Chifley Business School Homework Help
Willy very much wants to rent a basement apartment in Weaver’s home. Willy threatens to tell all Weaver’s friends that he and Weaver had been arrested for illegally smoking marijuana unless Weaver rents the apartment to him for $100 per month. Weaver reluctantly agreed to rent the apartment to Willy for that amount.
Willy also wants to buy Weaver’s car. Weaver runs back the odometer on the car before Willy test drives it. Willy is impressed by the low mileage and agrees to buy the car. Later, Willy finds out that the odometer was run backwards from another friend to whom Weaver confided.
Weaver also offers to sell Willy a ring for Willy’s fiancée. Weaver tells Willy that the ring is a diamond and believes that to be true. Before the deal was made, a jeweler friend of Willy has checked the ring and informs him that the ring is original. Accordingly, he agreed to buy the ring. Willy later finds out from his fiancée that the ring is a fake.
Advise Weaver about the validity of the lease agreement with Willy.
Since Weaver’s consent was defective when he signed the contact as he has been threaten by Willy, the agreement is considered defective.
Weaver, can file a case against Willy to rescind the agreement on the ground of duress.
You need to define defective agreement, and duress and its main elements and its application on current case as well as the remedy available for the injured party.
Advise Willy about the validity of the sale agreement with Weaver.
The contract is defective as the consent of the buyer has been defected by the fraudulent misstatement of a material fact (odometer of the car).
Willy can rescind the contract on the ground of fraud and sue for compensation.
You need to define defective agreement, fraud, and its main elements and its application on current case as well as the remedy available for the injured party.
Advise Willy regarding the ring purchase?
The contract is valid as the consent of the buyer has not been relied on the seller’s statement.
Willy can not rescind the contract on the ground of fraud as the seller believed that the ring is original and Willy relied on a professional statement.
Willy may file a case against the jeweler for breaching his duty of care and claiming for compensation.
You need to define defective agreement, fraud, and its main elements and the application on current case and define the validity of the contact. Also, define the breach of duty of care and the right of Willy to file a case against the jeweler and the remedy available for him.
Group Discussion 2
Fatima and Peter run a catering business known as Sydney Creek Caterers. They agree that they will share management decisions and will share profits and losses equally. They have an agreement that neither of them will spend more than $500 on equipment for the business without the consent of the other. Fatima decides to purchase a new oven in the name of the business. She is convinced it will improve the quality of their food. The oven costs $2500. Peter starts a regular private arrangement, catering for the local art group on Saturday afternoons, which he doesn’t tell Fatima about. He makes a significant amount of profit from this venture.
The business enjoys great success and Fatima and Peter employ three fulltime employees to assist them, Daniel, Ivan and Steven . Daniel is employed as a chef but does not always turn up for work on time. Other employees find him difficult to work with. Three months after he commenced work Fatima and Peter fired him without notice.
Daniel is also a talented music composer. He plays an unreleased composition to Steven after work one evening. After hearing the composition, Steven goes home and composes a piece of music which sounds virtually identical to Daniel’s – especially the chorus. Steven then sends the music to a distributor, who releases it in Europe. Steven makes a lot of money from the sales of the CD.
Discuss the nature of Fatima and Peter ‘s business relationship. Would they need to register a business name?
The relationship among the parties is a partnership. Both parties are partners and the partnership agreement gives both parties equal rights to in management and profits. They are running a permanent business and dealing with people in common. In particular, the common law has developed three tests: Intention of the parties to make a partnership, agency relationship between the parties, and the sharing of profits and loss. As we have seen in our case, parties have intention to partners, they share profits and losses and each of them is an agent of the partnership.
The partners have to register their business name: Since the trade name (Langhorne Creek Caterers ) doesn’t contain the names of the partners, they have to register the name of the business pursuant to the applicable act.
b) Who will be liable for the cost of the oven?
Both partners are jointly responsible to pay the cost of the oven.
Although there is an agreement between the partners to refrain from buying anything exceeds $1000 without the consent of the other partner, both partners shall be jointly and collectively responsible to cover the cost of the oven as she bought it in the name of business and Fatima seems to outsiders as having apparent authority to act as an agent of the partnership, particularly, if the seller of the oven did not know about the restricted authority of the partners.
In particular, each partner is considered as agent of the business. Sc 6 of Partnership Act provides that a partner performs an act within the scope of their actual or apparent authority then the partner will be personally liable. The apparent authority is deemed valid when a partner, on behalf of the firm, purchasing goods of the kind usually employed in the firms’ business. (Barron, P 609)
c) What action can Fatima take against Peter in relation to his private catering arrangement?
Fatima can claim 50 % of the profit gained from the side work in accordance with Sc 29 and 30 of the Partnership Act or she has the right to dissolve the partnership by court order on the ground the persistence of her partner in breaching his duties.
Partnership is a personal business entity and partners are confident in each others’ competence, loyalty and compatibility. Also, partners have an obligation of fiduciary towards partnership. In particular, Sc 29 obliges partners to account to other partner for any profits made without the knowledge or agreement of the other partners. Also, Sc 30 states that partners can not be involved in any business of the same nature in competition with the partnership without the consent of their partners. (Barron, P 607)
d) Daniel is distressed at being fired and believes the business had not complied with relevant workplace relations laws. Advise him.
Daniel has no right to claim for any compensation for unlawful dismissal.
He has no right under workplace relations laws as he is not qualified to apply for unfair dismissal as he did not complete ƒa minimum employment period of at least 6 months (or 12 months if employed by a Small Business – 15 employees ). Furthermore, Daniel has been fired on behalf of the late appearance at the work place and there is a repeated breach of the rules and regulations of the terms and conditions related to the employment contract.
e) Daniel is furious that Steven has stolen his composition. He seeks your advice as to what action he might take against Steven .
In accordance with the Copyright Act 1968(Cwlth), Daniel can file a case against Stevene to claim:
The profits made from the unauthorized use of the Danial property.
Orders for delivery up the CDs to be destroyed.
In particular, original musical works are considered under the protection scope, and in Australia, copyright exists without the need for registration with any central copyright body. In accordance with Sc. 32, the work is considered made when the work is first reduced to writing or any other material form. (Barron Page 537) Other elements of protection are provided like Originality , which requires that Daniel is required to prove that the musical work is original, and that the work has been independently created without requiring any specific material form. He has to be also a Qualified person (Australian citizens and a foreign expat who legally lives in Australia). A person who has suffered a breach of copyright can seek common law remedies and remedies as specified under the Copyright Act.