ASSIGNMENT Assessment type: Written assignment Task Description: This assessment requires students to prepare a report that analyses a hypothetical business case using at least one key legal concept...

ASSIGNMENT

Assessment type:
Written assignment

Task Description:
This assessment requires students to prepare a report that analyses a hypothetical business case using at least one key legal concept covered in a weekly topic and applies the legal concept in determining:

1) whether an organisation and/or its controllers may have breached any legal responsibility;

2) what the possible legal consequences may be to the organisation and/or its controllers for such a breach (if any); and

3) the steps that the organisation and/or its controllers could have taken to address any legal responsibility.

The report must comprise 2,000-2,500 words.

Assessment Due Date:
Week 8 Monday (13 Jan. 2020) 11:00 pm AEST

Return Date to Students:
Week 10 Monday (27 Jan. 2020)

Weighting:
40%

Assessment Criteria:
This assessment will be assessed according to the following criteria:

- quality of the analysis;

- use and application of key legal concepts;

- quality of the discussion of the steps that the organisation and/or its controllers could have taken to address any legal responsibility; and

- quality of the language used and observance of proper structure, format, and referencing.

A detailed marking rubric is below.

As Masters students you are required to engage in research as per the Australia Quality Framework (AQF) guidelines.

Two specific requirements need to be considered:

1. Students need to demonstrate “a body of knowledge that includes the understanding of recent developments in a discipline and/or area of professional practice", and

2. Students must demonstrate "knowledge of research principles and methods applicable to a field of work and/or learning”.

Each Masters unit has a number of required weekly readings in terms of academic texts, journals and business publications that represent the appropriate body of knowledge and recent developments referred to by the AQF. In order to demonstrate the ability to engage in appropriate research, students should read and utilise these texts and journals and publications. As Masters students you are expected to research beyond this minimum standard through additional texts, journals and studies to demonstrate an ability to engage in independent research.

Your attention is drawn to the University’s policy on plagiarism. The work of others, if included in your assignment, must properly be acknowledged. A full list of references must also be submitted as part of the assessment.

Referencing Style:
Australian Guide to Legal Citation (AGLC), 4^th
edition.

Submission:
Online

Submission Instructions:
The report must be saved in MS Word (not as a PDF) in the following format: LastName_FirstName.docx.

Learning Outcomes Assessed:

· Research and advise on the principles of partnerships, trusts and company law

· Advise on the practical and legal features of the various types of corporate and non-corporate business structures, including advice on the risks and problems associated with particular structures

· Advise on and resolve problems and disputes arising out of partnerships, trusts and corporations

· Advise on proper practices of corporate governance, finance, reporting and record-keeping.

Graduate Attributes:

· Knowledge

· Communication

· Cognitive, technical and creative skills

· Research

· Self-management

CASE STUDY

Mr Sam Tipping (Sam) and Mrs Rosa Tipping (Rosa) bought a commercial building in 2014 in the name of their company, SRT Pty Ltd (SRT). They are the sole directors and shareholders in SRT. The commercial building leases the building to the Tipping Family Trust (Tipping Trust). Sam and Rosa are the trustees and beneficiaries of the Tipping Trust. The Tipping Trust runs a locksmith business (LB).

Charlotte and Mia are business partners and run a wholesale business called ‘Charlotte and Mia’ (C&M). Charlotte and Mia rent a commercial space to store and supply locks, door hardware, and other locksmith parts and tools.

In 2014, Sam and Rosa required funding for their business and decided to advertise the sale of 1,000 shares in SRT on LB’s website.

In 2015, Sam and Rosa made $50,000.00 from the sale of the shares. They reinvested $40,000.00 in LB and spent $10,000.00 on buying a second-hand campervan. This money was not accounted for as a dividend or part of a salary. Sam and Rosa intend to tour Australia.

In 2016, C&M becomes LB’s new wholesale supplier. Charlotte is the sales representative for C&M. Unknown to Mia, Charlotte sends LB amended tax invoices with an added 10% surcharge for priority service. The tax invoices are paid into Charlotte’s personal bank account and then 90% of the payment is transferred to the C&M’s bank account.

In 2017, Sam and Rosa employ Phillipa, their niece, to manage SRT, the Tipping Trust and LB. Phillipa has five years-experience in the hospitality industry as a bartender and wanted a new challenge. Sam and Rosa trust Phillipa because she is family. Sam and Rosa tour Australia.

In 2018, SRT is in financial difficulty. Phillipa purchased more stock than necessary and sales dramatically dropped. To combat the financial problem, Phillipa decides to spend a large sum of money on marketing to attract new customers. However, SRT remains in financial difficulty.

In 2019, Sam and Rosa return from their tour and have run out of money. At Sam and Rosa’s request, Phillipa distributes trust money in the Tipping Trust to Sam, Rosa, and herself. However, the company is unable to be saved. The company is liquidated, leaving outstanding creditors.

Focus questions (and headings)

1. Describe the
legal duties
for the parties?

2. Discuss any
breaches
of the parties’ legal duties?

3. Explain the
legal consequences
to the parties for a breach of their duties?

Marking Rubric