Age of majority act , Business Law and Ethics

Humble, a local high school student, wished to buy a moped. He intended to use it to get to and from school which was 3kms away. He also had a part-time job involving some travelling, which he did by public transport. Having the moped would make that part of his life easier.

After a thorough search, Humble found that Dodgy Motors Pty Ltd ("Dodgy") would offer him the best deal. Therefore on 16 July 2010, Humble signed a standard order form for the purchase of a 2010 moped, colour red, total purchase price (including all on-road costs) being $2,230, payable by way of a deposit of $1,000 with the balance of $1,230 payable thirty days after delivery. The order form was appropriately counter-signed by Bumble, Dodgy's sales representative. Humble paid the $1,000 deposit and happily rode away on his new vehicle.

Humble did not remain happy for long, for a few days later he was sacked from his part-time job and has not been able to find any other part-time work. Because of this, he failed to pay the $1,230 balance owing to Dodgy when it fell due on 16 August. In response to a written demand from Dodgy for payment, Humble explained his predicament, expressed his sorrow at being unable to honour the commitment he had undertaken, and pointed out that in any event, he had learned in his high school Legal Studies course that he did not have to pay Dodgy anything because he was only 17 years old.

When Dodgy's managing director, Grumble, received this letter, she was incensed at this apparent insolence. She showed the letter to her sales representative, Bumble, who had once studied law for a year. Bumble said that his dim recollection was that there might in fact be something to what Humble had written. Outraged at this latest example of the law's scandalous coddling of juveniles, Grumble telephoned the senior partner at the law firm where you are employed.

All of the above is related to you in a memorandum. You are asked to carry out some preliminary research and answer the questions below.

QUESTIONS

1. Is Humble of full age and capacity? Use the Age of Majority Act 1972 (WA), provided with this assignment, to explain your answer.

2. What is the ratio of Nash v Inman [1908] 2 KB 1? (5 marks) This case is available on the Westlaw database through the library homepage. If you are not sure how to access the case, look at the amended version of Workshop 3. The workshop contains instructions on how to use the database.

3. Section 2 of the Sale of Goods Act 1895 (WA) provides that minors must pay for necessaries. Necessaries in this section means goods suitable to the condition in life of such infant or minor or other person, and to his actual requirements at the time of the sale and delivery. This question requires you to consider whether the good is suitable to the condition in life of the minor (the first part of the statutory definition). Using the materials provided with this assignment explain whether a moped would be classed as a necessary. If you think you need additional facts explain what extra facts you might need and why they are required.

4. This question requires you to consider whether the moped is a necessary for Humble's actual requirements at the time of the sale and delivery (the second part of the statutory definition). Use the materials provided with this assignment to explain the following:

a. the arguments that could be used to support the proposition that the moped was necessary for Humble at the time of sale and delivery.

b. the arguments that could be used to support the proposition that the moped was not necessary for Humble at the time of sale and delivery.

If you think you need additional facts explain what extra facts you might need and why they are required.

5. If the moped is a necessary does Humble have to pay Dodgy Motors the balance of the purchase price?

Following are:

i) Detailed instructions about completing this assignment, including assessment criteria (at the end). You must comply with these.

ii) Materials that are essential to preparing your answer to the questions on the previous page. You may wish to consult other extrinsic materials in relation to the interpretation of the statute law provided with this document. I am not saying you must consult these other sources - this is for you to decide! Otherwise, you do not need to research beyond these materials and you MUST assume there is no other relevant legislation or cases. You may choose to locate and look at the full version of a case discussed in the materials. However, this is not a research essay, rather it is an assessment designed to test your problem solving skills. You do not need to do further research on the law in this area and must not go beyond the cases and legislation I have referred you to. I do expect you to have done, and to have applied, all assigned readings on problem solving, the doctrine of precedent and statutory interpretation.

Posted Date: 2/22/2013 6:52:43 AM | Location : United States







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