LAW6000_Assessment 2_Case Study Page 1 of 9
ASSESSMENT BRIEF
Subject Code and Name LAW6000 Business and Corporate Law
Assessment Assessment 2 Case study
Individual/Group Individual
Length 2000 words +/- 10%
Learning Outcomes This assessment addresses the following subject learning
outcomes:
) Demonstrate a sound comprehension of the essential
elements required to create, manage and discharge a
contract and assess the remedies available for
each 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
isks such as vicarious liability for negligent acts.
f) Employ legal skills (statute law and case law), critical
easoning 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)
Weighting 30%
Total Marks 100 marks
Context:
This assessment allows students to solve practical problems that arise from a fact scenario and to
give appropriate advice to clients.
LAW6000_Assessment 2_Case Study Page 2 of 9
Instructions:
There are five case studies you are required to critically analyse.
With respect to each case study:
✓ Identify the legal issue(s) arising from the facts of the case study
✓ Identify the appropriate legal rules that requires discussion in the case study
✓ Apply the law to the facts of the case study
✓ 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 Ru
ic.
Submission Instructions:
✓ Submission is through Turnitin by 11.55 AEST Sunday of Week 10 of the relevant trimester
LAW6000_Assessment 2_Case Study Page 3 of 9
Question XXXXXXXXXXmarks)
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.
Required
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.
XXXXXXXXXX20 marks)
Question XXXXXXXXXXmarks)
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
usiness, 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.
Required:
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?
XXXXXXXXXXmarks)
LAW6000_Assessment 2_Case Study Page 4 of 9
Question XXXXXXXXXXmarks)
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 cu
ent 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.
Required:
With reference to relevant legal principles use the IRAC legal problem-solving approach to advise
Explain whether the directors
eached any of their duties owed to the company? If so discuss
the defences (if any) that may be available to them.
XXXXXXXXXX20 marks)
Question XXXXXXXXXXmarks)
Mo
is has become very interested in painting and sculpture. He works on his art ho
ies 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 ho
ified 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 Mo
is’ next-door
neighbour. Part of the shattered glass hit Judy in the face and eye. She is now hospitalised and will
e 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.
LAW6000_Assessment 2_Case Study Page 5 of 9
REQUIRED:
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.
XXXXXXXXXXmarks)
Question XXXXXXXXXXmarks)
Sarah recently sold Prakash 1000 hectares of what was ve
ally 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.
REQUIRED
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.
(20 marks)
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Learning Ru
ic: Assessment 2
Assessment Criteria
Fail
(Unacceptable)
0-49%
Pass
(Functional)
50-64%
Credit
(Proficient)
65-74%
Distinction
(Advanced)
75 -84%
High Distinction
(Exceptional)
85-100%
Evaluation of
information selected to
support the case study
Percentage or marks for
this criterion
30%
Limited understanding of
key concepts required to
support the case study.
Confuses logic and
emotion. Information
taken from reliable
sources but without a
coherent analysis or
synthesis.
Viewpoints of experts are
taken as fact with little
questioning.
Resembles a recall or
summary of key ideas.
Often conflates/confuses
assertion of personal
opinion with information
substantiated by evidence
from the research/course
materials.
Analysis and evaluation do
not reflect expert
judgement, intellectual
independence, rigor and
adaptability.
Supports personal
opinion and information
substantiated by
evidence from the
esearch/course
materials.
Demonstrates a capacity
to explain and apply
elevant concepts.
Identify logical flaws.
Questions viewpoints of
experts.
Discriminates between
assertion of personal opinion
and information
substantiated by robust
evidence from the
esearch/course materials
and extended reading.
Well demonstrated capacity
to explain and apply relevant
concepts.
Viewpoint of experts are
subject to questioning.
Systematically