Your friends Monica and Rachel have approached you with a business idea. They want to open three beauty salons in Adelaide. They have identified the shopping centres where the three salons will be opened. They invite you to a meeting where they present you with a business plan.
They will manage a salon each and their friend Phoebe will manage the third salon. Phoebe does not want to be involved in the business in any way apart from managing a salon.
They ask if you would be interested in investing in the business and they are seeking $150,000 from you. Monica and Rachel each have $50,000 invest. The total invest from all of you will be $250,000.
Monica and Rachel have not done anything further about setting up the business and were waiting until they discuss it with you. They want to call the salons “Friends Essential Beauty”.
You have now opened the 3 salons and they have been operating for 3 months. Monica, Rachel and Phoebe are managing the salons and there is a total of 10 permanent staff members.
You have had a few issues with Phoebe’s salon
Two full time beauticians – Mary and Kate
Casual beautician – Ursula - She is Phoebe’s identical twin sister
Mary has upset a customer by using the wrong product and the customer had a rash all over her. You had advised Mary that she should not use this product but she is a rep for it and thinks it is great. You agree with Monica and Rachel that you want to terminate Mary’s employment.
Kate keeps turning up to work dressed in black (Goth clothing), with an increasing number of tattoos and piercings. You do not feel this is appropriate and want her to stop wearing Goth clothing and remove some of the earrings on her face.
Monica and Rachel attend the “Beauty and Hair Convention” at the Adelaide Convention Centre. They have a stand to promote their “Friends Moisturiser”. They have a banner with “Friends Essential Beauty” behind the table. The Convention is to last three days Saturday/Sunday and Monday. On the stand next to you are Ross and Joey who are manning a marketing stand promoting neon signs for salons. During the convention Phoebe and Ursula have visited the stand a number of times and covered the lunch breaks on Saturday and Sunday. Ursula is going to manage the stand on the Monday.
On the Monday Ursula is managing the stand and gets into conversation with Joey. Joey says to Ursula “I have a great business deal for you. I know you have all set up “Friends Essential Beauty”and I think we can do a deal on three neon signs”. “You can buy three signs for $30,000, a saving of $15,000.” Ursula thinks it is a great idea and rings Phoebe who also agrees with her. Ursula tells Joey we would love to buy them. Ursula and Joey sign an agreement for $30,000 to be paid when Joey delivers the signs the next weekend. Under Ursula’s signature are the words “Phoebe Boufatt, Manager of Friends Essential Beauty. Ursula does not point out the error.
The next day Phoebe meets with you, Monica and Rachel and tells you of the agreement to purchase the neon signs. Monica and Rachel are very upset and state that Phoebe nor Ursula had no authority to purchase something that expensive. “We cannot afford it,” they tell her. You all agree you will not pay for the signs.
Using relevant legal principles, explain who is liable for the payment of the signs – is it Friends Essential Beauty, Phoebe or Ursula?
The ACCC has written to you about a few complaints they have received. Please prepare for Monica and Rachel an explanation for each point based on legal principles about the issues raised.
ii. You advertise that your “Friends Moisturiser” is made from all natural products but in fact about 20% of the product is artificial food colouring that has been used to give it the unique Friends colour.
iii. Essential Beauty is an already established beauty salon with a large number of salons in Adelaide. They believe you are misleading consumers by havinge a name similar to theirs.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2021). HA2022 Business Law. Retrieved from https://myassignmenthelp.com/free-samples/ha2022-business-law/employment-and-business-obligations.html.
"HA2022 Business Law." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/ha2022-business-law/employment-and-business-obligations.html.
My Assignment Help (2021) HA2022 Business Law [Online]. Available from: https://myassignmenthelp.com/free-samples/ha2022-business-law/employment-and-business-obligations.html
[Accessed 17 October 2021].
My Assignment Help. 'HA2022 Business Law' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/ha2022-business-law/employment-and-business-obligations.html> accessed 17 October 2021.
My Assignment Help. HA2022 Business Law [Internet]. My Assignment Help. 2021 [cited 17 October 2021]. Available from: https://myassignmenthelp.com/free-samples/ha2022-business-law/employment-and-business-obligations.html.
If you are wondering, “How can I check my paper’s word count,” we have a perfect solution for you. If you go through MyAssignmenthelp.com’s website, you will find our word count tool. It is designed by our developers to help students keep track of the word count in their assignments. We have already received a lot of positive reviews from students who have benefitted from our words counter tool. Besides, you can also avail our paper writing service to get a well-crafted paper well within the instructed word limit.
Answers: 1 (a). Sunshine Scooter Art Pty Limited is bound by the contract entered to with Computers Supplies Pty Limited as executed on its behalf by Bob. A company just like a natural person is an entity capable of entering into contracts in its own name. Being a juristic person, a company enters into such contracts by itself using its common seal or through an authorized agent. The Company is further bound by its constitution and or a...Read More
Answers 1. This particular question is regarding computation of net capital loss or net capital gain of Eric for a particular year. Section 108-20 of the ITAA 1997 describes the capital gain or loss determination from obtained from selling of assets. Laws that deal with determination of net loss and gains involve Section 108-10 of ITAA 1997 and Section 108-20 of the ITAA 1997 (Brigham et al., 2015). Computation of net ca...Read More
Answers: Issue: On the basis of the facts that have been provided in this question, it needs to be decided if Brad had entered into a valid contract with Caltex and if Tina is bound by such a contract. The reason behind this issue is that Tina expressly told Brad that we should not enter into a contract for the purchase of petrol in the future. At the same time, another issue that has to be decided if a secret profit had been made by Paul when...Read More
Answer: 1. Memorandum Issue According to the case study, the issue is whether CD can claim any damages against AB’s fault to damage her car and will be the claimant lawful. Law According to the case study, CD wants to claim damages for the loss of her property from AB who also driving a car. Due to the impatient of AB, he crash CD’s car by his car which makes several damages. Now CD wants to sue AB for her dam...Read More
Answers: Task 1 Q.1. In UK, the principal source of law includes the statutes, which are the legislations or the acts of the parliament; the common law, which are the laws which have been made through the principles which have been established in the cases over time; and the laws of the European Union, in context of the treaties and the directives issued (In Brief, 2017). The secondary sources of laws are the commentaries which are referred ...Read More
Are you confident that you will achieve the grade?
Our best Expert will help you improve your grade