Commercial Law-B288X2RG97KM

Question 1 (5 marks)

9 Dragons Shipping, a company in Can Tho that ships items by airplane, was hired to ship 10,000 live chickens from Can Tho to Ha Noi.

While on his way to deliver the chickens to Ha Noi, the pilot for 9 Dragons Shipping, Mr. Bao, decided that instead of going straight to Ha Noi, he would turn his airplane to the east and visit his family in Cam Ranh before continuing to Ha Noi.

As he flew over Phan Thiet on his way to Cam Ranh, Mr. Bao noticed a big red button in his airplane that was labelled:

Mr. Bao was curious and decided to push the button to see what would happen. When he did, all 10,000 of the live chickens were ejected from the airplane and fell toward the earth.

The chickens landed on a surfboard shop in Phan Thiet and completely destroyed the shop. For three days, the surfboard shop was covered with dead chickens, which looked and smelled terrible.

Ms. Thuy is the owner of an outdoor patio café next door to the surfboard shop. Luckily, none of the chickens hit Ms. Thuy’s café, but because of the dead chickens next door, no customers came to Ms. Thuy’s café for three days and she lost $3,000 in profits.

(A) Ms. Thuy hires you as her lawyer and says she wants to sue Mr. Bao. Please fully advise Ms. Thuy about all common law claims she might have against Mr. Bao.
(B) Ms. Thuy asks you whether she should also sue 9 Dragons Shipping. Please fully advise Ms. Thuy about any problems she might face if she decides to sue 9 Dragons Shipping in addition to Mr. Bao.

Question 2 (5 marks)

Zed Pty. Ltd. is a Melbourne-based company that manufactures “No-Brand Name” orange flavoured sore throat medicine tablets. Zed sells these to Stressils Ltd., a company based out of Sydney that puts a label on the medicine boxes that says “”Made by Stressils to Relieve Sore Throats”.

In manufacturing one batch of medicine that is sold to Stressils Ltd., Zed Pty. Ltd. accidentally puts twice the medicine in each tablet. This has the effect of causing people who take a tablet to feel very sleepy.

Mr. Hoa is at his friend’s house, and sees a box of Stressils on the table. Having a sore throat, he decides to take one. Afterwards, he is driving home on his motorbike and he falls asleep while driving and crashes into a wall. Mr. Hoa suffers a broken leg and must spend three weeks in the hospital, which costs him $2000. Additionally, he loses salary from his job in an amount of $1500.

Please advise Mr. Hoa as to any statutory claims he may have under Part VA of the Trade Practices Act.