Business Law

BUSINESS LAW CASE STUDY

DescriAnswer all 4 questions.

HA2022 Business Law, Tri 3, 2011

1. Margaret owned an antique store that specialised in rare porcelain dolls. When she

opened the business in 1989, it was at a shop in an eastern suburb of Melbourne. In 1999

she started to advertise on the Internet and by 2006 the business had grown to the point

where she needed help to keep the business going. After a family discussion one night at

the kitchen table in July 2006, it was agreed that Margaret would probably keep the

business going for another couple of years and then retire. Emily, her youngest daughter

and aged 16, would work in the shop as long as was needed and in return, she would

receive any unsold dolls. When Margaret retired at the end of 2009, she decided that she

would give the unsold stock to charity and they could auction it and keep the proceeds.

Advise Emily.

2. Richard, an impoverished university student, and his millionaire father enter into an

arrangement where Richard agrees that he will keep the front- and backyards of the

family property mowed, and he will ‘do a bit’ to keep the gardens looking tidy. In return,

his father agrees to pay him a weekly allowance of $200. His father had previously used a

garden contractor to do the job and paid him $350. They live on a one-hectare property,

and the mowing alone takes half a day a week. After four weeks, Richard’s father tells him

that he can’t afford to pay $200 a week. He says that Richard should be doing the work

for nothing, as it is the responsibility of the whole family to look after the property;

besides, he says, Richard is getting free board and lodging. Advise Richard.

3. Jenny received a circular from Beauty and the Beast Hair Salon advertising massages and

manicures for $10. Realising that this was an exceptionally good deal, but not surprised

because she knew that they had only just opened and were running a number of good

opening specials, she rang and made a...