LAW 8500 Australian Commercial and Corporations Law

Assignment 2

This assignment deals with research skills and comprises 30 % of total marks for this course. This assessment tests course objectives addressing:

• Knowledge of relevant law,
• Application of the law to factual business situations,
• Use of critical and analytical thinking skills, and
• Defend your analysis in professional or legal settings.

Please read the questions carefully as well as the marking rubric supplied separately.  Make sure you clearly understand the mark allocation for each question and the word limit.

Instruction to complete assessment tasks:

This assignment involves researching a problem, using critical thinking to reach a resolution after finding relevant information to address the question.

To research a problem, you must know where to find the law, and choose what is most relevant to your research challenge. Research is a skill that requires practice. You must think about the parameters of the problem you are researching. You do not have the time to address everything you may find on your research topic. You must do a literature search on the most relevant and important sources of information on your topic. Then you must have a research methodology, which is your mode of inquiry. This is the approach taken to research the problem and address the research question. This explains how you are analyzing data to address your research question. It must demonstrate that this method will answer the question identified.

You have two problem scenarios and you must identify the research question and do a review of the relevant literature on the topic. Then you must explain your research methodology. The research question is within the assessment task, but it needs restating in your answer. You must then succinctly discuss the relevant law. Because of word limitations, part of the assessment rubric involves your ability to state the relevant law succinctly. Blaise Pascal the philosopher mathematician once apologized to someone for writing ‘such a long letter since he did not have time to write a short one.’ In other words, it takes time to be able to develop brevity without losing content depth. Think about this.

The research methodology is how you address the question in terms of analyzing the relevant information and how you use it to answer the problem. To make it easier, I suggest for your research methodology at a minimum, (1) state you will find relevant case law precedents (primary source) and relevant data from academic texts (secondary sources) to address the question. Then, I suggest you identify key questions you consider relevant in determining the answer to the research question. This will form the core of your research methodology, but please feel free to add to this to build up your methodology if you think it relevant to do so.

Word count and form – maximum of 1500 words for each question. Format requires cover page with plagiarism declaration, and it is essay style.

Due Date 19^th October 2018

1. Auditors’ Liability (this part is worth 15 marks)

The course includes the study of tort law- an important area of law for business. In order to establish tort liability, it is required by the plaintiff to prove in a court of law three main elements, and these are as follows:

1) Duty of care;

2) Breach of duty of care; and

3) Loss, damage or injury

Scenario

Dave, an accountant, prepares a financial statement for Excel Group Company Ltd, a client, knowing that Excel Group Company Ltd will use the statement to obtain a loan from First National Bank. Dave makes negligent omissions in the statement that result in a loss to the bank.

Assessment tasks

Can the bank successfully sue Dave? On what basis it would be successful in taking the legal action to court? Please provide full explanation for your answer.

In addressing this question, please identify the research question, explain the relevant law succinctly relating to the research question, discuss your research methodology, and finally provide an answer to the question (word limit 1500 words).

2. Agency (this part is worth 15%)

A key issue in the law of agency is the authority of the agent. In order to bind the principle by the actions of the agent, the agent must have been acting within some level of authority. The authority of the agent comprises:

• Express actual authority
• Implied actual authority
• Ostensible authority

You have a small problem scenario, but this time dealing with agency. The same instructions apply, addressing the research question and methodology. You are simply adapting the requirements to address this new research problem.

Scenario

Sam and John are two partners in Crystal Motor Company Pty Ltd for selling and buying used cars. John and Sam both have an actual authority to make order on behalf of the company for an amount not exceeding $ 10000. Sam and without authorization of John bought a used car worth of $ 15000 from the Elite Car Sale Company Ltd. The seller, Elite Car Sale Company Ltd contacted Crystal Motor Company Pty Ltd to make the payment, but it later refused to pay because it was outside the $ 10000 limit.

Assessment tasks

Is  Crystal Motor Company Pty Ltd liable for paying the debt? Please explain fully your answer.

In addressing this question, please identify the research question, explain the relevant law succinctly relating to the research question, discuss your research methodology, and finally provide an answer to the question (word limit 1500 words).