Problem question Value: 10% Due date: 26-Aug- 2016 Return date: 19-Sep- 2016 Length: 1000 words Submission method options Alternative submission method Task You must write an answer to the problem-type question below, using the ILAC (Issues, Law, Application, Conclusion) format, a worked example of which is in the Resources folder.  **In this subject, assignments are marked on-line, using an adapted MS Word programme. You therefore MUST submit your assignment in Word format, NOT as a PDF document. If you submit in PDF it will not be able to be marked.** ##If you think you may need and extension for this assignment, please read the rules relating to extensions in the Subject Outline before applying for an extension. ## Question Steve runs a car hire business. Steve is a sole trader - his business is not a corporation. He tells you about the following events: Steve's friend Tom runs a trucking company. Tom phones Steve and says 'I need to hire a truck capable of carrying 10 tons of cargo'. Without checking the specifications of the vehicles he has available, Steve says 'I have just the thing for you - a Hino Cargo Master - it can carry 12 tonnes'. Tom agrees to hire the truck at $ 200 per day, and picks it up. He loads it with 10 tonnes of cargo, but on its way to make a delivery, the suspension collapses. As a result, he is unable to use it and loses $ 5 000 per day in profits. Pamela has often watered Steve's garden when he (Steve) has been away on holiday. Pamela phones Steve and says 'I've got a problem - my car is being fixed and I am going on holiday tomorrow, but I can't afford to hire one. Can you help me out?'. Steve says 'Sure - you looked after my garden last month, so I'll lend you a car for the weekend because you did that'. When Pamela comes to collect the car, however, Steve tells her that he hired it to another customer. Pamela says that Steve has broken the contract she had with him and that she will be consulting a lawyer. Danny telephones Steve and says 'I would like to hire the Toyota Corolla I used last week' Steve says 'The charge will be $ 40 per day plus fuel and you can collect the car tomorrow'. Danny says 'That's great, I will be there at 9 am'. When Danny arrives at the car lot, Steve says that when he had been speaking to Danny, he was unaware that the vehicle had already been destroyed in a crash while being driven by another customer the previous day. Danny refuses to take a different car and says he will go to court to enforce the contract he had with Steve. Steve is thinking of putting in a new airconditioning unit in his premises. He has been in negotiations with Cool It Aircon Ltd, owend by Trisha. One Monday morning he comes into his office and sees the latest draft contract from Cool It Aircon, with details of specifications of the airconditioners, price and installation date. The top sheet of the contract contains a space which says "I agree to these terms of supply" and with a space for a signature and date. Steve sets the contract aside on his desk, and it soon gets mixed up with piles of other paperwork. Later during the day, he signs the form, thinking that it was the front page of another contract he had been sent by a supplier of microchips. He gives it to his office manager, Tim, and says "Send this by fax". A few days later a truck from Cool It Airon arrives at Steve's business. Steve phones Trisha and says he never agreed to the installation. When Trisha tells him about the fax, he realizes his mistake and tells her that he had sent it by accident. She says "Too bad, we have a deal – I have already spent several thousand dollars making customized components for your system". Advise Steve on his legal position in relation to each transaction, backing up your answers with relevant rules of law.                Rationale This assessment item will allow you to demonstrate your ability to    engage in legal research;  identify the legal issues arising out of novel factual situations, to analyse the applicable law and to differentiate between which rules are applicable and which are not and then apply the law to the problem;  explain and summarise the applicable law in such a way as to create a report for a client which states what liabilities arise from novel factual situations   And more specifically    your knowledge of the law of contract formation and the law relating to factors affecting the validity of contracts  your ability to undertake an assessment task relevant to the workplace and professional practice. Marking criteria     CRITERIA HD DI CR P FL Students are required to answer two problem type questions in order to demonstrate:  Identification of relevant legal issues     To meet this level you will achieve a cumulative mark of 85-100%. A mark in this range indicates that a student: Comprehensive coverage and identification of all legal issues, which are formulated with consideration of all contextual factors .   Provides a complete explanation of the law, justified by relevant statute and case law authority, with no errors. Discussion identifies key rules of law, stating To meet this level you will achieve a cumulative mark of 75-84%. A mark in this range indicates that a student: Correctly identifies legal issues and formulates them with consideration of contextual factors connected to relevant law, with only minor errors. Provides a comprehensive explanation of the law with few errors, substantiated by relevant case and statute law stating relevant principles.. To meet this level you will achieve a cumulative mark of 65-74%. A mark in this range indicates that a student: Identifies and correctly formulates most major legal issues connected to relevant law. To meet this level you will achieve a cumulative mark of 50-64%. A mark in this range indicates that a student: Identifies some legal issues. May or may not formulate them correctly. Considers links to relevant law. At this level you will obtain a mark of 0- 49%. A mark in this range indicates that a student: Identifies no relevant issues or only a few of them.  Some of these may be unclearly formulated. Considers few contextual factors of relevant law.  Explanation of law and citation of relevant  legal authority       Provides a substantial explanation of the law but with some errors, substantiated by significant legal authority in the form of statute and case law. Provides a basic explanation of the law, but with significant errors, substantiated by some legal authority. Provides incorrect or limited explanation of the law using no, or only a limited range of, authority.