Professional Documents
Culture Documents
AEG3085 HI6027 Final Assessment T2 2021
AEG3085 HI6027 Final Assessment T2 2021
AEG3085 HI6027 Final Assessment T2 2021
AEG3085
HI6027
BUSINESS AND CORPORATE LAW
FINAL ASSESSMENT
TRIMESTER 2, 2021
Purpose:
This assessment consists of six (6) questions and is designed to assess your level of
knowledge of the key topics covered in this unit.
a) Briefly explain the meanings and scope of “Public Law” and “Private Law” (2
marks)
Issues that sway the normal individual or the condition is concered by public law in
general - society by and large. A wide degree portion include:
Private laws exists to assist citizens in disputes that involves private matters as it affects
the rights and obligations of individuals, families, businesses and small groups. Its scope
is more specific than public law and covers:
Contract law- Individuals who enter into the contracts govers the rights and obligations.
Tort law - Rights, duties and treatments furnished to someone who has been wronged
with the aid of any other character.
Property law - Governs types of assets possession, switch and tenant issues
Succession law - Governs the switch of an estate between events circle.
Family law - oversees family-related and homegrown related issues
b) For each specific branch of Australian law specified below, answer whether it
would fall into the head of “Public Law” or “Private Law”: trust law; taxation law;
tort & negligence law; contract law; and consumer law. (1 mark for each correct
answer)
Trust law:
Taxation law:
Tort Law:
Contract Law:
Consumer Law:
(Maximum 125 words)
In today’s present environment, discuss and analyse why some contracts need to be completely
written to be enforceable and why some contracts can only be proven by presenting written
evidence of it. (Maximum 275 words)
ANSWER:
Certain types of contracts should be in writing to be valid and enforceable. Such
requirements for writing are commonly seen in various contract laws known as the
statute of fraud. These restrictions are in place to combat contract fraud by requiring
written agreements.
If any of the aforementioned contracts are not in writing, the agreement is either null
and invalid or voidable. The contract was void because it never existed. This means that
the parties will walk away from the agreement as if it never existed.
Evidence of contract conditions, grants, and other property transfers reduced to the
form of papers. When the phrases of a contract, provide, or other dispositions of
property were diminished to the layout prescribed, and in all cases in which any count
number is required by using the law to be whittled down to the shape of a report, no
documentation shall be given in evidence of such contract, provide, or other transfer of
property, or of such count, except the manuscript itself, or secondary evidence of its
contents in cases wherein secondary evidence is admissible.
Boris signed a contract to work for Foodies Pty Ltd as an auditor. According to the terms
of the contract, his compensation was $750 per week with a subsidy of $200 per week
for legitimate business expenses. Boris and the company both knew that the amount
specified for Boris’ expenses would only be less than $75 per week, but a higher amount
was stated to lower the amount of income tax that he will need to pay. Four months
after, Boris’ employment was terminated. He initiated action against the company for
four weeks’ unpaid wages but not his unpaid subsidy (also four weeks’ worth). Explain,
with proper legal reasoning, whether the company is liable to pay the claim? (Maximum
HI6027 Final Assessment T2 2021
250 words)
ANSWER:
As per the law, the company is liable to pay the unpaid wages and any business expense incurred
by Boris before he was terminated. It is within the legal duty of the company and legal rights of
Boris to ask for the unpaid wages. As per the law, Boris is entitled to following on termination:
As per the agreement, the company must act in its accordance and pay Boris its due. It should
also deduct the income tax accordingly as per the rules of the income tax department from the
final settlement amount of Boris.
Boris is right in initiating a case against the company as the company should settle the final dues
of the employee within a week of termination or as per the contract of employment. In case if
there is no mention, then the dues must be cleared within seven days. In case the dues have not
been paid in that duration, Boris should initiate a case and also file for interest on the amount
payable considering the delay period.
Boris will not be entitled to Sick or carer’s love on the termination of employment.
Hugo Long rented ground floor shop premises for his takeaway store from Sunlight Pty
Ltd. He lived in a unit on the second floor of the property. When the lease expired and
a new lease was being negotiated, Sunlight sought to include a condition that the
premises could only be used for business purposes. Hugo explained that he wanted to
continue living in the second floor unit since it was convenient for him and he would
not renew the lease if this was refused. Sunlight advised that if Hugo signs a new lease,
which includes the condition regarding its exclusive business use, they would allow
him to live in the unit. Assured by this promise, Hugo signed a 2-year lease extension.
He would never have signed the extension if he was not allowed to live in the unit and
would have rented elsewhere.
After eight months, Sunlight Pty Ltd got a call from a local developer about buying the
entire property (shop and unit) but required it to be vacant. Sunlight looked to
terminate the lease because Hugo had broken the condition by living in the second
floor unit. Is Sunlight Pty Ltd correct? Explain your answer with proper legal basis and
authorities. (Maximum 375 words)
Hugo should have asked for the clause to be removed from the lease agreement that stated that
the apartment can only be used for the business purpose. If he hasn’t done that, he is in violation
to the agreement though Sunlight Pty would have promised verbally that the Hugo can live in the
apartment.
As per legal basis and authorities, Sunlight Pty has full rights to remove Hugo Long from the
premises by giving an eviction notice and also by stating the violation of the agreement. The
landlord and tenant issues are governed by various laws and each state has its own laws
regarding the leasing. It is known as Residential Tenancies Act.
The Sunlight Pty Ltd has to prove in the court of law that Hugo Long has violated the law by
providing the proof or Hugo Long has to plead guilty for the violation. However, in case if Hugo
Long contests the charge saying that he was verbally promised about staying in the apartment,
then Hugo has to prove the verbal agreement with a witness who is neutral. However, the verbal
agreement doesn’t hold merit in the court of law.
Hugo Long can approach the Residential Tenancies Tribunal of the state or Consumer Affairs and
can make his case. However, without any lack of substantial evidence and lack of written
agreement, Hugo won’t have a firm standing in the tribunal as well.
If the said incident has occurred in state of Tasmania, as per the law, the landlord or tenant both
can terminate the agreement with a 28 days’ notice.
Question 5 (7 marks)
Cleo Archer works as a sous chef in a restaurant. She has a medical condition called
‘Osteogenesis Imperfecta’, which is a disease that results in fragile bones that break
easily. While cooking at work one morning, she accidentally burned her hand with hot
HI6027 Final Assessment T2 2021
oil and had to go to hospital. While in hospital, she also broke her elbow. This
increased the number of days she had to be confined and, consequently, her hospital
bill was higher than she expected. Is her employer responsible for the broken elbow
she suffered while in hospital? (Maximum 220 words)
ANSWER:
As per the employment laws defined by Australian government, any employer is liable to provide
a safe working condition to the employees. In this case, the conditions were safe and Cleo got
burnt accidentally because of her negligence.
In order to prove that the employer was responsible for broken elbow, Cleo has to prove the
following:
There was a great degree of harm already present in the working conditions
The risk was foreseeable by the restaurant and they did not act on it
Any other restaurant would have taken a measure to safeguard the employees
The other element Cleo has to prove is that she got her hand burnt and this resulted into broken
elbow because of breach of duty of care on restaurant’s side. In this case, even if Cleo hadn’t got
his hands burnt, still the risk of Cleo breaking her bones was always persistent. Hence, restaurant
as an employer is not responsible for paying the damages and extra hospital bills to Cleo.
Cleo would have been entitled to the damages only if she didn’t have the existent condition of
‘Osteogenesis Imperfecta’ and the additional damage of breaking bones happened
because of the accident.
Question 6 (7 marks)
Amanda and Emilia are co-directors and members of Griffin Pty Ltd, which imports
widgets from Vietnam and sells them in various hardware stores in regional NSW.
Griffin has a medium-sized warehouse where it stocks goods, and from which it
distributes products.
Griffin recently signed a contract to supply a large hardware store in Orange and
Dubbo with widgets. So the company ordered 10 pallets of widgets from its
Vietnamese supplier and also paid a substantial deposit. A shipping company who
carries goods into Australia has already brought the pallets into the country and has
sent their bill to Griffin.
After a couple of deliveries to the hardware store, a safety issue is discovered with the
widgets and the government bans the sale of the widgets. the hardware store cancels
all further orders of the widgets.
Amanda and Emilia do not know what to do. Is their company insolvent? If it is, what
action would you advise them to take? (Maximum 325 words)
ANSWER:
The company should do the following:
Company should negotiate with its suppliers to return back the widgets stating the new
Australian laws and ask for a refund. Company should cite the reasons for the refund as safety. It
is very important that under any other conditions, the suppliers wouldn’t generally be ready to
accept the returned product and provide a refund. Amanda and Emilia should assure the
suppliers that they will continue doing business for other products.
These refunded money can be used to pay the shipping company, ATO, staff and other suppliers.
The company should also negotiate for more time to pay the pending amount. The pending
amount should be paid in tranches to avoid the insolvency. This will ensure the company can
survive and continue with its business operations without impacting its cashflow in a high
impact. This should reduce the burden of the company in the short run.
Meanwhile, the company should also present the case to the government and ask for
support/subsidy citing the following reasons:
These relief measures should be equivalent to the losses possible because of the ban. Amanda
and Emilia should ask for a low interest rate loan or a subsidy from the government or the
authorities to start a new business so that the staff can be kept on the payroll and does not
result in layoffs. They should present a business case accordingly for importing other products
continuing with the business.
1.