Business Law: Assessment 2

This assessment covers various aspects of business law, including different business law solutions, suitable business structures, and remedies available for breach of contract and tort law. It discusses the use of Alternate Dispute Resolution System, negligence in law of torts, and contract laws. The report provides expert advice on different business law solutions, suitable business structures, and remedies available for breach of contract and tort law.

BUSINESS LAW
(ASSESMENT 2)

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
ASSESMENT 2(Case analysis).......................................................................................................3
QUESTION 1..............................................................................................................................3
Advise Ms Sarah, her friends, and her family members about the different business law
solutions to their current problem. .............................................................................................3
QUESTION 2..............................................................................................................................4
Advise Ms Beth which one of the different business structures is more suitable for the planned
business. .....................................................................................................................................4
QUESTION 3..............................................................................................................................7
Does the customer have any remedy in tort against anyone for the burns she received?...........7
QUESTION 4..............................................................................................................................8
Lincoln wishes to know whether he can recover damages for breach of contract from
Washington.................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law are the laws that has been set up in order to make sure that business
organization is able to work as per legal framework developed within an organization. Such
business laws makes proper aspects related over business developed in more organized manner.
Also business laws deals with corporate issues existing within corporate structure of an country
they are also known as corporate or commercial laws. In these laws specific guidance is covered
that enhances functioning of business organization leads towards achieving goals and objectives
formed by an business organization. Scope of such laws are wider in nature as they are studied
with contract law and tort law. Nature is dynamic since it provides Alternate Dispute resolution
system that helps in solving issues outside the court. In this assessment things covered is based
over business law, ADR and law of tort.
MAIN BODY
ASSESMENT 2(Case analysis)
QUESTION 1
Advise Ms Sarah, her friends, and her family members about the different business law
solutions to their current problem.
Case study: In this case INNOVA Pty Ltd which is an leading organization within
designing of high-quality fashion and sport clothes. The organization is having its outlets across
Australia. Ms Sarah who is a fitness trainer is regular customers of INNOVA Pty Ltd. In
november 2020 Ms Sarah has purchased various merchandises from INNOVA Pty Ltd that she
gifted to her friends and family members as Christmas gift. The rest of the merchandise
purchased is been used by herself. As soon as Christmas got over Ms Sarah's family members
and friends contacted Ms Sarah to inform her about serious skin condition that has been caused
due to the sport clothes that was gifted to them by her. Also one of Ms Sarah's friend Mr Peter
who is an truck driver cannot work due to skin problems. Then Ms Sarah has faced same skin
condition herself over using companies merchandise(Tomarken, 2020).
From the above case scenario it can be observed that main point of discussion is based
upon Alternate Dispute Resolution System. This is that kind of system which has been used in
solving problems an issue outside the court. Under it parties has come to an common point

making problems solved in more effective way. The process is mainly focused over settling
dispute outside the court. There are various methods included in ADR for taking out solutions
that is negotiation, mediation, conciliation and arbitration. Further the method is been used in
most common manner which makes impact created over making issues solved in more effective
way. This process has helped in reducing burden upon court by solving issues outside the court.
The process involved within ADR has been discussed as follows:
 Negotiation: In this process an negotiator is been hired which makes meeting conducted
between parties. Then negotiator through negotiation skills makes both parties agree over
an common point that leads over solving problem. Also negotiator uses negotiation skills
for making parties come to conclusion.
 Mediation: This is another process used in ADR within which an mediator is been hired
and problem is been discussed through mediator. It makes parties become neutral and
then comes over proper solution regarding an problem.
 Conciliation: The process make conciliation done upon issues that is related to solution
taken out for particular problem. Its is based over the principles used in negotiation.
 Arbitration: It is one of the most commonly used method for solving issue or settling
dispute. Under it arbitrator has been hired which listen to both parties with facts of the
issue raised. Then judgement is been passed by arbitrator bound to be followed by
parties. This process is one of the best known method and is been used only after
following the above mentioned processes to solve an issue(Sferrazzo, 2020).
The above case scenario arbitration can be used over solving issue of skin condition.
Since this is most trusted method which is helpful in marking out most appropriate solution with
relevancy.
QUESTION 2
Advise Ms Beth which one of the different business structures is more suitable for the planned
business.
Case Study: In this case five international students is doing studies of Bachelor of
Business Studies within Melbourne. They are interested in making start up of a new business.
Then in this scenario Ms Beth from Brazil is taking the lead in selecting the members and
promoting the business. Five of them are interested in making business sector agreed over

business which is based on services. wo of the members have good experience as cleaners and
they have been employed as cleaners at multiple places in Melbourne. These five members know
each other through social club for international students. They are interested within business and
has similar hobbies like walking, yoga and socializing at the social club. Then they plan over
working for future business themselves and plan over sale regarding business if they are required
to go back to there home countries when they complete there Bachelor of business studies. Ms
Beth as the leader of this future business is not sure which business structure to choose.
In this case main point of discussion is based over various kinds of business organization
existing as per business laws. These organization has been explained as follows:
Sole proprietorship: These kind of business organizations is one of the most commonly
used business organization for setting of businesses. In this the owner of such organization is
known as sole proprietor which means that there is only one owner handling the business. All
work related to management is handled by the owner himself and other activities is run by the
owner. Profit generated is been kept by the owner and has to bear all kinds of debts. Formation
of these organization is simplest as it requires only INHRC number to start the business. These
organizations gets tax rebate as only personal tax is required to be paid. In detail this means that
organizations is therefore entitled to keep all of the profits as income but will be liable to pay tax
and national insurance by filling out a Self Assessment Tax Return(Reynolds and Dang, 2017).
Advantages
 Such organization is easy to be formed and does not include any complexity within its
formation.
 Also get rebate over tax and profit earned is been kept by the owner of such business.
Disadvantage
 Funds arrangement becomes difficult as its is done by single owner himself.
 These organizations are not legally bound to come within contract that may create legal
issues in future.
Partnership firm: In this kind of business organization two or more individuals comes
together over forming business with common motive to earn profit. In this all kinds of activities
like risks, costs, benefits and responsibilities of running such organisation is been done by all the
partners. Partners involved in these organization makes sharing of profit and loss by the partners.
Such organization is formed through INHRC number and partnership agreement is created only

when legal work is involved of licensing. The organization makes partnership created in both
general and limited manner. Partnership funding arrangement is easy as various partners are
involved within it that makes funds arrangement possible on time.
Advantages
 These organization is very easy to be formed and no complex process is involved within
it.
 Profit earned form this organization is been distributed between partners.
Disadvantage
 Conflicts can arise which results in dissolution of partnership.
Partners may not agree to common point which can disturb profit earning process
Private organization: These are that kind of organization that operates with the help of
partners and has LTD in its name. In this shares is not been sold to public and directors are been
appointed to run an organization. In this organization documents is required to be collected and
then submitted to Companies House for making registration possible. All management work is
been handled by directors and funding is been done through bank loans or debentures(Pufpaff
and McCann, 2021).
Advantages
 Such organization enjoys right of succession that makes organization formed attain
separate identity then its owners
 It is formed through proper process which makes it to be part of contract or agreement.
Disadvantage
 In this process of incorporation is long and time consuming which is also very rigid in
nature.
 These organization can be sued at anytime over violating rules of companies act.
Public organization: They are those kind of organization which has public Limited in its
end and can sell or share debentures to general public. In these organization shares of company is
been sold to public. Also these organization makes various aspects covered which is based upon
its formation. In this organization long and complex process is required for its formation. In this
digital signature of all owners, members of memorandum of association and other importation

documents of required to be collected. Funding for these organization is been done through
Financial organizations or government finances. Management is been done by owners(Kilian,
2017).
Advantages
 The organization contains multi pal owners that makes management easy.
 They are been provided over long term durability and helps in making long term assistant
possible.
Disadvantage
 The formation is very lengthy and time consuming which makes slow in its formation.
 These organization has various owners which can create conflict arise easily.
So, in relation to above case scenario an start up is required to be formed by five persons.
The best suited business organization structure for then is partnership since it involves two or
more than two person in its formation. Also employment contracts is required to be formed in
order to make hiring of employees more legal in nature. These contract helps in making the other
two persons hired as per legal process(Jones, 2017).
QUESTION 3
Does the customer have any remedy in tort against anyone for the burns she received?
Case Study: In this case Cheryl has been working as part-time waitress within Tandoori
Inn. In this while serving a customer her meal she bumped while passing customer and has
resulted over dropping hot dish of curry on herself and customer which caused burnt to them.
As per the case the main topic of discussion is negligence in law of torts. Tort laws are
the laws that has been used in order to make sure that civil wrongs committed by an individual
on general bases is been handled within it. These laws covers concept related to negligence, tress
pass, battery and assault with vicarious and strict liability(Cohen, 2020). In this case tort of
negligence is to be applied in relation to services provided by Cherly as it was her negligence
that made curry fall over customers. Also in relation to customer duty of care can be applied as
he should have taken care that curry do not fall over. Relevant case law is Donoghue v
Stevenson in this case Mrs Donoghue went to cafe with her friend and order ginger beer with ice
cream. The ginger beer comes in opaque bottle so that contents cannot be seen. Mrs Donoghue
poured half the content of bottle on her ice cream and drank some beer from it. After eating ice

cream she poured the remaining content of bottle over ice cream then suddenly decomposed snail
emerged from bottle. Mrs Donoghue has suffered personal injury and commenced over claim
against manufacturer of ginger beer. In this case court held that claim is successful that has
established modern law of negligence with making establishment of neighbour test. In this duty
of care has not been followed by both Cheryl and customer that resulted into negligence(Cho,
2020).
QUESTION 4
Lincoln wishes to know whether he can recover damages for breach of contract from
Washington.
Case Study: In this case Washington is an insane person of limited means and has
entered over contract with Lincoln over purchasing of antique axe and a cherry tree for $100. In
this price paid is for both items that is fair and reasonable which makes time over agreement that
has been formed. Washington seems to be a normal person and refused over taking delivery of
either axe or cheery tree and neither for payment.
In this case the main discussion is based over contract laws these are laws which makes
formation of agreement possible in more effective way. These laws helps in making an
agreement attain legality which can be in both implied and expressed or may be in written and
unwritten form. Also these law elements is been used which makes contract attain legality such
elements are offer, acceptance, obligation , legality and validity. If any of the elements of absent
then contract cannot be formed. In contract breach is the wrong that has been committed which
is based upon violation of obligation or trust has been broken. Remedies available over breach is
based upon damages, repudiation, injunction and specific performance. In this case contract has
been taking place within insane person which is not an valid contract. As per the contract law an
contract cannot be formed with an person intoxicate, insane or minor. Such contract formed
cannot be valid in nature. So, the above formed contract is invalid in nature as it has taken place
with an insane person which makes damages non claimable within the contract(Breakey, 2020).
CONCLUSION
From the above discussion it can be marked out that business laws are the laws that is
been used over forming an business organization in more effective way. Also these laws makes

rules and regulations formed regarding business organization. Then in this report four questions
is given which are based on business law, contract law and tort law is been covered. In this
question one covers about various kind of business organization and in second question
negligence with duty of care is been covered. In the end legality of contract with an insane
person and contract law basics with breach, remedy is covered.

REFERENCES
Books and Journals
Breakey, H., 2020. Incorporating Philosophical Theory, Ethical Decision-Making Models, and
Multidimensional Legitimacy into Practical Ethics Education. In Educating for Ethical
Survival. Emerald Publishing Limited.
Cho, S., 2020. Business ethics in marketing communication. International Journal of
Entrepreneurship, 24(1), pp.1-8
Cohen, D.V., 2020. Ethics and crime in business firms: Organizational culture and the impact of
anomie. In The legacy of anomie theory (pp. 183-206). Routledge.
Jones, J.K., 2017, June. Aesthetics and ethics informing an exhibition of artworks by Indigenous
youth. In 12th International Conference on The Arts in Society (p. 78). Common
Ground Research Networks.
Kilian, M., 2017. Legal ethics training between a rock and a hard place in Germany. Legal
Ethics, 20(1), pp.147-150.
Pufpaff, M. and McCann, D.P., 2021. The Ethics of Short Selling: The Case of Muddy Waters
Research LLC. In Doing Good Business In China: Case Studies In International
Business Ethics (pp. 339-346).
Reynolds, S.J. and Dang, C.T., 2017. Are the “customers” of business ethics courses satisfied?
An examination of one source of business ethics education legitimacy. Business &
Society, 56(7), pp.947-974.
Sferrazzo, R., 2020. Towards an Agape-Based Organization: Does It Make Sense to Apply Civil
Economy to Business Ethics?. Business and Professional Ethics Journal, 39(2), pp.225-
251.
Tomarken, E., 2020. Martha Nussbaum: Ethics and literary theory. In Why theory? (pp. 136-
160). Manchester University Press.
Ureta, I., 2020. Ethics in Islamic Finance: Opportunities and Challenges in Times of Economic
Turbulences. Handbook on Ethics in Finance, pp.1-16.