Posted: May 15th, 2015
Legal Questions
Read the following facts. Using only principles, concepts and law discussed in BUSN1019 (including the Partnership Act 1891 (SA)), answer each question:
Re-read the “Notes on Answering Legal Questions” commencing on page 14 of the Topic
Guide and Barron pages xxii – xxiv (7th Ed). Conciseness of expression is important in
answering this assignment, so please do not exceed the word limit! Answer all questions.
Clearly number each answer to each question. All assignments must contain full
acknowledgement of sources and failure to adequately reference sources via footnotes, and
include a Bibliography at the end of the paper, amounts to plagiarism and will result in a
“Fail” grade for this part of the assessment. Use the “Business Law Style Guide”
commencing on page 60 of the Topic Guide or see:
http://mulr.law.unimelb.edu.au/go/AGLC3.
If you wish to submit your assignment answer as part of a group:
(maximum of 3 students per group)
You have the OPTION of submitting your assignments on a group basis. Group work can
allow for the benefit of shared understandings and many people (but certainly not all), learn
better if they work with others. However, this is an option: if you do not wish to work in a
group, or have trouble organising a group to work with, you may simply submit your own
work for individual assessment.
If you wish to submit your assignment answer as part of a group:
1. Select your own group of 2 or 3 people (no more!).
2. All members of the group should sign their own cover sheet (including the word
count) and all cover sheets should be stapled (in family name alphabetical
order) to the front of the assignment.
3. Lodge ONE COPY ONLY of the assignment with 2 or 3 coversheets (depending
on the size of the group) attached in family name alphabetical order.
4. One mark will be allocated for the assignment and this will be the mark assigned
to each group member.
5. Group management issues are the responsibility of the members of the group and
not the teaching staff. Remember: whatever one member contributes to the
assignment, and any consequences that flow from that contribution, is the
responsibility of the group and all members must bear the consequences.
6. If you have difficulty locating others who might like to work in a group with you,
use BUSN1019’s FLO’s discussion board to nominate your interest and locate
others who might live near you or otherwise be likely candidates to work with you.
Read the following facts. Using only principles, concepts and law discussed in BUSN1019
(including the Partnership Act 1891 (SA)), answer each question:
Helen Wong is a talented fashion designer who has recently wona number of awards in fashion design in Australia. She has been dreaming of setting up her ownline.Her Former design teacher Mario,being impressed by the recent achievement of his star student,suggests that they set up a business together. Mario’s idea is that Helen should assist him in designing luxurious clothing for a niche market, the target being young famous movie stars and young top models who need exquisitely designed clothes for special occasions. Helen should be mainlyresponsible For approaching potential clients to find out what they need and make sketches to be approved
by Mario and to be produced upon Mario’s approval. Mario
suggests that the as the scale of the business will probably
be small, they should hire Mario’s friend Peter to
be in charge of the accounting and administration work.
The proposed business will be run out of Mario’s property
which is in a commercial building .
1.
Helen asks you for advice on the most appropriate form of business structure or the proposed business. Advise Helen on the options in respect of business
structures, the advantages and disadvantages of each structure and your recommendations. Helen and Mario have finally decided to set up their business as a general partnership
and would like to call their business “chic couture”. Helen and Mario have decided that Helen will be responsible for buying the office equipment and equipment for sketching
designs while Mario will be responsible for sourcing and buying fabrics and all the necessary accessories for producing clothing for clients. It was agreed that
neither ofthem could make any single purchase above $3,000 without the other’s consent.
2.
Advise Helen on what she needs to do to establish this partnership.
The business is a success and continues to flourish. Helen and Mario decide to go on abusiness trip to Europe to watch fashion shows and get to know more fashion
icons in he hope of expanding their clientele. As Peter has to leave Hong Kong to take care of some important family affairs , he will also be away from office.
Helen and Mariotherefore decides to entrust their neighbor Mr. Lee with the keys
of the office and ask him keep watch of their office while they are away.While they are gone there is a fierce typhoon and the windows in the office
is broken by the wind when the typhoon signal no. 8 is hoisted. Mr. Lee sees the broken window and tries to call Helen and Mario to let them know
about it. He is unable to get through to either Helen or Mario on theirobile phone he arranges for one ofhis friends, who is a local contractor, to
put aoard over the
window
and
seal
it
to
ensure
no
more
water
can
get
into
the
office.
Unfortunately
this
work
occurred
on
a
public
holiday
so
the
builder
charged
twice
his
usual
rate.
He
gives
Mr.
Lee
an
invoice
for
$2,000.
Helen
returns
from
the
business
trip
a
few
days
before
Mario.
When
she
returns,
Mr.
Lee
gives
her
the
invoice
from
the
contractor
.
While
thankful
that
Mr.
Lee
helped
to
make
arrangement
to
protect
the
office,
she
is
shocked
at
the
large
amount
of
the
invoice
and
believes
she
should
not
have
to
pay
it.
3.
Advise
Helen
whether
the
partnership
needs
to
pay
the
amount
stated
on
the
invoice
from
the
contractor
.
While
Mario
is
still
in
Europe,
Helen
receives
a
large
order
for
dresses
from
a
generous
client
and
Helen
needs
to
purchase
a
high
performance
computer
and
the
appropriate
software
from
High
Tec
Supplies
Pty
Ltd.
to
do
sketches
for
this
client
within
a
short
period
of
time.
The
high
performance
computer
and
the
software
will
costs
more
than
$3,000.
As
the
client
has
set
Helen
a
deadline
for
making
the
sketches
and
Helen
wants
to
show
them
to
Mario
for
approval
when
he
comes
back
in
a
few
days,
Helen
proceeds
to
purchase
the
computer
and
software
for
$3,500
without
consulting
Mario.
Subsequently
the
order
from
the
generous
client
falls
through
and
Helen
and
Mario
do
not
want
to
pay
the
bill
from
High
Tec
Pty
Ltd.
4.
Advise
on
the
position
of
Helen,
Mario
and
MarMario
Art
in
relation
to
the
$2,500
bill
from
Art
Supplies
Pty
Ltd.
On
her
business
trip
to
Da
Fen,
Mario
discovered
that
high
quality
artworks
could
be
produced
by
Chinese
artists
at
significantly
less
cost
than
the
artworks
produced
by
Helen.
Mario
therefore
established
a
business
producing
reproduction
artworks
painted
by
Chinese
artists.
Mario
felt
that
Helen
did
not
have
anything
to
contribute
to
this
new
business,
and
she
did
not
want
to
hurt
Helen’s
feelings,
so
she
did
not
mention
this
new
business
venture
to
Helen.
However,
Helen
subsequently
discovers
Mario’s
involvement
in
the
new
business.
She
also
discovers
that
it
was
Mario’s
new
business
that
ultimately
won
the
contract
to
supply
the
artworks
for
the
large
new
office
building.
5.
Advise Helen what, if any, rights she may have arising from the
above.Following the difficulties between Helen
and
Mario
discussed
above,
they
decide
that
they
can
no
longer
continue
in
business
together.
They
agree
to
end
the
MarMario
Art
partnership.
Mario
leaves
all
the
art
supplies
with
Helen
but
takes
all
the
office
supplies.
In
addition,
over
the
period
of
the
partnership,
the
art
studio
apartment
has
increased
in
value
due
to
a
property
boom.
Mario
argues
that
she
is
entitled
to
a
share
of
that
increased
value.
6.
Advise
Helen
on
the
distribution
of
assets
upon
the
dissolution
of
MarMario
Art.
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