Business Law

a local supermarket. At approximately 10.05am on 15 January 2008 a customer dropped a glass jar of honey, causing the jar to smash and the honey to spillover the floor. The customer did not tell any of the supermarket staff of the accident.

The practice of the store staff is to clean up any spilt liquids as soon as they are discovered, and further to check for such spillages every two hours. At 11.00 am on the same day Mary entered the supermarket with her father.

Mary's father has poor vision, and so Mary generally accompanies him on his walks and shopping trips. Whilst walking down one of the supermarket aisles, Mary stopped to talk with a friend. While Mary talked with her friend, her father went for a walk up and down the aisle that they were in. Mary's father trod on the broken glass of the honey jar and severely injured his foot.

a.

Advise George of his potential liability (20 marks); and

b.

Advise Mary's father of his rights (10 marks)

Question Two: (30 marks)

You are a business advisor and have a client who has been asked to join with three prominent and experienced business people in a collaborative business relationship. They have said to her that the most suitable business arrangement to share the risk of setting up a new business is to form a partnership.

She is to contribute capital while the others are to contribute their business skills.

You are aware that partnerships have a number of advantages as a business vehicle. It is generally recognised however that there are some disadvantages.

Advise the client of the advantages and disadvantages of adopting the partnership as an appropriate business form for her.

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Question Three: (30 marks)

The Minister responsible for Roads in the ACT Government, with an election coming in three months, is faced with a major problem which has emerged with respect to what...