Example assessment & marking criteria
Assessment type:
Legal problem-solving model
Subject:
LAW110 Business Law
This subject examines key Australian legal concepts and issues directly relevant to business operations. It
covers the structure of the Australian legal system, sources of law, statutory interpretation, the court
system and the doctrine of precedent. It then examines substantive areas of tort and contract.
Subject learning
objectives:
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
(NB: this will
change to learning
outcomes in
201430):
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

Assessment task:
Value & length:
Task description:

be able to describe the Australian and other legal systems;
be able to explain which court has jurisdiction in any particular matter and apply the doctrine of
precedent;
be able to demonstrate a capacity to engage in legal research;
be able to apply the rules of statutory interpretation;
be able to explain the law relating to torts, contracts and property
be able to identify the legal issues arising out of novel factual situations and apply the law to them.
Problem questions
30%, 2500 words
Please do not consider the Competition and Consumer Act 2010 (Cth) in answering these
questions, as we have not yet covered that topic. Please structure your answers in accordance
with the I.L.A.C method.
Part A [15]
Mr and Mrs Mendez are elderly and came to Australia as migrants from Colombia about 40 years ago.
They are unfamiliar with written English and their spoken English is not very good. They have two
sons; Franchesco (27) and Problemo (40). Their son Problemo, a property developer asks his parents to
sign a guarantee and mortgage to the Usurer's Commercial Bank as security for payment of the debts of
Problemo's company. At the time of signing Problemo led his parent to believe that the guarantee and
mortage were for up to $ 50 000 and limited to six months.
Mr and Mrs Mendez went to the bank and saw one of the bank loan officers to sign the mortgage. When
the loan officer tried to explain to the parents that the guarantee is unlimited in both amount and duration
the parents become confused. The parents and the loan officer could not satisfactorily communicate, and
the interview concluded by the loan officer stating: ‘It is up to you to decide whether to sign it.’ The loan
officer did not explain to the couple the possible effect of the documents, which the Mendez could not
read, and he made no mention of the fact that the amount was unlimited. Mr and Mrs Mendez who loved
their son very much decided then to sign the mortgage, and eight months later their son’s business
collapses with Problemo then owing $500,000 to the bank. Problemo's company went into liquidation and
the bank is attempting to exercise its rights under the mortgage/guarantee. Advise the Mendez of their
rights.
Their other son, Franchesco is thinking of putting in a new air conditioning unit in his factory. He has been
in negotiations with Freeze It Aircon Ltd, owned by Fergie. One Monday morning he comes into his office
and sees the latest draft contract from Freeze It Aircon, with details of specifications of the air
conditioners, 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. Franchesco 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, Tomah, and says “Send this by fax”. A few days later a truck
from Freeze It Airon arrives at Frank’s factory. Franchesco phones up Fergie and says he never agreed to
the installation. When Fergie 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”. Franchesco seeks your advice with this matter.
Part B [15 marks]
Billy and Hillary are very good friends. Billy has recently retired and now has $ 700 000 in super. He asks
Hillary,who is an accountant, if he should invest $500 000 of his super funds in Wacky Wackity Ltd. Hillary
tells Billy that she has looked at the accounts of that company and it is a good investment. Hillary does not
charge Billy for her services as they are very good friends. Unfortunately, Hillary has misread the
accounts of the company, which is almost insolvent. Billy invests his money, Wacky Wackity Ltd goes into
liquidation and Bill losses $ 500 000. Billy discovers that many accountants and financial planners were
aware of the financial position of the company and warnings had been published in several accounting
journals and financial newspapers that Wacky Wackity was in financial trouble. Discuss whether Billy has
any legal rights against Hillary?
Rationale:
Hillary is also someone who loves to party. One night she had been at a party and decided to go home at
11.00 p.m. She had been drinking heavily and could not walk properly. She decided to walk home and
crossed the road without looking for traffic. Nicky is driving her car down the road, she does not see
Hillary because she is looking at herself in the rear view mirror of her car and putting on some lipstick.
She hits Hillary and injures her, breaking her two arms. Advise what legal liabilities arise out of this
situation. Cite case and statutory law authority where relevant.
The assessment task assesses the following learning objectives:
 your understanding of the law of negligence under the common law and in New South Wales
 Your understanding of aspects of contract law
 your ability to apply legal principles and relevant legislative sources to fact-scenarios and to solve
legal problems in a very logical manner and by applying substantial legal reasoning.
Marking criteria & standards of performance
Prepared by Ana Milena Torres Ahumada, Associate lecturer, CSU.
Criteria
Identification
of relevant
legal issues
Fail
Identifies a few legal
issues. Some of these
may be irrelevant, & or
unclearly formulated.
Pass
Clearly identifies some
legal issues. May or may
not formulate them as
questions.
Credit
Identifies & correctly
formulates most major
legal issues.
Distinction
Correctly identifies major
& minor issues &
formulates them
adequately.
Provides
relevant
sources
Provides a limited range of
sources. Some of these
may be inadequate or
irrelevant.
Provides both primary &
secondary sources. Most
of them relevant.
Provides relevant sources.
Makes specific reference
to cases, legislation, &
other materials. May or
may not use pinpoint
referencing.
Provides all the relevant
sources covered by the
subject. It refers to specific
legal principles, sections,
subsections & may
pinpoint reference cases.
Development
of logical
arguments and
applies legal
principles to
the facts
The paper is mainly
descriptive or lacks
coherent arguments. Full
of general assertions &
claims. Attempts to
construct arguments but
doesn’t use the law to
support them adequately.
Shows how the law relates
to the facts. Provides
somewhat relevant &
coherent arguments
although not all are
properly supported.
It provides relevant &
coherent arguments, &
uses the appropriate legal
principles to support them.
It provides good coherent
arguments, uses the
relevant legal principles to
support them. Uses critical
thinking & groups ideas
logically rather than
descriptively.
High Distinction
Comprehensive coverage
& identification of major &
minor issues. These are
postulated with extreme
precision.
Provides all the relevant
cases, legislation & other
materials covered by the
subject. In addition it may
provide current &
extremely relevant
sources not discussed in
the subject. It makes
references, with accuracy,
to specific legal principles
including sections,
subsections, & paragraphs
amongst others.
It provides exceptionally
coherent arguments, &
uses the relevant legal
principles to support all of
them. Provides arguments
which support a strong
view point by using critical
thinking, & groups ideas
logically & analytically
rather than descriptively