BM0742: Sick of Squeezing with Large Crowds of Strangers at Commercial Gyms: Business Law Assignment, NYP, Singapore

Case Study 1

Sick of squeezing with large crowds of strangers at commercial gyms, 32-year old finance manager Leonardo decides to invest in a treadmill to exercise in the comfort of his own home. After browsing online for some time, Leonardo comes across the website of HomeCardio, a local retailer that sells sports and exercise equipment for home use such as bicycles, treadmills, rowers, dumbbells, and weights. A particular treadmill catches his eye – The Punisher 999, which is selling at a special price of $1,200. HomeCardio’s website states that The Punisher 999 is made in the USA and carries a cutting-edge, top of the line design with the following features:-

The Punisher 999

• K77 3.5 HP Motor
• 15 pre-set workouts
• Up to 3 user-defined workouts
• 12-inch LCD Display which highlights runner’s performance metrics and heart rate
• 10 power incline levels for resistance and endurance training
• USB Charging Port
• Built-in Bluetooth Speakers
• Adjustable Cooling Fan
• SoftasSand Cushioning Technology to minimize wear on joints
• Maximum user weight 150 kg
• Dimensions: 200 cm (Length) by 90 cm (Width) by 150 cm (Height)

Leonardo calls up HomeCardio to ask if The Punisher 999 has a noisy motor. He explains that he needs a treadmill that is quiet as he intends to place the treadmill in his bedroom, where he can watch TV and at the same time keep an eye on his 2-year old baby daughter while she is sleeping.

HomeCardio’s sales manager Katherine assures Leonardo that The Punisher 999 is as “soft as a whisper” as it uses a high-end motor and is made of noise-absorbing materials. SoftasSand Cushioning Technology also eliminates noise from the impact of the runner. Katherine informs Leonardo that as part of the celebrations for the lifting of the COVID 19 circuit breaker, HomeCardio will be offering free delivery for orders above $500.

Leonardo is excited about the features of The Punisher 999 and places an order for the treadmill with HomeCardio. The treadmill is delivered to Leonardo’s home a few days later. Leonardo immediately changes into his exercise attire and tries out the treadmill. To his disappointment, Leonardo discovers that the treadmill has only 2 pre-set workouts – “Hard” and “Easy”. Instead of 10 power incline levels, the treadmill only has 2 levels – “Steep” and “Gentle”.

The treadmill also does not allow users to customize their own workout. Although the LCD display is bright and clear, upon measurement, Leonardo discovers that it is only 9-inches in size. Despite his disappointment, Leonardo is determined to get some exercise. He sets the workout to “Easy” and begins to break out into a light jog. Two minutes into his run, Leonardo notices the sound of the treadmill’s motor getting louder and louder. Leonardo’s daughter, who is resting in her cot, is aroused from her sleep by the sound of the motor and Leonardo immediately stops the workout to put his daughter back to sleep.

The next morning, Leonardo tries the treadmill again. A few minutes into the run, there is a sudden unexpected acceleration of speed and an increase in incline. Leonardo is thrown violently off the treadmill and he suffers a dislocated shoulder.

After receiving medical treatment, Leonardo contacts HomeCardio to express his displeasure at the treadmill and asks for a refund. Katherine informs him that there is nothing HomeCardio can do about his situation. Moreover, Katherine points out that on HomeCardio’s website, it is clearly stated that goods sold are not returnable. Katherine also insists that it was very inconsiderate for Leonardo to place the treadmill in his bedroom since his daughter shares the room with him.

The case created for academic purposes only

Your Assignment

You are a legal associate at a local law firm. Leonardo has approached your firm for some legal advice. Leonardo would like to know whether HomeCardio is in breach of any of the implied terms under the Sale of Goods Act and if so, what legal remedies he might have.

Leonardo is also worried about the statement on HomeCardio’s website and wonders if the statement will affect his right to make a claim against HomeCardio. Besides the Sale of Goods Act, Leonardo is also keen to find out whether there is any other legislation that might assist him in obtaining legal remedies.

Prepare a report to Leonardo advising him on the above matters.

Case Study 2

Ronnie is the owner of The Durian Haven, a café in Katong, that sells top-grade durians from Malaysia and Thailand as well as an innovative and interesting range of durian-based pastries, desserts, and beverages. Recently, Ronnie has also launched his signature frozen durians for sale in China.

The café began operations in 2015 and has since won numerous accolades and awards. The café is known in the market by its slogan “Durian King Expert King”. The café also has a logo consisting of the letters ‘T’, ‘D’, and ‘H’ which it uses for its marketing materials and which is printed on the signboard outside the café, on its website and on its social media pages.

Besides being a durian lover, Ronnie is also an avid inventor. He has recently come up with an invention which he believes will make opening durians much easier. The device, which he intends to call D’Opener, consists of a pair of moving blades attached to a body with a motor. When switched on, the blades dissect into the durian shell and then slowly rotate outwards, prising open the durian.

The device, which is waterproof, contains a built-in rechargeable battery and also doubles up as a portable Bluetooth speaker. Ronnie believes that his device is the first of its kind in the world. He intends to manufacture the device for domestic sale and export. He has also written, illustrated, and printed a 6 -page Instruction Manual entitled ‘10 Tips on How to Use D’Opener Effectively’. He intends to include this manual in the package when D’Opener is eventually offered for sale.

Angello observes that the business of durian cafes is very lucrative and he opens his first outlet in Marine Parade to sell top-grade durians from various parts of South-east Asia as well as durian-based pastries, desserts, and beverages. Angello names his café The Durian Heaven and uses a logo featuring a durian with the initials T.D.H. Business has been brisk from day one of his café opening and Angello has plans to open two other branches in the north and west parts of Singapore respectively.

Ronnie notices that his café business revenue has been dropping since the opening of Angello’s café. Ronnie checks with his existing customers and many of them inform him that they have been going to Angello’s café as they think that it is a new outlet by Ronnie. Ronnie is extremely furious as he feels his years of effort in building his café business is being destroyed. He is also very concerned that his invention could be similarly copied and used by others.

Separately, Ronnie has received a letter of complaint from a customer, Raj, who bought a durian cake from his café. Raj has given the cake to his girlfriend, Mary, for her birthday and Mary fell ill because the cake contained a high level of bacterial contamination. Ronnie is wondering if Mary could sue him in the tort of negligence. He admits that the hygiene standard at his café may have fallen below acceptable standards as he has been too engrossed with his legal issues lately.

The case created for academic purposes only

Your Assignment

You are a legal associate at a local law firm. Ronnie has approached your firm for some legal advice. Ronnie would like to know his various intellectual property rights and how to best protect such rights. Ronnie would also like to know if he can successfully sue Angello and if so, what would be the legal remedies. Ronnie would also require your advice if Mary could successfully sue him in the tort of negligence.

Prepare a report to Ronnie advising him on the above matters.

Requirements

Learners are required to apply the legal concepts acquired in this module and prepare TWO (2) reports in the capacity of legal associates for the law firm engaged to advise the parties in two separate hypothetical case studies. When preparing the reports, you should make reference to the relevant Business Law concepts covered in this module.

This assignment will be completed individually. Learners are to prepare the reports using the following as a guide:

1. Identify and state the legal issues presented by the case studies.
2. State and explain the applicable laws.
3. Apply the applicable laws to the material facts presented in the case studies.
4. Propose and recommend appropriate conclusions for the legal issues presented in the case studies.