BLW17: Zot Had Been in The Tourism Business For Several Years – Business law

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Added on: 0000-00-00 00:00:00Order Code: Question Task Id: 0

Internal Code: MAHOZ7
Business law:

1) Zot had been in the tourism business for several years, specialising in booking coastline holidays and accommodation for local, interstate and overseas clients. He decided his business needed an imaginative web site on the internet to attract more customers. He arranged with
Wizard Web Pty. Ltd. to set up his e-commerce business and explained to Wizard, the owner of the company, that he required rapid availability of large numbers of stunning images of the region. Wizard acknowledged he could provide this and wrote it on the order form which he presented to Zot and Zot signed it.

2) Sydney Construction Company (the Company) had contracted with Mick’s Cement Works to lay the foundations for a multi-storey hotel which included a large shopping centre on the ground floor within the city of Sydney. Before the work was completed, Mick and the
The company had a disagreement and Mick wrongly refused to complete the work. Builders were scarce in Sydney at the time and it took eight weeks before another builder was found and the work was continued. It cost the Company an extra $250,000. As a result, the building was not completed within the deadline and the Company missed out on the lucrative accommodation contracts it had organised for the Sydney Olympic Games in addition to the expected rent of the shopping centre. It demanded compensation from Mick for all its losses
but Mick refused.

3) For the past two years, Soft ‘N Cuddly Pty. Ltd. distributed soft toys throughout Australia using the name of Soft ‘N Cuddly. An American company which had also been distributing soft toys in Australia and had done so for many years using the name Soft ‘N Fluffy saw this and
demanded that Soft ‘N Cuddly Pty. Ltd. withdraw their product and stop using the name Soft ‘N Cuddly. However, Soft ‘N Cuddly Pty. Ltd. refused and the American company reported them to the Australian Competition and Consumer Commission (ACCC).
On investigation, the ACCC also discovered that the skins of the toy koalas used by Soft ‘N Cuddly Pty. Ltd. were imported from China but were labelled ‘Product of Australia’ and accused the company of breaching consumer laws. Soft ‘N Cuddly Pty. Ltd. responded that
before marketing any of these, they had contacted the Commonwealth Department of Trade and had received a letter, which they produced, informing them that if more than fifty percent of the manufacturing costs were incurred in Australia, the product was entitled to be labelled
‘Product of Australia.’

 

 

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