Reference no: EM131862019

Assignment Questions -

Students will explain the basic principles of property law and apply relevant provisions of the Sale of Goods Act to given situations.

Question 1 - Land-title to land including indefeasibility

1.1 - Identify (by highlighting and footnoting) on the attached copy of the certificate of title:

(a) The type of land ownership that the title records

(b) Explain what that means

(c) The registered proprietors

(d) The party that holds a security over the property

(e) What does that mean?

1.2- What is the concept of indefeasibility mean?

Question 2 - Land-basic nature of a lease of land

2.1- On the attached draft lease highlight:

(a) The lessor

(b) The lessee

(c) The guarantor

(d) The term of the lease

(e) The legal description of the land involved

(f) The 'ratchet clause'

(g) The purpose of the lease

Question 3 - Sale of Goods Act 1908-provisions for passing of property and risk

Consider the following case study and applying the Sale of Goods Act 1908 write a decision as to where liability rests and give reasons for that. Use case law and the provisions of the Sale of Goods Act 1908 to support your answer.

On 15 March 2016, Aroha purchased a chainsaw from Honest Traders on Trade Me for $197.00 including freight. When Aroha received the chainsaw, it would not start and so he returned it to Honest Traders to be replaced. Honest Traders repaired the chainsaw and returned it to Aroha. When Aroha received the chainsaw she discovered that it had been repaired, not replaced, and that it was now in a damaged condition. Aroha sought to reject the chainsaw and obtain a refund of the purchase price from Honest traders.

Aroha purchased the chainsaw on the basis of its description in Honest Traders Trade Me listing. Aroha did not have the opportunity to inspect the chainsaw before purchasing it. Honest Traders has sold a number of chainsaws on the trade me site.

When Aroha received the repaired chainsaw it had a gouge in its cowling and a broken catch. Aroha did not try and start the chainsaw. Honest traders stated in correspondence with Aroha that the chainsaw was undamaged when shipped. Aroha presented the packaging which was undamaged.

• Describing what the Sale of Goods Act (The Act') is designed to do
• Explaining what the relevant provisions of the Act is/are
• Citing relevant case law that helps explain the Act
• Applying the Act and relevant case law correctly to the case study including giving an opinion as to what the legal remedy is
• Recording that in a easy to understand, logical answer

Question 4 - Law of legal entities

4.1- Explain what it means for a business entity to be referred to as a "separate legal personality". Your answer should address (as a minimum):

• Describe what the doctrine of separate legal personality is;
• Give at least one (1) example of a business structure that is a separate legal entity and one (1) example that is not;
• With reference to well-known case law, discuss how the doctrine was developed; and
• Describe one (1) important piece of New Zealand legislation that incorporates the doctrine of separate legal personality.

4.2- Describe two (2) consequences that result from a business being a separate legal entity.

4.3- Petina, Erica and another friend Zane wish to set up business together importing and selling high-end baby goods. The business will require quite a lot of money to get started to lease a shop and buy stock). They intend to contribute equally to the costs and management of the business. They will also raise money from friends and the Bank.

(a) Identify the two (2) most appropriate business structures that could be suitable for Petina, Erica and Zane.

(b) With reference to the above facts identify and discuss at least one (1) advantage and one (1) disadvantage of each structure you have identified in paragraph (a) above. Based on your analysis, advise Petina, Erica and Zane which structure you consider would be the most appropriate for them and why.

(c) Advise what documents would or should be utilised for the creation of each structure

(d) Advise Petina, Erica and Zane what action they could take to protect their personal assets in the event that the Bank requires them to give a personal guarantee for the obligations of their business.

4.3- In relation to each of the following legal entities, advise:

Who is responsible for the obligations of the business; and

Who enters into contracts on behalf of the business:

(a) Trust

(b) Sole trader