Reference no: EM132376913

LAW8500 Australian Commercial and Corporations Law

Assignment

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, 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.

Please remember not to write more than 3000 words in total (1500 words for each question), and make sure to use the template for assignment 2 provided on StudyDesk.

1. Liability of Auditors
The course includes the study of tort law- an important area of law for business. In order to establish tort liability, the plaintiff (the person who files a case against another) is required 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 is an accountant who works for FirstRate Accounting. He prepares a financial statement for Excel Group Company Ltd. The financial statement was also submitted to First National Bank Ltd to obtain a loan for Excel Group Company Ltd in order to expand their business overseas. Dave makes negligent omissions in the financial statement that result in a loss to First National Bank Ltd that was not able to claim their unpaid loan.

Assessment tasks
Can First National Bank Ltd successfully sue Dave? On what basis it can be successful in taking legal action against FirstRate Accounting? Will your answer be any different if Dave has knowledge that the financial statement would be submitted also to First National Bank Ltd to obtain a loan?

Please answer the question based on tort law and not contract law.

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 marks)

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 partners in Crystal Motor Pty Ltd engaged in the business of buying and selling used card. It was agreed between the partners that each is authorized to make business deals on behalf of Crystal Motor Pty Ltd not exceeding $ 20,000. Sam

and without any authorisation from John bought a sport car from the Elite Car Sale Company Ltd for a total amount of $ 40,000. The seller, Elite Car Sale Ltd contacted Crystal Motor Company Pty Ltd to make the payment, but it refused to pay because it was outside the $ 40000 limit authorisation that was agreed upon by the partners.

Assessment tasks

Is Crystal Motor Company Pty Ltd liable for paying the debt? Are there any defenses that can be made by Crystal Motor Company Pty Ltd for not paying its debt?

The answer must be based on agency law and not the statutory assumptions available in sections 128 and 129 of the Corporations Act 2001 (Cth).

You should discuss relevant case law related to agency and you can briefly refer to relevant sections of the Partnership Act 1891 (QLD) or any similar legislations in other states if you wish.

Your answer should 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).

Attachment:- Australian Commercial and Corporations Law.rar