Case Study 1
Lance purchases a new ute from Mighty Motors Pty Ltd for $25,000. He tells Lynton, the car salesperson that he is a partner in a
herbal products business. Lynton is aware of the business as he has read an article about it in the local newspaper.
The three partners had agreed that a car would be purchased for the business but Lance was instructed not to spend over $20,000.
Lynton is completely unaware that Lance has a purchasing limit.
Will the partnership be bound by this contract? Can the other partners take action against Lance?
Case Study 2
Xiaojing is keen to sell her products. The business produces a lavender and Echinacea moisturiser. The business produces an
advertising flyer that states the moisturiser will ‘slow the effects of ageing’. This is false.
The partnership is not happy with the Ute – they think they have bought a ‘lemon’. They decide to sell the car to Saqlaim a refugee
from Syria who has little understanding of English. Fast talking and charismatic Lance talks him into purchasing the car. He enters a
contract with a finance company to purchase the car.
Will Saqlaim be bound by the contract? Do consumers have a remedy regarding the claims re the moisturiser?
Case Study 3
Felix a uni student aged 20 is keen to earn some income during the summer holidays. He is employed as a casual to pick lavender.
He will be paid $25 cash per bag.
One Sunday Xiaojing tells him that he is doing such great work she will pay him an extral $100 for work he did yesterday clearing
She reneges on her promise and Felix is outraged. He wants to know if he can sue Xiaozing for the $100.