NATIONAL ECONOMICS UNIVERSITY

MODULE TITLE:

LEGAL AND REGULATORY ENVIRONMENT OF BUSINESS

TITLE OF ASSESSMENT :
COURSE(S):

ADVANCED PROGRAM IN FINANCE, TCTT 55B

SUBMISSION DATE:
TIME:

See below

23rd December 2014

No later than 16:30

SUBMISSION LOCATION:

Assignment Question:
Carson, a banker, wishes to start a modern art collection. While passing Derbys gallery,
Carson sees a notice prominently displayed in the window stating Member of the
Association of Modern Art Dealers. A friend in the art trade has advised Carson that he
should only buy from an Association member as the Association imposes a strict code of
conduct on its members as regards sales to the public.
An hour later, Carson agrees to buy from Derby a painting by an up-and-coming young artist,
Fred Smith, at a price of $700,000. Carson is very pleased with his purchase.
One year later, however, Fred Smiths paintings are no longer fashionable. At the same time,
Carson discovers by chance that Derby was not a member of the Association of Modern Art
Dealers at the time that Carson purchased the painting. Derby had forgotten to pay his annual
subscription and his membership had expired the previous month.
While the price of $700,000 which Carson paid reflected the paintings market value at that
time, the painting is now worth just $100,000. Carson wants to return the painting to Derby
and get his money back.
Required:

1. Discuss misrepresentation as a defense in contract formation

2. Advise Carson.

Instructions for completion and submission of assignment

You must submit your assignment in accordance with the following requirements:
The maximum number of each group is 3.
Your assignment must be word-processed. Failure to comply WILL result in a
maximum mark of 40%;

You must complete an assignment front cover sheet and attach it to your work;

The maximum number of words permitted is 2000. There is no permitted excess. Any
part of your assignment which exceeds 2000 words will not be marked;

The number of words must be declared on the front sheet and at the end of the submitted
script. Failure to do so WILL result in a maximum mark of 40%;

Footnotes will not be included in the word count and should be reasonable and you may
exclude words in the bibliography;

You need not include cases or legislation in the bibliography, provided they have been
properly referenced in the text or in footnotes;

Books, journals, reports, etc. should be included in the bibliography, using OSCOLA
http://denning.law.ox.ac.uk/published/oscola_2006.pdf;

Any websites referred to must be properly referenced (i.e. the URL alone is not sufficient
cf. OSCOLA, p.23)

There is no permitted excess. Any part of your assignment which exceeds 2000 words
will not be marked The text of your assignment must be displayed using 12-point (or
larger) and 1.5 spaced;

Attention is drawn to the rules on plagiarism (including un-attributed citations from

textbooks etc).

Assignments not submitted in accordance with the above requirements will not be
marked. This means that you be deemed to have failed this assessment.