Legal Considerations for Starting a Business - Desklib

This article discusses the legal considerations for starting a business, including ownership structure, licenses, contracts, insurance, fair trading, negligence, and taxation. It also covers important topics such as employee wages, discrimination, and debt recovery. The content is relevant for students studying business law or anyone interested in starting a business. No specific course code, course name, or college/university mentioned.

Running head: LEGAL
Legal
Name of the Student
Name of the University
Author Note

1LEGAL
Task 2
Business is to earn profits.
The ownership structure is hierarchical in nature.
Benefit is that the work can be done smoothly. Problem is that it is authoritative in
nature.
Business will be located in Rundle Street, Adelaide
It is unlimited liability, as the owners are liable for the profits and losses.
Task 3
Liquor license, Workplace Health and Safety license and clean environment
Quarantine and employment permits.
Regulations regarding good service and better conduct with the employees.
The signs need to be displayed in a proper way so that customers can see it.
The registration of the business will be done Australian Securities and Investment
Commission.
The tax will be followed under the Australian taxation system.
The business will require an approval of the Fair Work Ombudsman.
Task 4
Supplier and property contract.
Offer, acceptance, consideration, mutuality of obligation, competency and capacity
and a written instrument are the 6 conditions in a contract.

2LEGAL
Real and personal are two types of property. Land and building belong to the real
property whereas stocks and insurance are personal property.
The property ownership will be real property for this business.
Task 5
General liability, theft, product liability, equipment breakdown liability, business
interruption and property contents liability are required for the business.
The cost of general liability will be 1500 AUD and breakdown liability will be 1000
AUD per year.
The insured value is 150000 and 200000 AUD for general and breakdown liabilities.
Utmost good faith is where the insurance contract has a legal obligation to act in the
best interest towards the company who is insuring itself.
Task 6
Fair trading is a movement that allows the company in giving a wider network of
suppliers to tend different type of customers.
False advertising is where the customers get misled regarding the products and
services that the company promises to provide them.
The company will make sure that the standards of the product will be met according
to the expectation of the customers.
The business will be competitive with respect to the price factor and not ry to damage
its reputation in the market.
Section 58 of the Trade Practices Act states that the payment is accepted without
delivering or inability to supply the materials that were ordered.

3LEGAL
Task 7
Negligence refers to act or omission to do an act, which a person is bound by duty to
do in the course of business.
Proper safety and mitigating fire accidents.
The bartender will check whether the persons are eligible to drink and whether they
have taken more amount of spirits.
It will help in mitigating the risks.
Contributory negligence on the customer’s part is the defence for the owner.
Task 8
The level 3 employee will get a monthly salary of 5000 AUD.
To maintain flow of work and minimum wages to the employees in a timely manner.
Security contractor will be trustworthy whereas own security may cause theft.
Security contractor will provide security as they can be trusted.
Salary will be deducted.
Discrimination is the process through which the people are segregated due to their
age, gender and race. It will result in employee conflict.
The minimum shift hours will be 6 hours.
Unfair dismissal means that employees cannot be dismissed in an unfair manner. The
company will lay down proper rules and regulations that conducts the behaviour.
Task 9
The ATO will assess the tax files and guidelines of the business.

4LEGAL
The company needs to pay tax on alcohol and food as well.
GST is Goods and Service Tax and obligation is that payment of GST has to be done
on yearly basis.
Drawer is the person to whom cheque is issued and payee issue the cheque.
Time is 7 days for the cheque to become stale.
Task 10
Legal documents needs to be filed to recover the debts.
The action is taken in the tax department.
He can ask for more time by providing some advance amount.
The debtor can claim to be bankrupt or declare to be insolvent.
Resource 1.5: Questions
1) Precedent is a rule that helps in establishing the legal case filed previously.
2) Common law is where the judicial and custom precedents are required for statutes.
3) Precedent is the previous case that helps in establishing the case in the tribunal or
court.
4) Parliament creates legislated law. The other terms are statutes and statutory laws.
5) Constitution is the main law of the land. Every law made by parliament of Australia
has to follow the provisions of constitution.
6) Wills and estate- State
Education- Federal
Sale of goods- Federal
Criminal law- Federal

5LEGAL
Taxation- Federal
Defence- Federal
Currency- Federal
Marriage- Federal
7) a) Magistrate court
b) Civil
c) Magistrate
d) Day-to-day dispute hearing
e) District court
f) Judge and Jury
g) Civil laws
h) Judge
i) Inquiry process
8) Appeal facilitates a second hearing of the same case.
The defendant, plaintiff or judge, suo moto
Appeal is dealt by a new judge.