Commercial Law (Term Two) - Workshops 2012-13 (FINAL)

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COMMERCIAL LAW

WORKSHOPS 4-62012/2013

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SCHOOL OF LAWAmory Building, Rennes Drive, Exeter EX4 4RJ

Professor James DevenneyE-mail: [email protected]

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mailto:[email protected]

Schedule for Term Two

Week Topic Lecturer Workshops etcWeek 0

(7/01/2013)(Exam week) - -

Week 1 (14/01/2013)

Sale of goods: nemo dat SY -

Week 2 (21/01/2013)


Week 3 (28/01/2013)


Week 4 (04/02/2013) NO LECTURE

Week 5 (11/02/2013)

Sale of goods: implied terms

JD Workshop 4 on nemo dat

Week 6 (18/02/2013)

Sale of goods: implied terms / exclusion clauses

JD -

Week 7 (25/02/2013)

Sale of goods: remedies JD Workshop 5 on implied terms

Week 8 (04/03/2013)

Sale of goods: remedies JD -

Week 9 (11/03/2013)

Sale of goods: remedies JD Workshop 6 on implied terms and

remediesWeek 10

(18/03/2013)A Common European

Sales Law?JD -

Week 11 (25/03/2013)

Revision SY Formative assessment due

28/03/2013 (Please note the slightly

revised date)


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WORKSHOP FOUR

The Nemo Dat Doctrine

Reading for the topics covered by this tutorial can be found on the relevant topic outlines.

Questions for discussion

1. Under what circumstance would a court be likely to find that the ‘owner of the goods is by his conduct precluded from denying the seller’s authority to sell’? Is the relevant case law on estoppel consistent?

2. In Lickbarrow v. Mason (1787) 2 T.R. 63 at 70 Ashhurst J. stated:

“whenever one of two innocent persons must suffer by the acts of a third, he who has enabled such third person to occasion the loss must sustain it.”

To what extent, if any, is such a policy reflected in the exceptions to the nemo dat principle? And is the law in a satisfactory position?

3. A owns a vintage Bentley which he leaves with B, a specialist dealer, to have valued. B persuades him to register the car in Wood’s Vintage Car Guide and asks A to leave the car’s registration document with B so that registration can be effected. The following day B sells the car to C, and absconds. C later sells it to Fleecem Finance, who in turn let it to D under a hire-purchase contract. D subsequently sells the car to E, a motor dealer, under a private contract, after taking the car to the auction at the quarterly fair in his local town. E leaves the car with D, as he has business in another part of the market, and D sells the car to F, also by private contract.

Discuss

4. Flora is the owner of Sunshine Valley apple orchard. At the beginning of 2012 she agreed with Tropicana, a fresh fruit juice manufacturer, to sell 100 Kg of the apples produced in Sunshine Valley that year. By October 2012, 150 Kg of apples were harvested, well below previous years’ production. Without the consent of Tropicana, Flora sold and delivered the 150 Kg of apples from Sunshine Valley to an international corporation Cocalo which offered her a higher price.

Advise all the parties on their rights and liabilities.


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WORKSHOP FIVE

The Obligations of the Parties to a Sale of Goods Contract



1. Neville is an art dealer from Newcastle. While on holiday in Devon he notices a painting of Salisbury Cathedral in the window of an art dealer’s shop. Neville does not find the painting particularly pleasing but as he believes it to have been painted by the famous painter John Constable, he decides to make further enquiries. He enters the shop and examines the painting. This reaffirms his belief that the painting is by John Constable. He is approached by Tara, the owner of the shop, who asks if she can assist him. Neville asks her who painted this particular painting of Salisbury Cathedral. Tara replies, “It is a genuine Constable”. Neville then offers to buy this painting and Tara produces a written document purporting to contain the terms of the contract. Both parties sign the document. The document does not, however, include a term that the painting is by ‘Constable’

Six months later Neville finds a potential buyer, Ceri, for the painting. At this point it is discovered that the painting is not by John Constable but by Pablo Constable, a fisherman from Devon. Ceri withdraws from negotiations. Neville is very angry. He wants Tara to collect the painting from Newcastle and he wants his money refunded.

Discuss the liability, if any, of Tara.

2. Neil wishes to buy 10 pints of milk. He telephones Harry, his milkman, to ask if Harry will sell and deliver 10 pints of milk to him. As there is a milk shortage, Harry informs Neil that he can only sell and deliver five pints of milk to Neil. Neil says that this will be fine. However, by mistake, Harry delivers six pints of milk to Neil.

Discuss.


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3. Larry runs a landscape gardening business. On 1 January 2012 Larry, in a bid to make his business more efficient, decided to computerise certain aspects of his business. On 14 January 2012 he purchased a second-hand computer and printer from Del, who is a barrister. Larry has experienced minor problems with the computer.

Moreover, on 3 February 2013 the printer exploded. Larry’s eyebrows were burnt as a result of the explosion.

On 19 January 2012 Larry purchased some computer software from Gamma Co. In particular, he bought a standard bookkeeping package for small businesses. The program was infected with a virus so that when Larry installed it on his computer, the computer crashed and all the data on the hard drive was lost.

On 22 January 2012 Flash Co. agreed to construct a database for Larry. The database was to contain useful gardening information. In particular, the database would contain information on the proper time of the year to sow various seeds. However, this information has turned out to be incorrect with the result many seeds have been wasted. Some of Larry’s customers are claiming compensation.

Discuss the liability, if any, of Del, Gamma Co., and Flash Co.


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WORKSHOP SIX

Breach of a Contract of Sale of Goods, Exclusion Clauses and Remedies



1. Gerard is a keen gardener. In January 2012, Gerard visited his local garden centre where he purchased a new petrol lawnmower. The lawnmower, along with operating and maintenance instructions, was packaged in a cardboard box. He paid for this new lawnmower using his credit card. When Gerard returned home, he put the unopened cardboard box containing the lawnmower into his garden shed. Due to very bad weather in early 2012, Gerard did not open the cardboard box containing the lawnmower until March 2012. Before using the lawnmower for the first time he read the operating and maintenance instructions. Unfortunately for Gerard, these instructions were not very clear and so Gerard put the wrong type of engine oil into the lawnmower. As a result part of the lawnmower’s engine exploded when Gerard used it for the first time. Gerard reported the problem to the manager of his local garden centre who agreed to repair the lawnmower. Therefore the manager of Gerard’s local garden centre collected the lawnmower and sought to repair it. The lawnmower was redelivered to Gerard at the end of March 2012. However, it soon became apparent that the repairs had not been entirely successful. Accordingly Gerard telephoned the manager of the local garden centre and demanded his money back. The manager refused and pointed to a statement on the back of Gerard’s receipt for the lawnmower which states:

“All liability is hereby excluded.”

In early April 2012 Gerard purchased some bags of manure from a local farmer. When Gerard opened one of the bags he was bitten by a snake which was in the bag. In late April 2012 Gerard purchased some pesticide from a local supplier. Gerard has now discovered that it would be unlawful to use this pesticide in the area in which he lives.

Discuss.


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2. Critically assess the impact of the Sale and Supply of Goods to Consumers Regulations 2002.


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Commercial Law (Term Two) - Workshops 2012-13 (FINAL)

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