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Research Project Starbucks Assignment

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Question 1:


In the current case the buyer Angela has asked the seller Jessica about the annual profit of the restaurant. This restaurant has been sold by Jessica to Angela recently. However, when Angela asked Jessica about the annual profit of the restaurant, Jessica provided wrong information and biased Angela to purchase the restaurant. On the contrary, it has been noticed that the buyer party, Angela neglected to view the profit report of the restaurant and only evaluate an old profit report. It has been noticed that the main issue for purchasing of the restaurant is the poor revenue gain which was supposed to be mentioned in a any form. However, the seller company did not do so and provided wrong information to the buyer party in order to sell the restaurant.


In the above scenario, it can be stated that, the Fair Trading Act of Australia has been breached by the seller party in order to sell the restaurant property. As per the Fair Trading Act 1992, any property dealer is liable to provide proper description about any issue of the sellable property to the buyer party. In case of Australian Securities and Investment Commission (ASIC) v Cassimatis (No. 8) [2016], the breaching of contract has been made by both the directors against their customers[1]. Many people have lost their huge amount of finance by investing in a wrong market. However, as for this reason, the Australian contract Law under the Business Law has put on effect and the Australian Securities and Investment Commission (ASIC) has filed a case against the defendant party[2].

Thus, in this way the Contract Law has been breached by the directors and the Australian Federal court filed a complaint against both of the Cassimatis Directors. It has been noticed that in case of Fair Trading v Abbey National plc and others [2009], the bank account holder has received an unplanned overdraft without the concern of the customers[3]. On the other hand, another important act is the Competition and Consumer act 2010 (CCA) which can be effective in this case. Similarly in Beck v LW Furniture Consolidated (Aust) Pty Ltd [2012], this act has been applied in the breaching of directors duty[4].


Thus, these major three Acts can be applied in the current case and Angela can get the justice. In case of Weinstock v Beck [2011], the plaintiff party was suffering a huge amount of money due to the share price fall[5]. After the contract has been conducted the defendant company had not provided true information about the share and market pressure of the company. Thus, as per the Competition and Consumer act 2010 of Australia, the plaintiff party has achieved justice. As per the FTA 1992, any property dealer is liable to provide proper description about any issue of the sellable property to the buyer party. This is done in order to prevent further harassment of either party after the contract has been made. Thus, in this way Angela can file her case on the court and according to FTA she can ask monetary compensation from Jessica due to the misleading information[6].

On the other hand, Robertson v FCT [1952], in order to control the death rate of workers in the company of under the Robertson scheme[7]. This scheme has gone badly wrong when the stakeholders did not pay the promised amount for the families of worker. As a result the court has filed the case as per the Competition and Consumer Act 2010 (CCA). Similarly, Angela can also file the case against Jessica in order to breach this CCA. However, it has been noticed that, the main issue of the current case is unfair practice of trading. In order to get the justice, Angela can use the Independent Contractor’s Decision Tools and can justify the issue like Port of Melbourne Authority v Anshun Pty Ltd (1981[8]).


Henceforth, it can be concluded that, in a way Angela can get the justice. With the help of three major Acts such as Trade Practice Act, Competition and Consumer Act and the Contract Act, Angela can file the complaint against Jessica[9]. Along with this, a considerable amount of compensation can be claimed from Jessica due to her violation of Business Law. However, it is a fault of Angela that she did not check all the files which have been provided before purchasing. Additionally, she has believed on the verbal statement of Jessica without evaluating those and this makes her side weak. However, in case of Lunn v Cardiff Coal Company (No 3) [2003], the court refused to make any compensation of defendant party due to the lack of evaluation of the business contract[10]. Thus, this is the main issue of the breaching of Business Law which has been done by the seller party. 

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