and understand the parts of a contract and what the various interests of parties to a contract are and what rights they have in regard to contract law.

Written Tute Component Oral Tute Component Exam

business environment.

Social Responsibility:

• The ability to apply the ethical requirements of University study.

• Awareness of the responsibilities to society and societal expectations of business

• Understand protection

Consumer laws

Locate legislation that provides consumers with protection when purchasing goods and services from both individuals and corporations;

Identify the new changes to Consumer protection law and why the Government has made these changes,

Demonstrating obligations and rights under these new Consumer protection law. Demonstrating who is affected by these laws

Written Tute Component Oral Tute Component Exam

Recognise the legal concept of ‘negligence’ and its role in providing protection to consumers

Understand and communicate advice as to what happens if a party acts in a negligent way showing an

understanding of remedies available under Negligence law

Written Tute Component Oral Tute Component Exam

Recognise the legal concept of Intellectual property law and its role in providing protection for owners of Intellectual property

Analyse and apply legal rules established in regard to intellectual protection law and demonstrating why it is important to a business and how it operates in relation to Australian business in various given legal situations.

Written Tute Component Oral Tute Component Exam

Assessment task 2 – group work , oral and written components

Identify various business structures, such as sole traders, partnerships and companies

Demonstrate a knowledge of the types of business structures and then being able to use this knowledge to analyse and apply legal rules to provide advice as to which structure is more suitable in a given business scenario.

Written Tute Component Oral Tute Component Exam

Recognise the role of agents and agency law in the context of business law; and

Analyse and apply legal rules established in agency law in relation to business and legal situations

Written Tute Component Oral Tute Component Exam


Alterations to unit outline as a result of student feedback

Lecture material has been condensed so that more time can be spent in the lecture reinforcing the basic principles and to enable the lecturer more time to go over and expand on relevant parts of the lecture and to give some real case examples as to how this law applies in real life situations.

Lectures are delivered at a speed suitable for the student cohort. More oral presentations are included in the tutorials and more group work has been added to the assignment tasks.

Learning Resources Required

Prescribed Text

You must have ready access to the prescribed textbook that is available from the University Co-op BookshCo-ops.

Nikolas, James 2010, Business Law, John Wiley & Sons Australia, Queensland. Recommended reading

Sweeney, B & O’Reilly, J 2007, Law in Commerce, 3rd Ed, LexisNexis Butterworths, New South Wales.

Fleet, W, Summers, J & Smith, B 2006, Communication Skills Handbook for Accounting, 2nd end, John Wiley & Sons, Brisbane (This book may assist you in both written and oral assignments).

E- (electronic) resources

Other Learning Resources

PowerPoint slides for weekly lectures will be made available on MyLO (discussed later in this Unit Outline). At the discretion of the Unit Coordinator, other materials may also be made available on MyLO.

Internet Websites and References (searching the net)

Some internet websites may be of use to you in your studies. If you find additional useful websites to those below, please forward details of the links to the Unit Coordinator via e-mail:

The most authoritative website to access consolidated (i.e. current) Commonwealth legislation is: If you have difficulty using ComLaw, you can also try its predecessor website but this is no longer kept up to date.

Tasmanian legislation may be accessed at:

Commonwealth and State legislation and some cases may also be accessed through the following site provided by the Australasian Legal Information Institute at:

The Morris Miller Library (MML) and Law Library in Hobart and the Launceston Library have many resources. Check the relevant library for more details. You may contact the library online at:

Some of the library services may require login addresses and passwords. Check with the library for these details.

Another useful site is the Australian Competition and Consumer Commission (ACCC) site at It is particularly useful in relation to the Trade Practices Act 1974 (Cth) and also has some helpful ‘Links’ to other sites, including Commonwealth and State Government sites such as, Tasmanian Consumer Affairs and Fair Trading.




MyLO is an internet service that has been adopted by the University and will be used in this unit. MyLO may be accessed on computers in computing laboratories at the University or on your computer at home or at work. Information about accessing and using this service, about required computer specifications and frequently asked questions, and about how to get help if you experience difficulties, is available at the following University website:

You are strongly advised to visit this site and become familiar with the features of Vista, especially if you have not used it before. You will probably be using it in other units that you are studying as well. Here are some important points about accessing our web site:

Access to MyLO

You can access your MyLO course from the Student Page on the University’s web site: Quick Links ËMyLO or go directly to the web address noted above:

• Enter your email POP account “Username” (for example, dsmith) and your “Password”. These are identical to the pop account/email username and password that you are given with your enrolment confirmation form. If you forget your pop account username, contact the Help Desk (see below under ‘getting assistance with MyLO). Both MyLO and e-mail passwords must remain the same. If you are going to change your password, change your e-mail password first.

• When you enter your user name and password, click on OK and choose “BFA706” from the list of units (subjects) in which you are enrolled. [NOTE: Another box may periodically appear when using the University network which asks you to verify your user name & password, this is simply a security device – enter your password when asked & click OK]. o MyLO will automatically check that your browser is properly configured. If the MyLO

‘browser checker’ window appears – scroll down to make sure you have a tick in each area shown – then close the window.

• From the Unit’s homepage click on the area you wish to access e.g. “Unit Information”. A table of contents will appear on the left hand side of your screen. Scroll through the list until you find what you want & click the underlined topic.

For MyLO

To access MyLO from your own computer you will need the appropriate software, and hardware to run that software. See Learning Online at for computer software you will need.

Note: Older computers may not have the hardware to run some of the required software

applications. Contact your local IT support person or the Service Desk on 6226 1818 if you experience difficulties.

For further information on using MyLO self help sheets can be accessed at:


Details of Teaching Arrangements

(a) General

The unit will be taught during Semester 1 2011. The timetable is set out in the Unit Schedule later in this Outline.

The topics to be covered are as shown in the Unit Schedule later in this Outline.

You must read the relevant chapters of the prescribed texts, probably several times. Refer to the additional text listed as ‘Recommended’ above if you have difficulty understanding any parts of Nicolas text or if you are completing an assignment. Ask questions of your tutor and discuss topics with fellow students when appropriate, noting the very strict rules regarding plagiarism (see below).

(b) Lectures

A lecture will be used to introduce the various topics that we will cover in the unit. The Unit Schedule later in this Unit Outline gives you the program of lecture topics.

PowerPoint slides for the lectures will be made available on MyLO. Do not expect to learn all you need to know by just attending lectures. It is what you do before and after the lectures and tutorials that really consolidates your knowledge.

(c) Tutorials

Tutorials are designed to develop your skills in applying the legal knowledge you have gained from lectures and private study and being able to condense a large quantity of legal information into a manageable summary that provides the most important points without unnecessary detail.

Come along to all tutorials prepared to answer questions from the tutor and to ask questions of the students who will be presenting their tutorial assignment orally to the class (see later). Take every opportunity to interact with the presenter, other students and the tutor. This will help you to gain understanding and develop important skills. The Tutorial Program will be discussed in detail shortly.

Learning Expectations and Strategies


The University is committed to high standards of professional conduct in all activities, and holds its commitment and responsibilities to its students as being of paramount importance. Likewise, it holds expectations about the responsibilities students have as they pursue their studies within the special environment the University offers.

The University’s Code of Conduct for Teaching and Learning states:

Students are expected to participate actively and positively in the teaching/learning environment. They must attend classes when and as required, strive to maintain steady progress within the subject or unit framework, comply with workload expectations, and submit required work on time.

Learning strategies

Although you are expected to take responsibility for your own learning, you are not on your own. If you need additional information refer to the Teaching & Learning website:


One strategy that should help you achieve excellent results is that of organising your time so that you spend between 10 to 12 hours a week studying this unit, such as:


Class contact – lectures and tutorials 3 hours Reading before class 2 hours Consolidating material after class and practicing exercises 3 hours Preparing for class, assessments and the exam 4 hours

It is strongly advised you work through the assigned problems prior to your tutorial in order to participate actively and confirm your understanding of the various topics.

Specific attendance/performance requirements

You are expected to attend lectures and tutorials. You must achieve an overall mark of at least 50 per cent AND have completed and submitted each item of assessment to pass the unit.

Assessment Details

(a) Assessment Schedule

Assessment Task Due Date Length Percentage

Weighting Assignment 1 Written Assignment As nominated by the tutor at the conclusion of the first tutorial 1750 words 10

Oral Presentation As above 15-20 mins 10

Assignment 2 Group Written Assignment Oral presentation 5pm, Thursday the 21st April 2011 In Tutorial 8 on the (week staring the 18th April ) this includes the creation of 5 power point slides 1750 words 10 minute presentation 10 10 End of Semester Examination

TBA 3 hours + reading





Details of Assignment Tasks

Tutorial Program, Written Assignment 1 and Oral Presentation

Due Date: The written assignment MUST be submitted no later than the commencement of

the tutorial in which the assignment is due to be presented orally in your nominated tutorial class (see later).

Length: 1750 words maximum [for Part (a) and Part (b) combined].

Marks: Written (10 marks) + Oral Presentation (10 marks) = Total 20 marks.

Links to Unit’s Learning Outcomes: Refer to the table on pages 5/6 Task Description:

Tutorials are held on the dates and at the times set out in the Unit Schedule set out below. Tutorials are designed to promote informed discussion of legal issues. It cannot be too strongly emphasised that the preparation of answers to these questions and the exploration (through class discussion) of issues which they raise will play a crucial role in developing your understanding of this unit.

Topic: At the conclusion of the first lecture you will be allocated one of the questions marked ‘Individual Presentation – Assignment Question’ in the Appendix to the Unit Outline. You must write up the WHOLE assignment question you are nominated (i.e. BOTH parts (a) and (b)).

You MUST also provide a one page summary of the topic that can be copied and provided to the other students in your tutorial. This will form part of your mark.

Submission of Written Assignments:

A typed assignment covering the whole of your allocated question, i.e. Part (a) AND Part (b), is to be submitted by EACH student.

Follow the specific instructions relating to Requirements for Assignments and

Submission of Assignments that are provided later in this Outline. Individual Oral Presentations:

When you are allocated your ‘Individual Presentation – Assignment Question’ at the conclusion of the first lecture, your tutor will give you part of the Question, EITHER Part (a) OR Part (b), to present as your ORAL presentation in the corresponding tutorial.

Depending on the number of students in a tutorial it may be necessary to allocate more than two students to present some questions. Oral presentations commence in Tutorial 2

Guidelines for Oral Presentation:

For the purposes of the ORAL presentation, EACH assignment presenter (of Part (a) or Part (b) as the case may be) is allowed a maximum of 20 minutes inclusive of the explanations, responses to questions and/or clarifications to be provided.


Both during and after the oral presentation, the tutor will ask questions of the individual presenter. The purpose is to test the presenter’s understanding of the material presented and other related aspects and to focus the attention of the tutorial group on some important principles.

You are also expected to involve the tutorial class members in your presentation by quizzes, role-playing exercises, the use of appropriate visual aids, etc. As a minimum at least 5 questions should be asked by the individual presenter to students in the tutorial

Do NOT just read your written paper; make the main points and involve the rest of the group in the presentation (see Class Participation below).

The tutorial assessment form that will be used to mark your Written Assignment 1 and oral presentation will be placed on MyLO so you can see in advance the criteria upon which you will be assessed.

This exercise will be conducted in such a way as not to disadvantage students from an overseas background where English is taught and learnt as a second language.

Class Participation in Tutorials:

The Questions for General Discussion and the Assignment Questions for Individual

Presentation generally relate to lecture materials covered in the previous week and

may include material from earlier lectures where relevant. It is intended that knowledge and familiarity with lecture materials previously covered will be reinforced by student presentations and discussion.

The individual students presenting assignments are required to give an oral presentation to the tutorial class providing information to answer the assignment question. However, ALL STUDENTS are required to have knowledge of the answer to the question as it forms part of the ‘Questions for Discussion’ to be considered at each tutorial meeting.

Tutorials Without a Nominated Student Presentation:

In Tutorials where there are no students orally presenting the relevant ‘Question for Discussion/Presentation’, ALL students in the Tutorial are required to prepare an answer to the question and come along to the Tutorial prepared to participate in discussion of the answers.

Written Assignment 2 – Group exercise

• PIRAC Oral group presentation: Due date in tutorial 8 of the week starting 18th

April 2011 during your allocated tutorial time

You will be divided into groups of 4 students (this may change depending on student numbers) and this will be assessed as a group exercise but all 4 students should make an attempt to involve themselves in the group oral presentation.


Links to Unit’s Learning Outcomes: Refer to table on pages 5/6. Task Description:

The assessment criteria for this group exercise will be handed to you in the 3rd Lecture and posted on MyLO for you to complete in accordance with its instructions. Also see the

Requirements for Assignments and Submission of Assignments later in this Outline.

• PIRAC Written Assignment: Due Date: 5pm Thursday 21st

April 2011.

Length: maximum 1750 words.

Marks: 10 marks.

Links to Unit’s Learning Outcomes: . Refer to table on pages 5/6 Task Description:

A written assignment and its assessment criteria will be posted on MyLO and a hard copy distributed in your lecture for you to complete in accordance with its instructions. NOTE: this is a group exercise so only one assignment per group is to be handed in and the group cover sheet MUST contain all the students’ signatures prior to it being submitted. See the

Requirements for Assignments and Submission of Assignments later in this Outline.


Scheduled Date and Place of Examination:

Your final examination for this unit will be held in June 2011 during the Examination period at a time and location to be advised.

Marks: 60 marks.

Links to Unit’s Learning Outcomes: Refer to table on pages 5/6 Task Description:

You must sit a THREE (3) hour + 15 min reading time closed-book examination. The purpose of the examination is to ascertain the extent to which you have developed an understanding of the principles of law with which the unit is concerned, capacity to apply those principles and the ability to communicate this in writing.

You will be required to answer any FOUR (4) of the questions on the examination paper. Questions may be divided into two or more parts in which case all parts must be attempted.

Copies of ‘Past Examination Papers’ will be placed in the “Unit Information” area of MyLO. You should refer to past papers when studying for the Final Examination in


this unit. In the course of carrying out your revision and study, it is a useful exercise to select questions from past papers and prepare model answers for them.

Further information regarding the examination will be provided to you at the end of Semester.

How Your Final Result is Determined

Your final result is determined by adding your total weighted assignment marks for the different assessment components of the unit. To obtain a pass or better in the unit, you must submit all coursework and obtain 50% or more of the total marks available.

Requirements for Assignments

In preparing and submitting your assignments you should follow the guidelines contained in the

Guide for Students issued by the Faculty of Business: and the following specific instructions

Assignments must be typed in 11-point Times New Roman font and be easily read. Number every page in the bottom right corner.

Written assignments must be no more than 1750 words in length. Do NOT exceed the specified number of words as doing so will result in being penalised by a deduction of marks (see later in this Outline). If using Microsoft Word use the ‘Tools’ – ‘Word Count’ function: do NOT include footnotes or endnotes or your References List at the end of your assignment).

Marks will also be deducted for late assignments (see later in this Outline).

At the start of any problem question where you are asked to advise (eg. tutorial questions, part (b), include a disclaimer making it clear that you are not a lawyer.

Legal Referencing

Include references throughout, cited correctly with a consistent format, including the page and if applicable, paragraph number wherever you have used a text. The best method of legal referencing is by inserting footnotes where, for cases, the full citation should appear eg. Brown

v Jones (1999) 27 ALR 61 [See below]. Each assignment should contain a full list of

References at the end, including (as relevant): • Reference List (all texts used);

• Table of Legislation; • Table of Cases; and • Table of Web Citations.

Cite primary sources (eg. legislation sections, case citations) in preference to secondary and tertiary sources [eg. the year of enactment should be in italics but not the jurisdiction. Jurisdiction in this context refers to the Parliament enacting the legislation (eg. Commonwealth (Cth), Tasmania (Tas), New South Wales (NSW)]. Legislation should be set out in full when first cited, but can be followed by an abbreviated version in brackets for subsequent use, eg: • Trade Practices Act 1974 (Cth) [TPA];


When referencing cases the title to the case should be in italics but not the year nor the rest of the citation eg:

• Donoghue v Stevenson [1932] AC 562;

• Burnie Port Authority v General Jones Pty Ltd (1994) 179 CLR 520. Assessment Criteria - Refer to table on pages 5/6

Assignments will be marked on presentation and syntax, compliance with instructions (such as above) and substance including: coherence and logical structure; correct identification of the relevant issues and law; correct application and use of case law, statutory principles and other relevant information; depth of analysis and comprehensive referencing.

Requests for extensions

The Faculty of Business Assessment Submission Policy requires that all students are expected to submit coursework on or before the due date and time specified in this Unit Outline. The onus is on the student to prove the date and time of submission.

Students with special circumstances may apply for an extension. ‘Special circumstances’ include medical or compassionate grounds but will not include work or other commitments. Requests for extensions should be made in writing to the Unit Coordinator on or before the due date. Students will need to provide independent supporting documentation to substantiate their claims.

Medical certificates or other evidence must be attached and must contain sufficient detail for the Unit Coordinator to make an informed decision. A statement or certificate from a doctor, counselor, health professional or independent member of the community should state:

• the date the medical condition or other circumstance affected the student

• how the condition or circumstance affected the student’s ability to complete the assessment task

Assignment Submission and Penalties

1. In this Policy

a. ‘day’ or ‘days’ includes all calendar days, including weekends and public holidays; b. ‘late’ means after the due date and time; and

c. ‘coursework’ includes all internal non-examination based forms of assessment

2. This Policy applies to all students enrolled in Faculty of Business Units at whatever Campus or geographical location.

3. Students are expected to submit coursework on or before the due date and time specified in the relevant Unit Outline. The onus is on the student to prove the date and time of submission.

4. Students with special circumstances may apply for an extension. Requests for

extensions should, where possible, be made in writing to the Unit Coordinator on or before the due date. Students will need to provide independent supporting


5. Late submission of coursework will incur a penalty of 10% of the total marks possible for that piece of assessment for each day the coursework is late unless an extension had been granted on or before the relevant due date.

6. Coursework submitted more than five (5) days late will not be accepted.

7. Academic staff do NOT have the discretion to waive a late penalty, subject to clause 4 above.

Over-length Work

The word limit specified on your assessment task is a maximum. If you submit over-length work there will be an automatic 10% penalty of available marks. It will be at the discretion of the Unit Coordinator whether the words beyond the limit will be assessed. Title pages, reference lists and appendices are not included in word counts.

Review of results and appeals

You may request a formal remark of your original submission (in accordance with Rule of Academic Assessment 2, Clause 22.1). Under the Rule of Academic Assessment 2, clause 23, you may also request a review of your final result in a unit. For further information see:

Academic referencing

In your written work you will need to support your ideas by referring to scholarly literature, and other sources of information such as the accounting regulatory bodies. It is important that you understand how to correctly refer to the work of others and maintain academic integrity. Failure to appropriately acknowledge the ideas of others constitutes academic dishonesty (plagiarism), a matter considered by the University of Tasmania as a serious offence.

The appropriate referencing style for this unit is the Harvard referencing method. Further information on presentation of assignments, including referencing styles is available at:

Please read the following statement on plagiarism. Should you require clarification please see your unit coordinator or lecturer.

Academic misconduct

Academic misconduct includes cheating, plagiarism, allowing another student to copy work for an assignment or an examination and any other conduct by which a student:

(a) seeks to gain, for themselves or for any other person, any academic advantage or advancement to which they or that other person are not entitled; or


Students engaging in any form of academic misconduct may be dealt with under the Ordinance of Student Discipline, and this can include imposition of penalties that range from a deduction/cancellation of marks to exclusion from a unit or the University. Details of penalties that can be imposed are available in the Ordinance of Student Discipline – Part 3 Academic Misconduct, see


Plagiarism is a form of cheating. It is taking and using someone else's thoughts, writings or inventions and representing them as your own; for example, using an author's words without putting them in quotation marks and citing the source, using an author's ideas without proper acknowledgment and citation, copying another student's work. If you have any doubts about how to refer to the work of others in your assignments, please consult your lecturer or tutor for relevant referencing guidelines, and the academic integrity resources on the web at:

The intentional copying of someone else’s work as one’s own is a serious offence punishable by penalties that may range from a fine or deduction/cancellation of marks and, in the most serious of cases, to exclusion from a unit, a course or the University.

The University and any persons authorised by the University may submit your assessable works to a plagiarism checking service, to obtain a report on possible instances of plagiarism. Assessable works may also be included in a reference database. It is a condition of this arrangement that the original author’s permission is required before a work within the database can be viewed.

For further information on this statement and general referencing guidelines, see or follow the link under ‘Policy, Procedures and Feedback’ on the Current Students homepage.

Further information and assistance

If you are experiencing difficulties with your studies or assignments, have personal or life planning issues, disability or illness which may affect your course of study, you are advised to raise these with your lecturer in the first instance.

There is a range of University-wide support services available to you including Teaching & Learning, Student Services, International Services. Please refer to the Current Students homepage at:

Should you require assistance in accessing the Library visit their website for more information at

If you have a problem

In the first instance you should discuss the matter with your unit coordinator, lecturer or tutor. However, if you do not feel comfortable approaching one of these people, or if you have a discussion and are not satisfied with the outcome, then you are encouraged to contact the course coordinator:




Name: Simone Bingham

Room: 421

Ph: (03) 6226 2314


Discussions with the course co-ordinator will be kept in the strictest confidence.

You are always welcome to raise issues with the Head of School, Sue Hrasky, who you can email for an appointment (

If you are on the Launceston or the Cradle Coast campus and the coordinator is not located on that campus, you may consult Trevor Wilmshurst (Launceston, or Steve Allen (Cradle Coast, ) with whom you can also have confidential discussions.

If you wish to pursue the matter further, a student advocate may be able to assist you. Information about the advocates is available at:

The University also has formal policies, and the following link gives you advice about the

procedures that you can follow:


Unit Schedule – BFA706 Semester 1, 2011 Week No. Week Starts Monday Text*

Chapter Lecture Topics

Tutorial number

1 21/2 1,2 Lecture 1

(a) General Introduction and Welcome (b) Legal Foundations:

• Introducing the law

• Understanding the Australian legal system

(c) Allocation of tutorial

2 28/2 3,4 Lecture 2

Legal Foundations

1. Exercising legal skills

Legal consequences 2. Causing Harm 1 Group exercise 3 7/3 5 Lecture 3 Legal consequences

• Making deals - Contracts 1. Agreement

2. Intention 3. consideration

Tutorial 2 –first student presentations commence

¾ On the material covered in Lecture 2 (2)

2 Individual presentations commence On lecture 2 material 4 14/3 5 Lecture 4 Legal consequences

• Making deals - Enforceability

3 On lecture 3 material 5 21/3 6 Lecture 5 Legal Consequences • Enforcing deals -

1. False representations and broken promises

4 On lecture 4


* Note: Chapter reference is to the prescribed text, Nickolas James. 2010, Business Law, 1st Ed 6 28/3 6 Lecture 6 Legal consequences • Enforcing deals

1. Enforcing the contract 2. Remedies

3. The End of the contract

5 On lecture 5


7 4/4 7 Lecture 7

Legal consequences

• Dealing with consumers and competitors

6 On lecture 6 material 8 11/4 8 Lecture 8 Legal consequences • Protecting IP 7 On lecture 7 material 9 18/4 9 Lecture 9 Business ownership • Starting a business

Tutorials this week – Assignment 2 group presentations on legal problems

Written Assignment 2 due 5pm, Friday 22nd April

8 Assignment 2 Group Exercise. All presentations in the tutorial this week

Semester Easter Break 21 April – 28 April

10 2/5 10 Lecture 10 Business ownership • Financing a business 9 On lecture 8 material 11 9/5 11 Lecture 11 Business ownership

• Owning and managing a business

10 On lecture 9


12 16/5 12 Lecture 12

Business ownership

• Experiencing financial difficulty

11 On lecture 11


13 23/5 Lecture 13

Examination Comment and problem solving tutorial

• Revision

• Examination practice Workshop • Unit review and examination comment • SETL’s

12 Tutorial - exam tips


APPENDIX to Unit Outline

Questions for Tutorials and Assignment 1

Tutorial 1

In this Tutorial, firstly, students will be allocated a question for presentation and submission of the Assignment 1. Questions are listed below and marked “Individual Presentation Assignment

Topic”. In the remaining tutorial time students will discuss the “Questions for General


Every student is required to prepare and be ready to discuss short answers to each question. The tutor will ask questions of students.

Questions for General Discussion

(a) What is meant by the term business law, who does it protect and why do we need it?

(b) What are the primary sources of Australian law?

(c) What do you think is meant by the term “commercial transaction”?

(d) Can you think of three commercial transactions that you entered into during the last year?

(e) What were some of these the ‘terms’ in these transactions?

Tutorial 2

Individual Presentation - Assignment Question

a What must a person who has been injured by the conduct of another prove in order to obtain damages for negligence?

b Acme Power Ltd operates power transmission lines from the generating plant to a number of towns. The transmission lines run across rural properties. The towns it services have no other source of supply. Dan operates a crop dusting business. Being bored one day with the fairly routine flying required by crop dusting, Dan decided to fly under the powerlines. Unfortunately, Dan didn’t make it. The collision brought down one of the lines causing a total blackout for the township of Whyus.

Johnny owns and operates a restaurant. Because of the lack of power Nicole is unable to open the restaurant for two weeks. He claims that the loss of power cost him $10,000



Tutorial 3

Individual Presentation - Assignment Question

a In Australian contract law, The intention to create legal relations is a concept that sates an agreement is legally enforceable only if the contracting parties may be deemed by the court to have intended it. This doctrine operates in addition to consideration. There is with most commercial agreements a strong rebuttable presumption that parties intend to create legally binding relations. However, the reverse is true with most social and domestic agreements. Discuss.

b Sydney graduated with a Business Degree from the University of Tasmania is 2008. From the age of 15 he has also been a soccer player, playing with the Hobart team – Hobart Big Boots. The club is run as an associated incorporation and by law is required to keep accurate accounts and member details. In 2008, believing it would be good practice for him to assist the club with their paperwork he approached the club’s secretary Charles and is given the job of club ‘bookkeeper’. No mention is made of payment at this first meeting. Sydney does a very good job with the club’s account and at the end of 2008 at the club’s annual general meeting a motion is passed to

• “Employ Sydney as the club’s official accountant upon his graduation for the next 2 years, terms and remuneration to be as discussed and agreed upon at a later date.”

In 2009 Sydney continued to prepare the club’s accounts during his spare time. This job took him on average 5 hours per week, which he found quite onerous given he was working full time for a large accounting firm in Hobart.

At the end of 2009 Sydney met with Charles, the club’s president and Sydney confirmed that he would no longer be able to continue to work for the club, as he was now too busy. During this conversation Charles told Sydney that the club would pay him a proper amount if he would continue on as the club’s accountant in 2010.

At the end of 2010 Sydney sent an invoice to the club for his work done over 2009 and for the work he had done in 2010. Sydney is claiming the amount of $7500 for the work he undertook in 2009 and $7500 for the work done in 2010.

In your answers refer to relevant legal principles and cases. Do not refer to legislation.

Tutorial 4

Individual Presentation - Assignment Question

a Offer is a term widely used by the community. It is also a term that has a specific meaning in contract law. The common meaning and the legal meaning do not always coincide. At


law an ‘offer may be described as the indication by one person to another of his willingness to enter into a contract with him on certain terms

Please discuss this in terms of the rules and principals relating to offer and acceptance.

b Diao Han owns a Jewellery Store in North Hobart. His Friend Chen operates an electronic security equipment store.

On Monday the 14th they January have a casual conversation with each other about fitting Diao Han's store with "closed circuit television and the best available electronic locks"

On the Tuesday the15th January Chen emails Diao Han a Quotation of price called "Lists of models and List of price"

Diao Han reads the list and sends a letter to Chen on the 15th January saying:-“

“I am very interested in the XX Supreme Model Surveillance camera and the ABS Lock system, what would be your best price for these if bought together”

This letter is sent by Diao Han to Chen’s old address and Chen receives it on Friday the 18th January as it is re-directed.

Chen emails Diao Han stating

“As per the list prices already provided being $5600, I will deliver and install the goods by Monday the 21st January”

On Thursday the 17th January Diao Han decides he does not need the camera or locks and wishes to cancel the deal so her rings Chen up on his mobile but does not reach him so he leaves a voice message advising he is no longer interested in the equipment

Chen listens to the voice mail on Monday the 21st January but he has already installed the equipment into Diao Han’s Jewellery Shop while Diao Han was out of the shop.

When Diao Han returns to his Jewellery shop he immediately rings Chen and asks for him to remove the camera and locks stating no contract was formed. Chen replies that they have a contract and Diao Han must pay for the goods.


Advise Diao Han, does he have to accept and pay for the goods or is he able to ask for them to be removed from his premises?

In relation to Offer and Acceptance has an agreement been formed? Please provide specific advice as to

(i)Was there an Invitation to Treat? (ii) Who made the Offer?


(iii) Who made the acceptance? (iv)Does Postal Rule Apply?

(v) Was there any revocation of Offer?

Tutorial 5

Individual Presentation - Assignment Question

a "Even if all three essential requirements are satisfied, a contract may not be enforceable in any of the following circumstances: - lack of consent, lack of capacity, lack of legality, lack of formality and lack of authority " Page 224 Business Law, Nickolas James 2010

Please discuss.

b Magda, a rising 20-year-old Tasmanian songwriter, is persuaded to enter into a contract with Exploitations Music Agencies Pty Ltd by Derek, the Tasmanian director of Exploitations Music Agencies Pty Ltd. The contract gives copyright to Exploitations Music Agencies Pty Ltd in respect of all Magda’s song compositions at the date of signing the contract and exclusive rights to them for the five (5) year period of the contract. Under the terms of the contract, Exploitations Music Agencies Pty Ltd is under no legal obligation to publish any of Magda’s songs and, even if songs are published by the company, the contract limits any royalty payments to Magda to $100,000 over the five (5) year period of the contract.

Magda signs the contract without reading it and without seeking independent legal advice. This happens after Derek threatens to spread rumours around Tasmania that Magda has been involved in dealing in the drug “Ecstasy” in bars and night clubs (which is not true). Derek tells Magda, ‘The police will be down on you like a ton of bricks’. Derek also says that Magda’s musical career will be destroyed.

One (1) year later, after Magda has had two (2) songs published and sold by Exploitation Music Agencies Pty Ltd and they have been featured on radio Triple J, Magda decides to accept a new five (5) year contract with Global Records Inc of San Francisco for $500,000 plus annual royalties of 20%. Exploitation Music Agencies Pty Ltd now threatens Magda with legal action for breach of contract if she signs a contract with Global Records Inc.


Advise Magda. Illustrate your answer with relevant case law and legislation.

Tutorial 6

Individual Presentation - Assignment Question

a "The terms of the contract are the specific details of the agreement, including each party's rights and obligations. Broadly speaking, there are two types of contractual term "Express


terms and implied terms. Implied terms include those implied by the courts and any relevant statutory terms" Page 256 Business Law, Nickolas James 2010

b Johnny decides to order the organic fruit for his restaurant from a new supplier, George. When he reads through the terms of the written contract given to him by George, he sees that while George guarantees that the fruit will be ‘fresh’, the contract says nothing about whether the fruit will be organic. Johnny asks George about this, explaining that he tells his customers that his fruit is always organic. George assures him that the fruit will always be organically grown. Johnny then signs the contract without changing it. The next three deliveries include fruit that is clearly not organic.


Can Johnny legally enforce George’s verbal promise about the fruit?

Tutorial 7

Individual Presentation - Assignment Question

a Describe and discuss the different ways in which a contract may be discharged or ended. In your answer refer to relevant legal principles, decided cases and where appropriate relevant legislation.

b Jeremy decides that his backyard garden needs landscaping so he contacts Landscape Capers Pty Ltd. The managing director of the company, Lee meets with Jeremy on 10 July 2009. A plan for Jeremy’s back yard is drawn up and Lee sends it to Jeremy together with a printed contract.

Three of the terms in the contract are: -

‘The works shall be commenced within one calendar month of the date of this contract and

completed within three calendar months of commencement.’

‘The agreed price for the work is $25,000, inclusive of all allowances for material.’

‘The work to be undertaken includes the erection of a new water feature, with a marble bird centrepiece as selected by the owner from Bay Garden supplies (to the value of $1,500), such piece to be selected by the owner within two calendar months of commencement of the work.’

Jeremy reads signs and dates the contract 15 July 2009 and delivers it back to the offices of the Company on this date. Work on his garden commences on schedule on 1 August 2009.

On 1 September 2009 Jeremy leaves Tasmania without selecting a bird centrepiece for the water feature. Lee is unable to contact Jeremy so he attempts to purchase a bird centrepiece on 30 September but is told they have all sold out and the manufacturer is not making more. Lee then completes the water feature without the centrepiece.


The company completes the remainder of the work by 15 October and sends an invoice to Jeremy who receives it on his return to Tasmania.

Jeremy refuses to pay for any of the work as he states ‘The job has not been finished’. Lee insists on full payment of the $25,000 insisting that his company has carried out all that was required.


Advise both parties of any remedies that they may have in the circumstances. In your answer refer to relevant legal principles, decided cases and where appropriate relevant legislation.

Tutorial 8

Group exercise

Material for this Assignment 2 task will be handed out to you in Lecture 3

Tutorial 9

Individual Presentation - Assignment Question

a "Consumers are seen to be entitled to additional protection under Australian law because when dealing with a business they are usually at a disadvantage. A business will almost always know more about its products then the consumer, it will almost have more business experience then the consumer, and it will almost have greater access to resources then the consumer “Page 306, Business Law, Nickolas James 2010

On 1 January 2011 the Australian Consumer Law (ACL) commenced which added to a

re-enforced consumer protection this law placed the Trade Practices act (see

Discuss this new legalisation and how it helps consumers

b ‘Way Out Communications’ Pty Ltd, is a telecommunications company which has recently placed an advertisement in the metropolitan newspaper of a number of capital cities in Australia. That advertisement states:

--- Unlimited Broadband Access

For $99 a month get unlimited broadband access anywhere in Australia. Call 1800 999 999 to take up this deal.

Hurry. Limited time only.


The advertisement contained no other information.

Jeri, lives in a remote part of Australia, runs a successful internet travel business and has been looking for a new internet service provider for some time. She sees this advertisement and decides to take up the offer.

Jeri later discovers that the advertisement did not explain all of the terms and conditions of the offer very clearly. It seems that the offer is not for ‘unlimited broadband access’. Once a user has reached a usage limit of 10 GB in a calendar month, they are prevented from gaining further broadband internet access until the following calendar month. It also appears that access is not available ‘anywhere in Australia’ and is primarily restricted to areas within 250 kms of a capital city. Jeri needs permanent access to the internet to conduct her internet travel business and will be severely effected if her access is restricted after reaching the limit.

As a result, Jeri feels that she has been mislead and deceived by the advertisement which she saw and responded to. Advise Jeri of the chances of her success of mounting a claim for misleading and deceptive conduct against Way Out Communications Pty Ltd.


Does Jeri have an action against ‘Way Out Communications’ Pty Ltd and if yes what for?

Tutorial 10

Individual Presentation - Assignment Question

a Define and discuss the meaning of the following terms: i copyright;

ii patent;

iii design; and

iv trademark.

Illustrate all your answers by reference to relevant legislation.

b Clint has developed a new fish food recipe that makes tropical fish grow twice as quickly and live longer. Clint has developed this recipe over a 15 year period using experimentation and skills as a fish shop owner and operator and from knowledge he has gained from travelling over the world collecting and importing exotic fish. He believes no one in the world has a fish food recipe of such a high quality. He calls this fish food recipe - Recipe number 14.

Clint is now going to have to tell an employee Valerie the ingredients of Recipe number 14 and so is anxious to gain protection to use it exclusively. He believes it would be worth a lot of money if he sold it commercially. He is seriously thinking about manufacturing the food in large quantities and selling it as a wholesaler to retail businesses. Clint believes he would be able to make hundreds of thousands of dollars if he chose to do so.


Clint believes that unless he gains some kind of registered protection that someone else will steal his recipe and make his fish food and sell it themselves such that he will lose all intellectual rights to it.


Advise Clint of what steps need to be taken to protect the intellectual property in this product. Illustrate your answer by reference to relevant legislation.

Tutorial 11

Individual Presentation - Assignment Question

Three good friends George, Jacob and Thomas, retire from their work as an agriculturalist, accountant and chemist respectively. They decide to start a herb farm in the Yarra Valley. George contributes $50,000, Jacob contributes $50,000 and Thomas contributes $100,000 to establish the business. They also borrow another $20,000 from Thomas’ wife, Sunshine. This loan is to be repaid by giving her a percentage of the profits each year.

They buy a beautiful piece of land in the Yarra Valley and, with money left over, they build a green house, a laboratory to process the herbs and a barn to store the products. Part of the barn is to be used as an office for which they purchase a pool table, a microwave and a fridge. Jacob also uses his own personal computer for bookkeeping purposes. George, Jacob and Thomas agree that all decisions relating to the management of the business would require the agreement of all of them. The financial aspects of running the farm are to be left to Jacob.

They decide to sell the herbs at the local Sunday market. In order to differentiate their product from the others at the market, they called themselves “Herbs ‘n’ Stuff” and they place this on a banner above the stall and on their business cards.

One day, George decides on his own initiative to buy a second hand tractor in order to increase productivity. He did not consult the others about the purchase and bought the tractor on credit with finance provided by the seller at a rate of interest 5 times the normal rate. When the others found out they were furious.

Thomas discovers that if he uses a particular chemical, it makes the plants grow faster. What Thomas does not know, and carefully fails to check, is that the herbs, whose growth has been accelerated in this way, can cause hair loss when consumed in normal amounts. One Sunday morning, Rick buys some herbs and consumes them with his dinner that night. The next day Rick is bald and wanting to sue.

A year later Jacob decides he has had enough and wants to leave the business.


A) Is “Herbs ‘n’ Stuff” a partnership? Explain the reasoning behind your answer. B) Explain who, if anyone, is liable to pay for the tractor.



If there are three oral presenters this question is ideal for them each to deal with one of the questions. In each case the presenter will need to apply IRAC in answering the question and explaining why they have reached their conclusion.

Each presenter must answer all three questions in their separate written assignments.

Tutorial 12

Individual Presentation - Assignment Question

a Discuss Corporate Governance and how it relates to Directors duties in regard to corporations and the Corporations Act 2001

b (1) Ash’s mother Shashi is considering investing some money in Organicola Pty Ltd. However, she has stated that if she were to invest she would like to be appointed as a director. Shashi is ordinarily resident in Fiji and is aged 58. She has no formal business qualifications. In 2004 while visiting Australia, she was convicted of driving while under the influence of alcohol and given a $1000 fine.


Is she eligible to be appointed as a director of Organicola Pty Ltd?

(2) Shashi, who is now a director of Organicola Pty Ltd, meets with Serafina, the CEO of Witch Networks (an online marketing company). Serafina tells Shashi about Witch Networks’ innovative new marketing system. Shashi is convinced that the system is ideal for the distribution of Organicola’s products, and offers Serafina $500 000 for a 2-year licence. Serafina produces a licensing contract and Shashi signs the contract ‘for and on behalf of Organicola Pty Ltd’. Serafina says she will arrange for the contract to be signed by her company and sent over to Organicola in a few days. A week later Johnny who is the Managing Director or Organicola receives the contract. He is not as enthusiastic as Shashi about the marketing system. He contacts Witch Networks and tells them that Organicola will not be proceeding with the arrangement. Can Witch Networks enforce the licensing agreement against Organicola?


Consider whether Shashi was acting with:

(a) express actual authority (b) implied actual authority (c) apparent authority