HI6027 Business and Corporate Law Assignment Answers

Assessment Title : Case Studies of Business Law and Business Structures

Purpose of the assessment (with ULO Mapping)

The purposeof theGroup Assignment is to provide students with an opportunity to work in a collaborative environment in solving two case problems by citing the relevant legal rules and cases and applying these to the facts of the case.In this Group Assignments, students are required to:-Understand the basic principles of Contract Law and the Law of Tort and apply them in business circumstances.(ULO 2)-Analyse the legal environment in which business structures operate and evaluate their use in a commercial context.(ULO 3)-Apply correct legal methodology, specifically to apply the IRAC (Issues, Rules Argument, Conclusion) framework to solve legal problems.(ULO 5)

Word limit : Group Written Report of maximum 2,000 words

Assignment SpecificationsPurpose:The Group Assignment aims to provide students with an opportunity to work in a collaborative environment in solving two case problems by citing the relevant legal rules and cases and applying these to the facts of the case.Students are to form groups, with a minimum of 2and a maximum of 4students per group. The assignment consists of a 2,000-word written report.Instructions: Please read and re-read carefullyto avoid mistakes.Group Report1.This group assignment consists of 2 parts. Part A is a question on Contract Law, and Part B is a question involvingBusiness Structures. Both questions must be answered.Each question is worth 20 marks.2.The total word limit for the group report is 2,000 words (+/-10% allowed)with each part having a maximum word count of 1,000 words. Word count limits are strictly enforced. A deduction of two (2)marks will be imposed for every 50 words over the word count for either part of the report. Anything over the word count will not beread by your lecturer.3.The total word count for the report as well as each part must be clearly written on the cover sheet of the assignment. A paper will not be marked if the word counts are not written on the cover sheet.4.The group report is worth 40%of total marks in this unit.Important Reminders:•You must form your groups by self-enrolmentin Blackboard. Please refer to the document “Group Assessment Self Enrolment Tutorial” that has been posted in Blackboard (under announcementsand also in “Assessments” folder). Thisdocument will assist you with the process of self-enrolling in a group to undertake an assessment task in Blackboard Ultra.•All group report submissions must be de done online and run through SafeAssign. No hard copies are to be submitted. Only one group member needs to submit for the whole group.•You must attach as the official Holmes Institute cover sheet to your group report and upload on Blackboard.•Group report must be submitted via SafeAfssign on Blackboard and show a similarity percentage figure. Any group report that does not show a SafeAssign similarity percentage will not be marked and be required to re-submit.•Late submissions will be subject to Holmes Institute policy on student assessment submission and late penalties (please refer to subject outline and Student handbook).•All reports are expected to observe proper referencing in accordance with the Australian Guide to Legal Citation (AGLC). A copy of the AGLC has been posted in the Week 2 tutorial folder. You may also download a copy for free via this link: https://law.unimelb.edu.au/__data/assets/pdf_file/0005/3181325/AGLC4-with-Bookmarks-1.pdf

In general, for written reports, a SafeAssign similarity percentage of 25% or below is acceptable. Regardless of the similarity figure, all group reports must use in-text citation and observe proper referencing rules.•All assignments are expected to strictly follow Holmes Institute’s Academic Conductand Integrity Policy and Procedures. A copy of the Policy is available onthe Holmes Institute home page.(About Holmes > Policies) This policy is also explained in your Student Handbook.•Plagiarism and contract cheating in any form will not be toleratedand will have severe consequences for the groups found committing the same, including receiving zero (0) for the entire assignment and possible failure in the unit.•Any group assignment that is found to contain fake or bogus references or references that are clearly irrelevant to the subject matter of the assignment will receive an automatic zero (0) mark.•IMPORTANT: Identification of individual work. To ensure that all students participate equitably in the group assignment and that students are responsible for the academic integrity of allcomponents of the assignment, each group must complete the following table which identifies which student/students are responsible for the various sections of the assignment

Assignment Questions

Part A: Contracts Law Question(20 marks)•Read the Contracts Law question below.•In 1,000 words (+/-10% is allowed), answer your chosen question using the IRAC method.•Your answer must be supported by relevantprinciples of Australian law and cases decided by Australian courts (preferably the High Court) and/or scholarly articles. A minimum of 3 genuine and relevantreferences are required for this part of the report.•The full citations for all sources cited in your answer must be listed in a Reference list at the end of the Part A question.•In addition, any online sourcescited in your answer and listed in your Reference List must include a valid hyperlink that allows access to the full text of the source.Wilona was married to Wilbur for 40 years. She was devastated when he passed away. She had been very reliant on him and left all their business matters to him. She had always been a religious person and turned to her faith for solace.She was visited by her local priest, Father Devout. She talked about her situation with him and concluded that she should sell her matrimonial home and move into a small unit. Father Devout was himself looking for a new home after the church had informed him that it would be selling the bungalow adjacent to the church building in which he currently lived as a cost-cutting exercise. He mentioned this fact in passing and Wilona insisted that she sell her house to him. When he asked how much she would want for the property, she said she had no idea of its worth. However, she had heard a neighbour say that a house in the street had sold for about $200,000, but, because she knew that her house would go to someone deserving, she would sell it to him for $100,000. This was in fact half its true value. She wouldn’t take no for an answer and Father Devout knew her to be someone who would obstinately insist on something once her mind was made up.Wilona needed a bridging loan to purchase her unit. She does not trust banks and instead approached Sly, a fellow parishioner. Sly was a wealthy businessman, who told her he would give her the necessary fundsif she signed a receipt for it so he ‘would have something to show the taxman’. In fact, the “receipt” was a basically-worded loan document, which provided that she was liable for interest at twice the rate that she could have obtained from a bank. Wilonasigned the document without reading it because she thought Sly, as a fellow churchgoer, was “a good man”.Wilona’s son and daughter have just flown in from their respective homes overseas and discovered what Wilona has been doing. They seek your advice on whether she can undo what she has done.Advise Wilona’s children, discussing all available grounds for relief under Australian contract law.

Part B:

Business Structures question(20 marks)•Read the questions below on Business Structures.•In 1,000 words (+/-10% is allowed), answer the chosen given question.•A minimum of 3 genuine and relevantAustralian legal references are required for this part of the report.Examples of relevant references for this question include the Corporations Act2001 (Cth); the Australian and Securities and Investment Commission’s (ASIC) website (www.asic.gov.au), the website of the Australian Business Register’s (ABR) website (www.abr.gov.au).•The full citations for all sources cited in your answer must be listed in a Reference list at the end of the Part Bquestion.•In addition, any online sourcescited in your answer and listed in your Reference List must include a valid hyperlink that allowsaccess to the full text of the source.Congratulations! You have secured a graduate position with a large firm of corporate advisers. Jessica, a partner in the practice, asks you to attend an 8 am meeting on Monday with herself and Julian Harris, a longstanding client of the firm. You will be required to take notes and prepare answers to Julian’s queries.Julian Harris is married to Samantha Patel. They have one child, Pauline, who attends a local private school. Julian is very entrepreneurial and has been running a second-hand and vintage clothing business in Dandenong, Victoria, by himself as a sole trader for the past five years under the business name of Retrofit. A lot of Julian’s customers are other businesses, both local and overseas. Turnover was$285 000 in the first year and has now grown to over $3 million per annum.The business operates from rented premises, but Julian would prefer to buy a building. Currently, Retrofit employs eight staff. Julian has plans to expand the business further. Healso wants to diversify into food and catering in the near to medium term.Julian’s mother, Bev, is a retired accountant and he regularly asks her for advice. Bev suggested recently that Julian should structure his business as a company. Julian is unsureabout this. He makes an appointment to see Jessica.Prior to the meeting, you review Julian’s file and note that he and Samantha have the following assets.•A family home in Hawthorn with a market value of $1.25 million. There is a mortgage on the property of $561,000. The house is owned by Samantha. The house was previously owned by Julian and Samantha, but when Julian started up his business, it was decided to transfer the house solely to Samantha for asset protection reasons.•A share portfolio. Julian and Samantha jointly own 1000 Telstra shares, which cost them $3.30 per share, and 500 Commonwealth Bank shares, which they bought when they first married. The Commonwealth Bank shares cost them $10.90 per share. The Telstra shares are currently worth $3.09 per share and the Commonwealth Bank shares are worth $61.00 per share. The shares are intended as an investment for

Pauline —they will be given to her when she turns 21. Julian and Samantha also jointly own a portfolio of blue chip Australian shares currently valued at $145,957.•Two motor vehicles. Samantha owns a BMW Series 7 worth $135 000. Julian owns a VW Transporter Van worth $18,000, which he uses for the business.•Office furniture and equipment. During the course of the year, Julian bought computers, desks, other office furniture and shelving for the business which cost him approximately $23 000. Their current value in the financial accounts is $8650.•Superannuation. Julian has $190,568 in superannuation and Samantha has $136,000 in superannuation.In addition, Samantha works as a sales and marketing manager in the city for a financial servicescompany. She is on a total salary package of $155,000.At the meeting, Julian hands over last financial year’s business results and his draft budget of sales and expenses for the coming financial year. The budget for the new year shows expected sales of $3,764,000 and a net profit of $637,979.

Issuesto be considered

During the meeting, Julian has a number of questions relating to important issues surrounding the future of his business. The issues arising include the following.•What options does Julian have to structure the Retrofit business?•Julian still wants to run the business —he wants to be in control. How would other businessstructures differ from just Julian as a sole trader?•Is Bev correct to suggest that Julian should set up a company to run the business? Why? What are the advantages and disadvantages of the different types of business structures?