BUSN7052 Commercial Law
The Complete Exam Bible · S2 2026BUSN7052 Overview
- 6 unit postgraduate course
- Semester 2, 2026
- In-person delivery
- Open-book final exam
Commercial Law at the Australian National University introduces the Australian legal system and the law that regulates business activity, with particular focus on contract.
- Assessed by Three problem assignments and a final exam
- Hardest move Applying the law to every relevant fact
- How to prepare Spot the issues, then answer in IRAC
What you get in the full BUSN7052 Exam Bible
- 13 chapters, 57 pages — every examinable topic, week by week
- 29 original practice questions, each with a model answer in the Final Exam format
- 13 worked examples, solved the way BUSN7052 marks
- 13 computed figures, redrawn from the course’s own numbers
- Exam-morning plan for the Final Exam (50%) — what to revise last, where marks are lost
Free on this page: assessment table, chapter map, one worked example, key terms, FAQ. The rest is in the full exam bible.
How BUSN7052 is assessed
| Component | Weight | Format |
|---|---|---|
| Assignment 1 | 10% | Negligence problem answer, maximum one page, Week 3 material |
| Assignment 2 | 10% | Intention to create legal relations problem, maximum one page, Weeks 4 and 5 material |
| Assignment 3 | 30% | Legal problem research paper, 1,800 words (up to 2,000), Weeks 1 to 6 |
| Final Exam | 50% | In-person exam: 2 hours writing plus 15 minutes reading, hypothetical fact scenarios, no multiple choice |
The four weights in the Semester 2, 2026 class summary total 100%. The final exam is open book, ebooks are not permitted, and permitted materials are confirmed on the examination timetable website.
What other students are asking about BUSN7052
- Where can I find lecture notes or study guides for BUSN7052 at anu?
- The BUSN7052 study guide in AskSia Library covers Commercial Law in 13 chapters, with the assessment table, a chapter-by-chapter topic map, key terms and a worked example, free to read on this page.
- Is there a final exam in BUSN7052, and how much is it worth?
- Yes. In the offering this AskSia Library guide is built from, Final Exam carries 50% of the BUSN7052 mark; the full split is Assignment 1 10%, Assignment 2 10%, Assignment 3 30%, Final Exam 50%.
- What does BUSN7052 cover on legislation, precedent and statutory interpretation?
- In AskSia Library's BUSN7052 guide, the Legislation, Precedent and Statutory Interpretation chapter explains how bills pass, delegated legislation, ratio and obiter, the purposive approach and Latin maxims.
- What does BUSN7052 cover on negligence: duty of care and breach?
- In AskSia Library's BUSN7052 guide, the Negligence: Duty of Care and Breach chapter explains neighbour principle, established duty categories, salient features and the calculus of negligence.
- What does BUSN7052 cover on negligence: causation, defences and economic loss?
- In AskSia Library's BUSN7052 guide, the Negligence: Causation, Defences and Economic Loss chapter explains but-for and scope of liability, remoteness, contributory negligence, volenti and negligent misstatement.
Current BUSN7052 dates
| Date | Item | Control |
|---|---|---|
| 5 November 2026 | Final Exam | Earliest possible date in the class summary; confirm your sitting on the ANU examination timetable |
Dates are as published in the Semester 2, 2026 class summary. Confirm exact deadlines and submission settings in the live LMS.
What BUSN7052 covers
Thirteen chapters follow the teaching weeks from the legal system to agency, each with an original problem worked in IRAC form.
The Australian Legal System and the Constitution
Tiers of government, separation of powers, heads of power, s 92, s 109 and reception of English lawAustralian business law sits on a constitutional frame. This chapter explains the three tiers of government, the separation of legislative, executive and judicial power, and the modified Westminster model in which ministers sit in Parliament.
- Three tiers of government and their law-making roles
- Separation of powers and responsible government
- Section 51 heads of power, concurrent and exclusive
- Section 92 discrimination test from Cole v Whitfield to Palmer
- Section 109 for States and section 122 for territories
- Reception, the Australia Acts 1986 and Mabo
Legislation, Precedent and Statutory Interpretation
How bills pass, delegated legislation, ratio and obiter, the purposive approach and Latin maximsStatutes and cases are the two primary sources of Australian law, and this chapter shows how each is made and read.
- Passage of a bill and commencement in the ACT
- Regulations, ordinances, by-laws and ultra vires
- Ratio decidendi, obiter dicta and binding authority
- Common law and equity, courts and tribunals
- Purposive interpretation under s 15AA
- Ejusdem generis, noscitur a sociis and expressio unius
Negligence: Duty of Care and Breach
Neighbour principle, established duty categories, salient features and the calculus of negligenceNegligence is the civil wrong a business meets most often, and in the ACT it is governed by the common law together with the Civil Law (Wrongs) Act 2002. This chapter covers the first two elements.
- Donoghue v Stevenson and the neighbour principle
- Presumed duties such as occupier and invitee
- Salient features and policy limits on duty
- Section 42 standard of a reasonable person in the defendant's position
- Probability, gravity, burden and utility in the breach calculus
- Paris v Stepney contrasted with Bolton v Stone
Negligence: Causation, Defences and Economic Loss
But-for and scope of liability, remoteness, contributory negligence, volenti and negligent misstatementProving breach is not the end of a negligence claim.
- Factual causation and scope of liability under s 45
- Material contribution and intervening acts
- Remoteness, the eggshell skull and manner of harm
- Contributory negligence and the s 95 and s 96 presumptions
- Voluntary assumption of risk and statutory immunities
- Negligent misstatement and vicarious liability
Contract Formation: Agreement and Consideration
Offer and invitation to treat, acceptance and the postal rule, revocation and considerationA contract needs agreement, consideration, intention, capacity and certainty, and this chapter builds the first two.
- Objective test of agreement
- Invitations to treat and the Boots self-service case
- Unilateral offers in Carlill and R v Clarke
- Counter-offer, revocation, lapse and silence
- Postal rule and electronic acceptance
- Dunlop's three rules of consideration
Intention, Capacity and Equitable Estoppel
Ermogenous and intention to be bound, minors and other capacity rules, Waltons Stores v MaherAgreement and consideration are not enough unless the parties meant to be legally bound and had capacity to contract.
- Objective intention after Ermogenous
- Family arrangements in Balfour, Todd v Nicol and Woodward
- Minors: necessaries and beneficial contracts of service
- Corporate capacity under s 124 and mental incapacity
- Waltons Stores v Maher and Brennan J's six elements
- Clear representations in Crown Melbourne and reliance in Sidhu
Contract Terms and Exclusion Clauses
Terms and representations, parol evidence, collateral contracts, BP Refinery and exclusion clausesOnce a contract exists, the next question is what it contains.
- Terms, representations and mere puffs
- Parol evidence rule and its exceptions
- Collateral contracts after JJ Savage v Blakney
- BP Refinery conditions and Codelfa's necessity test
- Incorporation by signature or reasonable notice
- Construing exclusion clauses and the s 64 overlay
Vitiating Factors and Genuine Consent
Misrepresentation, mistake, duress, undue influence, Amadio unconscionability and illegalityA contract can be properly formed and still be set aside because consent was not genuine.
- Four elements and three types of misrepresentation
- Silence, half-truths and changed circumstances
- Common, mutual and unilateral mistake
- Duress and presumed or actual undue influence
- Amadio special disadvantage and guarantees
- Rescission, its bars and illegality
Discharge, Frustration and Contract Remedies
Performance, breach and repudiation, frustration after Codelfa, damages and equitable remediesContracts end by performance, agreement, breach or frustration, and the remedies that follow depend on how they ended.
- Exact performance and its exceptions
- Conditions, warranties and intermediate terms
- Repudiation and Laundry Hotels v Dyco
- Three elements of frustration
- Consequences of frustration in the ACT and NSW
- Damages, remoteness and equitable remedies
Sale of Goods: Implied Terms, Property and Risk
Contracts of sale, implied conditions, the section 23 rules, risk, nemo dat and SGA remediesThe Sale of Goods Act 1954 (ACT) governs every sale of goods for a price, whether the buyer is a household or a business. This chapter defines a contract of sale and the goods it covers, separating goods from services, software downloads and choses in action.
- Contract of sale under s 6(1) and the meaning of goods
- Implied terms on title, description, quality, fitness and sample
- Section 23 rules for passing of property
- Risk follows property and its exceptions
- Nemo dat and the protection of innocent buyers
- Remedies of unpaid sellers and buyers
Australian Consumer Law: Guarantees and Misleading Conduct
Consumer definition, guarantees and remedies, section 18, section 29 and product safetyThe Australian Consumer Law, Schedule 2 to the Competition and Consumer Act 2010 (Cth), applies in the ACT through the ACT's own Fair Trading (Australian Consumer Law) Act 1992. This chapter explains who is a consumer under s 3, the guarantees for goods and services in ss 51 to 64, and the remedies for major and minor failures.
- Consumer test in s 3 and the resupply exclusion
- Guarantees for goods in ss 51 to 59
- Services guarantees and the s 63 exclusions
- Major and minor failure remedies
- Misleading conduct under s 18 and s 29
- Product safety, unfair terms and ACCC remedies
Insurance Contracts: Disclosure and Claims
Utmost good faith, consumer and non-consumer contracts, disclosure, subrogation and double insuranceInsurance has appeared in every past final in the course materials, usually as a dispute about what an insured failed to tell its insurer.
- Utmost good faith under s 13
- Consumer insurance contracts and s 11AB
- Duty not to misrepresent and duty of disclosure
- Innocent and fraudulent breaches under ss 28 and 31
- Alexander Stenhouse and changes in use
- Subrogation, double insurance and average
Property, Intellectual Property and Agency
Finders and fixtures, trade marks and copyright, and express, implied and apparent authorityThe final teaching weeks cover property, intellectual property and agency, which past finals examine as short issues inside larger business scenarios.
- Finders: Armory, Parker and the duty to seek the owner
- Fixtures and fittings when a business is sold
- Registered trade marks and infringement under s 120
- Copyright in original works and AI-generated text
- Passing off and s 18 for unregistered names
- Express, implied and apparent authority
The course starts with where law comes from: the three tiers of government, the separation of powers, the Commonwealth's heads of power and the reception of English law, then legislation, precedent and statutory interpretation. Negligence follows, taught through the ACT's Civil Law (Wrongs) Act 2002 together with the leading cases on duty, breach, causation and defences.
Three weeks of contract law cover formation, consideration, intention, capacity, estoppel, terms, exclusion clauses, vitiating factors, discharge and remedies. The second half applies those foundations to particular business contracts: sale of goods, the Australian Consumer Law, insurance, property, intellectual property and agency. Assessment is built around legal problem solving.
Two short assignments, each worth 10%, asked for one-page answers on negligence and on intention to create legal relations; a 30% research paper analysed implied terms and frustration; and a final exam worth 50% asks students to apply commercial law principles to hypothetical fact scenarios.
Past finals in the course materials mix several topics in one business story, and four areas have appeared in every sitting since 2021: insurance contracts, consumer law, negligence and trade marks.
This guide follows the teaching order, explains each rule with the cases and sections the lectures and marking guides use, and works an original problem in every chapter so you can practise identifying issues, applying the law to facts on both sides and reaching a reasoned conclusion with a remedy.
BUSN7052 cheatsheet for the final exam
AskSia publishes a free BUSN7052 cheatsheet for the final exam, a Cheatsheet that follows the official permitted-materials rule for this assessment and condenses the topics in this guide. Open the BUSN7052 cheatsheet.
Worked example · free
Is a café owner a consumer when her espresso grinder fails?
- +2Consumer status: the grinder cost $2,800, under both the $40,000 threshold stated in the course slides and the $100,000 figure the Act has used since 1 July 2021, so Nadia is a consumer under s 3 of the ACL unless she bought it for resupply or to use up in production; she bought it to use, not resell.
- +2Guarantee breached: a grinder that jams repeatedly within a month is not of acceptable quality under s 54, and the matching SGA condition of merchantable quality under s 19 also applies to the sale.
- +2Exclusion: s 64 makes the guarantees non-excludable, and SGA implied terms cannot be excluded in the ACT, so the seller's terms do not remove either.
- +2Remedy: if the failure is major under s 260 she may reject and choose a refund or replacement (s 263); otherwise the seller may remedy it within a reasonable time (ss 259(2), 261).
Key terms
- Ratio decidendi
- The legal reasoning necessary to a court's decision, which binds lower courts in the same hierarchy.
- Duty of care
- A legal obligation to take reasonable care to avoid foreseeable harm to people closely affected by one's conduct.
- Contributory negligence
- A plaintiff's own failure to take reasonable care, which reduces the damages awarded.
- Invitation to treat
- A statement inviting offers, such as a shop display, which cannot itself be accepted.
- Consideration
- The price given or promised in return for a promise, which makes the promise enforceable.
- Equitable estoppel
- An equitable doctrine that stops a party resiling from an assumption it induced and knew was relied on.
- Exclusion clause
- A contract term that excludes or limits one party's liability.
- Frustration
- Automatic discharge of a contract when an unforeseen event makes performance radically different.
- Merchantable quality
- An implied condition that goods bought by description from a dealer are fit for their normal uses.
- Consumer guarantee
- A non-excludable statutory guarantee owed to consumers under the Australian Consumer Law.
- Duty of disclosure
- An insured's statutory duty to tell the insurer matters relevant to its decision to insure.
- Apparent authority
- Authority a principal is estopped from denying because it held the agent out as authorised.
BUSN7052 FAQ
How is Commercial Law at ANU assessed in Semester 2, 2026?
The class summary lists four tasks: Assignment 1 and Assignment 2 at 10% each, Assignment 3 at 30% and a final exam at 50%. The first two were one-page problem answers on negligence and on intention to create legal relations, the third a research paper of about 1,800 words. Together they total 100%.
What does the final exam look like?
It is an in-person paper with 2 hours of writing time and 15 minutes of reading time. Students discuss how commercial law principles apply to several hypothetical fact scenarios, there are no multiple choice questions, every topic is examinable, and the questions resemble those set in tutorials.
Can I bring notes into the final exam?
The class summary describes the exam as open book with no special equipment, and says ebooks are not permitted. Permitted materials are published with the examination timetable, so check that listing before the day and prepare printed or handwritten notes organised by legal issue.
Which topics come up most in past finals?
Six past papers from Semester 2 2021 to Semester 1 2025 are in the course materials. Insurance contracts, the Australian Consumer Law, negligence and trade marks appear in all six. Contract terms and exclusion clauses appear in four, while copyright, sale of goods implied terms and finders appear in three.
How should I structure a problem question answer?
Use IRAC. Frame each issue as a question, state the rule briefly with a case or section, spend most of your words applying that law to the facts and arguing both sides, then give a conclusion on balance with the remedy. The course notes say conclusions may differ if well supported.
How much detail does negligence need in a mixed question?
Usually less than students give it. Several marking guides ask for a brief walk through duty, breach and causation with key Civil Law (Wrongs) Act sections, and the 2025 guide warns that some students spend too long there when consumer guarantees and implied terms carry the weight.
When does consumer law apply instead of the Sale of Goods Act?
Both can apply together. The Sale of Goods Act covers any sale of goods for a price, whoever buys. The consumer guarantees apply only when the buyer is a consumer under s 3, which excludes goods bought for resupply or to use up in production, so check consumer status first.
Questions students ask in each BUSN7052 chapter
- Why does a business law course start with the Constitution?
- Many commercial statutes rest on Commonwealth heads of power: the slides tie the Corporations Act to s 51(xx) and list insurance under s 51(xiv). Knowing which level of government can legislate, and which law wins when two conflict, tells you which statute governs a dispute before you start applying its provisions. Chapter 01 · The Australian Legal System and the Constitution
- What is the difference between reversing and overruling a decision?
- Reversal happens when a superior court corrects the decision in the same case on appeal, without necessarily changing the law. Overruling happens when a court replaces the legal rule laid down in an earlier case, so later courts follow the new rule. Distinguishing leaves the earlier rule intact but avoids it on different facts. Chapter 02 · Legislation, Precedent and Statutory Interpretation
- Which relationships carry a presumed duty of care?
- The Week 3 slides list professionals and clients, employers and employees, teachers and students, road users, and occupiers with their invitees, suppliers and consumers, citing Modbury Triangle. Outside those categories, a duty depends on salient features such as the plaintiff's vulnerability, the defendant's control over the risk, and policy considerations. Chapter 03 · Negligence: Duty of Care and Breach
- How does s 45 change the old but-for test?
- It splits causation into two questions. Section 45(1)(a) asks whether the negligence was a necessary condition of the harm, which works much like but-for. Section 45(1)(b) asks whether it is appropriate for liability to extend to the harm, and s 45(2) lets courts keep applying established common law principles such as the eggshell rule. Chapter 04 · Negligence: Causation, Defences and Economic Loss
- Is a product on a supermarket shelf an offer?
- No. A display is an invitation to treat. In the Boots case the customer made the offer at the counter, where the pharmacist could accept or refuse, which also let the pharmacist supervise the sale. Most advertisements work the same way unless they promise something specific in return for an act. Chapter 05 · Contract Formation: Agreement and Consideration
- Are agreements between family members ever enforceable?
- Yes. Ermogenous removed rigid presumptions, so courts examine the whole context: payment, formality, the seriousness of the promise and what each party gave up. In Todd v Nicol a domestic arrangement became binding because one party made a significant sacrifice in reliance, while in Woodward v Johnston a promised business share stayed a family understanding. Chapter 06 · Intention, Capacity and Equitable Estoppel
- How do courts decide whether a statement is a term?
- They look for the parties' objective intention using factors the slides list: promissory wording, timing relative to the contract, importance to the decision to contract, the maker's special knowledge, and whether a later written contract left it out. Oscar Chess contrasts saying I believe with saying I guarantee. Chapter 07 · Contract Terms and Exclusion Clauses
- What makes a misrepresentation fraudulent rather than innocent?
- Fraud requires that the maker knew the statement was false, had no belief in its truth, or was reckless about it. An innocent misrepresentation is made with an honest belief on reasonable grounds. The difference matters because fraud supports damages as well as rescission, while innocent misrepresentation at common law supports rescission only. Chapter 08 · Vitiating Factors and Genuine Consent
- When can a party terminate for breach?
- When the other party breaches a condition, repudiates the contract, or breaches an intermediate term with serious consequences. Breach of a warranty gives damages only, as Bettini v Gye shows: a singer who arrived late for rehearsals but before the concerts breached only a warranty, so the contract continued. Chapter 09 · Discharge, Frustration and Contract Remedies
- Does the Sale of Goods Act apply to software?
- It depends on the form. Software on a physical disc is goods, but a paid download was held not to be goods in Gammasonics, so the Act did not apply. The Australian Consumer Law is broader, because its definition of goods expressly includes computer software, as Valve Corporation v ACCC confirms. Chapter 10 · Sale of Goods: Implied Terms, Property and Risk
- Is a business that buys stock to resell a consumer?
- No. Section 3 excludes goods acquired for resupply, whatever their price, and goods acquired to use up or transform in trade or commerce. A past answer guide applied this to a café buying coffee beans: even below the price threshold, beans bought for the business fell outside the guarantees. Chapter 11 · Australian Consumer Law: Guarantees and Misleading Conduct
- Why does classification matter so much in insurance questions?
- It decides the duty. A consumer insurance contract under s 11AB carries the s 20B duty to avoid misrepresentation; any other contract carries the s 21 duty of disclosure, which reaches matters the insurer never asked about, including changes in circumstances. The 2025 marking guide warned that some students would misclassify a business policy as a consumer contract. Chapter 12 · Insurance Contracts: Disclosure and Claims
- Does an employee who finds something at work keep it?
- Usually not. A 2021 answer guide applied Wiley v Synan and Byrne v Horne to a cleaner who found a valuable item while clearing rubbish: found in the course of employment, it had to go to the employer, and the event organisers had to try to locate the true owner. Chapter 13 · Property, Intellectual Property and Agency
How to study for the exam
Revise by issue rather than by week. Build one page for each recurring issue: consumer status and guarantees, misleading conduct, negligence elements, insurance disclosure, exclusion clauses, formation, intention and estoppel, trade marks and copyright, finders and agency.
On each page write the test in a few lines, the sections that state it, two cases you can cite by short name, and the trigger facts that tell you the issue is present. Then practise on full scenarios. Past finals use one business story with several questions, so set a timer, list every issue in the first few minutes and only then write.
Compare your issue list with a model route before polishing your prose, because missing an issue costs more than an awkward sentence. Keep negligence short when the question is wider, classify an insurance contract before naming the duty, and finish every answer with a conclusion and a remedy. In the last week, turn your issue pages into a tabbed open-book kit that you can navigate quickly under exam conditions.
Your AI Law tutor for BUSN7052
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