LST 2 LBA: Law of Business AssociationSemester 1 2013AssignmentInstructions:Submission requirements:...

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LST 2 LBA: Law of Business AssociationSemester 1 2013AssignmentInstructions:Submission requirements:  	This assignment counts for 30% of your final marks in this subject. 	This assignment is due in by 4pm on Friday 16 May 2013. 	An essay submitted after the due date without an extension having been granted attracts a penalty of 5% per day (or part thereof) of the marks available for the task. No marks will be given for an essay handed in after any response to this assignment has been marked and returned to any member of the class. 	The Subject Learning Guide sets out the policy on the granting of extensions. Please note that if you are unable to submit your essay by the due date you should consult your tutor beforehand to see if there are grounds for an extension. Extensions will only be given for very good reasons, normally only medical grounds or other serious interruptions in your ability to work. They are not granted for reasons that should be dealt with by a better organisation of your time and work practices. Nor are they given for reasons that were reasonably foreseeable at the time of enrolling in the subject. 	To apply for an extension, fill in an Application for Extension form and have it signed by your tutor. The form is available below this assignment in the LMS. Do not forget to attach the approved Application for Extension form to your work. 	The total assignment word limit is 1500 words. Further, your answer for each of the two questions should be no more than 750 words. This is an over-estimate of the number of words necessary for a perfect answer. Responses of more than 1500 words in total may be penalised by the deduction of up to one half of one of the marks awarded for every 100 words by which the response exceeds the limit. There will be no reward given for short answers, other than the good will of the marker. 	Attention to presentation, expression, and the correct citation of cases, statutes and secondary sources will be rewarded. Footnote your responses on a page-by-page basis. Do not include a bibliography. 	Plagiarism will be heavily penalised. Plagiarism is defined and discussed in the Academic Misconduct Policy available on the LMS. 	Assignments are to be submitted both in hard copy and on-line via the LMS. If there is any dispute as to the date or time of submission, the date and time recorded for the on-line submission will decide the matter. Nevertheless, the hard copy placed in the assignment submission box will count as the original copy. 	Please ensure that you fill in, and sign a Statement of Authorship form. The PDF of this form is provided in the LMS below this assignment. Attach the filled in form to your assignment. 	Ensure your name and student number is clearly visible on the Statement of Authorship form. Please also provide your tutor’s name on the form. State that it is the Law of Business Association Assignment. 	Keep a copy of your work for your records.  Assignment QuestionStudents must attempt BOTH Questions.Question 1: (15 Marks)Li-You, Lawrence and Benedict have just graduated from La Trobe University. They wish to go into business together providing book-keeping services to accounting firms. Their intention is to start small, but they hope to eventually grow the business into a large provider of contract book-keeping services to both large and small accounting firms. None of them has much money, although Li-You’s parents are prepared to invest most of the money they need to get the business off the ground. Lawrence has developed a book-keeping computer software program which the business will use. Benedict tried to set up a similar business with some other friends during the second year of his studies but that fell apart when it was discovered that he had ‘borrowed’ some of a client’s money to buy himself a new car – without asking the client.Give Li-You, Lawrence and Benedict advice on the most appropriate business structure for their proposed book-keeping business.Question 2: (15 Marks)Assume the business was set up as a Victorian partnership – LLB Book-keeping. Unfortunately, there are some problems:(a)  Benedict has taken a client’s money. He used it to buy himself some shares on the stock-market. The client has advised he plans to sue the partnership for compensation. The police are also investigating;(b) Lawrence wants to sell his book-keeping computer program to a national accounting firm and keep all the profits; and(c)  Li-You’s mother has heard of the troubles and is demanding access to the business records and accounts and is complaining about not getting a say in the way the business in being run.Give the partnership legal advice on each of the problems.

Robert · Accepted Answer

1 
Partnership
Case 1. Li-You, Lawrence and Benedict have just graduated from La Trobe University. They 
wish to go into business together providing book-keeping services to accounting firms. Their 
intention is to start small, but they hope to eventually grow the business into a large provider of 
contract book-keeping services to both large and small accounting firms. None of them has much 
money, although Li-You’s parents are prepared to invest most of the money they need to get the 
business off the ground. Lawrence has developed a book-keeping computer software program 
which the business will use. Benedict tried to set up a similar business with some other friends 
during the second year of his studies but that fell apart when it was discovered that he had 
‘borrowed’ some of a client’s money to buy himself a new car – without asking the client.
Li-You, Lawrence and Benedict are planning to start a book keeping propose. The most 
appropriate business structure for the proposed book-keeping business is limited liability 
partnership. (Dennis Clifford Attorney, 2012) 
 Partnership is the form of business which is controlled and owned by two or more people. 
Minimum two persons are required to enter or form a partnership but there is no bar on the 
maximum number of partners. The liability of the partners is unlimited in most of the forms of 
partnerships i.e. there is no fix amount of liability, partners are liable to compensate 100% of the 
liability with one exception i.e. in case of limited liability partnership, the liability of partners are 
limited only to the amount of their own misconduct. Liability of the partners is with respect to 
the debts of the business which is distinct from the personal liability of the partners.  Partnership 
form is further sub divided into general partnership, limited partnership and limited liability 
partnership. (Dennis Clifford Attorney, 2012) 
2 
Partnership
 General Partnership: This kind of partnership is formed by two or more number 
of persons, and it is formed, entered or created by agreement. The liability for any 
legal actions and debts of the partnership is that of partners or owners. 
(Dennis Clifford Attorney, 2012) 
 Limited Partnership:  The liability in this kind of partnership is limited to the 
value of registered investment.  It is different from the general partnership in the 
sense of general partners and liability. In limited partnership form of business one 
partner is required to be a general partner.

LST 2 LBA: Law of Business Association Semester 1 2013 Assignment Instructions: Submission requirements: This assignment counts for 30% of your final marks in this subject. This assignment is due in...

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