Sale of Goods Act 1908 - Assignment Example

LAW EXAM Part Property Law- ifying Property ify the property on the list provided by Smith and Leverage below in to either: • Land a. The Smith and Leverage Building, 340 Main Street, Auckland • Interest in Land b. Leases to floors 1-7 of the Smith and Leverage Building, occupied by tenants. • Chose in Action d. An insurance policy over the building i. A debt of $5,300, which is owed to them by a client j. The Smith and Leverage trade mark and branding. e. The right to park in six car parks in the parking building up the road • Chose in Possession c. A satellite dish attached to the top of the building. f. A company car g. Office furniture such as tables, chairs and bookshelves h. A software system designed by Smith and Leverage for use in their business A. He can use property as:- 1. Real property- here he will provide the building at the 340 main street, Auckland as collateral 2. Inventory and account receivable- here if the business gets a large purchase order, he can use the same as collateral for a loan. B. While ownership to something or property is to have the legal rights of possession; Possession is to have the physical custody without any legal right of possessing something or property. For example, an individual may possess a stolen item without having the legal ownership of the same. Part 2: Sale of Goods Act 1908 Section A Implied Terms a) Breaches of the implied terms are as follows: - There is the breach of the implied term as to the Title in the goods where Barry Bold sells stolen paintings to Hudson galleries Ltd. This is according to the sales of goods act 1908 14(a-c) b) Nemo dat rule states that the buyer to a property does not attain a better title than the one, which was held by the seller. This is as shown in the sales of goods act 1908 14 (a-c) which is the implied terms as to titles. In a contract of sale, unless the circumstances of the contract are such as to show a different intention, there is—   (a) An implied condition on the part of the seller that in the case of a sale he has a right to sell the goods, and that in the case of an agreement to sell he will have a right to sell the goods at the time when the property is to pass: (b) An implied warranty that the buyer shall have and enjoy quiet possession of the goods: (c) An implied warranty that the goods are free from any charge or encumbrance in favor of any third party, not declared or known to the buyer before or at the time when the contract is made c) After Barry Bold is convicted, the title of the goods will go back to the rightful owners who are the Auckland Museum. This is in accordance to sec 14 a of the sales of goods act. d) The remedies for Auckland sailing club are first; to demand for compensation from Barry Bold of the value of the paintings taken by the Police as they are ones who gave out a bad title. They would further demands for damages caused when the firm is portrayed as having been in possession of stolen property(Sales of Goods Act part 5-55) e) Hudson Galleries Ltd has the remedies of asking for interest and special damages ro recovery of the money paid to their supplier, Barry Bold according to Sales of Goods Act part 5-s55 Section B Passing of Property a) The rule under section 20 of the Sale of Goods Act 1908 is that which states that. “Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state must be borne by the seller” and the agreement in this case was that Quality carpets delivers the 200 rolls and install them without stating anything on their storage and who bears the costs in case of an accident. Therefore, quality carpets as the seller will bear the costs. b) The airport as the buyer would own the goods but the loss is borne by the seller, Quality Carpets hence their insurance company will pay for the loss in the Carpets. Depending on the cause of the fire, the airport will claim compensation for the fire that burnt down their store from their insurance company. (Sales of Goods Act part 3- s31 (6)). c) According to the rule of sales of goods, the title passes to the buyer on delivery and acceptance. Therefore, the owners would still be Windy town Airport warehouse. (Sale of Goods Act 1908 part 1-s3 (1). Fact Scenario and Questions A. House Corp Ltd (HCL) owns the couch. This is in accordance with the Sales of Goods Act part 3-s30 which state that payment and delivery are concurrent conditions. “Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions that is to say, the seller must be ready and willing to give possession of the goods to the buyer in exchange for the price, and the buyer must be ready and willing to pay the price in exchange for possession of the goods.” B. My answer would not be different even if House Corp Ltd (HCL) were phoned because the buyer pays the property in the goods pass to the buyer the moment the seller agrees to sell and the price consideration. (Sales of Goods Act 3-s30) C. House Corp Ltd (HCL) would still be the owner had the contract stated “ownership passes when the payment was made” given that House Corp Ltd (HCL) had already paid and was waiting for the delivery. (Sales of Goods Act 3-s30) D. It is important to know when the ownership of the goods are transferred in order that the person liable can be identified easily in a case when anything happens like a destruction or theft causing a loss in the property. (sales of Goods Act 5) Action for Breach of Contract E. If the thief is convicted, the couch will be returned to House Corp Ltd (HCL) as they had obtained the ownership at the time of the theft. Sale of Goods Act 1908 3-29 & 30. F. Maria in this does not hold a better title to the couch than the title transferred to her by the thief. Therefore, the couch will be taken back to HSL who is the owner. The remedies likely to be claimed by Maria are compensation for the price from the thief and this will be effected by the courts. Sale of Goods Act 1908 5-s50 G. Nemo dat rule states that there is no better title to a property than that from the original rightful owner. Sale of Goods Act 1908 4-s41 Part 3: Consumer Guarantees Act 1993 Section A: Application of the Consumer Guarantees Act 1993 a) Maria buys a table from Trademe.co.nz (online auction) and it is scratched and Damaged. The act will not apply in the following scenarios as the Consumer Guarantees Act does not apply on goods bought on auction. b) Callum buys his neighbor’s lawnmower for $50 and the gas tank has a leak. This will not be covered by the Consumer Guarantees Act 1993 as it bought from a party who does not engage in the business of selling, the Act only covers goods bought from businesses. c) Ester buys a glass lamp from a second-hand shop, which does not work when she gets it home. The Consumer Guarantees Act 1993 1-s5-13 will apply as the good is bought from a business engaged in the business of selling second hand items hence can engage in a binding contract. d) Brian receives a toaster as a wedding gift that does not work and he wants to take it back to the shop for a refund. The Consumer Guarantees Act 1993 1-s5-13 will apply in this scenario as the good is bought from a shop and it is a consumer good. e) Kelly buys a set of tables to sell in her furniture shop. The Consumer Guarantees Act 1993 1-s5-13 will not apply in this case as the items dealt with are not consumer goods. Section B Breaches and Remedies a) Fabulous Fish Ltd has committed several breaches to Bill by falsifying the type of fish given that he was to bring to Bill Red tailed zebra fish but instead brought Brown Guppies. Secondly, the pump that the company recommended was not the right size for use with a medium size fish hotel. These are all against the Consumer Guarantees Act 1993 1-s5-15. This section of the act guarantees the consumer of enjoying goods as per their specifications. b) Under the Consumer Guarantees Act 1993 2-s 18 &19 gives the following remedies to the consumer in case of the breach of the contract. The consumer can have the problem in the goods corrected; they can reject and return the goods and services or keep the goods and claim compensation. Concisely, the Act provides for refund, replacement and credit notes to the consumer under no duress to the customer. Bill can therefore, demand from Fabulous Fish Ltd for a replacement of the fish sold to him with the Red Tailed Zebra Fish, which he required, and the Fish80 pump also replaced with one suitable for use with a medium sized Fish Hotel. The Company should also compensate Bill for the loss and damage caused in Bill’s house because of the wrong prescription. Fact Scenario and Questions A. In Katrinas case the Consumer Guarantees Act 1993 will apply. This is because one, the John spark’s company wants to exploit her in the costs of fixing the stove. Secondly, John Sparks does a shoddy job making the stove blow after just a week causing Katrina losses and damages which are likely to cost her. Consumer Guarantees Act 1993 2-s 18 &19 provides Katrina with the relevant remedy. B. The breaches of Consumer Guarantees Act 1993 2-s 16 & 17 are poor provision of service, exploitation in terms of price and damage caused in form of destruction. The law will therefore provide Katrina with replacement, compensation and credit notes according to Consumer Guarantees Act 1993 2-s 18 &19. C. Under the Consumer Guarantees Act 1993 2-s 18 &19, the remedies available for Katrina will range from allowing John Sparks to come back and fix the problem, Katrina can also reject the services of John altogether and demand them for compensation. Generally, Katrina can seek refunds, replacement or credit notes and he/she has all the room to choose without coercion. Part 4 : Fair Trading Act 1986 a) Fair Trading Act 1986 is to ensure that firms providing products in the same industry exhibit fair practice to create a fair trading ground for all. Quick Skinny Ltd acts unfairly to Weight Loss for Life Ltd while exploiting customers by falsifying their operations. Therefore, Fair Trading Act 1986 1- s 9-26 applies in this scenario as it will handle the misleading and deceptive conduct of the firm, the false representation and unfair practices of Quick Skinny Ltd. b) Quick Skinny Ltd has breached several fair trading provisions according to the Fair Trading Act 1986 1- s 9-26 through misleading and deceptive conduct by providing false information about its weight loss programs. It has also exhibited unfair practices like claiming that it has an endorsement from the New Zealand Medical association and using the public media to propagate the same. c) Due to the unfair practices that Weight Loss for Life Ltd has experienced, the Fair Trading Act 1986 5- s 37-46 allows the company to seek redress from the jurisdictions of the courts and injunctions from the same judicial bodies. The courts would issue penalties favoring the operations of Weight Loss for Life Ltd. d) The commerce commission may take the following actions according to Fair Trading Act 1986 1- s 9-26. They would issue stiff sanctions that the company engaging in unfair practices has to adhere to so that it continues its operations. Secondly, the commission will make the firm pay fines for the years it has operated outside the law. Lastly, the commission may suspend the operation license of Quick Skinny Ltd for a while or totally deregister the operations of the firm engaging in unfair practices to protect the consumers and other industries (Commercial laws of New Zealand, 1959). e) The penalty that can be issued against Quick Skinny Ltd is an Injunction granted by court for contravention of Part 1, Part 2, Part 3, and Part 4 of the Fair Trading Act 1986 5- s 41. Fact Scenario and Questions A. In this scenario, Fair Trading Act 1986 applies as Drink Corp Ltd has opted to engage in unfair trading practices of misleading and deceptive conduct, which is part 1 section 9-12 of the Fair Trading Act 1986. It is also representing a product falsely according to part 1 section 13-16 and engaging in unfair trade practices of offering harmful products to schools, this is in accordance to part 1 sections 17-26. Te company has further gone against the Fair Trading Act 1986 2- s27-28A on consumer information and Fair Trading Act 1986 3-s29-31 on product safety. B. Breaches of the Fair Trading Act 1986 by Drink Corp Ltd entail misleading and deceptive conduct (Fair Trading Act 1986 1- s9-12); providing false information to customers (Fair Trading Act 1986 3-s29-31); unfair trade practices (Fair Trading Act 1986 1-s17-26) and product safety disregard (Fair Trading Act 1986 2-s27-28A). C. In response to complaint by Small Town School, the Commerce Commission would take the following actions; suspend the license of Drink Corp Ltd pending investigations on te claims. If it is fund guilty of all the allegations above, then the firm should be stopped from producing the harmful products by revoking the license completely after an injunction on the same by the courts. This is in accordance with Fair Trading Act 1986 5- s 41. References Commercial laws of New Zealand. (1959). Naperville, Ill.: New Internationalist October.. http://www.legislation.govt.nz/act/public/2007/0091/latest/DLM968962.html?search=ts_act%40 bill%40regulation%40deemedreg_Property+Law_resel_25_h&p=1 http://www.legislation.govt.nz/act/public/1908/0168/latest/DLM173958.html?search=ts_act%40 bill%40regulation%40deemedreg_Sale+of+Goods+Act+1908_resel_25_h&p=1 http://www.legislation.govt.nz/act/public/1993/0091/latest/DLM311053.html?search=ts_act%40 bill%40regulation%40deemedreg_Consumer+Guarantees+Act+1993_resel_25_h&p=1 http://www.legislation.govt.nz/act/public/1986/0121/latest/DLM96439.html Read More