Week 1 Question (10 marks)
Differentiate between a sole trader, company and a partnership. Support your answer to this by
citing the advantages and disadvantages of using each business structure. (10 marks)
Week 2 Question (10 marks)
Teresa and Alison operate a partnership making and selling jam. A reduced supply of fruit has resulted
in a fall in sales. Alison purchased a large supply of glass jars that must be paid for within 30 days. The
funds are not available to meet this expense. Teresa was not consulted when Alison bought the jars
and insists that Alison pay for them out of her personal savings.
What do you think will be the legal consequences here resulting from Teresa’s decision not to consult
Alison? (10 marks)
Week 3 Question (10 marks)
Provide a case summary of the case “Salomon v Salomon & Co Ltd [1897]” using the IRAC method.
What was the significance of this case law in relation to the legal concept of separate legal entity?
(10 marks)
Week 4 Question (10 marks)
When can the corporate veil be lifted under the Corporations Act to make directors liable for
corporate debts? (10 marks)
Week 5 Question (10 marks)
Provide a case summary of the case “Lee v Lee’s Air Farming Ltd [1960] UKPC 33” using the IRAC
method. What legal principle came out of this case in relation to why the court lifted the corporate
veil in this case? (10 marks)