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As part of the case assignment each student needs to come prepared with a one-page write-up answering the following questions:

1. What is the Seller’s BATNA?

2. What is the Zone Of Possible Agreement (ZOPA) for the negotiation?

3. What would be your approach to negotiate if you are the Seller?

The kitchen purchase: Briefing for sellers: Mr and Mrs Hase September 20: The negotiations It is the day of the appointment with Mr and Mrs Stulle. You are pretty tense since you are assuming that they will try to beat the price down quite a bit. The doorbell rings. Appendix 1: The fitted kitchen August 27: The big upheaval Things are going your way: You have been accepted for a new post on January 1 in a town several hundred kilometers away. And that is not all – you have already found your dream apartment in this town and have signed the tenancy agreement to run from October 1 (105m*, €1,200 basic rent, €300 for utilities such as heating) There is, however, a fly in the ointment: you will have to give up your present apartment (120m, €1,100 basic rent, €250 utilities) which you have grown extremely fond of. Since you have to give three months’ notice, you give due notice of moving out by November 30. Hoping to save some money, you make an offer to the landlord that you will look for a new tenant to move in by October 15. It is true that you still have a few remaining appointments in November in this town but you could stay in a hotel until you’re ready to move. September 1: Not wanted after moving out The estate agent, Mrs Alexus, gets in touch with you to arrange some viewing dates for your present apartment. You ask the agent to inform her clients that you would like to pass your fitted kitchen on to the new tenants. You bought it for €3,300 at the DIY store Obi three years ago when you moved in and it is still in good condition (Appendix 1). Moreover, one year ago you spent €700 on replacing the cooker with a better model. Mrs Alexus promises to point all this out to prospective tenants. After talking to Mrs Alexus you decide you want to leave some more items of furniture behind when you move out. These consist of things that the tenants before you let you have in retum for a certain fee: 0 A kitchen table with two benches Fitted shelves in the store-room An awning on the balcony September 10: Planning the move You choose a moving company. The move will take place on October 10. You promptly inform Mrs. Alexus of the date. September 15: Good news Mrs Alexus contacts you: she has found new tenants for your present apartment-a young couple called Mr and Mrs Stulle. They are also considering taking over your tenancy agreement from November 1. According to Mrs Alexus the couple have already been handed the tenancy agreement but have not yet signed it. Since they would also like to take over your fitted kitchen, you agree to an appointment with Mr and Mrs Stulle at your apartment on September 20.

 
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The Task:

You have been asked to negotiate a suitable resolution to the problem scenario below.

You must first understand Jasmine’s legal rights and areas of legal risk before engaging in negotiations with Marvin. Any negotiations will be conducted with a thorough understanding of how the matter would be resolved if it went to court. Identify the main legal issues in the situation and give Jasmine some advice on the most likely outcome if the case went to court. Please support your recommendations with case law and legislation.

The scenario

Jasmine has purchased an apartment ‘off the plan’ from Marvin. Marvin is the developer of the apartments. There was also a real estate agent, Pristine Realty, involved in the negotiations and purchase.

Jasmine resides on the other side of the country and bought the apartment off the plan in July 2020. She was ‘in lockdown’ throughout this time and was unable to leave her state in order to view the site or the display unit at the front of the site.

Caloundra is the location of the apartment building, and the marketing literature depicts unobstructed ocean views. The apartments were advertised as having a very “high end” finish out, with marble bench tops and handmade timer joinery. Jasmine expected a very high standard of finishes and a high-quality product for the $2 million she paid.

Jasmine did her last inspection of the completed apartment prior to settlement in early August 2021 and was horrified to discover that the bench tops were laminate with a marble finish and that the woodwork was all ‘timber look’ laminate. For Jasmine, this was a huge disappointment because she had high expectations. Most surprising of all, Jasmine had paid $50,000 for a beachfront apartment only to discover that another apartment building had been built on an adjacent plot, and she now had to lean out over one corner of her balcony to view the ocean. Her view was mostly into her neighbours’ living rooms. Most of her view was into her neighbour’s living areas. It also appears that her main bedroom is 30cm shorter than the floor plan in the marketing material would suggest.

Jasmine has reviewed the contract that she signed, and it is stipulated that the apartment is 120 square metres. However, the completed apartment is only 118 square metres. The contract stipulates modern finishes but does not specify the quality. When Jasmine questioned Marvin about the new apartment building next door, he claimed that he had no knowledge of it when he was marketing the development. Apparently, construction had started following the sale to Jasmine ‘off the plan’.

Jasmine is supposed to settle on the apartment mid-September. She is now deciding what action she should take.

 
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Consumer learning Planet Health is an Australian owned distributor of premium natural health products has. The product range includes laundry liquid, laundry powder, delicate fabric wash, whitener, multi- surface cleaner and dishwash liquid. Every product uses natural yet powerful ingredients and recyclable packaging that conveys a lively, confident sense of fun (see example below). I’LL MAKE TU DO YOUR ITALL DIRTY TIGREAT I’M ONE FUSTME FUGIVE HOUSE TOUGH meg DELICATES SPARKLE WHITE WORK MS MOV Inc WERE Source: https://www.planet-healthcare.com/ Through their packaging, Planet Health aims to induce, through classical conditioning, certain response to the advertised brand. Explain how the marketer uses classical conditioning in this instance. Explain all 4 aspects of the classical conditioning model, as applied in this situation. That is, explain what is the unconditioned stimulus and what is the unconditioned response; what is the conditioned stimulus and what is the conditioned response. Clearly explain what is being conditioned (what is the “end goal” of the advertiser)
 
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Describe common crimes affecting business including property crimes and white collar crimes. When I say crime – what do you think about? What comes to mind? 2. Discuss the purpose of tort law and types of tort law. 3. Negligence a. Define negligence. b. Explain each element of negligence. c. Define the standard is to determine a defendant’s duty of care. d. Describe types of damages awarded. 4. Explain the factors weighed by courts to determine whether the fair-use doctrine provides a valid defense to a claim of copyright infringement. 5. Describe the nature and classifications of property. a. Explain the difference between real property, personal property, and intellectual property. b. Which one would you rather own? Explain why. c. Provide an example of each.
 
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