B8LW120: Naomi And Janice Are Directors Of A Second-Hand Car Dealership Called “Car, This Car Ltd”: Legal Issues for Business (PT) Assignment, DBS, Ireland

Assessment Task 1

Question

Naomi and Janice are directors of a second-hand car dealership called “Car, this car Ltd” (“the company”).  They normally import right-wheel drive cars to order from England.  Due to Brexit they are finding import costs prohibitive and have decided to try to import their cars from France.

They have been put in contact with a supplier of cars in Northern France “C’est Voiture” who has said that they will supply cars to order to the company.

Over the last few days, Naomi has received orders from customers for five cars totaling €200,000.  She emails “C’est Voiture” and says the following: “I will buy the cars (see attached) for €100,000 cost.  To be delivered within 72 Hours.” Naomi receives the following response from “ C’est Voiture” “Qui”.   She writes to her customers advising them that they will have their cars within a week.

However, a week later Naomi has received no response from “C’est Voiture” and is getting very worried as a number of the company’s debts need to be financed by the sale of the cars from “Cest Voiture”.

1. Determine using relevant legal principles and case law whether the company can use “C’est Voiture” under Irish Law.

Whilst Naomi is dealing with car sales Janice is sourcing car parts.  One of their suppliers “Yes, their Legit Ltd” has let the company down in the past and the company has decided not to do business with them again.

However, Janice receives an email from “Yes, their Legit Ltd” that on account of their poor dealings in the past with the company they are willing to discount parts by 30%.  Without a moment’s thought, Janice puts in an order for parts in the sum of €15,000.

When Janice informs Naomi of what she has done Naomi is furious with Janice as she does not want the company to be associated with “Yes, their Legit Ltd” due to their widely held bad reputation. Janice is told in no uncertain terms to get out of the deal.

2. Advise Janice on the types, duties and functions of an agent and whether the company are bound by the contract with “Yes, their Legit Ltd”. Please use relevant legal principle and case law to support your answer.

When the cars ordered from “C’est Voiture” arrive at the company’s premises the cars turn out to be all left wheel drive.  When Naomi sees the cars she immediately calls “C’est Voiture” and demands that the cars be returned to  “C’est Voiture” but they refuse.

3. Using relevant legal principles and case law advise the company on whether “C’est Voiture” can be made to take the cars delivered to the company back by reason of this mistake.

Assessment Task 2

Question

Car, this car Ltd (“the company”) provide a car to Tom, a customer, to allow him test drive over a weekend.  On his drive home, Tom loses control and veers into a tree.  The crash results in severe personal injuries to Tom and results in him being off work for two months.  It later transpires that a part that had been fitted to the car was defective which may have caused the accident.  The company received a letter from Tom’s Solicitors requiring them to admit liability due to their Negligence.  The letter also states that should the company not admit liability that they consent to have the dispute settled through mediation.

The company refuses to admit liability but agree to the matter being sent to mediation.

The Company subsequently discover through a Garda Accident Report that Tom had not been wearing his safety belt.   The report also shows that the car had been driven at a speed of 75km in a 50Km speed zone at the time of the accident.

Required:

Please prepare a briefing document dealing with the following issues:-

1. The legal and factual grounds, upon which Tom claims the company was negligent.

2. Possible defenses which the company may raise and the legal and factual grounds upon which the company base those Defences to Tom’s claim of Negligence.

3. Following submission of Parts A&B your group will then be asked to participate in a mediation in class based on your briefing document. Your group will be assigned the role of representing either Tom or the company in the dispute at the mediation.  Roles will be assigned prior to the mediation.  Marks will be awarded based upon the following:

1. Clarity of Presentation

2. The degree of participation of all members of the group

3. The ability to answer questions based on the presentation paper