2023.3.Enterprise Law.Assessment Task 2.Question-2
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ASSESSMENT TASK 2: Assignment
UNIT NAME, UNIT CODE AND TERM Unit Name: Enterprise Law Unit No.: 700254 Year/Term: 2023, Term 3 DETAILS OF ASSESSMENT TASK Weighting: 30% No. Of Pages:
4 Maximum Marks: 60 Due Date: 11:59 pm Friday, 22 December 2023 (Week 8) Outcomes Assessed: 2, 4 INSTRUCTIONS TO STUDENTS •
The task must be submitted electronically ONLY, through Assessment 2 (link on Moodle / Axis), by 11:59 pm Friday, 22 December 2023. Failure to do so will attract a penalty of 10% per day. •
The questions in this assignment will test your ability to identify and recall key legal concepts, identify legal issues in each set of facts and, to use clear communication skills. •
Students should refer to the learning Guide on Moodle (Axis website) for the marking criteria applicable to this task. •
The word limit is 1,800 words (excluding referencing). •
An acceptable level of referencing to relevant business law texts and articles, business sources, and suitable online resources (e.g., government sites) is required to show us how you support your answers. You may cite legal materials such as cases and legislation and this may improve your mark. Referencing should be done accurately, but research beyond the materials available within this course is not a strict requirement to reach a pass standard in this assignment. •
No need to include a cover sheet.
700254 Enterprise Law – 2023, Term 3 Page 2 of 4
Assessment Task 2: Assignment Scenario for Questions 1 and 2 Django Pooch (‘Django’), Terry Mar (‘Terry’), and Willow Swadling (‘Willow’) are three friends from university. On 1 November 2023 they meet and agree to start a business. After extensive market research they write up a business plan for a cafe which they name “
The
Naked Cat
”. They immediately go online and register this business name in their names. They discuss and make note of the assets they each have: •
Django only has a small van worth $10,000. •
Willow has the following commercial grade assets: A refrigerator, freezer, coffee machine, coffee grinder, and display cabinets for cakes etc. •
Terry has recently inherited $50,000.00 which she has in her savings account. Django, Terry, and Willow agree on the following: 1.
Willow will register a company named Naked Cat Pty Ltd
with Django, Terry, and Willow being Directors and each holding 1 share each. 2.
Django, Terry, and Willow enter a lease for a small shop space from which to operate the cafe. 3.
Django will provide the van to the business which they also agree has a value of $10,000. 4.
Willow will provide the refrigerator, freezer, coffee machine, coffee grinder, and display cabinets to the business which they agree has a value of $10,000. 5.
Terry will provide $10,000 to the business. 6.
Profits are to be shared equally. 7.
The business will run 6 days per week. Each day the café is open, 2 of the 3 will be at the business giving the other person time off. The schedule is as follows: Roster Mon Tue Wed Thu Fri Sat Sun Working in the café Django Terry Willow Django Terry Willow Terry Willow Django Terry Willow Django Closed Open the café at 6am Django Willow Terry Terry Django Willow Close the café at 6pm Terry Django Willow Willow Terry Django Day off Willow Terry Django Django Willow Terry 8.
The person who opens the café will arrive at 5am and collect coffee beans, milk, and food for sale. 9.
The person closing the café is responsible for the cleaning and removal of rubbish and leaving a note for the person who opens the next morning. 10.
As Django closes the café on a Saturday and opens it on a Monday, he will take the van home to wash it. On 24 November 2023, they receive the keys to the premises, and they fit out the shop.
700254 Enterprise Law – 2023, Term 3 Page 3 of 4
Assessment Task 2: Assignment On 27 November they enter into a contract with Isla Beans Pty Ltd (“
Isla Beans
”) with the following terms: •
20 kg beans delivered to the premises on Monday, Wednesday, and Friday each week. •
The cost is $300 per 20 kg bag including delivery. •
30 days’ notice in writing, including email, is required to cancel the order. On Friday, 1 Dec 2023 at 6am, the café is opened for business selling coffees and treats and proves to be very popular. On 19 January, Django orders a new coffee machine, the z900, from Speedy Café Supplies
for $8000 for the
Naked Cat
. The machine arrives the next day and he takes the old machine home that evening. On Friday, 1 February, Django registers a business name for himself named “
Cat’s Coffee & Cream
” and registers it through an app for deliveries between Saturday 6pm and Sunday 11pm. He uses the coffee machine that was replaced at his home for making the orders and uses the van for deliveries. Willow and Terry are unaware of this development. On Saturday 2 Feb, after closing the
Naked Cat
at 6pm, Django starts taking orders for his own business. By the end of February, the
Naked Cat
extremely popular and they are finding it hard to keep up with demand. They employ Moose to assist with serving of food and to take care of any deliveries. On 1 March, without discussing with the others, Django, who is not satisfied with the coffee beans, signs a contract with Possum’s Pouch
who provide specially roasted coffee beans for $295 per $20kg bag. This contract allows them to order via text and the beans are delivered 6am the next morning. On 4 March, Django sends a text message to Isla Beans which says: On 4 March, they enter into a contract with Amanda’s Amazing Art
for a painting of a cat they want to display in their café. The painting is to be delivered by 15 March at 5pm at the latest. They send $5000 to Amanda. On 7 Mar, Moose is out delivering food when he has a car accident. Maria the driver of the van owned by “
Maria’s Muffins
” screams at Moose “I am going to sue you for all the damage to my van”. The damage amounts to $5000. On 15 March, the painting is collected from Amanda’s Amazing Art at 8am by a courier company Jaya’s Journeys
. Jaya, the driver stops to get a milkshake on the way. Whilst in the shop, Jaya’s Journeys
van is stolen and at 4pm the police contact her to inform her that her van has been found burnt out and the painting destroyed. Jaya contacts the
Naked Cat
and Terry answers the phone and is informed of the painting. At 5pm 15 March, Willow registers the
Naked Cat
as a Company. As of Friday 15 March, coffee beans had been delivered from Isla Beans
to the Naked Cat
on the following dates: Wed, 6 Mar, Fri, 8 Mar, Mon, 11 Mar, Wed, 13 Mar, and Fri, 15 Mar along with an invoice for $1,500 for the beans delivered on those dates.
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700254 Enterprise Law – 2023, Term 3 Page 4 of 4
Assessment Task 2: Assignment Answering Questions 1 and 2 On Monday, 18 March, Terry attends your office seeking legal advice. Take note of the following: •
When answering questions 1 and 2, you must use the IRAC method (Issue, Rules, Application, Conclusion). •
Answer Question 1 separately to Question 2
. That means each question has a main heading and subheadings for Issue, Rule, Application, and Conclusion. Question 1: Business Entities – 24 marks Discuss Terry’s rights and liabilities with regards to the structure of the business. Support your response with relevant case authorities. Remember
: What business entity exists and what are each parties’ obligations. Question 2: Contract Law – 26 marks Discuss the contractual rights and liabilities the Naked Cat
has with: a)
Isla Beans Pty Ltd
, and b)
Amanda’s Amazing Art
. Support your response with relevant case authorities. Students MUST use the IRAC method (Issue, Rules, Application, Conclusion) to answer. Question 3: Contracts short answer questions - 10 marks Support your answers with relevant case authorities. Do NOT
use the IRAC method to answer the following questions. Choose only
2 questions to answer from the following 3 questions (Do NOT
answer all 3): a)
What is ‘consideration’? When is consideration needed to be present in a contract? What rules apply for consideration? b)
What is the difference between representations and terms? When are terms implied into a contract, and what is their effect? c)
In the case Public Service Employees Credit Union Co-Operative Ltd v Campion
(1984) 56 ACTR 39, what did the court decide and why? Limit your answer to between 100 to 150 words for each question you choose to answer. End of Assignment