Legal Questions

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.