Discuss about the Global Sales and Contract Law Industry.
The contract law of Australia is similar to the contract law of England. The law has been developed by the decisions of the Australian courts from 1980. Law of equity also plays an important role in the contract law of Australia.
In the given case, Bill and Jill are siblings and bought a business Sydney cbd café from Dodgy Pty.Ltd on 1st July. While analyzing the case, it was found that the seller has dishonestly presented his accounts. The estimated cost of the business is $3000 per week. The seller has agreed with the terms of the contract that he will not run any café in Sydney cbd for a period of 5years from the sell of his business. Bill and Jill bought the café and after running it for several months they found that the undertakings of the business is very less i.e. $2000 weekly which is less than their cost. They seek for an advice about the contract and the remedies against the seller. Before giving any advice, it is necessary to understand the concept of business law and its key areas. Business Law guides the person to start and run the business smoothly. It includes all the law, which is necessary to start, buy, or manage a business. The rules enacted by the authorities are to be followed by all the corporate concerns. It provides all the details regarding when to start a business, how to buy it, and so on. The key areas of business law are as follows:
In the given case, the seller has made breach of contract. Sale of Goods Act, 1895 deals with breach of contract. These violations can be of failure against payment or failure to deliver any asset. Sometimes, the method to deal with the breach of contract is discussed or mentioned in the contract to help the parties from future implications. Under sub section 82(1) of the commonwealth Trade Practices Act a person can claim damages for the loss from other party. For example, in case of non-payment the party can receive an extra amount of $20 per day until the period of delay continues. It is advisable for Bill and Jill to check whether any clause is mentioned in the contract or not.
Damages that may be awarded conform to the common law rules in In Masters v Cameron the High Court held three possibilities to be available. These remedies are of three types:
Based on the above facts Bill and Jill can demand for certain remedies against Dodgy. Pty. Ltd.
In the given case, Hugh runs a pizza business in Sydney. He uses Uber Eats service for delivery of his pizzas. The sales of the company were very good. After sometime, Hugh decided to cut off the expenses, which he spent on delivery of pizzas. He hires his son Theo for this purpose. They do not make any registration for their service and uses the name of Uber Eats without his permission. Furthermore, they use outdated and expired cheese for their products to cut the cost. According to their pamphlets, they advertise that they use farm fresh cheese for their products. Many customers fall sick by eating this pizza. One of the customers died by consuming this pizza. Based on this fact the key areas of business are as follows:
There are many regulatory requirements, which a person has to follow while opening a food business. The person should take permission from Australian NewZealand Food Standards Code before starting the business. There are three levels of government in the food regulatory system, which plays an important role in protecting public health and safety by regulating food for human consumption. These regulatory are Australia and New Zealand Ministerial Forum on Food Regulation, Food Standards Australia New Zealand (FSANZ) and The Australian Competition and Consumer Commission (ACCC). This regulatory authority helps the person regarding the nutritional value of the product such as meat, egg that a person uses to prepare food. They also look upon the hygiene of the product, which is essential for the health of the person. If a person planning to start a restaurant business in Australia, the regulatory regimes for him are as below:
The person must obtain the license for cutting fruits and vegetables, which are used by the owners for sale.
Unpackaged foods, which are used for takeaways such as the delivery of pizza, burgers, and so on.
According to the Australian Law, the person needs not require license in certain cases.
If the restaurant business is associated with the business of packaged food only.
The unpackaged food like pizza, burger, is sold by the restaurant.
If the restaurant or cafeterias only sold beverages. This type of businesses does not require any license under the act.
It is to be noted that food standards code does not look into the business of restaurants, cafeterias, farming business. In this case, the local health department regulates the person. The local agencies guide the consumer about the product and how safe is to consume those products. The FSANZ regulates the food standards code to protect the consumers from food supplies and any other related emergencies. According to the act, to carry on any activity it is necessary to register the product with FSANZ. There is no specified definition of expired food under the act. According to Food and Drug Administration Department, food does not require any information regarding its usage, i.e. best before or use by. In Australia, this legislation includes the Competition and Consumer Act 2010; the Imported Food Control Act 1992; and state and territory fair trading Acts and food Acts.
According to the act, a person can consume food after its expiry. It depends on the nature of the product and how you store it. The act requires that the person must register its activity with the act and renew its registration on timely basis. If the regulatory authorities found that the edible products are hazardous for public health, they can cancel the registration of the restaurant. In the given case, the court can order Hugh to stop its business because the products are hazardous for public consumption. For instance, if a supermarket found guilty of practicing doing something not so safe with foods, they are going to face serious penalties. However, the fine placed on Woolworths recently by a magistrate court in Adelaide was very low. According to the act, all foods must contain a use-by date. It is essential for the products, which can be damage by bacteria. In this regard, it was found that the supermarket was in breach of food safety codes 1.2.5 set forth by the Australia and New Zealand Food Standards Commission. According to Australian law, this breach of code can result in fines up to $250,000 total. In this case, no one was found affected by consuming the food so the magistrate directed that Woolsworths have to pay a minimum amount of fine as a penalty. The company can carry on its business in the future. The fine, which the court imposed on the company, is remarkable because it depicts that the person is found guilty of practicing some wrongful practice and the act is punishing him for it. In case of Hugh, consumers fall sick by eating the pizzas so it is advisable for him to pay the penalty and close the restaurant for future activities. Similar case of Burger King Corporation v Hungry Jack’s (2001) 69 NSWLR 558
Conclusion:
After analyzing both the cases it can be concluded that, the contract law and the food standard code of the country plays an important role in the development of the country. As it provides the relevant remedies to the buyer and seller, the person can easily remedify himself in case of any misfeasance done by the other party.
References:
Ali, A.N.M.A., 2013. Food safety and public health issues in Bangladesh: a regulatory concern. Eur. Food & Feed L. Rev., p.31.
Australia, D., 2014. Australian Dairy Industry. Dairy Australia. Available online: www. dairyaustralia. com. au/Industry-information/About-the-industry. aspx.
Bennett, C.L., Chen, B., Hermanson, T., Wyatt, M.D., Schulz, R.M., Georgantopoulos, P., Kessler, S., Raisch, D.W., Qureshi, Z.P., Lu, Z.K. and Love, B.L., 2014. Regulatory and clinical considerations for biosimilar oncology drugs. The Lancet Oncology, 15(13), pp.e594-e605.
Carter, J.W., 2012. Cases and materials on contract law in Australia. LexisNexis Butterworths.
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil lawyer. Bloomsbury Publishing.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
Mohd-Radzman, N.A., Djordjevic, M.A. and Imin, N., 2013. Nitrogen modulation of legume root architecture signaling pathways involves phytohormones and small regulatory molecules. Frontiers in plant science, 4, p.385.
Morley, B., Scully, M., Martin, J., Niven, P., Dixon, H. and Wakefield, M., 2013. What types of nutrition menu labelling lead consumers to select less energy-dense fast food? An experimental study. Appetite, 67, pp.8-15.
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Raynes, J.K., Carver, J.A., Gras, S.L. and Gerrard, J.A., 2014. Protein nanostructures in food–Should we be worried?. Trends in Food Science & Technology, 37(1), pp.42-50.
Schwenzer, I., Hachem, P. and Kee, C., 2012. Global sales and contract law. Oxford University Press.
Willmott, L., Christensen, S., Butler, D. and Dixon, B., 2013. Contract law. Oxford University Press.2 at 628,.
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