Business law

6 June 2017

John was driving his car home from work in heavy traffic listening to his MP3 player through his large, ear covering Bose headphones, when he heard a distant siren. Almost simultaneously, he felt a large impact as his car was rammed on the left hand side by an ambulance driven by Mary. John was badly, but not fatally injured.

While he was recovering in hospital, John received a legal demand, accompanied by a statement of claim, requiring that he pay the costs incurred In repairing the ambulance . and that he compensate Its driver Mary for the shock she received. Attached to the statement that he received was a claim by Mary that she had switched on the siren seconds before she entered the intersection. She admitted that she had exceeded the speed limit, but claimed In the statement that it was necessary In all of the circumstances.

John suspects that as there was no reference In the claim to any emergency or even any details of patients etc put at risk by the accident, that Mary was in fact on her way to the nearby McDonalds family restaurant and had used the siren and its privileges to save time. Advise John as to what Mary will need to prove to establish a claim In negligence against him; and hat potential defences he has available to him.

Question 2: Nicole recently entered into a contract to sell her house in Canberra to Lakeview Developments Pty Ltd for $750,000. She was told by the receptionist in Lakeview’s offce that Lakeview Developments Is a development company which plans to demolish the house and build some apartments. The contract was signed by Nicole and was also signed for and on behalf of Lakeview Developments Pty Ltd by Anthony Blunt, who showed her his business card describing him as the ‘Developments Manager’ of Lakeview Developments.

Nicole has just been Informed by the company hat, as Developments Manager, Anthony did not have authority to enter Into the contract and the company will not complete the contract. The next best offer Nicole received for the house is $200,000. Advise Nicole on her legal options. Question 3: You are a business advisor and have a client who has been asked to Join with three prominent and experienced business people in a collaborative business relationship.

They have said to her that the most suitable business arrangement to share the risk of setting up a new business Is to form a partnership. She Is to contribute capital hile the others are to contribute their business skills. You are aware that 1 OF2 partnersnlps nave a numDer 0T advantages as a Duslness venlcle. It Is generally recognised however that there are some disadvantages. Advise the client of the advantages and disadvantages of adopting the partnership as an appropriate business form for her.

Question 4: John works as the Chief Clerk for the large and prestigious law firm Sue, Grabbit & Runne in Canberra City. As Chief Clerk with a staff of seven, he is accustomed to running the office. He has a range of duties that include arranging for and upervising staff, liaising with debtors and receiving payments and banking them on behalf of the firm, and also occasionally booking and paying for catering for office functions, such as the annual Christmas party and when special clients are being hosted by the Partners in the firm.

In late October he notices that Christmas is rapidly approaching and asks the Managing Partner what he should do. He is told to make inquiries, and to ensure that he gets the best possible deal (which he takes to mean the lowest reasonable price) by getting three quotations from quality stablishments that John has made bookings with before. The Managing Director then goes off on a sailing trip to the Antarctic and is uncontactable for three weeks.

This has happened before and there have never been any problems with John acting on behalf of the firm. John’s enquiries reveal that there is limited availability in the quality establishments favoured by the Managing Partner, and after getting the three required quotations. He finds that only the second cheapest (the middle of the three in price) has appropriate availability. Unfortunately, if he wants to secure the ooking, he will have to book immediately, with a non-refundable full pre-payment required.

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Business law. (2017, Jun 12). Retrieved July 3, 2020, from
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