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BUS201E Contract Agency Law on Abigail Had Built Up a Successful Online Business

A – What Must Be Submitted

You are required to submit the following THREE (3) items for marking and grading:

  • A Report (you should submit this item first as it carries the highest weight age).
  • A Video Presentation:
  • UniSIM conducts Hands-on Sessions on how to record ECA video presentation for SBIZ students every semester. Please see MyUniSIM (Blackboard) L01 announcement page for more information including registration, a month before ECA cut-off date.
  • The ECA video recording and submission online tutorials/guides are also available as an external links/downloads in the announcement.
  • The set of PowerPoint slides, converted to PDF, upon which the video presentation is based.

Please verify your submissions after you have submitted the above THREE (3) items.

B – Submission Deadline

  • The THREE (3) items of Report, Video and Presentation Summary are to be submitted by.
  • 12 noon on the submission deadline. You are allowed multiple submissions till the cut-off date for each of the THREE (3) items.
  • Late submission of any of the THREE (3) items will be subjected to mark-deduction scheme by the University. Please refer to Section 5.2 Para 2.4 of the Student Handbook.

C – How the (3) Items Should Be Submitted

  • The Report: submit online to MyUniSIM (Blackboard) via TurnItIn (for plagiarism detection)
  • The Video: submit online to MyUniSIM (Blackboard) (refer to MyUniSIM (Blackboard) L01 announcement page for the online tutorial/guide)
  • The Presentation Summary:
  • submit online to MyUniSIM (Blackboard) via TurnItIn (PPT must be converted to PDF and submission is in PDF only)
  • The PPT must contain at least 20 words
  • Refer to MyUniSIM (Blackboard) L01 announcement page for the online tutorial/guide BUS201e Copyright © 2015 SIM University Page 3 of 8 ECA – July Semester 2015
  • Avoid using a public WiFi connection for submitting large video files. If you are using public wireless (WiFi) connection (e.g. SG Wireless at public areas), you might encounter a break in the connection when sending large files.

D – Additional guidelines on file formatting are given as follows:

1.Report
  • Please ensure that your Microsoft Word document is generated by Microsoft Word 2007 or higher.
  • The report must be saved in .docx

 

2. Video Showing your PowerPoint projection in the background is NOT required.Your video file should be readable by current video player applications such as Windows Media Player (For Windows) and QuickTime Player (For Macintosh). Do ensure that your video file conforms to these requirements:

  1. a) Time Duration: a minimum of 3 minutes and a maximum of 6 minutes
  2. b) File Size: No more than 50MB
  3. c) File Formats:
  • .wmv
  • .mov

If we are unable to playback your video file, we will treat it as nonsubmission of the video component.

Note: Please refer to MyUniSIM (Blackboard) L01 announcement page for the online tutorial/guide as well as the registration to the optional Hand-on session, a month before the ECA cut-off date.

 

3. Presentation Summary
  • Your PowerPoint presentation must contain at least 20 words.
  • Please ensure that your PowerPoint presentation is converted to PDF format before you submit.
  • The maximum number of slides is fifteen (15).
  • Please do NOT download and use PowerPoint slide design templates from the Internet.
  • You can refer to MyUniSIM (Blackboard) L01 announcement page for the online tutorial/guide, a month before the ECA cut-off date.

E – Please be Aware of the Following:

Submission in hardcopy or any other means not given in the above guidelines will not be accepted. You do not need to submit any other forms or cover sheets (e.g. form ET3) with your ECA.

You are reminded that electronic transmission is not immediate. The network traffic may be particularly heavy on the date of submission deadline and connections to the system cannot be guaranteed. Hence, you are advised to submit your work early. MyUniSIM (Blackboard) will allow you to submit your work late but your work will be subjected to the mark-deduction scheme. You should therefore not jeopardise your course result by submitting your ECA at the last minute.

It is your responsibility to check and ensure that your files are successfully submitted to MyUniSIM (Blackboard).

F – Plagiarism and Collusion

Plagiarism and collusion are forms of cheating and are not acceptable in any form in a student’s work, including this ECA. Plagiarism and collusion are taking work done by others or work done together with others respectively and passing it off as your own. You can avoid plagiarism by giving appropriate references when you use other people’s ideas, words or pictures (including diagrams). Refer to the APA Manual if you need reminding about quoting and referencing. You can avoid collusion by ensuring that your submission is based on your own individual effort.

The electronic submission of your ECA will be screened by plagiarism detection software. For more information about plagiarism and collusion, you should refer to the Student Handbook (Section 5.2.1.3). You are reminded that UniSIM takes a tough stance against plagiarism or collusion. Serious cases will normally result in the student being referred to UniSIM’s Student Disciplinary Group. For other cases, significant mark penalties or expulsion from the course will be imposed.

Question 1

Abigail had built up a successful online business, selling dresses and skincare products that were imported from Korea. She decided to sell the business as she wanted to take a break from work.

She was approached by Bernard, who expressed an interest in purchasing the business. He asked why the business had been so successful. Abigail replied that it was because “there are no other online shops that sell the same Korean brands as my e-commerce shop” and showed recent newspaper articles that featured her shop to prove her statement. Bernard read the newspaper articles and nodded happily.

Abigail further told Bernard, “I believe that the annual profits for my shop is about $1.5 million.” Bernard asked his accountant, David, to verify and investigate Abigail’s stated level of profits for her business. David confirmed Abigail’s statement but, unknown to Bernard and David, the firm only made around $150,000 profit per year. Bernard asked for a few weeks to consider the proposal to buy Abigail’s business.

During those few weeks, Abigail discovered another e-commerce shop, KFashion, was about to start operations and sell similar brands as Abigail’s e-commerce shop. Abigail failed to inform Bernard of this.

Finally, Bernard agreed to purchase Abigail’s business. He subsequently discovered, within a month, the true level of profits as well as the launch of KFashion.

Bernard wants to rescind the contract for the purchase of Abigail’s business and has come to you for advice.

Explain to Bernard if he is entitled to rescind the contract, taking into account any limitations imposed by law on his right to rescind. In your analysis, you should identify and evaluate the actions (including any failure to act) of, and the relevant statements made by, Abigail.

In your answers, you are required to cite the relevant case law to support your views as well as demonstrate well-developed written proficiency in the flow and content of your analysis.

(25 marks)

Question 2

MusicFest Productions (MFP) wanted to organise a concert for a well-known boy band, Three Dimensions, to be held on 1 January 2015.

On 1 July 2014, MFP appointed SuperAds Agency as the advertising agency to publicise the concert. The advertising contract contained the following Clause 8: “It is a term of this contract that Super Ads Agency will place daily newspaper advertisements in all the daily English and Chinese newspapers, between 1 October and 20 December 2014.”

On the 15 November, MFP discovered that Super Ads Agency had not placed any advertisements in the Chinese daily newspaper on 8 November and 10 November. MFP informed Super Ads Agency that it had breached “a condition of the contract” and so it terminated the advertising contract on 18 November. Super Ads Agency was angry and insisted that the contract cannot be terminated.

MFP ignored Super Ads Agency’s response and immediately engaged another advertising company, Pro Advertising Agency. The new agreement required Pro Advertising to engage in an intensive daily advertising campaign between 20 November and 20 December. However, by 22 November, all 100,000 tickets for the concert had already been sold so MFP cancelled its contract with ProAdvertising. There was no clause in the contract which permitted such a cancellation. ProAdvertising was extremely upset as it had pre-booked all the advertisement spaces with the newspapers.

  • Advise MFP as to whether it was legally entitled to discharge the contract with SuperAds Agency. In your analysis, identify the nature of Clause 8 of the contract and examine the consequences of breaching such a term. You should examine the issues from MFP’s perspective.

(12 marks)

  • Explain to ProAdvertising whether there was any legal basis for MFP’s cancellation of its contract and MFP’s attempts to stop ProAdvertising from performing its contractual obligations. You should conclude your analysis by briefly stating the claims (if any) which ProAdvertising can make. You should examine the issues from ProAdvertising’s perspective.

(8 marks)

Question 3

Gavin was working for ToyzRU as a procurement manager. The company requested him to source for and purchase a second-hand van for its deliveries of toys to its customers. In a meeting with the company’s director, Gavin was instructed that the second-hand van should be in good condition. He was hesitant about this task that was assigned to him as he knew very little about vehicles. He bicycled to work daily and the only experience he had with vehicles was watching car commercials. However, Gavin did not share his concerns with the company’s director as he wanted the company to have a good impression of his capabilities.

After a few weeks of visiting car dealers, Gavin managed to find a second-hand van. He noticed that the bonnet and bumper were dented. However, he was in a rush and hence, did not make any enquiries about the dents. He simply passed his name card (which states his name, job title and office contact details as well as the company’s name) to the car dealer. After completing the details in the contract for the purchase of the van, the car dealer signed the contract and then passed it to Gavin for signature. Gavin signed it, writing above his signature “for and on behalf of ToyzRU”. The van was then delivered to the company.

A week later, the van failed to start. A mechanic confirmed that the van suffered from a number of serious mechanical defects because it was previously involved in an accident and was repaired poorly.

ToyzRU is now claiming that the contract (which Gavin signed on its behalf) is invalid because he did not follow its instructions to purchase a van that was in “good condition”.

  • Analyse and conclude whether the contract that was entered into by Gavin (on behalf of ToyzRU) and the car dealer is valid and binding. In your analysis, you should identify and discuss the relevant relationship between Gavin and ToyzRU.

(14 marks)

  • Discuss whether Gavin had breached any agency duties and if yes, give examples of duties that have been breached.

(6 marks)

SECTION B (Total 25 marks)

Prepare a video recording of the presentation of at least 3 minutes but not exceeding 6 minutes. Your file size should be no more than 50MB and the format is in either .wmv or .mov.

(25 marks)

Note: Students should select only ONE (1) question (out of the three questions in Section A above) for the video presentation. There is no need to show the Powerpoint slides in the video.

SECTION C (Total 10 marks)

Prepare a set of PowerPoint presentation upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to MyUniSIM (Blackboard).

(10 marks)

Note: Students should select the same ONE (1) question which he/she had selected for Section B above.

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