International Study Center
LAW FOR BUSINESS
Answer the following questions.
Q1. Freda booked a room at the Gullies Hotel and paid for one week’s stay. It was her first time to stay at the hotel and when she went to her room, she noticed a sign on the back of the door which says “The Gullies Hotel and its Management would not be held liable for the safety of any valuable left in the guest’s room. The Hotel has safe deposit boxes at the reception.”
Freda had to go to an important business meeting and immediately left the hotel leaving some cash and expensive jewelries in her room. When she returned to the hotel after the day’s meeting, she discovered that all her money and jewelries were missing. She sued the hotel for damages. The hotel is denying any liability relying on the notice posted in Freda’s room. Is the hotel liable for the items lost? Explain fully.
Q2. Discuss the doctrine of precedent. Give specific case examples where the court has applied this legal principle.
Q3. Electronics Ltd sells mobile phones and on 25 June, posted an advertisement in a local newspaper which states ‘Summer Sale! Big discounts for all phones! Visit our shop at 29 High Street or call 0123450000 if interested. Limited stocks only.’
In connection with this advertisement, the following conversations occurred:
Andy saw the advertisement and immediately phoned and asked “How much is an iPhone 5?”
The salesperson replied “According to our price list, a brand new iPhone 5 is priced at £400 and a second hand at £200.”
Andy said “I accept your offer. I will buy one brand new iPhone 5”.
To which the salesperson on the phone replied “Sorry but another customer has just bought the last stock of our iPhone 5. We don’t have any iPhone 5 on sale anymore. Goodbye.”
Brad saw the advertisement and went to the shop on High Street. He saw the phone that he has been saving money for and asked a salesperson “ How much is that Nokia phone?”
The salesperson replied “I will sell it to you for £300. That is the last stock.”
Brad replied “I will buy it for £250.”
Carl who was also at the shop overheard the salesperson and said “I accept your offer. Here is my £300 for that Nokia phone.”
Brad said to the salesperson, “You can’t sell it to him. I accept your offer and will buy that phone for £300.”
To which Carl replied “Too late, I have already accepted. That phone is mine.”
Dana, a 15 year old student, saw the advertisement on the newspaper and called the shop. She wants to change her old phone and asked if there was an iPhone 5 for sale. The salesperson said that they have one for £400. Dana decided to buy it and have it delivered to her home, payment upon delivery. When the phone was delivered the next day, she refuses to take it saying she does not want an iPhone anymore.
a. Is there an agreement between Electronics Ltd and Andy? Explain fully.
b. Is there an agreement between Electronics Ltd and Brad? Explain fully.
c. Is there an agreement between Electronics Ltd and Carl? Explain fully.
d. Does Electronics Ltd have a contract with Dana? Explain fully.
Q4. For consideration to be valid, it must be sufficient but need not be adequate. Explain this rule and cite relevant court decisions.
For problem questions (Q1 and Q3), identify the relevant issues, clearly state the rules of law applicable, apply the rules to the facts of the problem, and have clear conclusions.
For the essay questions (Q2 and Q4), explain your answers fully and cite relevant decisions of the court in the discussions.