Subject Code and Name LAW6000 Business and Corporate Law
Assessment Assessment 2 Case study
Length 2000 words +/- 10%
Learning Outcomes This assessment addresses the following subject learning outcomes:
b) Demonstrate a sound comprehension of the essential elements required to create, manage and discharge a contract and assess the remedies available for breach of a contract;
c) Examine legal principles related to creation and operation of various forms of business organisations and critically evaluate their effectiveness across a range of business scenarios.
d) Explain the processes for incorporating, managing and winding up of a company, including key director duties, the importance of the Corporations Act 2001 and the role of regulatory bodies.
e) Evaluate the role of agency in contract formation for different business vehicles and identify the associated risks such as vicarious liability for negligent acts.
f) Employ legal skills (statute law and case law), critical reasoning and make informed judgements as to likely legal outcomes of a range of business scenarios.
By 11:55pm AEST/AEDT Sunday of Week 10 (Module 5.2)
Total Marks 100 marks
This assessment allows students to solve practical problems that arise from a fact scenario and to give appropriate advice to clients.
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There are five case studies you are required to critically analyse. With respect to each case study:
1 Identify the legal issue(s) arising from the facts of the case study
1 Identify the appropriate legal rules that requires discussion in the case study 1 Apply the law to the facts of the case study
1 Reach a conclusion/ give practical advice to your client.
Your analysis should refer to appropriate cases and statutes and be referenced using the APA Reference system.
You will be assessed in accordance with the Assessment Rubric. Submission Instructions:
1 Submission is through Turnitin by 11.55 AEST Sunday of Week 10 of the relevant trimester
Question 1 ( 20 marks)
Matilda opened an accounting business and contracted with Quick Computers Ltd to supply her with the latest computer system by no later than April in the year.
Quick Computers Ltd was two months late in delivering and installing the system. As a result, Matilda lost $25,000 in ordinary revenue.
However, she also lost a lucrative contract to do a one-off urgent auditing job for a busy new client. Matilda bought the computer system expecting that it would be available to help with these contracts.
With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Matilda as to the damages that she may recover. Please explain fully, using relevant legal authority.
Question 2 ( 20 marks)
Albert runs a business which has a turnover of more than $1m. It is profitable and definitely has good long term prospects as an accounting software distributor. Albert decides to register a company, ‘MoneyBags Pty Ltd’, and to transfer the business into that company, which he then plans to sell. MoneyBags Pty Ltd is sold to an investor who asks that Albert stay on as the director and manager of the company. The investor organises a contract that requires Albert, as part of the purchase of his company, to promise not to compete against the company in any capacity within a 25 kilometre radius of the company’s location. Albert is also required to promise that he will not use any of the intellectual property or trade secrets of the company in any other enterprise. Albert signs the agreement.
Albert leaves the company after only 6 months employment due to a dispute over his working hours. Albert’s wife registers a new company, ‘MyBags Pty Ltd’ to run an accounting software business, similar to the one that Albert previously established. Albert is employed within the company but is neither a shareholder nor director. The investor in Albert’s original company is concerned and threatens to take legal action against both Albert and MyBags Pty Ltd.
With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Albert whether he can rightfully work for MyBags Pty Ltd and what rights the new owner of MoneyBags Pty Ltd may have against Albert?
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Question 3 ( 20 marks)
Rounder Tyres Pty Ltd was a company that conducted a tyre wholesale business. The Racer family held all the shares in the company and Tom Racer and his wife Sally were directors. The company had not been doing very well for some months as there was fierce competition in the tyre market. In spite of this the board of directors kept on allowing the purchase of more tyres to store in the warehouse. It was clear that the last few orders could not be paid when the time for payment was due. At the time when the company was in a financially precarious position, the company granted a 5 year lease of the premises it owned at a fixed rent substantially below current market value to two of its directors. The lease contract included an option in favour of the tenants (directors) to buy the premises again at a fixed price substantially lower than the market value. The granting of the lease together with the option was authorised at a general meeting of the shareholders of the company. Five months after the lease was granted the company went into liquidation. The creditors are very upset as they believe the lease should not have been granted and they want to take action against Rounder Tyres Pty Ltd.
With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Explain whether the directors breached any of their duties owed to the company? If so discuss the defences (if any) that may be available to them.
Question 4 ( 20 marks)
Morris has become very interested in painting and sculpture. He works on his art hobbies after work and on weekends when he has plenty of free time.
Recently he became interested in the idea of cement and concrete sculpture and decided to experiment in this field.
Last week he purchased a small cement mixer for $6,500 from Stony Building Supplies. The cement mixer was manufactured by Concrete Bond Ltd.
After work on Friday, he set the machine up and used it as directed. As soon as he switched the machine on he was horrified by the sound of a large internal explosion in the machine caused by a faulty machine part.The machine is now in a state of disrepair.
Additionally, fragments from the machine shattered Judy’s windows. Judy is Morris’ next-door neighbour. Part of the shattered glass hit Judy in the face and eye. She is now hospitalised and will be unable to look after her elderly parents for the next few months. They rely on her for assistance with cooking, shopping and cleaning of their home.
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With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Judy whether she would be successful in negligence to recover compensation from Concrete Bond Ltd Please explain fully, using relevant legal authority.
Question 5 ( 20 marks)
Sarah recently sold Prakash 1000 hectares of what was verbally described as “prime agricultural land” for $ 850,000.
During negotiations Sarah, knowing it to be untrue, told Prakash that the land was appropriate for all agricultural purposes.
Prakash signed a written agreement which made no mention of the purposes for which such land might be employed (other than describing the parcel of land as “agricultural land”).
After settlement Prakash took possession of the land and it now appears that much of it is not cleared, and without spending close to $1 million, it is probably only suitable as grazing land for animals and unsuitable for most crops. Prakash had intended using the land to grow wheat.
With reference to relevant legal principles use the IRAC legal problem-solving approach to advise Prakash of all alternative possible legal actions in common law against Sarah. Please explain fully, using relevant legal authority.
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Learning Rubric: Assessment 2
Assessment Criteria Fail
75 -84% High Distinction
Evaluation of Limited understanding of Resembles a recall or Supports personal Discriminates between Systematically and critically
information selected to key concepts required to summary of key ideas. opinion and information assertion of personal opinion discriminates between
support the case study support the case study. substantiated by and information assertion of personal opinion
Often conflates/confuses evidence from the substantiated by robust and information substantiated
Percentage or marks for Confuses logic and assertion of personal research/course evidence from the by robust evidence from the
this criterion emotion. Information opinion with information materials. research/course materials research/course materials and
30% taken from reliable sources but without a substantiated by evidence from the research/course Demonstrates a capacity and extended reading. extended reading.
coherent analysis or materials. to explain and apply Well demonstrated capacity Information is taken from
synthesis. Analysis and evaluation do relevant concepts. to explain and apply relevant concepts. sources with a high level of interpretation/evaluation to
Viewpoints of experts are not reflect expert Identify logical flaws. develop a comprehensive
taken as fact with little judgement, intellectual Viewpoint of experts are critical analysis or synthesis.
questioning. independence, rigor and adaptability. Questions viewpoints of experts. subject to questioning. Identifies gaps in knowledge.
Analysis and evaluation reflect growing judgement, intellectual independence, rigor and adaptability. Exhibits intellectual independence, rigor, good judgement and adaptability.
Effective Difficult to understand for Information, arguments and Information, arguments Information, arguments and Expertly presented; the
Communication audience, no logical/clear structure, poor flow of evidence are presented in a way that is not always clear and evidence are well presented, mostly clear evidence are very well presented; the presentation is presentation is logical, persuasive, and well
Percentage or marks for this criterion ideas, argument lacks supporting evidence. and logical.
Line of reasoning is often flow of ideas and arguments. logical, clear and well supported by evidence. supported by evidence, demonstrating a clear flow of ideas and arguments.
20% Audience cannot follow difficult to follow. Line of reasoning is easy Demonstrates cultural
the line of reasoning. to follow. sensitivity. Engages and sustains audience’s interest in the
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topic, demonstrates high levels of cultural sensitivity
Effective use of diverse presentation aids, including graphics and multi-media.
Correct citation of key Demonstrates Demonstrates use of Demonstrates use of Demonstrates use of good Demonstrates use of high
resources and evidence inconsistent use of good credible and relevant high quality, credible and quality, credible and relevant quality, credible and relevant
quality, credible and resources to support and relevant resources to resources to support and resources to support and
Percentage or marks for relevant resources to develop ideas, but these support and develop develop arguments and develop arguments and
this criterion 10% support and develop are not always explicit or ideas. statements. Shows evidence position statements. Shows
ideas. well developed. of wide scope within the organisation for sourcing evidence evidence of wide scope within and without the organisation for sourcing evidence
Application of Limited understanding Understands the internal Understands the Evaluates the impact of Demonstrates cultural
knowledge to practise while providing appropriate of the internal and external business environment. Lacks a and external business environment including commercial context and impact of financial, social, political, environmental issues financial, social, political,
environmental issues on
the business; and where sensitivity. Analyses the impact of financial, social, political, environmental
advice to clients 40 % global perspective for market forces. on the business. relevant, as they relate to issues on the business; and
potential market and Understands local and Demonstrates different countries where where relevant, as they
trends. Uses a limited global markets/trends. commercial awareness the business may operate relate to different
range of information as Accesses relevant of product Demonstrates commercial countries where the
the basis of information. Adequately development/service awareness of product business may
recommended practice. utilises information from provision. development/service operate.Critically
a variety of sources. Understands the provision and cost demonstrates commercial
Gathers/utilises business. Can prepare relationships. Understands awareness of product
competitor knowledge. and presents business cases/proposals.. the business and its risks.
Can prepare and presents
business cases/proposals. development/service provision and cost relationships. Holistic understanding of business and its risks. Assesses the impact of information and communication systems on the operations of the
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understanding of the global
market opportunities and
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