ACCT ACCT 3151 3151 Bu Busi sine ness ss Law Law Second Assignment (25%) Instructions: 1. 2. 3. 4.
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Answ Answer er all all qu ques esti tion onss and and subsub-qu ques esti tion onss bel below ow.. Please obse obserrve the wor word limi imits as ind indicat cated for for each questio stion n and sub subquestion. You You are are advi advise sed d to do do rese resear arch ch whe when n answ answeering ring que quest stio ions ns.. Su Supp ppor ortt your your answers with relevant court cases and materials if applicable. You You are are requ requir ired ed to to comp comply ly wit with h the the rule rule of of acad acadeemic mic hon hones estty. You You must must acknowledge the source of ideas that you have referred to and cannot copy, word by word, from the works of others. You You may may subm submit it a ‘gr ‘grou oup p ass assig ignm nmen ent’ t’.. Each Each grou group p sha shall ll cons consis istt of of no no mor moree than 5 students. You may form a group with fellow students of other classes. All students in a group will be awarded the same mark. You may may also do the the assi ssignmen ment by your yourse sellf and sub submit mit your our answe nswerrs individually. Thee due Th due date date of of this this ass assig ignm nmen entt is 23 23 Nove Novemb mber er 201 2012 2 (by (by 5:00 5:00pm pm)) (Fri (Frida day y of the 11th 11th teach teaching ing week) week).. You are require required d to submit submit the assign assignme ment nt electronically electronically by http://www.cuhk.edu.hk/veriguide. On Only ly one one stu stude dent nt of of a group has to submit the assignment (if you submit a ‘group assignment’). You would get get a receipt after you have have done so. Kindly then then fix the receipt receipt on the hard copy copy of your your assig assignm nmen entt and and submit submit the the assig assignm nmen entt to the assignme assignment nt collecti collection on box marked marked with ACCT3151 ACCT3151 at level level 2, Cheng Cheng Yu Tung Building.
Question One (12 Marks) (word limits: up to 1,300 words)
Crystal Crystal is the proprietor proprietor of a tourist tourist agency. agency. On 1st July she visited for the second time Printing World, a company offering printing services. Crystal showed James, a manager of Printing World, a sample promotional brochure that contained the details of four tours organized by her agency and asked James to make 5000 copies of it. it. James recorded the informati information on in a printing printing order form and presented presented it to Crystal for her signature signature.. The form was written written in English. English. One statement (in (in small print) print) read: “No refund is allowed in any circumstances and even in case we commit commit a breach of contract”. After presenting the form to Crystal, James told her that she could ask him any questions about the form. Crystal, who had come to Hong Kong from Mainland China and had never attended school in English, signed the form. Crystal later received 5000 copies for her promotional brochure from printing World. She found that there were several serious misspelling in all the copies and half of the copies had missing pages. She went back to Printing World, World, filed a complaint claiming claiming that Printing World had been careless in making copies of her brochure, and demanded a refund, which James refused.
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The annual turnover of Printing World is around 60 million HKD while that of Crystal’s business is barely 1 million HKD. Three other companies provide printing services in the same area and they have similar exemption clauses in their printing order forms. Discuss Crystal’s right to refund, if any. → Issue: Exemption Clause (Topic 3) Exemption Clause Valid? →Requirement under common law & requirement under control of exemption clause legislation : must satisfy both common law & legislation Follow Question 2 (Yui case)
Question Two (13 Marks in total) (word limits for both parts of the question together: up to 1,500 words) Part A
On 1st October, Susan inspected a house on sale. Kenny, the owner, told Susan that the house would come with a car park nearby. Susan said: “I prefer to live in a quiet place. I would not buy a house with a noisy environment. Also, I hate to walk a long distance from the house to the car park.’ Kenny replied: ‘As you can see, the surrounding area is quiet.’ He knew, however, that the airport authority had recently changed the flight routes so planes would soon regularly fly over the house about two hundred meters above. Susan did not see the car park Kenny mentioned. Kenny gave her a brochure when she left. The brochure showed that the car park was in a vacant lot approximately three hundred meters away from the house but Susan had never read it. On 14th October, Susan informed Kenny of her decision to buy the house. They signed a sale and purchase agreement, prepared by Kenny’s solicitor. A diagram in the agreement showed the location of the car park. After signing the agreement, Susan found the distance between the house and the car park. She also heard about the imminent changes in the flight routes of planes and realized how noisy the area would soon become. She now feels deceived, angry and distressed. Discuss whether Susan can rescind the sale and purchase agreement with Kenny and recover any loss from him. →
Issue: Misrepresentation (Topic 4) Follow Q1 flow.
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Part B
Sharon has relied on Wilburn, a businessman, for his business advice for many years. A month ago, Wilburn offered to sell his internet-cafe business to Sharon. She agreed. The price she paid was slightly above that of the market. Wilburn did not tell Sharon, however, that wild dogs were always hanging around the place so people were frightened to visit the cafe. Sharon was afraid of wild dogs as well. Discuss whether Sharon can cancel the deal with Wilburn. Issue: Undue Influence Follow Q2 flow (topic 4)
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