BM0742 : (Individual) Legal Analysis of a Solar Powered Emergency Vehicle Case Study Assignment
University | Nanyang Polytechnic (NYP) |
Subject | Business Law |
PART 1
In early 2020, John (a Singaporean mechanical engineer) conceived the idea of designing a fully solar powered emergency vehicle. The idea for his invention was principally inspired by health pandemics where emergency vehicles have to travel to rural parts of big cities without access to electricity or gasoline.
John’s solar vehicle – named the Solar Powered Emergency Vehicle (SPEV) – is essentially a massive solar powered mobile medical treatment facility. Such a facility – which can be deployed in a matter of hours and is capable treating huge numbers of patients at any one time – is extremely useful where hospitals are overwhelmed, and immobile patients are unable to travel to hospitals. Such mobile treatment facility can therefore be deployed in the event of a major pandemic outbreak.
To help him build his SPEV, John approached Peter, an entrepreneur whose business is in the manufacture of solar panels. Over several meetings, John discussed his solar powered emergency vehicle with Peter and also shared the design specifications and technical drawings for the vehicle. Unfortunately, negotiations broke down along the way and the parties fell out.
Then, in early February 2021, John was surprised to read in media reports that The Singapore Hospital was to unveil their “Solar Powered Emergency Vehicle” in June 2021 at a medical exhibition in Singapore. The publicity materials for the solar powered emergency vehicle read as follows: “The solar powered emergency vehicle – which can be deployed in a matter of hours and is capable treating huge numbers of patients at any one time”. It transpired that The Singapore Hospital had earlier approached Peter in June 2020 to help them build this solar powered emergency vehicle and that the solar powered emergency vehicle had been deployed in several neighbourhood mobile clinics in Singapore since August 2020.
John was highly disturbed by this development because it was clear to him that Peter had made use of his idea, design specifications and technical drawings for the SPEV. John also noticed that Peter’s version of the SPEV is capable treating of huge numbers of patients at any one time. John then decided to file a patent application for his SPEV invention with the Intellectual Property Office of Singapore (IPOS) on 1 March 2021. John was granted a patent on 1 March 2022. Apart from The Singapore Hospital, Peter continues to design and build similar solar powered emergency vehicle for other organisations and corporate entities. In fact, the latest order was just delivered by Peter on 1 May 2022.
Further background information on John’s SPEV invention is set out in Annex A
ANNEX A
- The SPEV invention can be deployed in a matter of hours and is capable treating huge numbers of patients at any one time.
- The concept for SPEV was conceived after John’s own observations and recollection of solar powered makeshift hot dog stands and fast-food vans.
- Further research reveals that a certain engineer, Dr Solar, published a commentary in 2000 in The Old Straits Times (the only English daily circulating in Singapore), which lamented the lack of sustainable medical vehicles and suggested the mounting of solar panels on a medical vehicle. Dr Solar’s commentary is now stored on microfilm in the National Archives of Singapore.
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PART 2
In June 2022, Peter launches the solar powered emergency vehicle for mobile general practitioners in Singapore. The solar powered emergency vehicle (see picture below) is proudly made in Singapore.
Eve, the CEO of Solar Medical Group comes across the solar powered emergency vehicle. He immediately calls up Peter to ask about the solar power capabilities as the welfare of its patients are of utmost importance. Currently, Solar Medical Group operates out of void decks and make-shift tentages that have intermittent power supply. Peter assures Eve that the power capabilities in the solar powered emergency vehicle is as good as a physical medical hospital. Peter also informs Eve when fully charged by solar panel, the power supply of the emergency vehicle can last up to 12 hours of continuous use and has a back up battery lasting up to 8 hours of continuous use should there be insufficient solar power.
Eve is convinced by the features of the solar powered emergency vehicle and places an order for 10 such solar powered emergency vehicles.
In July 2022, Solar Medical Group receives delivery of the solar powered emergency vehicle and started using them. After a week of using the solar powered emergency vehicle, the feedback was one of general disappointment as the solar power only lasted 2 hours and that the rechargeable battery only lasted 2 hours on a full charge, resulting in shorter operating hours and loss of revenue. This resulted in disruptions in clinic operations.
Eve contacts Peter to express his displeasure at the solar powered emergency vehicle and asks for a refund. Peter informs her that there is nothing he can do about the situation. Moreover, Peter points out that the invoice clearly stated that goods sold are not returnable.
On 1 August 2022, Peter receives his largest order for the mobile air purifiers to date, from the newly established Super Solar Mobile Clinic to start operations on 1 September 2022. The clinic places an order for 100 solar powered emergency vehicles and for delivery to be made before 1 September 2022. Unfortunately, in the second week of August 2022, Taiwan was hit with a major typhoon, resulting in the closure of factories for weeks. As all the solar panels used for the solar powered emergency vehicles are supplied by Taiwanese manufacturers, this resulted in a disruption in supply. Although there are local manufacturers of the same type of batteries, local manufacturers were selling the batteries at twice the price of the Taiwanese manufacturers.
Peter immediately emails the clinic to inform them of the situation, and that he is unable to deliver the solar powered emergency vehicle by 1 September 2022. Peter also states that he has been advised that the contract has been discharged for frustration, and he is willing to give a full refund. The following day, a representative from the clinic sends Peter the following e-mail response:
“Dear Peter,
We have a binding agreement and have made full payment for our order. We expect you to make delivery of our order by 1 September 2022 in accordance with our contract.”
Peter fails to make delivery of the mobile medical vehicles on 1 September 2022.
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Your Assignment
Part 1: Potential Claims by John
John would like to know:
- whether he can successfully bring an action against Peter for any intellectual property issues, and
- if Peter is able to raise any defences against each of these claims.
Part 2: Potential Claims by Solar Medical Group and Super Solar Mobile Clinic
Solar Medical Group would like to know whether Peter’s company is in breach of any of the implied terms under the Sale of Goods Act and if so, what legal remedies they might have.
Solar Medical Group is also worried about the statement on the invoice and wonders if the statement will affect their right to make a claim against Peter’s company. Besides the Sale of Goods Act, Solar Medical Group is also keen to find out whether there is any other legislation that might assist them in obtaining legal remedies.
Solar Medical Group would also like to know if Peter would still be able to reject the solar powered emergency vehicle assuming that Eve rejected the solar powered emergency vehicle some years after taking delivery as opposed to immediately after taking delivery.
In addition, Super Solar Mobile Clinic has asked for your views on whether they will be able to sue Peter’s company for breach of contract in not delivering the contracted solar powered emergency vehicle by 1 September 2022.
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