Spring 2016 - Main Exam SEAT NUMBER: IUTS UNIVERSITY OF TECHNOLOGY SYDNEY STUDENT NUMBER: SURNAME: (FAMILY NAME) OTHER NAMES: This paper and all materials issued must be returned at the end of the examination. They are not to be removed from the exam centre. Examination Conditions: It is your responsibility to fill out and complete your details in the space provided on all the examination material provided to you. Use the time before your examination to do so as you will not be allowed any extra time once the exam has ended. You are not permitted to have on your desk or on your person any unauthorised material. This includes but not limited to: Mobile phones Smart watches and bands Electronic devices Draft paper (unless provided) Textbooks (unless specified) Notes (unless specified) You are not permitted to obtain assistance by improper means or ask for help from or give help to any other person. If you wish to leave and be re-admitted (including to use the toilet), you have to wait until 90 mins has elapsed. If you wish to leave the exam room permanently, you have to wait until 60 mins has elapsed. You are not permitted to leave your seat (including to use the toilet) during the final 15 mins. During the examination you must first seek permission (by raising your hand) from a supervisor before: Leaving early Using the toilet Accessing your bag 70110 Introduction to Law Time Allowed: 2 hours No reading time. This is an Open Book exam Please refer to the permitted materials below: Permitted materials for this exam: Any annotated textbooks Any paper materials that are handwritten, photocopied or typed Materi~ls provided for this exam: This examination paper One (1) multiple choice answer sheet (GPAS-240R) One (1) answer booklet (8 pages) Students please note: This examination is worth a total of 50 marks. There are two parts to the examination paper- Part A and Part 8 -each part worth 25 marks. All questions in Part A and Part 8 are to be answered. Part A of the paper contains 25 multiple choice questions. All multiple choice questions in Part A are to be answered on the answer sheet provided. Please follow the instructions given on the sheet. Part 8 of the paper contains one essay question on International Law. It is to be answered in the 8-page answer booklet provided. Disciplinary action will be taken against you if you infringe university rules. Do not open your exam paper until instructed.................................. Page 1 of 12
Rough work space Do not write your answers on this page.... Page 2 of 12
PART A- 25 MARKS ANSWER ALL QUESTIONS EACH QUESTION IS WORTH 1 MARK 1. Which of the following is is an accurate description of an indictable offence? A statutory offence designed to protect the community; A less serious offence such as common assault; The most serious offence such as robbery or murder; A threat to the peace and good order of the community; An offence without a non-parole period included. 2. A director has a duty to prevent a company from incurring a debt that would make it insolvent. Which of the following describes the circumstances that would give rise to the exercise of that duty? When s/he actually knows that it is insolvent; As soon as s/he suspects that it is insolvent; If slhe hears rumours that it is insolvent; When a shareholder claims to have heard that the company is insolvent; All of the above. 3. Which of the following statements best describes a 'mutual mistake'? One of the parties is mistaken as to the nature of the document which they have signed; Both parties are mistaken but about different aspects of the contract; Both parties have made the same mistake about the existence or identity of the subject matter of the contract; One of the parties is mistaken about a material fact regarding the subject matter of the contract, and the other party takes advantage of this mistake; The parties mutually agree to end the contract because they are mistaken about the subject matter of the contract
... ~.. 4. Which of the following correctly defines 'Consideration': An essential element in all contracts; A contractual element that takes the form of the promisor fulfilling a pre-existing obligation; A contractual element that moves from the promisor to the promise; Must be sufficient but need not be adequate; All ofthe above. 5. Which of the following statements is INCORRECT? There are two major legal traditions in the world- Common law legal tradition and Civil law legal tradition; Under the Common Law legal system, there are common law and statute law; Under the Common law system, the judge has the main role in questioning witnesses; Under the Civil law system, there are civil matters and non-civil matters; The common law system relies on precedent for deciding cases before a court. 6. Stephen, a mechanic wants to buy Jenny's car. Just before he completes the transaction he asks her if the vehicle is in good mechanical condition. Jenny says that it is, based on the fact that she has never heard any strange noises from under the bonnet. In fact the car has rust in the engine which can make it fall out at any time. Two days after paying for the car, the engine falls out. Stephen wishes to recover the purchase price from Jenny. Drawing on principles of contract law, will Stephen succeed? Stephen will not succeed because i) Jenny's representation is not a term of the contract, and ii) Simon could have checked this out himself; Stephen will succeed because Jenny's representation is an express term of the contract; Stephen will succeed because Jenny's representation is fraudulent; Stephen will succeed because the law implies in every contract for the sale of a motor vehicle a condition that the vehicle is in perfect mechanical condition; Stephen will succeed because the law implies into every contract of sale of a motor vehicle, a warranty that the vehicle is in perfect mechanical condition.... Page 4 of 12
7. The executive arm of the government is: Largely administrative; Governed by Chapter II ofthe Constitution; Where the Governor-General works; Vested with the Queen's powers; All of the above. 8. Which of the following are entitled to be company directors? Minors; Other corporations; Only persons who have been licenced to be directors by ASIC (Australian Securities and Investments Commission); Australian citizens only; Any natural adult person. 9. What is the main problem that Part 3-2 of the Australian Consumer Law (ACL) seeks to address? Unfair practices that interfere with free competition; Monopolisation; Market dominance; Restraint oftrade; Exploitation of Consumers. 10. A large proprietary company is a proprietary company which has: Gross assets of more than $12.5 million at the end of the financial year; 50 or more full-time employees at the end of the financial year; A gross operating revenue of more than $25 million for the financial year; Any two of the above; None ofthe above.
11. Shop displays, price lists and sale catalogues are: Offers which may be accepted; Invitations to treat and not offers; Unilateral offers to the world at large; An acceptance of the customer's implied offer; None ofthe above. 12. A director using the business judgment rule must rationally believe the judgment must be in the best interests of the corporation. This means: As long as a majority of the other directors hold the same belief, that is acceptable; As long as that director holds that belief that is acceptable; As long as a majority of shareholders hold the same belief that is acceptable; As long as any other reasonable person would hold the same belief that is acceptable; None of the above. 13. The term "common law" has a number of valid meanings and is often used in a number of different senses. Which of the following is NOT a valid use? Australia is a common law country; The common law was a centralised system ofthe English royal courts; The common law system is one which is found in a number of European countries; The United States of America is based on the common law system; Today, common law decisions involve both common law and equity. Page 6 of 12
14. The two main defences to an action in negligence are: Contributory negligence and voluntary assumption of risk; Reparation and counter negligence; Causation and reasonable care; Complicated negligence and voluntary actions; Restitution and contributory negligence. 15. Which ofthe following is NOT an advantage for an accused having a criminal matter dealt with summarily? The matter will be dealt with more quickly; The penalty imposed may be lower; An acquittal by the magistrate cannot be appealed by the Crown; It is cheaper to have the matter dealt with in a lower court; The case will be dealt with by only one magistrate and have no jury involved. 16. Mike's Machinery entered into a contract with AidForce to lease 10 tractors to AidForce for a period of 10 months. The tractors were on the ship "Poseidon" which was close to the Iraqi border when it was shelled by the American marines and lost at sea. AidForce needed the tractors to clean an area for resettlement and when Mike's Machinery didn't deliver them it had to lease some from the American company SeizeTheMoment at a higher price. AidForce wants to sue Mike's Machinery for difference in lease costs. Select the statement that describes the likely outcome for AidForce: AidForce had a binding contract and the failure of Mike's Machinery to deliver the tractors amounted to a breach entitling AidForce to sue for damages; AidForce is not entitled to damages as it did not make the time of delivery a term of the contract; Mike's Machinery can sue the American Marines for damages to its property and AidForce can obtain appropriate remedies by joining Mike's Machinery as a party to the action; The doctrine of frustration applies thereby bringing the contract to an end and releasing Mike's Machinery from liability to AidForce; Under the doctrine of frustration, SeizeTheMoment was not permitted to charge more than the original lease costs and AidForce can apply for a refund of the monies overpaid.
17. Rhonda is a partner in an advertising pamphlet distribution service called the 'SenditOut' and Karen is her personal assistant. Karen ordered twenty backpacks from CarryCart Pty Ltd, a company that she has not purchased from before and one whose products Rhonda does not like. Rhonda decides that because Karen made the decision to use the CarryCart brand knowing that Rhonda did not like its products, she will ignore the invoice. CarryCart Pty Ltd has taken action for payment. Which of the following explains the legal position of CarryCart Pty Ltd? a) CarryCart Pty Ltd has no legal basis for claiming payment because Karen is not a partner; b) CarryCart Pty Ltd will be successful in a claim for payment because personal assistants have authorization to act at all times on behalf of a partner; c) CarryCart Pty Ltd will be successful in a claim for payment if it can establish that Karen held herself out as a partner; CarryCart Pty Ltd will not be successful in a claim for payment because Rhonda had not given Karen to act on her behalf and CarryCart ought to have known whether or not the person with whom they was dealing, had authority. None ofthe above. 18. Which ofthe following statements is a CORRECT description ofthe difference between criminal law and the law oftorts? In a criminal case, the burden of proof is on the prosecution, and the standard of proof is the balance of probabilities; In a criminal case, the burden of proof is on the plaintiff, and the standard of proof is the balance of probabilities; In a civil case, the burden of proof is on the prosecution, and the standard of proof is the balance of probabilities; In a civil case, the burden of proof is on the plaintiff, and the standard of proof is the balance of probabilities; In a civil case, the burden of proof is on the plaintiff, and the standard of proof is beyond reasonable doubt.... Page 8 of 12
19. Committal Proceedings are: More serious criminal offences generally heard in intermediate or superior courts; Less serious crimes which are usually heard in the Magistrates Court; Preliminary hearings of a serious criminal offence, where a Magistrate decides if there is enough evidence against the accused to proceed to a formal trial; Less fonnal proceedings where the accused pleads guilty; Formal proceedings to decide the jurisdiction in which a particular matter is to be heard. 20. Thomas found out that Marilyn was about to auction a painting that she owned and that he really liked. The auction catalogue contained an estimated price of $60,000. Thomas sent an email to Marilyn offering to buy the painting that she owned for $58,000. His email said "If you don't tell me this is not OK, by 5.00pm today, I'll take it that we have a firm deal". Marilyn emailed the auctioneer to withdraw the painting from the sale, but the auctioneer accidentally deleted the email before reading it. He auctioned the painting for $60,000. Thomas received legal advice that he could sue the auctioneer for wrongfully selling a painting that belonged to him under a contract Thomas believed he had with Marilyn. Which of the following describes the outcome Thomas should expect? Thomas will not succeed because i) silence cannot be construed as acceptance and ii) Marilyn has not communicated her acceptance to Thomas; Thomas will succeed because Marilyn complied with Thomas's terms by remaining silent and her inability to communicate with the auctioneer is irrelevant; Thomas will succeed because Marilyn's silence amounted to acceptance ofthe contract and her instruction to the auctioneer which he will be deemed to have received regardless of the fact that he deleted it before reading, could have only referred to that acceptance. Thomas will succeed because the auctioneer owed a duty to Marilyn to ensure that she continued to own the painting up to the moment of sale; Thomas will succeed because immediately he became the owner of the painting, the auctioneer lost any authority from Marilyn to sell it.
21. Which of the following describes the situation that emerges when the sole shareholder who is the only director of a proprietary company, dies? The company automatically comes to an end; The company automatically changes to a public company; The company continues to exist and the deceased's executor can appoint a new Director; The company will come to an end only if it has no written constitution; The creditors of the company immediately become its shareholders. 22. Tom offered to sell his car to a colleague, Peter, for $10,000 and to keep that offer open for 24 hours so that Peter could obtain a loan. One hour later, Tom received an offer of $12,000 for the car from another colleague, Jenny, and Tom went ahead and sold the car to her later that afternoon. Jenny told Peter she had bought the car. Peter telephoned Tom three hours later and informed Tom that his (Peter's) loan had been approved and he wished to fonnally accept Tom's original offer. Which statement represents the legal position? As Peter and Tom are friends, the agreement between them is of a social nature and could not amount to a legally binding contract; Tom's conduct in selling the vehicle to Jenny amounted to a breach of a binding contract with Peter; No enforceable contract could be formed between Tom and Peter because i) Peter knew the vehicle was sold before he accepted the offer and ii) he produced no consideration for an option to keep it open and iii) Tom's conduct in selling the vehicle amounted to a revocation of the offer which was successful because Peter found out about the sale before he accepted the offer; Tom's conduct in selling the vehicle to Jenny was an attempted revocation ofhis offer to Peter which was not successful because he did not communicate it personally to Peter; Tom will be liable to Peter under the doctrine of promissory estoppel because a promise to allow time to accept an offer is always enforced by the courts. Page 10 of 12
23. Sean Best enters into a contract with John Jones to buy Jones's unique collection of art works by two well-known artists, which is in the process of being transported a truck company from Adelaide to Sydney by Global & Interstate Freight Pty Ltd.. While being transported, the art collection was irreparably damaged after a violent storm caused water to leak into the truck's storage cabin where the art collection had been packed. Which of the following describes Sean's best legal option? Take action for damages againsuohn Jones; Seek a remedy under Schedule 2 Competition and Consumer Act for John Jones's breach ofthe Australian Consumer Law; Seek to terminate the contract on the basis that it has been frustrated; Refuse to pay the agreed money as the contract is void for mistake; Sean should exercise his right to insist that the contract not be declared void and have John Jones provide an equally unique art collection to remedy the breach. 24. An auctioneer's call for bids is: An offer of the property for sale, with any bids that may be made being acceptance of the offer; An acceptance that the property is for sale, with any bids that may be made being the consideration; An invitation to treat, with any bids that may be made being offers to buy; The consideration that the property is for sale, with bidders making offers and accepting terms of the contract; None of the above. As the contract is between the owner of the property and the bidders, it is subject to privity of contract- the auctioneer plays no role in offer or acceptance. 25. Which of the following statements best describes a 'mutual mistake'? One of the parties is mistaken as to the nature of the document which they have signed; Both parties are mistaken but about different aspects of the contract; Both parties have made the same mistake about the existence or identity of the subject matter of the contract; One of the parties is mistaken about a material fact regarding the subject matter of the contract, and the other party takes advantage of this mistake; The parties mutually agree to end the contract because they are mistaken about the subject matter of the contract....
... 25 MARKS PARTB ESSAY QUESTION Answer the following question in the booklet provided: Discuss the proposition that states are still the primary subjects of international law despite the fact international legal personality now encompasses more than merely statehood. Page 12 of 12