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Law & business 1
OUR Business FOCUS
Contract law common
Negligence common
Theft criminal
Robbery criminal
Public behaviour criminal
Legal capacity
Consumer law
CONTRACT LAW – common (emphasises remedies)/civil law (rights)
      Contract = either a written, oral or implied agreement between two
      parties, who may be individuals or organisations. It can be repudiated
      (broken – can sue for damages) or frustrated (impossible to complete –
      fire, flood, war).


    ELEMENTS OF A CONTRACT
l   1. Legal object: The purpose must be legal.
    2. Possible to perform: It must be possible for both
       parties to carry out the contract.
    3. Consideration: Both parties must benefit in some
       way from the contract. The benefit does NOT need
       to be equal.
ELEMENTS OF A CONTRACT (continued)



4. Legal object: Must have a legal right to enter into a
   contract (18 or over and mentally fit at the time of
   signing) However, a person U18 can still be a party to
   the contract.


5. Intention: Both parties must have intended to enter
   into a legally binding contract.


6. Offer & acceptance: There must be an offer by one
   party that is unconditional and accepted by the other
   party
3 essential elements
– the offer, the acceptance & the consideration
offer – a proposal that forms the basis of the
agreement

acceptance – occurs when the other party agree to
the proposal

consideration – the passing of something of value
or the promise to do something in return for what has
been promised by another.
TYPES of contracts
• Formed expressly (express contract) or
• Implication (implied contract)

Examples of contracts
• employment – leases – purchase or mortgage
  of property – to insure goods – sale of goods

Features of a simple contract
Involves the exchange of money for a product or service.
RETAILERS are NOT making an offer, it is an
invitation to treat.
TORT LAW – common (emphasises remedies)/civil law (rights)
 Tort = is the infringement of the rights of one individual by another. It
   covers both property & person. There are 4 types:
              negligence – nuisance – defamation – trespass

Negligence = occurs when someone who should exercise a duty of care
fails to do so and the other party suffers loss or damage.
Three requirements that have to exist before a tort of negligence can occur:
1. one person must owe a duty of care to another
2. the duty of care must have been breached
3. as a result of the breach of duty, damages must have been suffered

Nuisance = when a person interferes with another’s rights.
Defamation = when one person’s reputation is damaged by the actions
of another.
Trespass = when property is interfered with.
CRIMINAL LAW – considered to be acting against society, Police,
on behalf of society investigate and bring a case against the accused.

six main types of criminal activity, as follows:

1 - CRIMES AGAINST PROPERTY - criminal/public law
crimes that result in property being stolen or damaged. Typical are:
     Larceny = removing a person’s property without
     permission
     Break & enter = illegally entering a building to commit an
     offence
     Robbery = using violence or the threat of violence to
     another’s property
2 - CRIMES AGAINST PERSONS - criminal/public law
crimes involving injury to another person. These include:
    Homicide = the intentional killing of another person
    Manslaughter = killing of another whether accidental or justifiable
    Assault = causing or threatening to cause injury to another person
3 - WHITE COLLAR CRIME - criminal/public law
   usually committed by professional people, NOT associated with
   violence or damage to property. Eg Tax evasion & computer hacking.


4 - PUBLIC ORDER OFFENCES - criminal/public law
   crimes that disrupt the activities of our society. Eg. swearing/drunk in
   public

5 – CRIMES AGAINST THE STATE/COUNTRY
                 SEDITION – encouraging a hatred of the state
                 TREASON – actively tries to bring about the collapse of
                 the country or assists the enemies of the country

6 – TRAFFIC OFFENCES - criminal/public law
   the most widely committed offences in our society. Most get on the
   spot fines but more serious end up in court proceedings
The legal rights and
                                              responsibilities associated
                                              with a person’s age.




                  In Australia 18 is seen as a critical age
                  because that is when the law recognises
                  that person as an adult. This is known as
                  the age of majority. They are legally
                  responsible for all their actions. NOTE:
                  In Qld the age is only 17.
So, if I am under 18 I am a minor and it is safe to commit a crime?

NO, some states say that those aged 10 & over can be charged
with criminal offences, but with special protection. It is heard in
the children’s court unless it is murder.
YOUNG PEOPLE & CRIME
Most common are:
  wagging school & shoplifting
  drunk & disorderly
  vandalism
  bashings & robberies
  stealing car
  gate-crashing private parties

In most states in Australia:
U10 : cannot be charged with having committed an offence
10-14: court has to prove they knew what they were doing was harmful
or wrong.
14+: treated as understanding the rights & wrongs as an adult
U18: all charges heard in a Children’s Court or Youth Court (unless the
charge is murder – Supreme Court as per an adult.
Over 18: treated as an adult
CONSUMER LAW
Legislation to protect consumers
• Trade Practices Act 1974 (Commonwealth)
  deals with anti-competitive & unfair practices, product safety,
  conditions and warranties and actions against manufacturers and
  importers.
• Price Surveillance Act 1983 (Commonwealth)
  allows the ACCC the power to monitor and report on the prices,
  costs and profits of companies and government authorities. The
  ACCC can also launch a public enquiry into prices.
  Both are administered by the Australian Competition and Consumer
  Commission (ACCC)
• Consumer Affair Act 1970 reflects some of the T. P. Act
  Advertising         -       Consumer Tribunals
  Goods               -       Motor Traders
  Consumer Credit     -
   Travel Agents & builders are also subject to regulatory control
Trade Practices Act
Protection against unfair business transactions
       the Trade Practices Act stands with the State legislation

   Some of the unfair practices covered by the T P Act are:
   •    Misleading or deceptive conduct – hiding rust when selling
        a car
   •    False statements or representation –          NEW style
        saying new when they are not
   •    Unfair, offensive or deceptive selling practices – offering
        GWP and no intention of supplying them
   •    Inertia selling – sending unsolicited credit cards

                                                             All our paper
                                                             items are
Perfect condition                                            recycled
NO RUST
In Queensland the Fair Trading Act 1989 + a number of laws
administered by the Qld Office of Fair Trading protect consumers
 State level Consumers Affairs covered are:
 •   Advertising – false or misleading advertising
 •   Goods – safe design, construction & instructions for use, date
     stamping of pre-packaged food
 •   Consumer Credit – hire purchase, lay-by sales, credit sale
     agreements
 •   Consumer Tribunals – arbitration of consumer-trader disputes
     or small claims tribunals or in court
 •   Motor Traders – the licensing of motor dealers, repair
     warranties, disputes.

 The Queensland Office of Fair Trading are always looking at new
 markets to ensure that consumers wishing to participate in
 those markets are protected.
DID YOU KNOW?
Australian consumers have rights:
  make free choices about what they buy
  decide whether or not to buy a particular product
  receive the goods and services for which they have paid
  be informed about products
  not be misled or tricked by dishonest or unfair tactics




                      BUYER BEWARE
SCAMS & RIP OFFS – they DO happen
Misleading advertising – bait & switch strategies
Retailers must ensure they stock a reasonable quantity of goods
they have advertised and let consumers know when the period
when the goods are on offer and if they are limited in number.
Fake advertising – a reduced ticket price MUST be lower than
the original price the items were being sold at
Double ticketing – if two or more stickers are on the item and
the consumer does not charge the lower price
Unsolicited goods – sending goods to people they did not ask
for and then demanding payment for them
Door-to-door sales – retailers or their representatives making
uninvited visits to private homes and offices in an attempt to sell
goods and services
Pyramid schemes – You pay a joining fee and members you
get to join pay money to you, eventually it fails – bottom loose out
A bluff for the uneducated consumer
 absolutely
NO REFUNDS




              http://www.consumersonline.gov.au/
              http://www.accc.gov.au/content/index.phtml/itemId/142

              Dealing with warranties and after-sales service
                  Keep the original packaging
                  Do not try to fix it yourself
                  Keep your receipt
                  Get any promises in writing

                REMEMBER a price ticket is NOT a contract
Books used for referencing
   and available from Mrs. Rogers for loan

Commerce.dot.com Concepts and Skills
Business Education w/online support
Back to Business 1
Essentials of Australian Business Law
Commerce Zone
Examining Rules & Laws
Introductory Legal Studies for Queensland
Senior Students
First Steps in Retail Management
Available on school curriculum network and Blackboard website

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Introduction to Law & Business 1

  • 2. OUR Business FOCUS Contract law common Negligence common Theft criminal Robbery criminal Public behaviour criminal Legal capacity Consumer law
  • 3. CONTRACT LAW – common (emphasises remedies)/civil law (rights) Contract = either a written, oral or implied agreement between two parties, who may be individuals or organisations. It can be repudiated (broken – can sue for damages) or frustrated (impossible to complete – fire, flood, war). ELEMENTS OF A CONTRACT l 1. Legal object: The purpose must be legal. 2. Possible to perform: It must be possible for both parties to carry out the contract. 3. Consideration: Both parties must benefit in some way from the contract. The benefit does NOT need to be equal.
  • 4. ELEMENTS OF A CONTRACT (continued) 4. Legal object: Must have a legal right to enter into a contract (18 or over and mentally fit at the time of signing) However, a person U18 can still be a party to the contract. 5. Intention: Both parties must have intended to enter into a legally binding contract. 6. Offer & acceptance: There must be an offer by one party that is unconditional and accepted by the other party
  • 5. 3 essential elements – the offer, the acceptance & the consideration offer – a proposal that forms the basis of the agreement acceptance – occurs when the other party agree to the proposal consideration – the passing of something of value or the promise to do something in return for what has been promised by another.
  • 6. TYPES of contracts • Formed expressly (express contract) or • Implication (implied contract) Examples of contracts • employment – leases – purchase or mortgage of property – to insure goods – sale of goods Features of a simple contract Involves the exchange of money for a product or service. RETAILERS are NOT making an offer, it is an invitation to treat.
  • 7. TORT LAW – common (emphasises remedies)/civil law (rights)  Tort = is the infringement of the rights of one individual by another. It covers both property & person. There are 4 types: negligence – nuisance – defamation – trespass Negligence = occurs when someone who should exercise a duty of care fails to do so and the other party suffers loss or damage. Three requirements that have to exist before a tort of negligence can occur: 1. one person must owe a duty of care to another 2. the duty of care must have been breached 3. as a result of the breach of duty, damages must have been suffered Nuisance = when a person interferes with another’s rights. Defamation = when one person’s reputation is damaged by the actions of another. Trespass = when property is interfered with.
  • 8. CRIMINAL LAW – considered to be acting against society, Police, on behalf of society investigate and bring a case against the accused. six main types of criminal activity, as follows: 1 - CRIMES AGAINST PROPERTY - criminal/public law crimes that result in property being stolen or damaged. Typical are: Larceny = removing a person’s property without permission Break & enter = illegally entering a building to commit an offence Robbery = using violence or the threat of violence to another’s property 2 - CRIMES AGAINST PERSONS - criminal/public law crimes involving injury to another person. These include: Homicide = the intentional killing of another person Manslaughter = killing of another whether accidental or justifiable Assault = causing or threatening to cause injury to another person
  • 9. 3 - WHITE COLLAR CRIME - criminal/public law usually committed by professional people, NOT associated with violence or damage to property. Eg Tax evasion & computer hacking. 4 - PUBLIC ORDER OFFENCES - criminal/public law crimes that disrupt the activities of our society. Eg. swearing/drunk in public 5 – CRIMES AGAINST THE STATE/COUNTRY SEDITION – encouraging a hatred of the state TREASON – actively tries to bring about the collapse of the country or assists the enemies of the country 6 – TRAFFIC OFFENCES - criminal/public law the most widely committed offences in our society. Most get on the spot fines but more serious end up in court proceedings
  • 10. The legal rights and responsibilities associated with a person’s age. In Australia 18 is seen as a critical age because that is when the law recognises that person as an adult. This is known as the age of majority. They are legally responsible for all their actions. NOTE: In Qld the age is only 17. So, if I am under 18 I am a minor and it is safe to commit a crime? NO, some states say that those aged 10 & over can be charged with criminal offences, but with special protection. It is heard in the children’s court unless it is murder.
  • 11. YOUNG PEOPLE & CRIME Most common are: wagging school & shoplifting drunk & disorderly vandalism bashings & robberies stealing car gate-crashing private parties In most states in Australia: U10 : cannot be charged with having committed an offence 10-14: court has to prove they knew what they were doing was harmful or wrong. 14+: treated as understanding the rights & wrongs as an adult U18: all charges heard in a Children’s Court or Youth Court (unless the charge is murder – Supreme Court as per an adult. Over 18: treated as an adult
  • 12. CONSUMER LAW Legislation to protect consumers • Trade Practices Act 1974 (Commonwealth) deals with anti-competitive & unfair practices, product safety, conditions and warranties and actions against manufacturers and importers. • Price Surveillance Act 1983 (Commonwealth) allows the ACCC the power to monitor and report on the prices, costs and profits of companies and government authorities. The ACCC can also launch a public enquiry into prices. Both are administered by the Australian Competition and Consumer Commission (ACCC) • Consumer Affair Act 1970 reflects some of the T. P. Act Advertising - Consumer Tribunals Goods - Motor Traders Consumer Credit - Travel Agents & builders are also subject to regulatory control
  • 13. Trade Practices Act Protection against unfair business transactions the Trade Practices Act stands with the State legislation Some of the unfair practices covered by the T P Act are: • Misleading or deceptive conduct – hiding rust when selling a car • False statements or representation – NEW style saying new when they are not • Unfair, offensive or deceptive selling practices – offering GWP and no intention of supplying them • Inertia selling – sending unsolicited credit cards All our paper items are Perfect condition recycled NO RUST
  • 14. In Queensland the Fair Trading Act 1989 + a number of laws administered by the Qld Office of Fair Trading protect consumers State level Consumers Affairs covered are: • Advertising – false or misleading advertising • Goods – safe design, construction & instructions for use, date stamping of pre-packaged food • Consumer Credit – hire purchase, lay-by sales, credit sale agreements • Consumer Tribunals – arbitration of consumer-trader disputes or small claims tribunals or in court • Motor Traders – the licensing of motor dealers, repair warranties, disputes. The Queensland Office of Fair Trading are always looking at new markets to ensure that consumers wishing to participate in those markets are protected.
  • 15. DID YOU KNOW? Australian consumers have rights: make free choices about what they buy decide whether or not to buy a particular product receive the goods and services for which they have paid be informed about products not be misled or tricked by dishonest or unfair tactics BUYER BEWARE
  • 16. SCAMS & RIP OFFS – they DO happen Misleading advertising – bait & switch strategies Retailers must ensure they stock a reasonable quantity of goods they have advertised and let consumers know when the period when the goods are on offer and if they are limited in number. Fake advertising – a reduced ticket price MUST be lower than the original price the items were being sold at Double ticketing – if two or more stickers are on the item and the consumer does not charge the lower price Unsolicited goods – sending goods to people they did not ask for and then demanding payment for them Door-to-door sales – retailers or their representatives making uninvited visits to private homes and offices in an attempt to sell goods and services Pyramid schemes – You pay a joining fee and members you get to join pay money to you, eventually it fails – bottom loose out
  • 17. A bluff for the uneducated consumer absolutely NO REFUNDS http://www.consumersonline.gov.au/ http://www.accc.gov.au/content/index.phtml/itemId/142 Dealing with warranties and after-sales service Keep the original packaging Do not try to fix it yourself Keep your receipt Get any promises in writing REMEMBER a price ticket is NOT a contract
  • 18. Books used for referencing and available from Mrs. Rogers for loan Commerce.dot.com Concepts and Skills Business Education w/online support Back to Business 1 Essentials of Australian Business Law Commerce Zone Examining Rules & Laws Introductory Legal Studies for Queensland Senior Students First Steps in Retail Management Available on school curriculum network and Blackboard website