Reference no: EM132314451
Company and Commercial Law Assignment -
Learning Objectives Assessed - This assessment task is designed to test your achievement of assessing legal risks in the area of Business Organisation and some limited contractual risks as well as non- contractual risks and obligations.
Scenario - Make sure that you answer ALL questions.
Jane and Jia are two influential bloggers who are passionate about makeup.
They saw an opportunity to make some money by selling beauty products. They decided to create their own line of lipstick - Rouge - and take full advantage of the online world to market Rouge on social media. Jane and Jia used their own monies and a loan Jane obtained from her friend, Mahit, to place an order for a small batch of lipstick with a famous cosmetics manufacturer 'Neon Lipstick'. Mahit had no interest in makeup, but he was happy to help his friend, Jane, with her start-up business.
Jane and Jia planned to recoup the monies they spent from the profits and then pay the balance to Mahit.
1) Under what type of business structure is this business running? Furthermore look at everyone who might be involved in this business, i.e. Jane, Julia and Mahit and discuss their status in regards to the business.
Give reasons for your answer; in particular support your answer by citing relevant cases and statutes.
Clarissa, one of the customers who purchased Rouge, has developed an allergy. Her lips became severely swollen as a result of using the lipstick sold by Jane and Jia's business. Clarissa visited her dermatologist on the same day, and the dermatologist advised her, upon inspecting the label of the lipstick, that one of the ingredients was a prohibited chemical in Australia and no other makeup brand uses it.
2) Discuss who of the business partners are liable for the damages suffered by Clarissa? Please make sure that you only assess the legal risks under tort of negligence.
Also support your answer by citing relevant cases.
After this event and the bad publicity, it became apparent that the business venture did not go as planned because of low sales and Jane was unable to repay Mahit. When Mahit asked for his monies back, Jane told him 'we're all in this together; I don't have to pay you back'. Mahit disagrees and he is now asking for his money back. Everyone meets and discusses how to move forward with the business. In order to make a decision they have to undertake a risk analysis.
3) They discuss
- whether Mahit can ask for his money back;
- how they can make their responsibilities clearer; or
- whether they have to change their business structure.
Also support your answer by citing relevant cases.
IMPORTANT INSTRUCTIONS -
You will have to answer ALL questions. Be strategic with how many words you are writing for your answer to each of the questions. Look at the points available for those questions.
Make sure that you discuss any applicable legislative provisions and relevant case law if requested. If you need to look at particular state legislation, remember to use the one from Victoria.
Make sure to discuss all relevant elements of a legal risk.
Please do not question the facts of the scenario. There is also no need to discuss whether something can be proven or not. You have all the facts required to answer our questions.
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