Business and Corporations Law Assignment: Contract, Company Types

This document presents a solution to a Business and Corporations Law assignment. Part A analyzes a scenario involving a unilateral offer in a newspaper advertisement, applying contract law principles and the Carlill v Carbolic Smoke Ball Co case. It discusses acceptance, contract formation, and the liability of the advertiser. Part B examines different types of companies operating in Australia, focusing on proprietary companies, their formation, and compliance with the Corporations Act, including sections 45A, 162-164. The solution also addresses restrictions on company names by ASIC, specifically the example of 'Anzac Coffee,' emphasizing the need for prior permission. References include ASIC publications and a business law textbook.

Business and Corporations Law

PART A
The advertisement posted in the
newspaper by Ming was a unilateral offer.
It can be accepted by parties if they comply
with its instructions.
The elements given by the court in Carlill v
Carbolic Smoke Ball Co case applied in this
as well (Bakan, 2016).

PART A
The forty customers gave their acceptance
by bring the advertisement to the shop.
A contract is constituted between them and
Ming.
They can enforce the term to get a haircut
for $10.
Other ten customers did not bring the
advertisement, thus, no contract is formed
between them.

PART A
A valid contract is formed after acceptance
of unilateral contract.
The parties can enforce another party to
comply with the contractual terms
(Fitzpatrick et al., 2017).
Ming is bound by the terms of the unilateral
offer as well if the acceptance is given by
the customers by bringing the
advertisement.

PART A
Ming is liable towards all those customers
who comply with the instructions to give
them a haircut for $10.
The advertisement cannot be revoked by
putting a sign in the shop.
Ming should include a time limit in the
advertisement to revoke it after such time.

PART B
Different types of companies operation in
Australia which include:
Public company
Public company limited by share
Unlimited public company
Proprietary company
Proprietary company limited by shares
Unlimited proprietary company
Each company has different legal framework
which parties have to comply with while
managing the corporation.

PART B
In this case, a proprietary company should
be formed.
The costs incurred in the incorporation is
lower.
The legal compliances are fewer as well.
Family members can distribute the shares
between themselves to control the company.
They can establish a constitution to define
the guidelines based on which the company
will be operated.

PART B
In the first year, the company will be a small
proprietary company. In the fifty year, it will
become a large proprietary company as given
under section 45A.
Provisions of transferring of the type are given
under section 162 to 164 of Corporations Act.
The reason for change is that the revenue of
the company exceeds $25 million. The
number of employees exceed 50. The value of
gross assets exceed by $12.5 million (ASIC,
2018a).

PART B
ASIC has prohibited many words and phrases
which cannot be selected as companies names.
The names related to ex-servicemen and Royal
Family are prohibited.
Names which shows relation to banking
institute or governments require prior
permission of ASIC.
Anzac Coffee is showed in amber colour on the
website of ASIC, therefore, prior permission of
ASIC is required to selecting this name (ASIC,
2018b).

References
ASIC. (2018a) Are you a large or small proprietary company.
[Online] Available at:
https://asic.gov.au/regulatory-resources/financial-reporting-
and-audit/preparers-of-financial-reports/are-you-a-large-or-
small-proprietary-company/ [Accessed 25/09/2018].
ASIC. (2018b) Company name availability. [Online] Available at:
https://asic.gov.au/for-business/registering-a-company/steps-
to-register-a-company/company-name-availability/ [Accessed
25/09/2018].
Fitzpatrick, J., Symes, C., Velijanovski, A. and Parker, D. (2017)
Business and Corporations Law. 3rd ed. Chatswood, NSW:
LexisNexis Butterworths Australia.
Bakan, J. (2016) Social marketing: thoughts from an
empathetic outsider. Journal of Marketing Management, 32(11-
12), pp.1183-1189.