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Questions:
1.
Mark is a Director of a cleaning company, Shine On Pty Ltd. His brother, Jordan, owns Clean Up Pty Ltd, a company that manufactures chemical products used for cleaning. Jordans company is struggling financially due to the pandemic and is not able to sell its products. Jordan offers $50,000.00 to Mark if Shine On Pty Ltd enters an agreement with Clean Up Pty Ltd.
The contract with the current supplier will end soon and Shine On Pty Ltd is considering whether they should continue the contract or find a new supplier. Knowing this opportunity, Mark enters a new supply agreement with Clean Up Pty Ltd although he is aware that the chemical products manufactured by Clean Up Pty Ltd have lower quality than the products currently used by Shine On Pty Ltd. Chloe, another director of Shine On Pty Ltd discovers the situation and threatens to take legal action against Mark.
Use the IRAC method to advise Mark whether he has breached his directors duty to avoid conflict of interest.
2.
Bella loves to bake and has recently received her Certificate in Bakery. She takes a loan from a bank and opens Bellicious Bakery. She also enters contracts with many suppliers and hires her friend from college, Ramona to help her as a baker.
The business grows rapidly and has many loyal customers. Ramona asks for Bella to share with her the profit as all the success will not happen without her contribution to the bakery and therefore she is now a partner in the business. Bella explains to Ramona that she only hired her as a baker and she will receive a salary. However, Bella is not sure if her explanation is correct as she does a good understanding of partnership.
Use the IRAC method to advise Bella whether the bakery is a partnership and if Ramona is a partner.
3.
Jean wants to buy a karaoke machine from an online seller but she is not sure of the quality. The online store offers her a try before you buy which will give her one week to try the machine before she decides on the purchase. Payments will be processed after her confirmation of the purchase or after the one week expires.
Jean accepts the offer and receives the product and is not happy with the quality of the sound. Jean has two jobs and is always busy that only able to inform the online store and return the product after two weeks. The online store refuses the returned machine advising that the one week time has passed which means that Jean has approved the purchase and therefore she is now the owner of the karaoke machine.
Use the IRAC method to advise Jean whether or not she already owns the karaoke machine and if she can return it to the online seller based on the Sale of Goods Act
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