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BUS107 Commercial Law

Question

Answered

Task

Case Scenario

Mark is a Director of a pet food company, Happy Pets Pty Ltd. His best friend, Jordan, owns Pawfect Fur Pty Ltd, a dog food manufacturer called “Pawfect Fur”. Jordan’s company is struggling financially due to the pandemic around the world and is not able to sell its products overseas. Jordan offers $50,000.00 to Mark if Pawfect Fur Pty Ltd enters a supply agreement with Happy Pets Pty Ltd. Mark recommends Pawfect Fur Pty Ltd to Chloe, the other director of Happy Pets Pty Ltd. Chloe explains that she does not have any knowledge on dog food and that she will let Mark make decisions in that area. Mark enters the supply agreement with Pawfect Fur Pty Ltd although he is aware that the Pawfect Fur dog food is famous for having a low quality product. The shareholders are not happy with this new agreement and threaten to take legal action against the Directors of Happy Pets Pty Ltd.

Jean is a customer of Happy Pets Pty Ltd. One day she visited the store’s website to purchase dog food for her dog. She notices that there is a promotion for Pawfect Fur dog food that says “try before you buy” which will give her one week to try the dog food before she decides on the purchase. Payments will be processed after her confirmation of the purchase or after the one week expires. However, Jean decides not to complete the purchase of the Pawfect Fur dog food and chooses to return the product. Happy Pets Pty Ltd refuses to accept the returned product as the one week trial period has already passed which means that Jean is now the owner of the product.

The next day, Jean’s dog is very unwell. She was later advised by her vet that the dog is having stomach issues because of the Pawfect Fur dog food. She checks the packaging and realises that the dog food is one month past its expiry date. The vet recommends her dog should be hospitalised. Jean needs to pay $5,000 for all the health treatment that is required.

Questions 

1. Company Law

Use the IRAC method to advise the shareholders of Happy Pets Pty Ltd whether the Directors (Mark and Chloe) have breached their Director’s Duties and if they have any defences.

2. Sale of Goods

Use the IRAC method to advise Jean whether she is the owner of the Pawfect Fur dog food and if she can return it to Happy Pets Pty Ltd based on the Sale of Goods Act.

3. Law of Torts

Use the IRAC method to advise Jean if she can sue Happy Pets Pty Ltd under the Law of Torts and if Happy Pets Pty Ltd has any defences.

BUS107 Commercial Law

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John, Paul, Ringo and George are musicians who operate out of a garage in Melbourne. They initially form a partnership, but then decide to incorporate, and register a company called New Beatles Pty Ltd of which John, Paul and Ringo own 30% each and George owns 10%. All four brothers are also directo ...

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Case Study:Brown Family FarmingPty Ltd (BFF) was registered in 2010 by the Brown family for the purpose of managing the family’s successful farming business. According to ASIC records, each of the ten family members (6 brothers and 4 first cousins) are registered as equal shareholders and dire ...

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QUESTION 1 Explain in plain English the practical implications of the decision of the Federal Court in Waensila v Minister for Immigration and Border Protection [2016] FCAFC 32 (copy attached). (13 Marks) (Maximum Word Limit: 1000 words) QUESTION 2 What principles of statutory interpretations (if an ...

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Your assignment is to comment and critic on the Risk Management obligations in the Corporate Governance Code in Appendix 14. In particular, you must comment on how this new amendment will change or affect corporate governance in listed company in Hong Kong. Imagine you are an independent non-executi ...

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