The Fiduciary Duties Placed Upon Agents are Overtly Strict and Fail to Reflect the Realities: Commercial Law Assignment, OUM, Malaysia

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University Open University Malaysia (OUM)
Subject Commercial Law

Choose ONE question only

1. “The fiduciary duties placed upon agents are overtly strict and fail to reflect the realities of modern commerce.” Critically discuss this statement with reference to appropriate case law authority and academic materials.

2. The law of agency ‘has developed pragmatically rather than logically’ (Diplock LJ in Freeman and Lockyer (a firm) v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480, at 502). Analyse this statement with reference to legal principles (and appropriate case law authority) governing the creation of the agency.

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3. Why, in your opinion, has it been so difficult for the English and Welsh courts to decide whether the software can be considered to come within the definition of goods for the purposes of the Sale of Goods Act 1979? In your answer consider the relevant case law and the approach taken to digital content by the Consumer Rights Act 2015.

4. Ystwyth Bakery PLC is a business operating in the Aberystwyth area. In addition to operating a bakery which produces a wide range of artisan bread and other items such as cakes and croissants Ystwyth Bakery has several restaurants. As far as possible all the food is sourced locally, and all the baking and cooking is done by employees of Ystwyth Bakery.

You are asked to advise the directors of Ystwyth bakery PLC with regard to the following situations:

  • Ystwyth supplies Geraint’s Café with cakes and has done so for many years. The order has always been the same but the latest delivery contains some cakes which are different from those which have been supplied before. The owner of Geraint’s Café wants to reject the entire delivery because of this.
  • Ystwyth buys its flour from a supplier in Lampeter and has done so for the last two years. The latest delivery looks the same as usual so the bakers go ahead and use the flour to bake a large batch of sourdough bread. Unfortunately, customers are not happy with the taste of the bread which some have described as ‘disgusting’. The directors of Ystwyth want to reject the entire delivery and claim damages for loss of sales.
  • Ystwyth bakes some lemon drizzle cakes which it sells in its cafes. Customers become ill and it is discovered that one of the ingredients used is actually a mild poison. The supplier of the ingredient had not had any dealings with Ystwyth before and had no idea what type of business it was supplying. It seems that it is quite common to supply this ingredient to control rat infestations.
  • Ystwyth has been asked by a customer to supply a large birthday cake and a number of small cakes for a birthday party on a particular date. Ystwyth needs to source a particular ingredient to ensure the cakes will be of the right colour. Ystwyth obtains this ingredient from a usual supplier but when the cakes are baked they are the wrong colour and there is no time to bake any more before the party. The supplier claims they were not told that the cakes had to be a particular colour. The mother of the birthday girl is deeply upset and is refusing to pay Based on UK law and sections ( statues).
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