BUSINESS LAW 1018
2016 (3)
ASSIGNMENT 1
BUSINESS ENTITIES AND NEGLIGENCE
CASE STUDY (10%) – No more than 400 words
THE FACTS
Read the following facts and answer the 3 questions.
Joe has finished training as an auto mechanic. He has saved his money and opened his own business. He does not want to buy into any mechanic franchise, but wants a business model best suited for him to do his own thing. His former boss wants to go into partnership with him, but Joe is undecided. One day he left one of his screwdrivers in the walkway of his business. Mary, a customer, came into Joe’s business and slipped on the tool and broke her arm in the fall. Joe immediately called an ambulance for her and she was taken to hospital.
Question 1
Discuss the best business model for Joe’s auto mechanic shop.
In deciding which business form is best for Joe, you will need to consider the following options: sole trader, partnership, or proprietary limited company, including the advantages and disadvantages of each.
Question 2
If Joe decides to operate the business under a name other than his own, briefly describe the appropriate steps that would need to be taken.
[2 marks]
Question 3
Mary sued Joe for negligence. Describe what she would have to prove for Joe to have been negligent. From the facts given, can she prove this.
