3 questions
1:49 7 ull 5G @) 20f4 Scarlett and Sofia are twin sisters, and both finish their hairdressing apprenticeship at the same time. They decide to go into business together and, after extensive market research they write up a business plan for a hairdressing salon named ‘Clipped Wings’. They register an ABN. Sofia had saved $50,000 from her work which she contributes as start-up capital. Scarlett doesn’t have any savings but contributes her van, clippers, music, and chairs, and paintings of chickens for display purposes. They agree to lease a small shop in their local area from which to operate the business. The pair agree that both: e The salon will operate 6 days per week, e Scarlett works in the salon Tuesday - Thursday, & Sofia Friday - Sunday, e They also employ other hairdressers as casuals assist them, e Sofia is responsible for staffing, rostering, and managing all staff and finances, e Scarlett is responsible for all ordering and her specialty: purple perms, and * All profits will be split equally. After the first three months of operations, Clipped Wings is struggling to keep up with business. People are unable to get enough of their special way of making people beautiful with their special cuts. They decide to hire Terry a hairdresser specialising in exotic cuts. Over the next month the following events unfold: a) Without discussing it with Sofia, Scarlett orders a new hair clippers and a new machine for perms, the ‘Terminator 2000’ from Andrew’s Hair products. However, Sofia says she never would have agreed to this if she had been asked. Andrew’s Hair products has demanded payment of the outstanding invoice of $5,000 from Sofia. b) One afternoon, a customer Willow attends the Salon for a Perm and Terry attends to her. Using the Terminator 2000, she leaves the machine on her head too long and all her hair falls out. This causes damage to Willow for the amount of $10,000 damage. c) Without consulting Sofia, Scarlett has started a separate mobile hairdressing van business operating on the days she is not working. As yet, they have not started a mobile van as it would increase their costs, however, Scarlett and Sofia have previously discussed expanding this part of the business. Discuss Sofia’s potential rights and liabilities. Support your response with relevant legal (case and or legislation) authorities. Remember: Think about the business entity that exists and the obligations on each of the parties mentioned. Students MUST use the IRAC method (Issue, Rules, Application, Conclusion) to answer. 700254 Enterprise Law — 2022, Term 2 Page 2 of 4 Assessment Task 2: Assignment estion Tw On 1 August 2022, Scarlett and Sofia’s business, Clipped Wings, operating in Parramatta, NSW, have entered into a contract with Henny Chicken to give her and her bridesmaid a special haircut for her wedding. The parties agree to the following terms: e Price $2,000, e Perm and colouring, e For the bride and her bridesmaid Amanda, e The hair styling must start at 6 am and finish by 11am on Sat, 20 Aug 2022, and e Payment to be made at the conclusion of the hair styling. They arrive just before 6:00am at the home of the bride and set up and are about to start work on the ladies hair when the electricity power is cut-off. They investigate the source and telephone the Electricity provider who explains the power @ learning.westernsydneyinternational.edu.au 1:49 7 ull 5G @) \LA3T aIu UI ISEISIGUUIT] GULHIVE TUES. Remember: Think about the business entity that exists and the obligations on each of the ntioned. 3 of 4 UST use the IRAC method (Issue, Rules, Application, Conclusion) to answer. 700254 Enterprise Law — 2022, Term 2 Page 2 of 4 Assessment Task 2: Assignment estion Tw On 1 August 2022, Scarlett and Sofia’s business, Clipped Wings, operating in Parramatta, NSW, have entered into a contract with Henny Chicken to give her and her bridesmaid a special haircut for her wedding. The parties agree to the following terms: e Price $2,000, e Perm and colouring, e For the bride and her bridesmaid Amanda, e The hair styling must start at 6 am and finish by 11am on Sat, 20 Aug 2022, and e Payment to be made at the conclusion of the hair styling. They arrive just before 6:00am at the home of the bride and set up and are about to start work on the ladies hair when the electricity power is cut-off. They investigate the source and telephone the Electricity provider who explains the power will not come on until 11am. Scarlett and Sofia offer to cut and style without a perm for $1000 as this does not require electricity. Henny Chicken agrees. The hairstyling is done and Scarlett & Sofia demand payment of $1000. The bride, Henny Chicken, says “no, you breached our original contract, so you owe me $1,000, that is the $2000 less the $1000 for this lesser hair cut”. Scarlett and Sofia are angry and leave without either party paying. a) Advise Scarlett and Sofia as what rights and obligations they may have to Henny Chicken. b) Would your answer be different if Scarlett mentions to you that Henny Chicken is in fact her younger sister? Students MUST use the IRAC method (Issue, Rules, Application, Conclusion) to answer part (a). 700254 Enterprise Law — 2022, Term 2 Page 3 of 4 Assessment Task 2: Assignment Question THREE: Loos at the following scenario. You will need to: 1. Classify three terms correctly and support your answer with legal authority. You must refer to at least two case authorities to receive full marks. (7 marks) @ learning.westernsydneyinternational.edu.au 1:49 7 ull 5G @) dSLUaEents IViud 1 use tne IKAL metwnoa (Issue, Kuies, Applicaton, Lonciusion) to answer part (a). 40of 4 700254 Enterprise Law — 2022, Term 2 Page 3 of 4 Assessment Task 2: Assignment Question THREE: answer Questio Loos at the following scenario. You will need to: 1. Classify three terms correctly and support your answer with legal authority. You must refer to at least two case authorities to receive full marks. (7 marks) 2. Clearly describe the consequences of classifying terms, i.e., if there is a breach of the term what are the consequence. This must be supported by at least one case authority to receive full marks. (3 marks) On Friday, 1 April, Terry visits “Andrew’s Coffee Supplies” to look at a new Coffee Machine. She is met by Django who asks if he can help. Terry says she is very interested in purchasing a Coffee Machine which must have the 4 group heads and have 9 bar pump pressure for delivering quick and strong brews. Django shows her a bright pink “Andrew Speedracer” model and says it has 4 group heads and delivers coffee with 9 bar pump of pressure. Terry asks if there are any other colours besides bright pink. Django explains they can order in and deliver a black and silver model to Terry on the following Friday (September 2). Terry further explains she needs it by September 2 as she has booked a special function on the weekend for 100 guests serving coffee and dessert. Django tells her that the price, which includes a 100 kg of “Andrew’s Premium blend coffee”, is $5,000. Django confirms the new black and silver Andrew Speedracer, and the coffee will be boxed up and delivered to her business address on Friday September 2 ready for her weekend event. Django adds that “this model is the most powerful coffee machine ever made”. On hearing this from Django, Terry agrees to buy the black and silver Andrew Speedracer (along with the coffee). She makes full payment of $5,000 and provides her address for delivery. On Friday April 8, Terry is waiting at her business for the delivery which arrives at 4:55pm. Terry opens the box and notices that the machine does not have 9 bar pressure but the inferior 15 bar pressure — the same pressure seen on home coffee machines. She decides to continue with the event and finds one of the group heads is not working, the pressure is not strong enough to deliver consistent coffee. As she has used many different Coffee Machines, she does not believe this one to be a ‘most powerful coffee machine ever made’. End of Assignment 700254 Enterprise Law — 2022, Term 2 Page 4 of 4 Assessment Task 2: Assignment @ learning.westernsydneyinternational.edu.au