Using IRAC (issue-rule-application-conclusion) method, please answer the three questions below. In seeking to identify the relevant legal issue(s) within these questions, please refer to chapters 5, 6 and 7 of the required textbook (James Nickolas, Business and Company Law (Wiley, 2st ed, 2019) in the first instance. Students are welcome to engage in some independent legal research to provide additional support for their answers, but students are not required to do so. In either case, the textbook should be your starting point. Pay careful attention to the final sentence or paragraph in each question. What are the key terms used? Review the sections of the textbook that deal with this term(s). When you are familiar with the area of law, consider what legal issue(s) exist based on the facts. Do not use the words Issue, Rule, Application as headings or subheadings in your answer. Do not rely upon the Australian Consumer Law. Use law cases to support the answers.

Question 1

Long Island Fishing Club placed the following advertisement in a local newspaper on 25 January:

Come one, come all! Fishermen and women of Long Island. We are offering to pay $100,000 to any person who catches Lord Charles, a Mary River Cod which we have tagged and released into the lake.

The following day was the Australia Day holiday. Long Island Fishing Club was crowded with people fishing both from the bank and from boats. At about lunch time a rumor spread along the people on the bank that there had been an error in the advertisement and that the true prize amount should have been $1,000 and that the Long Island Fishing Club had announced that the prize would be the lower amount. The rumor was in fact true. John heard the rumor from the stranger fishing beside him minutes before catching Lord Charles. A Long Island Fishing Club representative was on hand to certify the catch before Lord Charles was released back into the lake but did not say anything about the prize amount.

John is claiming the Long Island Fishing Club owed him $100,000. The Long Island Fishing Club is refusing to pay $100,000 in prize money. Advise John whether he can enforce payment of the $100,000 prize money.

Question 2

Mary is a self-employed interior designer in Brisbane, Queensland. Mary purchased a purpose-built computer for her business from Glen at Computers R Us Pty Ltd (Computers R Us) in March 2022. In April 2022, Mary accidentally spills hot coffee on her new computer and the computer immediately stops working. Mary took the computer back to Computers R Us in April 2022. Glen says that the repairs will cost $1500. Mary agrees to the repairs.

While her computer is being fixed, Mary gets a call from Jim who asks Mary to redesign his 10-storey commercial premise. This is a very lucrative opportunity for Mary. However, the redesign must be completed within 2 weeks otherwise Jim will take his business elsewhere. Mary agrees to the tight timeline.

Mary immediately calls Glen to ask when the computer will be repaired and explains the situation with Jim. Glen explains that the repair work is more extensive and expensive than he originally quoted. The repairs will now cost $3000. If Mary agrees to the increased price, Glen can have the computer fixed within two days.

Mary is furious and feels like Glen is taking advantage of the situation. Reluctantly, Mary agrees to the increase cost of repairs. Mary gets her computer back in 2 days and completes the redesign work for Jim. Mary wants to know if the contract with Glen could be unenforceable. Advise Mary.

Question 3

Antony is the Director of Custom Boards Pty Ltd (Custom Boards) in Burleigh Heads, Queensland. Over decades, Custom Boards has developed an international reputation for manufacturing high quality surfboards. In June 2022, Antony decided the time was right to sell Custom Boards. Daisy has been a long-term customer of Custom Boards and when Daisy heard that Custom Boards was for sale she was immediately interested in purchasing the business.

The next day Daisy hands Antony a contract for the sale of Custom Boards. To protect her investment, Daisy included a term in the contract that would prevent Antony from opening another surfboard manufacturing business anywhere in the world for 25 years. Antony and Daisy sign the contract.

Antony quickly becomes bored in retirement and wants to know whether there is any way he can set up a new surfboard manufacturing business. Advise Antony.