BS202 Corporate Structuring and Business Law: Legal Analysis Report

This report provides a comprehensive analysis of corporate structuring and business law, addressing several key legal issues encountered in a business context. The report begins with an examination of warranty terms and remedies under the Australian Consumer Law, including express and extended warranties, and warranties against defects. It then delves into the interpretation and validity of negotiable instruments, specifically cheques, differentiating between order, bearer, and bank cheques. The report proceeds to analyze Australian employment legislation, focusing on the Fair Work Act 2009 and the distinction between employees and independent contractors. It then discusses the requirements for proper notice for the termination of a lease agreement, emphasizing the importance of formal agreements and adherence to agreed-upon terms. Finally, the report examines the Privacy Act 1988, addressing the handling and protection of personal information, particularly in the context of employee data and the use of unsecured networks. The report provides legal advice and assesses the issues based on relevant Australian legislation.

Corporate Structuring
and Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Issue 1: What sort of warranty term apply along with the remedies......................................3
Issue 2: Advice on Interpretation and Validity of Instruments..............................................4
Issue: 3 Determination of Employment Legislation...............................................................5
Issue 3: Proper Notice for the Termination of Lease.............................................................6
Issue 5: Privacy Act................................................................................................................7
CONCLUSION................................................................................................................................8
REFERNCES...................................................................................................................................9

INTRODUCTION
The report aims to briefly discuss the case scenario as stated accompanied by the relevant
legislation. The main focus of the report is to provide the legal advice and assess legal issues of
the client. The report highlights and effectively assess five different issues which occurred at an
early stage of business. The report examines various Australian Legislation in order to provide
effective and efficient legal advice in resolving issues of the client.
MAIN BODY
Issue 1: What sort of warranty term apply along with the remedies
A warranty is refer to as repair or exchange in consideration of the product not
functioning properly or as originally described or intended. There are variety of warranties which
the businesses voluntarily offer to its consumers in order to maintain customer satisfaction.
These warranties are facilitated in addition to the consumer guarantees. The warranties focus not
to override the rights granted to the consumers under the Australian Consumer Law (Osei-Kyei
and Chan, 2021). Under this the consumer is entitle to repair, replace or initiate refund even
after the voluntary period of warranty or the extended warranty has lapsed or expired. There are
various types of warranties which are discussed below:-
Express Warranties
The warranty is expressed either orally or in writing, in advertisement or on the product.
As the name speaks itself, the express warranty is a guarantee which is expressed by the seller to
its buyers in respect of the product performance in accordance with the specifications. The seller
is require to repair or replace the product on occasion of defects.
Extended Warranties
It is sort of warranty which covers the repair or maintenance of the products or services
beyond the warranty provided by the manufacturer. The extended warranty consists of terms and
conditions and such coverage of warranty can be repealed if the buyer causes breach of contract.
Furthermore, while granting this warranty the suppliers or manufactures must explain the terms
in order to minimize the risk of fraud or misleading.
Warranties against defects
A warranty against defects is considered as the representation in respect to the product or
services offered to the consumers, that on occasion of defects the seller will either :-

 Repair or replace the goods or any part of it
 In case of services, resupply or take action to fix the problem
 Provide adequate compensation to its consumer
Furthermore, any material along with the writing is considered as evidence of warranty
against defects. For instance, specifying through words on the packaging or on label of the
product. In addition, with the requirements for warranty against defects a mandatory text is
included in order to ensure that such warranty operates with the consumers’ rights under the
ACL (De Vito and et. al., 2021). Under the case scenario, Joseph purchased the oven and came
into contract which came with the promise that the supplier with either replace or repair the oven
on occasion of defects as under the ACL even if it is not provided in a formal document. For
failure to meet with the warranty services, Joseph has the remedy to cancel the contract and
apply for refund or compensation for the reduced value. He may also compensate for any
unforeseeable loss or damage.
Issue 2: Advice on Interpretation and Validity of Instruments
There are Commonwealth laws that regulates and governs the use of negotiable
instruments. They holds a guarantee in respect to specific amount of money which is required to
pay on certain date. The main negotiable instruments are:-
 Bills of exchange
 Promissory Notes
 Cheques
The Cheques Act 1986 states cheques as an ‘unconditional order’ and is in writing which
aims to address bank and enabling to pay on demand certain sum of money on certain date, it
is signed by the person drawing cheque (drawer) (Michie, 2021). The cheques are subject to
the rules of bills of exchange unless the act provides differently. Types of cheques are as
follows:-
 Order Cheques: in this the amount of money stated on the cheque is require to be
paid to specific person or entity (payee) whose name is written on the cheque. It
instructs the bank to only pay the amount to the payee or rightful indorse.
 Bearer Cheques: It instructs the bank to pay the person who holds the cheque i.e. the
bearer. In such type of cheques there is no name but the cheque is addressed to the

bank to pay cash. Thus, it instructs the bank to pay the cheque amount to the bearer
without any further enquiry.
 Bank Cheques: These cheques are drawn on the bank and is proposed in a situations
where the payment is require to be secure
As per the case scenario the ‘crossing’ on cheque instruct the bank not to pay the amount
stated on cheque in cash but to pay in payee’s bank account or as stated. Whereas the words ‘not
negotiable’ re-imposes the ‘nemo dat rule’ in which it alerts to person taking the cheque that
they will not be given a better title than the person from whom it is being accepted. Such cheques
which bears not only just two parallel transverse lines but also highlights the words ‘not
negotiable’ enables the transferability of cheque but they cannot be negotiated. It instructs the
bank that the cheque shall not be paid on demand instead it is require to pay into the payee’s
account. Under this situation the cheque goes through the clearing system and find its way into
the respective account of the payee. It is considered as legal negotiable instrument if it is not
crossed. According to the case, the first check with two parallel transverse lines accompanied by
words ‘not negotiable’ is valid. Whereas, the second cheque is the bearer cheque, which means
holder of the cheque receives the amount on presenting it before the bank and further can be
transferred through mere delivery. Thus, both the cheques offered are valid and effective
(Agarwal and et. al., 2021).
Issue: 3 Determination of Employment Legislation
Australia regulates the employment system through legal framework of legislation. The Fair
Work Act 2009 and the Fair Regulations 2009 are considered as main legislation. The act
governs and regulates employment relations in Australia. The act aims to provide safety
entitlements accompanied by flexibility at working and fairness in order to prevent unfair
practices against the employees (Thompson and Catley, 2021). The act contains the National
Employment Standards (NES) which sets out minimum ten entitlements and aim to protect
working of the employees. Some of them are as follows:-
 Maximum hours of work
 Parental Leave
 Annual Leave
 Notice of termination
 Redundancy Pay

Furthermore, the act also contains provisions in respect of Modern awards which facilitates
additional minimum entitlements and other relevant conditions for employees during course of
employment, in response to which the employers are requires to operate. Australian employment
law aims to protect contracted employees rather than independent contractors. However the Fiar
work Act along with the Independent Contractors Act 2006 provide certain protection to
independent contractors. Therefore, the act applies to all types of employees except for state
government employees. There are certain factors in determining whether an individual is
employee or independent contractors:
 Degree of control
 Whether party provides tools and equipment
 Right to delegate work or not
 Mode of payment
 Whether they provide their services more than one entities
Most of the times, the breaches of act lead to infringement of civil remedy provisions. In
response the court imposes penalty or imprisonment on determining such breach (Marsiglia and
et. al., 2021). Some of the breach of act causes criminal offences such as receiving bribes and
others. As per case scenario the cleaners are engaged as independent contractors to perform
cleaning work are not entitled to statutory leave and require to pay damage caused during course
of work. Thus, under the act Joseph is not require to misrepresent the employment relation as an
independent contract.
Issue 3: Proper Notice for the Termination of Lease
A lease is am implied or written agreement which provides exclusive rights in respect for
the possession of the property for an agreed period of time. The lease confers the tenant
contractual rights and also the proprietary interest in the property which can be transferred to
third party subject to certain restrictions spelled out in the lease. The formal agreement is
required to be proposed in order to prevent conflicts and misunderstandings between tenant and
landlord. Whereas if the lease is for three years or less than in most of jurisdiction there is no
need to execute formal lease agreement and such can take effect orally (Birchall, 2021).
As per the case scenario there are conducts and communication between the parties which are
supporting the findings of a binding agreement. The following are:-

 Payment of rent: As the location is rented to Joseph and further the rent is paid on
monthly basis and in a timely manner during the tenure of tenancy.
 Acceptance of rent: Even the rent is accepted in an appropriate manner
Furthermore, the requirements forms the lease agreement between Joseph and his uncle. His
uncle said to provide a period of six months before vacating the lease, which Joseph feels that it
is not required because no such lease exists. As per the formal oral lease agreement it is required
to provide a proper notice for termination of lease. Joseph is require to terminate the lease by
giving proper notice of at least of six months as agreed upon in order to prevent the legal cost
(Jennings, 2021).
Issue 5: Privacy Act
The Privacy Act 1988 is considered as the vital piece of the Australian Legislation which
aims to handle and protect the personal information about the individuals. The act includes the
storage, usage, gathering and disclosing of personal information both in the federal public sector
as well in the private sector. The act was later amended in the year 2014 and 2017 in order to
enhance the protection of personal information in the Australia. The Privacy Act covers the small
organization with annual turnover of $3 million and other organizations, and further includes
private sector which provides health services and others engaged in exchanging personal
information.
The Act outlines the mandatory requirements of the Australian Privacy Principles which is
applied to private sector entities which includes body corporates, partnership, trusts and other
unincorporated associations, with an annual turnover of at least $3 million and even the act is
applicable to all Commonwealth Government and Australian Capital Territory Government
Agencies (Thistlethwaite, Dunston and Yassine, 2019). Furthermore, as per the act the Privacy
Commissioner is empowered to conduct investigations and even seek penalties in case of breach
committed by any entity and even monitor entity to implement remedial efforts.
According to the case scenario, Joseph is keeping the records of his employees on his
personal computer at home and uses unsecured network to operate his computer. This action of
Joseph completely violates the privacy of his employees and provisions of the Privacy Act.
Moreover, the Privacy Act implies to this organization who has annual turnover of $4 million.
The unsecured network may lead to the unlawful usage of employees’ personal information and
ultimately putting the reputation of company on stake. It is advised to the Joseph to use secured

data and protect the employees’ information in accordance with the provisions of the Privacy
Act. As the consequences of breaching the Privacy Act may lead to penalty ranging from $ 5,000
to $ 10,000 and in case of serious breach the penalty charged ranges from $ 10,000 to $ 50,000
Thus, it is advisable to Joseph to act within the provisions of the Privacy Act. (Winner, 2018).
CONCLUSION
The above report briefly concluded the legal solutions along with effective knowledge in
respect of various Australia Legislations. The report determined five legal issues and provided in
brief legal advices in order to help the client to achieve its organizational goals effectively and
efficiently without any violation of acts. Thus, the report successfully examined the major five
issues which the client is facing by providing appropriate and accurate knowledge of legislations.

REFERNCES
Books and Journals
Agarwal and et. al., 2021. Economics of Cryptocurrencies: Artificial Intelligence, Blockchain,
and Digital Currency. In Information for Efficient Decision Making: Big Data,
Blockchain and Relevance (pp. 331-430).
Birchall, D., 2021. Human Rights and Political Economy: Violations and Realization Under
Global Capitalism. Available at SSRN.
De Vito and et. al., 2021. Identification of Organisational Models for the Provision of Predictive
Genomic Applications. In Personalised Health Care (pp. 95-116). Springer, Cham.
Jennings, M.M., 2021. Real estate law. Cengage Learning.
Marsiglia and et. al., 2021. Diversity, Oppression, & Change: Culturally Grounded Social Work.
Oxford University Press, USA.
Michie, R.C., 2021. Banks, Exchanges, and Regulators: Global Financial Markets from the
1970s. Oxford University Press, USA.
Osei-Kyei, R. and Chan, A.P., 2021. International Best Practices of Public-Private Partnership:
Insights from Developed and Developing Economies. Springer Nature.
Thistlethwaite, J.E., Dunston, R. and Yassine, T., 2019. The times are changing: workforce
planning, new health-care models and the need for interprofessional education in
Australia. Journal of interprofessional care. 33(4). pp. 361-368.
Thompson, N. and Catley, B., 2021. Managing workplace bullying complaints: Conceptual
influences and the effects of contextual factors. Dignity and Inclusion at Work, pp.109-
145.
Winner, A., 2018. Constitutional law in Australia [Book Review]. Ethos: Official Publication of
the Law Society of the Australian Capital Territory. (248). p.59.