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ASSESSMENT TEMPLATE___________________________________________________ Subject Title Business Law and Governance Subject Code MGT809 Lecturer / Tutor Dr Stephen Treloar & Karen-Anne Nathan Semester T1 2021 Assessment Title Take Home Exam (Official) Learning Outcome/s a, b, c, d Assessment type (group or individual) Individual Weighting 50% Word count 2000 words Due date Class submission Lecture ☐ Tutorial Submission type Paper copy ☐ Turnitin √ Assessment instructions Please complete ALL questions in a word document and then upload your document to Turnitin. Each question should be clearly labelled. There are 3 sections for this assessment: PART A. 1 Short Answer (10 marks) PART B. 2 Long Answers (40 marks) PART C. 1 Case Study (50 marks) TOTAL MARKS = 100 TOTAL WORDS = 2000 If using sources, you MUST reference as per Style Guide. PART A (10 MARKS IN TOTAL) 1 SHORT ANSWER QUESTION Question 1 (10 marks)(200 words) Frank owns and runs a golf shop called GolfPro. He operates as a sole trader. He decides to invite Bill, a long-time friend and ex-professional golfer to join him in business. Frank has plans to expand GolfPro to include a larger range of golf equipment and offer golf lessons to those interested. Frank and Bill would like to form a company although they are open to any other suggestions on how best to structure their business. Compare and contrast the advantages to Frank of operating as a company as opposed to remaining a sole trader or forming a partnership. PART B (40 MARKS IN TOTAL) 2 LONG QUESTIONS Question 2 (20 marks)(400 words) Mark entered into a contract with Harbour Pleasure Cruises Ltd (HPC) for the purpose of hiring one of HPC’s cruise boats, The Himalaya, between the hours of 7pm on 31 December 2018 and 3am on 1 January 2019. At the time of contracting Mark advised HPC that the purpose of the hiring was so that Mark and his wife Wendy could have a romantic evening on Sydney Harbour in celebration of their tenth wedding anniversary, and so that they could also have a prime position to view the fireworks display that was to be held that evening as part of the celebrations welcoming in the year 2019. The agreed hiring fee was $5,000, which was paid on the date of signing the contract. In return for that fee HPC was to provide the cruise boat, The Himalaya, a licensed captain to drive the boat, and a chef to prepare a set meal for Mark and Wendy. When Mark and Wendy turned up at the appointed time to begin their cruise on The Himalaya, HPC advised them that they were unable to carry out their contract with Mark because they had hired the boat to another person earlier that day. In relation to the above facts: 1. What damages, if any, would Mark be able to recover from HPC for breach of contract? (8 marks)(160 words) 2. Does Wendy have any claim against HPC? (5 marks)(100 words) 3. Would your advice in (1) above be different if, on the day that Mark and Wendy turned up to begin their cruise, they were advised by HPC that the cruise could not take place because on the previous day The Himalaya had been destroyed by terrorists? (7 marks)(140 words) Question 3 (20 marks)(400 words) A business can invest in a socially responsible as well as a socially irresponsible manner. Appraise this statement by comparing and contrasting both types of investing. You should also provide examples of both. PART C (50 MARKS IN TOTAL) 1 CASE STUDY Question 4 (50 marks)(1000 words) The Friendly Grocer (TFG) is a nationwide chain of small supermarkets operating throughout Australia and New Zealand. There are 297 stores located in Australia most of which are situated in small shopping centres. Each individual TFG store is owned and operated independently. TFG’s slogan is “Just around the corner” and prides itself on being local and accessible to its community. A lot of TFG’s customers are older who prefer to shop local avoiding the need to travel into larger shopping centres to do their groceries. Charles is a 65-year-old gentleman who undertakes his regular shopping at his local TFG in Neutral Bay. TFG Neutral Bay operates as a sole trader and is owned by Maria Bertoni. Charles usually does his shopping every Monday morning and buys enough groceries to sustain him for the week. On Monday 15 February 2021, Charles attended the store. It was a particularly wet day in Sydney. In fact, the whole month of February had been particularly wet with Sydney experiencing higher than average rainfall over the past 6 weeks. Charles took his umbrella with him on this particular day. When Charles attended the store, he noticed there was no place for customers to leave their wet umbrellas at the front of the store. He noticed other customers either walking through the store holding their wet umbrellas or had them placed in their trolleys. Charles decided to take a trolley and placed his umbrella at the front of his trolley. Charles began shopping and headed to aisle 2 to purchase some pet food for his cat. As Charles walked down the aisle, he noticed the floor was very wet and slippery. He then suddenly slipped and fell backwards hitting his head and injuring his leg. An ambulance was immediately called as Charles was unable to move and appeared to be confused, dazed and in pain. On admission to hospital, Charles was assessed as suffering from concussion and a broken leg. He was required to undergo surgery on his leg and was required to be in plaster and use crutches for a period of 6 weeks. He is also experiencing ongoing memory problems as a result of the fall. Since the incident, Charles has been unable to return to his pre-accident part-time employment as a gardener for the local Council. On investigation, it was found that TFG had no signs to indicate the floor was wet and provided no place for customers to leave their wet umbrellas on the day of Charles’ injury. Charles is considering suing Maria Bertoni for $350,000 for pain and suffering, loss, medical expenses and loss of income. Advise: 1. Charles of any claim he may have against Maria Bertoni, the owner of TFG Neutral Bay including what remedy he may seek. (30 marks)(600 words) 2. Maria Bertoni of any defence(s) she may raise and the effect on any damages if successfully argued. (15 marks)(300 words) 3. Maria Bertoni of her personal liability if the Court finds she acted negligently. (5 marks)(100 words) In your answer, you should consider all elements of a claim in negligence and the relevant legislation. END OF EXAM Page 3 of 7