LST2BSL Quiz Answers PDF

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LST2BSL Quiz Answers Quiz 1. 1. What does 'stare decisis' mean and why is this important? ‘Stand by what has been decided'. This is important because it is the basis for the doctrine of precedent. 2. Which of the following happened at federation in 1901? The Commonwealth of Australia was established by an Act of the British (United Kingdom) parliament. 3. What is a 'shared power'? A legislative power that is held by both the states and the Commonwealth. 4. Under the ‘Separation of Powers’ doctrine there are 3 main ‘branches’ of Government. They are: Executive, Legislature and Judiciary 5. Which of the following is NOT relevant to a court’s jurisdiction? The age of the judge deciding the case 6. Which branch of government administers or puts into effect legislation, in order to carry out government policies? Executive branch 7. Which statement explains the effect of section 109 of the Commonwealth Constitution? Where there is any inconsistency between a Commonwealth Act and a state Act, the Commonwealth legislation will prevail. The state Act is invalid, but only to the extent of the inconsistency. 8. Which of the following statutes was created in 1958 by the parliament of Victoria? Goods Act 1958 (Vic). Quiz 2. 1. Choose the incorrect statement regarding exclusion clauses: Exclusion clauses are an exception to the general rule of freedom of contract. Such clauses will never be enforced by a court. 2. Lindy sees a reward notice for a lost dog. She finds the dog and returns it to the owner, but the owner refuses to pay her the advertised reward of $50. How would a court view this situation? Lindy’s acts counts both as executed consideration and acceptance of the offer.

3. Choose the correct statement regarding the doctrine of privity of contract: Only the parties to a contract can enforce the contract 4. Choose the answer which contains only essential elements for the creation of a contract: consensus ad idem, intention to create legal relations, capacity to contract 5. Choose the incorrect statement: Associated Newspapers Ltd v Bancks involved breach of a warranty 6. Choose the correct statement regarding acceptance: Acceptance is usually only effective once it has been communicated to the offeror, but according to the postal acceptance rule, acceptance by post is an exception. 7. Which of the following best explains the principle contra proferentum: Contra proferentum refers to the interpretation of a term, such as an exclusion clause, narrowly and against the interests of the party seeking to rely on the term 8. Which of the following is NOT an exception to the ‘parol evidence rule’? If one party has not read the written agreement Quiz 3 1. In relation to performance of a contract, what does ‘frustration’ refer to? An unforeseen change in circumstances which makes performance impossible or fundamentally different from what was intended 2. If a contract is ‘void’, this means that: The contract was never validly created – no contractual rights or obligations have been created or are enforceable. 3. Which statement best summarises the rule in Hadley v Baxendale? Remote losses, which would not normally be expected to result from a breach of contract, can only be claimed if they were contemplated by both parties at the time the contract was created 4. Simon orders some fancy desserts from Toni, for a large work function at a top advertising firm. Toni calls on the morning of the event and says that she won’t be able to deliver the desserts in time for the function. Simon makes some phone calls and finds another supplier who can provide similar desserts in time, but this will cost an extra $200. Choose the correct statement about this scenario: If Simon mitigates his loss by purchasing the desserts from the other supplier, he can claim the extra $200 in compensation from Toni

5. Alma agrees to buy 100 computers from Xavier for $20,000, to be delivered in two weeks’ time. When the delivery date arrives, Xavier tells Alma that he is short of stock and can only supply 50 computers. Alma says this is unacceptable, and instead arranges to buy 100 computers of the same kind, from another supplier, Bob, for $20,000. Bob delivers the computers the same day. Choose the correct statement: Alma cannot claim damages because she has suffered no loss. She is already in the same position as if the contract was properly performed by Xavier. 6. Which case involved an anticipatory breach, or repudiation of the contract: Hochster v De La Tour 7. Choose the correct statement regarding remedies for breach of contract: Specific performance will only be ordered if damages is not an adequate remedy in the circumstances. 8. On Tuesday, Alvin orders some books from Belinda. He advises her that the order is urgent, as he requires the books by Friday. Belinda fails to bring the books by Friday – instead, she arrives with the books the following Monday. Alvin rejects the books and refuses to pay Belinda for them. What has occurred? Belinda has breached the contract, and the breach is serious. Alvin is entitled to reject the books and terminate the contract. Quiz 4: 1. When will a court set aside a contract on grounds of a ‘unilateral mistake’? The error is in respect of an essential term of the contract and one party is aware of it but tries to avoid the other party discovering it 2. Marco operates a florist business and wants to repaint the walls of his shop. He buys a 10-litre tub of paint from a hardware store for $117. After repainting one wall of his shop, Marco notices that the paint has not stuck well to the concrete walls – instead, it is flaking off. Choose the CORRECT statement given Marco’s situation: The relevant guarantees in the Australian Consumer Law will not apply to Marco, because he bought the paint for the purpose of using them in trade or commerce, in the course of treating fixtures on land. 3. Chan and Lisa make a contract: Lisa will sell 10 parsley plants to Chan, and will send them to him on the ‘Milton Express’ train on Saturday. Unknown to both Lisa and Chan, the ‘Milton Express’ runs two services on Saturday – one in the morning, and one in the evening. Lisa only knows about the morning service, so she puts the parsley plants on that train. Chan only

knows about the evening service, and when he comes to collect the parsley plants from the evening train, none are there. Which statement best describes what has happened? There has been a mutual mistake, because the parties are at crosspurposes. The closest precedent is Raffles v Wichelhaus 4. Choose the INCORRECT statement about remedies for breach of statutory guarantee under the Australian Consumer Law: The consumer cannot claim damages for loss resulting from the failure. Mimi purchases a chainsaw from a catalogue. When it arrives via post, she discovers that the specifications are different from what was advertised in the catalogue. It weighs 5kg rather than 4kg as advertised, and the power output is only 2kW instead of 2.5kW. 5. Which statutory guarantee from the Australian Consumer Law would be most relevant for Mimi? Section 56 correspondence with description 6. Ellie owns a hardware store, and wants to entice more customers into her shop. She has three wheelbarrows in stock, which normally cost $44 each. She publishes an advertisement in the local newspaper, which says ‘This Saturday – Special Offer! Wheelbarrows at just $10 each! Come early – limited stocks! Lots of other bargains.’ Ellie knows that, at this price, lots of people will be interested. When the shop opens on Saturday morning, there are many customers waiting, and the three wheelbarrows are sold within seconds. There are lots of unhappy customers who missed out on the special offer. Which unfair business practice has Ellie engaged in, and which is the relevant provision of the Australian Consumer Law? This is bait advertising, and is prohibited by section 35 of the ACL. 7. Choose the INCORRECT statement regarding courts’ approach to the question of undue influence: If there was no general controlling influence by one party over the other, then there cannot have been any undue influence. 8. Which of the following is NOT a reason why a court would hesitate to declare a contract void (awarding the remedy of rescission): If damages would provide a sufficient remedy

Quiz 5: 1. If a contract has an ‘unfair term’, what happens according to section 23 of the Australian Consumer Law? Usually only the unfair term becomes void. As long as it can operate without the unfair term, the rest of the contract will continue to bind the parties. 2. What does the term novus actus interveniens refer to, in tort law: A new intervening act, which breaks the chain of causation between the defendant’s conduct and the plaintiff’s harm 3. Which tort involves unreasonable conduct interfering with a person’s enjoyment of their premises? Private nuisance 4. Choose the CORRECT statement about unconscionable conduct under the Australian Consumer Law Both sections 20 and 21 of the Australian Consumer Law apply only ‘in trade or commerce’ 5. Choose the INCORRECT statement about section 18 of the Australian Consumer Law, which prohibits misleading or deceptive conduct: Liability under section 18 depends upon proving an intention to mislead or deceive. 6. Which of the following is NOT an element in section 18 of the Australian Consumer Law. engaging in unconscionable conduct 7. To establish vicarious liability in tort law, two things must be shown. The first is that the tortfeasor (person who committed the tort) was an employee rather than an independent contractor. What is the second? That the tortious conduct occurred in the course of employment. 8. Select the INCORRECT statement about tort law: For legal obligations to arise in tort law, the people must be known to each other...