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Law Case Study On 6 Cases Of Business And Legal Environment

Question

Task: There are SIX (6) Case Studies in this Task. You must attempt all Case Studies and answer all Questions.

CASE STUDY ONE:(Law of Torts - Negligence)

Gordon, was walking inside the Westfield Shopping Centre as it was a wet morning. He slipped on the tiled floor in the foyer of the Shopping Centre and sustained injury.

  1. Briefly provide advice to Gordon whether he can exercise legal actions against the shopping Centre for tort of negligence, and what sort of damages he would be entitled to?
  2. Briefly provide advice if there is any applicable defence available for the shopping Centre after being sued by Gordon.

CASE STUDY TWO: (Business Structures)
Warwick and Sunny want to set-up a college using money that they have and that they have borrowed from family and friends. They are not sure about the best business structure to run a college.

  1. Briefly recommend a business structure and provide advice to Warwick and Sunny on the advantages of the business structure that you have recommended.
  2. Briefly outline the registration process for the business structure that you have recommended to Warwick and Sunny.

CASE STUDY THREE: (Law of Contracts)
Mr. and Mrs. Garmin a middle-aged newlywed couple, booked their two week honeymoon package to Bali from “Tours with Us” in Melbourne, after reading their advertised travel brochure. The brochure had many promises but only a few were fulfilled during the couple’s trip. They were the only guests in the Hotel. The owner couldn’t speak English and the room provided to them was not the honeymoon suite as advertised. They were promised that breakfast would be included, but only coffee was provided for them during their stay. Mr. Garmin who was very distressed decided to sue “Tours with Us” for breach of contract.

  1. Briefly explain whether there is a contractual relationship between Mr. and Mrs. Garmin and “Tours with Us”. If you have identified that contract is created amongst these parties, then advice whether that contract was a valid contract.
  2. Briefly explain what sort of remedies are available for Mr and Mrs. Garmin for breach of contract by “Tours with Us”?

CASE STUDY FOUR: (Consumer Law)
The new Telephone Answering Machine that Joanne’s mother gave her as a birthday present failed to work. When Joanne took the machine back to the store with her mother’s receipt, the customer service representative told her, “that this appliance was bought at a sale and our policy clearly states that we do not refund on sale items. But we will give you a credit voucher for the sale price. Unfortunately, the machine is now on sale at the regular price which is $25 more than your mother paid”.

  1. Briefly identify and provide advice to Joanne of her rights under the Australian Consumer Law.
  2. Briefly explain the consequences for the Customer Service Representative if Joanne proves that there was a breach of her consumer law guarantees.

Suggested Solutions:

CASE STUDY FIVE: (Employment Law)
Until last week, Warwick was working for“ Professional Posts Pty Ltd” as independent contractor. His contract expired last week and but he is still continuing to work for the company without renewing the contract. Despite the fact that he bought and maintained his own courier vans, he had to work set hours, drive a set route and wear the Professional Post’s uniform with the company logo. He had to accept the work that was allocated to him and deliver the packages according to the company guidelines. He was under strict supervision and was receiving direct orders every day. One day on his way to a delivery he injured himself.

  1. Briefly explain whether Warwick can be classified as an employee of Professional Posts Pty Ltd
  2. Briefly explain the main factors that courts are likely to take into account in determining whether a worker is an employee or independent contractor

CASE STUDY SIX: (Workplace Health and Safety)
Fred has developed a lung infection that appears to have been caused by the fine particles of plastic that escape from the cutting machine he operates at “Ruthless Engineering”. Fred’s boss doesn’t believe him and refuses to advise the workers compensation insurer or the relevant regulatory body. He warns Fred that if he speaks out about his infection, he will be dismissed.

  1. Briefly explain the regulations that Ruthless engineering should follow to comply in the state in which you live.
  2. Advice “Ruthless Engineering” on how they can stop this happening in the future and avoid potential hazards in their business operation.

Answer

Case Study – 1 (Torts Law) 
As per the situation discussed in the law case study, a few facts and facets are unclear which requires a prior assumption for exploring the validity of damages that may be enjoyed by Gordon. As stated in the case Gordon slipped on the floor that was titled in the lobby of the Westfield Shopping Centre and incurred injury. This can be affirmed as an act of negligence on the part of the Shopping Centre as the floor was wet and needed to be dried, but was neglected, which caused an injury to Gordon. Thereby, in such case the Westfield Shopping Centre may be held liable for an act of negligence as per Section 8 (1) of the Law of Negligence and Limitation of Liability Act, 2008. The said may be reasoned as the factual evidence of the case perfectly culminates with the provisions provided in section 8 of the said act (Foley, & Christensen, 2016). The damages that may be claimed by Gordon whilst filing a suit for the act of negligence, would be of compensatory genre among the prime three types, wherein, he may claim in the prayer section of the petition the amount that shall be the appropriate evaluated reflection of the injury incurred (Annetts v Australian station Pty Ltd, 2002).

This has been assumed that the floor of the concerned Shopping Mall was wet and that there are no other acumens for which Gordon slipped.

As per the given law case study, Gordon observed an injury by slipping as the floor of the lobby of Westfield Shopping Centre was wet which has previously been affirmed as an act of negligence as the facts of the incident meets the criteria provided under Section 8 of the Act (Bell, & Jocic, 2017). However, acknowledging the case given in details, this may be confirmed that the defense of the said case, when sued shall be open to an option of taking a defensive plea as per Section 14, Division 1, Part 2 of the Law of Negligence and Limitation of Liability Act, 2008 (Legislation.gov.au. 2019). Within the mentioned Section, the Australian legislation states the ambit of Voluntary assumption of risk (volenti non fit injuria). This, in the case herein, would be such that Gordon entered the lobby of the Shopping Centre and was very much aware that that same had tiles that are slippery and thereby needed to be more careful. Further, the law case study also noted that the day on which Gordon visited the concerned shopping center was a rainy day and that he himself was wet therefore, which may be indicated as a reason for his slipping. Therefore, Gordon can be charged and countered with the said defense by Westfield Shopping Centre.

Case Study – 2 (Business Structures)
1.Acknowledging the provided law case study, as Warwick and Sunny aims to set up a college with the capital, which was prior borrowed from their friends and family. Keeping the uncertainty in the specific arena that the two individuals are aiming to do business in, this may be inevitably advised that they can opt for a Limited Liability Company and also initially start with the tall structured organization wherein the information would flow in a top-down form (Kenney, La Cava, & Rodgers, 2016). The advantages of the Limited Liability Company (LLC) may be summarized as follows:

  • LLC are the most flexible business structure among the other three prime genres.
  • By opting for the LLC business structure, Warwick and Sunny would be able to enjoy the advantages of all three types of business structures (Elena, 2019).
  • Another advantage that may be affirmed is that the LLC ensures a liability protection with a taxation structure that is much less, unlike in Corporations.
  • The most evident primacy of the LLC is that, in LLC owner(s) are not held responsible for the business’s debts, that is, personal liability is zero.

The procedure of registering a Limited Liability Company (LLC), as per the regulations stated in Corporations Act, 2001 and the regulatory authority namely, Australian Securities and Investments Commission (ASIC), can be summed up as:

  • The first step would be to acquire an Australian Business Number (ABN) which within the Australian provinces can be obtained free of cost.
  • The law case study analyzes that the immediate next step shall be to register the name of the business and maintain its up-to-date form. The cost of registering a desired business name provided the concerned business would be aimed to be established in Australia only and also that the concerned does not falls under the ambits of the exception of the same. The annual cost of registering the name of a business in Australia is 36 AUD while that for three-year tenure is 85 AUD (gov.au. 2019).
  • Next, the present law case study also signifies that the Company needs to be registered under ASIC to acquire an Australian Company Number (ACN) which requires to be obtained before the registration of the ABN. The cost of such registration as prescribed is near about 495 AUD (Mancuso, 2019).

Case Study – 3 (Contracts Law)
1. As per the law case study, Mr. and Mrs. Garmin when opted for the honeymoon package comprehending an advertisement travel brochure of “Tours with Us” which can be affirmed to be a valid contract as per the provisions of Australian Contract law. The validity of the said contract is such that, there was an offer and acceptance of the contract which herein is opting for the service by acknowledging the brochure of the said travelling agency. Further, paying the requisite amount for the promised service Mr. and Mrs. Garmin established the presence of consideration. The other elements such as undue influence, coercion and unsoundness of mind in the purview of this contract may be affirmed to be invalid and therefore this may be inferred that the mentioned act shall be classified as an implied valid contract (Smith, 2018).

As per the Sale of Good Act, 1896 (Qld), it is noted in the present law case study that not just a sale of goods are governed by the same but also the sale of a service shall be governed by the same. However, claiming damages and opting for remedies would be more appropriate if claimed abiding the provisions of Contract Law of Australia. Within the Australia Contact Law and considering the ambit of the Common Law, the remedies that are available in case of breach of contract are many out of which the best suit of this case would be the remedy to claim damages in terms of compensation (refund) (Eldridge, 2019). Further, the remedy of claiming specific or part performance of the contract can also be opted in this case but would be rather a complex procedure and there depicts a possibility that the same would not be entertained by a Court of Law when claimed as a prayer.

Case Study – 4 (Consumer Law)
1. In the said law case study, Joanne was gifted a telephone answering machine by her mother which turned out to be a faulty one. In this circumstance, as per Consumer Law of Australia, Competition and Consumer Act 2010 and Sale of Goods Act, 1896, a consumer possesses the right to redress (Bruce, 2016). The right of redress is, in case of a product as provided by the trader does not meet the expectations and/or turns out to be a defective one, then the trader is liable to and the consumer is entitled to observe a replacement or refund (if needed). The replacement or refund would only be valid when the same falls under the period of warranty or guarantee. Herein, the customer service representative enlightened her that the products that are bought in sale are not subjected to refund. Now, reviewing the current instance illustrated in this law case study, this needs to be assumed with a store that the prime statements of the policy of sale was not present in a prominent and highlighted area so that may every consumer comprehend the same (Nottage, & Paterson, 2019). 

2. Suggested Solutions: Upon receiving unsatisfactory responses from the customer service end of the concerned store, Joanne may drop a complaint aiming for mediation of the dispute in the Consumer Protection agency that would have the legal jurisdiction of the store. During the hour of mediation, both the parties are heard by a common mediator, and if the CSR, that is, the store found guilty, then the not just the same would be obligated to provide a full refund of the product but also a warning would be given to the manager/owner of the store (Pearson, 2018). 

Case Study – 5 (Employment Law)
As per the Fair Work Act 2009 (Cth), independent contractors may not be considered as an employee of a specific organization as the prime differences that are deciphered are mostly legal differences. The genre and ambits of the work that are performed by an independent contractor are similar to that of an employee as in the case of Warwick, but a few legal ambits lays down the differences. Moreover, in the given law case study, the contract of Warwick with the Professional Posts Pty Ltd has expired which adds on for him not being an employee of the concerned company (https://www.acf.hhs.gov, 2019). 

After the accident of Warwick while delivering posts for Professional Posts Pty Ltd, it has been noted in the law case study that if the concerned approaches the Court of Law for the purpose of suing the said organization, the Court would consider a few attributes and confirm the employment status of Warwick. The first factual evidence that would be stress upon by the Court would be that, whether Professional Posts Pty Ltd withholds tax or not (Legislation.gov.au. 2019). In case of an employee, an organization withholds income tax while in case of an independent contractor concerned does not opt for the same. Further, a part of income is retained for social security and Medicare purposes in case of an employee whereas the agreed full wage is paid to the independent contractor. 

Case Study – 6 (Health and Safety at Workplace)
Under the Safe Work Australia Act, 2008, a regulatory and statutory body was developed to guarantee safety and health of the personnel within a workplace in the provinces of Australia (Legislation.gov.au, 2019). Further, as per the Occupational Health and Safety Act (OHS), 2004, as functional in Victorian provinces of Australia, the workplaces are governed by a certain regulation (Worksafe.vic.gov.au. 2019). According to the law case study, this is beyond doubt that the organization of ‘Ruthless Engineering’ violates and does not abide by the regulations of the OHS Act which resulted in a severe lung infection of an employee, Fred. A few regulatory guidelines explored in the law case study as per OHS Act that requires to be followed by the respective company are as follows:

  • As the concerned organization is a manufacturer of plastic the same should opt for safe operations of major facilities, herein, machineries.
  • Provide proper training exclusively for the high-risk works. 
  • Removing and adequately managing waste and emitted particles 
  • Maintaining a separate volunteer team 

2. The present law case study examines that the relations that are enumerated in the said Act covers the entire ambits in a holistic manner that shall potentially breach the health and safety of the employees within a workplace. In order to avoid such instances in the future that may seek the attention of the Safe Work Australia, the organization of Ruthless Engineering requires abiding by the regulatory guidelines set by the OHS Act and the same are:

  • Ruthless Engineering being a plastic manufacturer company requires being more concerned regarding the health issue that an employee is facing, as if the information of the same is leaked, the owner may be subjected to grave difficulties (vic.gov.au., 2019).
  • Repetitive training and presence of appointed volunteer in the training sessions.

References
Bell, M., & Jocic, W. (2017). Negligence Claims by Subsequent Building Owners: Did the Life of Bryan End Too Soon. Law case study Melb. UL Rev., 41, 1.

Bruce, A. (2016). Present & Future Jurisprudence of Consumer Protection and Food Law in Australia. In International Food Law and Policy (pp. 971-1000). Springer, Cham.

Business.gov.au. (2019). What are the set-up steps and costs?. Retrieved 12 October 2019, from https://www.business.gov.au/change-and-growth/restructuring/sole-trader-to-a-company/difference-between-a-sole-trader-and-a-company/what-are-the-set-up-steps-and-costs#targetText=Registering%20a%20company%20will%20cost,(ASIC)%20registers%20your%20company.&targetText=The%20company%20may%20be%20liable,type%20of%20account%20it%20opens.

Eldridge, J. A. (2019). Codifying Contract Law in Australia: Issues and Obstacles (Doctoral dissertation).

Elena, A. (2019). Limited liability companies (1998–2018): justice versus common law (No. ppaper-2019-978).

Foley, M., & Christensen, M. (2016). Negligence and the Duty of Care: A Case Study Discussion. Singapore Nursing Journal, 43(1).

https://www.acf.hhs.gov (2019) What’s the Difference Between an Independent Contractor and an Employee?. (2018). Office of Child Support Enforcement | ACF. Retrieved 12 October 2019, from https://www.acf.hhs.gov/css/resource/the-difference-between-an-independent-contractor-and-an-employee

Kenney, R., La Cava, G., & Rodgers, D. (2016). Law case study Why Do Companies Fail?. No. rdp, 9.

Legislation.gov.au (2019). Safe Work Australia Act 2008 . Legislation.gov.au. Retrieved 12 October 2019, from https://www.legislation.gov.au/Details/C2009A00084

Legislation.gov.au. (2019) Competition and Consumer Act 2010 . (2019). law case study Legislation.gov.au. Retrieved 12 October 2019, from https://www.legislation.gov.au/Details/C2019C00149

Legislation.gov.au. (2019). Law of Negligence and Limitation of Liability Act 2008 (NI). Retrieved 12 October 2019, from https://www.legislation.gov.au/Details/C2016Q00058/Html/Text#_Toc197935196

Mancuso, A. (2019). Your limited liability company: an operating manual. Nolo.

Nottage, L. R., & Paterson, J. M. (2019). Consumer Contracts and Product Safety Law in Southeast Asia: Partly Trading Up?. Consumer Contracts and Product Safety Law in Southeast Asia: Partly Trading Up.

Pearson, G. (2018). Enforcement and Effectiveness of Consumer Law in Australia. In Enforcement and Effectiveness of Consumer Law (pp. 75-97). Springer, Cham.

Smith, J. (2018). Contract law in Australia [Book Review]. Ethos: Official Publication of the Law Society of the Australian Capital Territory, (248), 60.

Worksafe.vic.gov.au. (2019). Occupational Health and Safety Act and Regulations - WorkSafe. Worksafe.vic.gov.au. law case study Retrieved 12 October 2019, from https://www.worksafe.vic.gov.au/occupational-health-and-safety-act-and-regulations

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