Melanieand Carol conduct a beauty salon business. Melanie is responsible forperforming the beauty treatments and Carol is solely responsible for providingand packaging the beauty products for sale....

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Melanie and Carol conduct a beauty salon business. Melanie is responsible for performing the beauty treatments and Carol is solely responsible for providing and packaging the beauty products for sale. Polly, a friend of both Melanie and Carol's, agreed to lend them $10,000 to get the business started. Profits are to be shared between Melanie and Carol equally.


Claire purchased a beauty lotion from the business recently. She complains that the lotion she bought has caused her severe facial burns, leaving her unable to work for several weeks. Tests have revealed that the lotion contains chemicals likely to cause harm if applied directly to human skin. Unfortunately, when Carol was preparing the lotion for bottling she allowed a quantity of corrosive industrial cleanser to be mixed into the lotion. Claire is seeking $150,000 damages to cover medical expenses, lost wages and considerable pain and suffering. Carol has no money and Claire wants to claim against Melanie and Polly. Melanie and Polly claim that the negligence and breach of contract is solely the responsibility of Carol.


Discuss whether Claire has an action against either Melanie or Polly.


It is recommended that you use the 3rd edition of theAustralian Guide to Legal Citation, a copy of which can be downloaded from the library site .



Answered Same DayDec 20, 2021

Answer To: Melanieand Carol conduct a beauty salon business. Melanie is responsible forperforming the beauty...

David answered on Dec 20 2021
103 Votes
Issue:
The issue is whether Claire has an action against and can claim for damages against Melanie
or again
st Polly? Is negligence and breach of contract solely the responsibility of Carol?
Law:
As per Section Section 5 of Partnership Act 1891, partnership is the relation existing between
persons who carry on a business in common with the purpose of earning profits. It includes
an incorporated limited partnership but excludes an incorporated company under the
Corporations Act.
As per Section 6 of Partnership Act 1891, several rules must be considered to determine the
existence of partnership. It is the sharing of profits and losses made by the use of property
and not mere joint ownership or joint tenancy of property which creates a partnership. Also,
the mere sharing of gross returns does not create a partnership, but a partnership is
determined by whether or not the persons who share such returns have a joint or common
interest in the property from which the returns are made. Furthermore, where a person makes
any loans to any person or persons engaged in a business...
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