7823AFE – Research Assessment - Hypothetical - Research Assessment Assignment Help

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Research Assessment Assignment Help

TASK1 Alex and Lucy sold their farm and decided to make a trip to France to meet their relatives.Their only airline experience had been a few interstate trips; this would be their first tripoverseas. They undertook considerable research about which airline to use by referring to newspaper and television advertisements and airline websites. They were particularlyimpressed by the advertisements for Angelwings Airlines, an overseas-owned airline,whose television advertisements showed passengers being served what were described asdelicious meals with ‘the finest Australian wines and a high standard of service’. Lucy,ho had issues with her back, was especially impressed by the spacious leather seats and the cushioned headrests in which passengers travelled. They booked their flights onAngelwings through the Leasure Travel Agency. The economy class fares charged byAngelwings were slightly higher than other airlines, but Alex assumed that the extraamount was due to the seating facilities and fact that the Angelwings press advertisementssaid that passengers would be delivered to the departure airport by limousine.As the departure date neared Alex and Lucy were excited by the idea of going overseas andtravelling in such comfort. They were disappointed that a limousine did not collect them,and they made their way to the airport by taxi. When they boarded the plane, they foundto their horror that their seats were nothing like the spacious leather seats they had seen onthe advertisements. They said that they were jammed together ‘like sardines’ and they couldbarely move. The quality of the meals they were served was well below what they expected.Lucy raised these matters with cabin staff, who brushed her off.On the return trip from France the experience was even worse. Lucy described the seating arrangements as ‘what you would expect in a cattle truck’. When they arrived in Brisbane they visited the travel agent and complained that they had been let down by Angelwings Airlines. The agent expressed surprise at their complaints. She told them that ‘What they advertise is the first class service. If they showed how economy class passengers were treated nobody would fly.’ Alex and Lucy think that this is evidence of a rip-off and seek your advice. Advise Alex and Lucy as to whether the Angelwings Airlines has breached any of the provisions of the Australian Consumer Law (ACL) (Schedule 2 Competition and Consumer Act 2010 (Cth). What enforcement actions can be taken by the ACCC against the Airlines and remedies (if any) are available for Alex and Lucy under the ACL? TASK2 Anderson Baker and Castro (ABC) is an accounting firm specialising in small business.Keema Cars Pty Ltd (Keema) runs a small business which manufactures engine parts forcars. Keema hires ABC to act as its accountants and to prepare its taxation returns.Keema and ABC discuss the possibility of expanding Keema’s business. ABC advises thatif the profit and loss statement reveals a substantial profit for the past year Keema ought toexpand and to fund the expansion by raising a loan from its bank.ABC makes a mistake in preparing Keema’s profit and loss statement. Expenses areunderstated by $75,000 and trading stock overstated by $30,000.The financial statements are sent to Keema by mail. Believing the financial statements tobe accurate, Keema decides to expand the business. The expansion is to be funded by aloan from the Regional Bank. The bank requests a copy of the financial statements preparedby ABC accountants and Keema forwards such copies directly to the Regional Bank. AceAccountants had included the following disclaimer on each page of the financial statementsprepared for Keema Cars Pty Ltd: “These financial statements are unaudited and arerestricted for internal use only, and have not been prepared for use by third parties or anyother purpose”. On the basis of the financial statements, the loan officer of the Regional Bank lends$100,000 to Keema without reading the disclaimer. The expansion is unsuccessful andKeema’s business fails. Keema maintains that it would not have expanded if it had knownthat the profit was overstated by $105,000. The Regional Bank maintains that it would nothave lent $100,000 if it had known the true profit figure. Does ABC accountants owe the Regional Bank a ‘duty of care’ when preparing thefinancial statements for Keema Cars Pty Ltd? Advise ABC whether it is liable tocompensate the Regional Bank. Can ABC accountants raise any defences to an action initiated by the Regional Bank? Explain your answers fully making reference to appropriate case law and relevant sections of the Civil Liability Act 2003 (Qld).