Reference no: EM133619378

Law for Commerce

Learning Outcome 1: Apply key principles of law for commerce to recognise and evaluate legal issues

Learning Outcome 2: Interpret and analyse a range of legal issues and the bearing they have in commerce

Learning Outcome 3: Use appropriate digital technologies to search, retrieve and apply relevant information to law for commerce

Learning Outcome 4: Identify critical legal issues in the international context that have a bearing on business ethics, standards and practice in Australia

 

Purpose
This assessment provides you with another opportunity to formalise written answers to legal problems (hypothetical fact scenarios - HFS), albeit at a more advanced level, with an expectation of legal research and consideration of laws/ethics from an international perspective (Scenario 3). This assessment is the second step in acquiring and demonstrating the skill of legal argumentation, which is set as a discipline-specific skill with which to enhance your writing abilities, as well as to provide a deeper understanding of the workings of law for commerce (ULOs 1, 2, 3 and 4/ GLOs 1, 3, 4 and 8).

Tackling hypothetical real life legal problems will enable you to understand how laws are applied and from where certain rules of law are derived, and this will allow you manage risk as a business manager/ executive and also understand that risk from the perspective of a client or consumer.

Context/Scenario
For this task (like all your HFS questions), assume you are a lawyer, giving advice to a potential client, about their legal rights and obligations in relation to their situation (you should tell the client about all the possibilities, and then advise what is more likely to occur if the case goes to court). Scenario 3 involves principles from the UN Global Compact, which are not binding, however you are expected to address how those legal/ethical principles might influence a decision maker from the perspective of the parties in that case.

Specific Requirements
Your task is to provide interpretation and analysis of the legal issues posed in the case studies (HFS), drawing on the legal principles covered in Topics 3, 4 and 5. These scenarios (except for Scenario 3) are based broadly on your course materials from these topics; however, further research (beyond the textbook) for the last two scenarios will most definitely enhance the quality of your submission and help you to score a high grade for this assessment. You must correctly reference (Harvard referencing) for this assessment.

The overall word count for this assessment is 1500 words (including in-text citations, headings, sub-headings - but not including the references in the reference list). There is NO leeway for this assessment. In other words, please ensure the maximum word count is for the non-reference list material is 1500.

Scenario 1
In March 2020, Connor was hired as Director of Operations by Ace Renewables, a startup company with 25 employees working out of a warehouse. Ace was largely funded by its three co-founders' personal investments as it researched and prototyped floating offshore wind technologies. Connor's contract specified an annual salary of $200,000 plus performance bonuses tied to technology milestones.

By November 2021, after years of work, Ace's engineering team had achieved a breakthrough allowing their prototype turbine to generate 20% more power, exceeding projections and qualifying Connor for a sizeable bonus. However, this exciting development coincided with the unscheduled COVID-19 pandemic cooling investor appetite for green startups.

Additionally, Ace was on the cusp of seeking its first external funding, but revenues had slowed with quarterly bills mounting. The CEO panicked and urgently scheduled a meeting with potential lead investors. At the meeting, the investor offered terms: a 15% cut to non-critical staff costs until signing, threatening to pull out otherwise.

Back at the warehouse office, a distraught CEO called Connor in, Ace's first hire and Director crucial to operations. Explaining the investor's ultimatum, the CEO reluctantly issued his own, threatening to terminate Connor if he refused a temporary 15% pay cut. Faced with losing his job and benefits during the uncertain pandemic, Connor reluctantly agreed in writing, to a 15% cut to his salary.

The funds came within 6 weeks as projected but amid rapid growth, the CEO never restored Connor's full compensation. Feeling taken advantage of, Connor sued Ace Renewables for breach of contract seeking unpaid salary.

Advise Connor whether he is entitled to unpaid salary.
Please use case law to support your answer. Please do not cite workplace law or legislation.
Note: No research is required for this scenario. Please rely on the course materials (textbook) to answer this question.

Scenario 2
In February 2021, Melanie was hired by Atlas Delivery Services as a courier, with her contract specifying a monthly salary of $4,000. Atlas is a small-to-medium sized courier company operating in Melbourne, employing around 20 couriers. Her duties involved making deliveries throughout the city using a company van. Typically, her work week was 40-45 hours and business was steady.

In April, two of Atlas's most experienced couriers resigned following a pay dispute with John, the operations manager. This left major gaps in the delivery roster that were difficult to immediately fill. Facing the risk of lost clients if deliveries were missed or delayed, John convened an emergency meeting with the remaining couriers.

He explained the resignations had dealt a serious blow and they needed volunteers to step up. Melanie had recently separated from her partner and was relying on the job to financially support herself and her young daughter. She felt pressure to accept extra work.

John announced he would distribute the resigning couriers' wages among those who agreed to take on additional routes and longer hours to cover the demand. Melanie and four others accepted the arrangement.

Over the following two months, Melanie regularly worked 60-70 hour weeks, including nights and weekends, as the weather grew colder and wetter. Records show the additional routes and hours Melanie took on generated thousands in additional revenue for Atlas during this busy period.

However, when she requested payment of her additional wages, John refused, claiming she was only owed her standard monthly salary under the original contract terms. Melanie has now sued Atlas for breach of contract.

Can Melanie enforce the agreement for additional wages against Atlas Delivery Services? Why/Why not?

Please cite case law in your advice. Please do not cite workplace law or legislation. Only consider contract principles from the prescribed Topics.

Suggested word count: 600-700 words.
Note: No research is required for this scenario. Please rely on the course materials (textbook) to answer this question.

Scenario 3

Sarah is the general manager of Sustainable Supplies Ltd., an industrial equipment manufacturer based in Melbourne. The company relies on several international suppliers for key components. Sustainable Supplies is a signatory to the UN Global Compact and publishes an annual progress report on implementing its principles.

During a video call with one supplier, Kinetic Components, based in Ho Chi Minh City, Vietnam, Sarah noticed workers behind the manager were not wearing any protective gear or masks. She inquired about workplace health and safety. The manager brushed off her concerns, saying it was a minor issue they planned to address soon. However, Sarah remembered press reports about accidents at other local factories from lax safety practices.

Press reports detailed lax oversight in some export processing zones in Vietnam, where factories cut corners to meet tight production quotas. Kinetic is located in a zone that employs over 10,000 young workers manufacturing for global brands. Accident rates in the zone are double national averages due to inexperienced children working long hours without protections.

Sarah knew Kinetic's cheap labour costs were integral to keeping its prices competitive and winning contracts. However, she worried about complicity if turning a blind eye to risks of serious harm to workers or the company's sustainability commitments.

Imagine that you work for Global Compact Network Australia, and are presenting to small to medium size businesses (SMCs) in Melbourne. Drawing on your experience and understanding of the Ten Principles of the UN Global Compact, how would you advise Sarah about her situation? More specifically, which Principles would you advise Sarah pay specific attention to, when Sarah asks you how she should approach the situation with Kinetic's and their factory.

Please cite specific aspects of the principles in your advice.