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Subject Code – COML5009
Subject Name – Commercial Law M
University Name – University of South Australia

COML5009– Commercial Law M 

COMMERCIAL LAW M:  The aim of this subject is to help students learn and understand Australian Legal System.
Commercial law is also referred to as corporate law or company law. It defines the laws that govern commerce, trade, sales, and merchandising, as well as the businesses and people that engage in these activities.

Commercial law is a subset of civil law that includes themes like corporate law, securities and derivatives law, finance and banking, taxation law, trade practices law, and consumer law. Commercial lawyers are frequently expected to assist their clients in navigating and resolving business-related challenges. Globalization, deregulation, tax reform, and evolving trade links across regions are examples of these.

University of South Australia, Adelaide

The University of South Australia is one of the best universities in Australia. The university offers undergraduate courses in a wide range of subjects like Accounting & Finance, Arts, Biomedical Science, Aviation, Defence, Law, Journalism, Management & HRM, Marketing, Occupational Therapy, and several others.

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Problem Solving Exercise

Question 1 – Offer to Contract(20%)
Ming runs a hair salon called Australian Hairlines (Hairlines). Ming decides to promote the business by advertising a ‘special offer’ in the local paper. The advertisement he places in the local newspaper states that, on the production by the customer of the advertisement, ‘Hairlines’ will give that customer a haircut at the low price of $10.
The day after the advertisement is published, some 50 people arrive at the salon asking for a special haircut at $10. Ming is overwhelmed by the response and realizes that the salon will lose a lot of money if this promotion continues.

Ming decides to put up a sign in the salon’s window that states:
Explain the law as it applies to the following persons:
Forty customers produce the advertisement before the notice goes up in the window. Are
these customers able to enforce any legal agreement? (Explain with specific reference to
contract law.)

QUESTION 2 – contract terms (Exclusion Clause) (40%)
Adam and Betty book a bus tour going from Adelaide to the Barossa Valley wine region for a
short holiday with Gawler Busline. They purchase their tickets from the local travel agent,
and the tickets are to be collected at the point of departure. Just before getting on the bus,
when they are collecting their tickets, they are asked to sign a document that confirms their
personal details. They think it is simply a receipt for the tickets.
As they travel out of Gawler, Betty takes off her seat belt and goes to the baggage
compartment to collect a book she is reading. Just as she is doing this, the bus brakes
suddenly, Betty falls, breaks her wrist, and suffers nervous shock, which all but ruins the
When Betty sues Gawler Busline for damages for her injury and the loss of enjoyment of her
holiday, the company draws Betty’s attention to a clause in the printed form that she had
signed that stated that Gawler Busline was not liable for any injury, however, that injury is
caused, to passengers not wearing a seat belt.

Advise Betty whether she can successfully sue the Gawler Busline for damages for her injury and the loss of enjoyment of her holiday.

QUESTION 3 – contract discharge (40%)
In November 2020 Jack, the owner of two large transport trucks designed to carry ten cars
each, made a contract with the owners of Acme Cars Australia Co Ltd to carry 40 cars a week between Adelaide and Melbourne for the next two years. The agreed contract price was $800 per car per week. At the time of signing the contract, Jack’s weekly fuel cost was $6,000 and wages and other costs totaled $16,000.
By June 2021 Jack’s fuel costs had risen to $8,500 and his other costs had increased to
$20,000. On July 1, 2021, Jack contacted Acme asking that the contract carrying price per car be increased from $800 to $900 per car per week. Acme declined on the grounds that the contract price was fixed in November 2020 for two years.
Jack replied to the effect that the original contract had been ended by the totally unexpected
huge increases in oil prices, brought about by cyclones and floods, which had caused the
increases in fuel and other costs and therefore a new contract was now required.

Using cases to support your reasons, discuss the legal arguments that both sides will raise
and conclude which is the stronger.


Length (excluding reference list or bibliography): 2,400 words or less; and your answer should never exceed 2,640 words. Note also, 2% penalty for excessive 100 words if your answer exceeds the maximum 2,640 words limit.
A penalty of 2% per day will be applied to late submissions.
Please use Harvard or AGLC referencing. You can find a link for information on
both here

Grading Criteria as per University
55% – 64% Pass
75% – 84% Distinction
85%+ High Distinction
In our law courses, particularly in problem-solving, we would expect our students to move through patterns of recognizing an issue, explaining it with theory, applying it to the problem, and arguing alternatives. Distinction students will do aloof this well.
Theory must have some application to show some understanding – theory only
would not pass.


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