Commercial Law Assessment - Essay
The essay must be completed by each student individually. There will be two problem questions, which will be made available on vUWS.
Criteria and general assessment requirements - Essay questions are fact based legal problems. The following Learning Outcomes will be assessed in the Essay:
- Apply common law and statute law to tortious, contractual, consumer and agency relationships to resolve legal issues.
- Examine the various business entities and their ongoing legal responsibilities to solve practical legal problems.
QUESTIONS -
Question 1 - Katie was driving her new car along busy George Street in Parramatta during peak hours when she knocked into Max, a pedestrian. Max was walking along George Street when he stopped at the corner of George and Smith Street and crossed the road without waiting for the traffic light to change. Neither Katie nor Max took any evasive action. Max could easily see Katie approaching but decided to cross the road anyway. Katie had taken her eyes off the road for a few seconds to text her friend whilst driving and she could not step on her brakes in time to avoid knocking down Max. Max has a fractured leg and has a gash on his head. Max is suing Katie for the injuries he has suffered as a result of the accident. Rita who was at the traffic lights when the accident happened witnessed the accident. Rita has had a nervous breakdown and now has a phobia about crossing the street which severely limits her social life. Rita is suing Katie for damages.
Advise Katie, Max and Rita of any rights they may have in this situation and if Katie will be liable under the Tort of Negligence ONLY, giving full legal authority for your answers.
Question 2 - Robbie required some additional capital for his business. He applied for a $250,000 term loan from XYZ Bank which was to be a secured by a charge on his vacant land. To obtain this loan amount, Robbie asked his friend Harry, the sole proprietor of a licensed land appraisal and valuation firm, ABC Appraisals, to value his land at $850,000 instead of the real value of $200,000. Harry prepared a valuation report stating the value of the land as $850,000 and gave it to Robbie. XYZ Bank did not make any site visit because Robbie's land was about 300 kilometres away. Although ABC Appraisals was not on XYZ Bank's panel of valuers, XYZ Bank relied on the said report because ABC Appraisals was a reputable firm. The bank advanced $250,000 loan to Robbie. Robbie suffered some financial losses in the first year and defaulted in repayment of the loan. XYZ Bank sued him for the repayment of the loan. A court order for the sale of the land to recover the loan was granted in XYZ Bank's favour. Robbie's land was eventually auctioned off at $180,000.
Advise XYZ Bank whether it can succeed in suing Harry from ABC Appraisal for damages allegedly caused by the land valuation. What would XYZ Bank need to prove in order to succeed? Consider all relevant common law and statute law applicable in relation to the Tort of Negligence in your answer.