700254: Enterprise Law - Alex Case Study - Business Partnership. - Law Assignment Help

Assignment Task:

Task:

Question One Business entities – 24 marks

Alan was the owner of a restaurant called Peking Duck. He had been fortunate enough to buy the premises in which the restaurant was situated and to furnish it as he had wanted. Due to a huge increase in recent competition in the surrounding area, Alan’s profits declined and he struggled to meet costs. He approached his friend Bing for a loan of $100,000 and they agreed to draw up a loan agreement which included the following:- The lender will receive a share of the profits and losses to the extent of 40%. The lender has the right to examine the business books at will. The lender has a right to receive a quarterly business statement. The lender has the right to be consulted and contribute to any major decisions regarding the business. With the injection of money into the business, Alan and Bing decided that the way to improve trade was to refurnish the restaurant. Most of the money was spent on this and the business improved and made a profit. Bing spent considerable time at the restaurant and came to know many of the suppliers some of whom thought he was in a partnership with Alan. Three years later, Alan decided he wanted to retire and sell the business. He consulted with Bing who told Alan he would be happy to buy out Alan’s share of the partnership. Alan was surprised. He had never considered Bing to be a partner although Bing obviously thought himself to be one. Bing argued that the $100,000 was the equivalent to ¼ of the capital that Alan had contributed and that he was therefore entitled to ¼ of the proceeds of the sale of the assets of the business. Using the Partnership Act 1891 (SA) and relevant cases discuss whether Alan and Bing are in a business partnership Cass was the owner of a gymnasium called Pro-Fit on Church Street in Parramatta since April 2016. Due to an increase in recent competition in the surrounding area, business had declined, and the gymnasium had not made a profit in months. In January 2018 she approached her friend Alex for a loan of $250,000 and they agreed to draw

up a loan agreement which included the following:-
? Alex will receive a share of the profits and losses to the extent of 50% and be working in the business from Friday to Sundays.
? Alex has the right to examine the business books at will and receive a quarterly business statement.
? Alex has the right to be consulted and contribute to any major decisions regarding the business.

With the injection of money into the business, Cass and Alex decided that the way to improve trade was to buy state of the art equipment and to undertake a television and radio and print media marketing campaign to recruit new members. Most of the money was spent on this and the business improved and made a profit. Alex spent considerable time working at the gymnasium and came to know many of the equipment suppliers some of whom thought he was in a partnership with Cass.

a) Discuss whether Cass and Alex are in a business partnership.
b) In June 2019, Cass takes some time away from the gym to have a long overdue surgery. Alex, without consulting Cass decides that the treadmills they have purchased for the gym are not of the best quality and purchases 10 new Titanium USA Predator Curve Treadmills at a total cost of $80,000.00 from Commercial Fitness Equipment (CFE). On Cass’ return she notices the new treadmills and whilst sorting through the mail she finds a letter of demand from CFE addressed to her demanding immediate payment of the Tax Invoice for $80,000.00.

c) Cass also notices that there are only 8 new treadmills rather than 10 in the gym. Alex, has set up a side business at his home (that Cass does not know about) offering personal training to existing members at a lower cost and has taken 2 of the treadmills to use for this purpose.

d) In November 2019 James starts working at the gym on the weekends as a safety monitor. On Saturday he was told that one of the lat pulldown machines was malfunctioning and that he was to put an “Out of Order’ sign on the machine immediately. He had an argument with his girlfriend the night before and was so preoccupied on his phone that he completely forgot to put up the sign. While Jess, one of the members, was using the machine, the weight unexpectedly dropped and caused an injury to her back. As a result of the injury Jess is claiming $2000.00 from Pro-Fit for medical bills.

Question Two: Contracts – 26 marks

Moses is a business student at WSU. During his time at the campus he is faced with a variety of situations which are recorded in each of the separate scenarios below. Moses wants your advice as to whether a contract has been formed in each of the scenarios.

i. Whilst in the Co-Op on campus at WSU Moses sees a Business Law text book on a promotional table marked “All Items $5.00”. Moses knew that the text book would be extremely useful for his study and so went to the cash register and handed the cashier $5.00. The cashier told Moses that the text book was $100.00 and that he could not have the text book for $5.00.

ii. Moses’ sister Mona is concerned about his marks, and promised that she would give him $500.00 if he attended all his lectures and tutorials and achieved a Distinction in his Legal unit. Moses worked hard all term attending all classes and achieved a Distinction. When he asked Mona for the $500.00 she refused to pay.

iii. Sam, an engineering student at WSU, has a of pair light blue ASIC Gel Quantum 360’s that Moses has shown an interest in as they are his size and have sold out in the stores. Sam says to Moses, “I will sell them to you if you give me $400.00 right now”. Moses replies, “You’ve got a deal, but I will need to pay you in weekly instalments of $100.00”. Sam walks off without saying anything further. The next day Moses finds out that Sam sold the shoes to his friend Luca for $350.00. He approaches Sam and says, “We had a deal, you owe me the shoes”.

This 700254: Law Assignment has been solved by our Law Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.