Business Law 100 Assignment: Media Report Analysis and Legal Issues

This report analyzes a media report concerning the prosecution of labor staff for fraud, intent to commit fraud, and stealing. The analysis delves into the application of criminal law, specifically the Criminal Code Compilation Act 1913 (WA), and contract law, focusing on the breach of contract due to altered invoices. The report examines the functions of law, including ensuring predictability, discouraging misconduct, granting rights, imposing obligations, and providing remedies. It explores the importance of understanding the law for the parties involved and how they could apply the law to their advantage. The influence of media on public perception of the law and potential impacts on legislators and judges are also discussed. The report references relevant case laws, legislations, and scholarly articles to support its analysis, including the roles of ASIC and the application of Australian contract law principles. The analysis reveals that the staff could defend herself if she proves the alterations were not made and the claims were honest. However, such defense is tough to prove only if she has evidences, “beyond reasonable doubt”, otherwise she shall be held liable for fraud.

Running Head: MEDIA REPORT ANALYSIS
MEDIA REPORT ANALYSIS
Name of the Student
Name of the University
Author’s Note

1MEDIA REPORT ANALYSIS
THE THESIS PRESENTS ITS ANALYSIS ON THE PROSECUTION OF LABOR
STAFF, LEUWIN O’CONNELL FOR THE CHARGES OF FRAUD, INTENTION TO
COMMITT FRAUD AND STEALING IN THE OFFICE OF STATE MP JOSIE
FARRER.
LAWS INVOLVED:
 Criminal Law:
Western Australia is governed by a codified yet exhaustive criminal law called the Criminal
Code Compilation Act 1913 (WA). It is applicable because of three three essential elements for
the determination of fraud: Firstly, a material false statement is made, secondly, such statement
is made with the intention to deceive the other person and thirdly, the victim has relied upon the
statement to make his or her decision. The person making the false statement should have
complete knowledge of the falsehood of such statement1. However, in Roberts v The State of
Western Australia2, it has been states that honesty of the claim is enough to relieve then accused
of criminal charges of fraud or dishonesty against him or her.
 Law of Contracts:
The staff under the Department of Premier and Cabinet are governed by the Contracts for
services and such contracts are covered by the Australian Contract Law. It is applicable
because the employment contract exists between the Department and the Labor staff and the
submission of altered invoices for reimbursement amounts to breach of contract.
1 Bolitho vs. The State of Western Australia[2007] WASCA 102
2 [2005] WASCA 37

2MEDIA REPORT ANALYSIS
FUNCTIONS OF LAW:
 Ensures reasonable predictability in daily life:
Ms. Farrer had delegated high levels of duty to her staff and she should have been aware of the
foreseeable risk of fraud or stealth.
 Encourages and discourages certain conduct
Law discourages the act of intentionally producing false information to deceive the other person.
However the law also encourages the act of honesty and nature of the knowledge produced.
 Grants rights and powers to individuals and groups of people:
Criminal law grants right to justice to the victim who has suffered the consequences of wrong
committed by the other person. Law of torts grants right to civil remedies like civil suits,
injunction, compensation, termination of contract and so on.
 Imposes obligations on individuals / organisations to meet their legal
responsibility:
Criminal law imposes obligation on the persons to act morally towards other people to maintain
harmony in the society. Contract Law imposes obligation on one party for the discharge of
contractual duty performance and on the other party for the complete payment of consideration
as agreed by them in the contract.
 Allows for the enforcement of recognised rights and duties:
Criminal Law takes the way of punishments to enforce the rights and duties of a person towards
other people recognized as the society. However, law of contract allows the enforcement of

3MEDIA REPORT ANALYSIS
rights as agreed upon by the parties while entering into such contract. The rights and duties are
recognized depending upon the nature of their agreement and also the terms agreed by them.
 Provides remedies when an injustice has been done:
Criminal law provides relief in the form of punishments. These punishments include
imprisonment, fines and death penalty. However, in law of contracts the remedies are in the form
of injunctions, compensation, termination of the contract, non-refund of the deposit and so on.
The acts of the accused has brought me to this conclusion that the criminal law is the law
enforced for the maintenance of harmony in the society and is exercisable against the state.
However, the law of contracts is enforced between two or more private individuals and hence,
the right is exercisable against only one person who is the party to the contract.
By reference to the legal issues contained in the chosen media report, explain
why it was important for the relevant party/parties to know the law in the
circumstances? How did, or could, the party/parties have applied the law to
their advantage?
According to Common Law, not all promises were enforceable. However, in modern law of
contract, the promise is made enforceable by way to action of asumpsit, which is a development
of an old theory3. In Australian Law, the bargain theory dominates the contract principles as a
primary element, which explains the exchange of promises between the parties4. Common Law
rules lay down that a contract shall be valid until all the essential elements of a contract has been
3 David v Baker [2015] NSWSC 393, Supreme Court (NSW).
4 Australian Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20, (1954) 92 CLR424, High Court.

4MEDIA REPORT ANALYSIS
satisfied. However, in Australia, the law of equity has also played a significant role in modifying
the principles of contract regarding the contracts and its remedies upon the breach of contractual
promises5. In other words, the principle of non-est factum6 is applied stating that the contract
would be void or voidable by immediate intervention of law of equity.
Section 409 of the 1913 Code deals with the offence of fraud. Part VI of the Code deals with
stealing and like offences. According to section 371, any person who takes the possession of
another person’s property without his or her knowledge and use such property as own, depriving
the owner of his ownership rights over the property temporarily or permanently7 shall be termed
as stealing. However, section 424 deals with fraudulent falsification of record.
The analysis of the media report includes thorough study and application of criminal law and
the law of contracts. However, the staff has a positive ground to her defense, which is
investigation report showing no excess or abnormal outgoing identified. However, if the stolen
artifacts are found in possession of the accused then she shall be held liable for stealing. On the
contrary, in other two situations, if she claims and proves that the alterations were not made and
the claims were honest, then she shall be acquitted from the fraud charges. However, such
defense is tough to prove only if she has evidences, “beyond reasonable doubt”, otherwise she
shall be held liable for fraud.
5 Garcia v National Australia Bank Ltd [1998] HCA 48, (1998) 194 CLR 395, High Court.
6 Petelin v Cullen [1975] HCA 24, (1975) 132 CLR355, High Court.
7 Balcombe vs. De Simoni(1972) 126 CLR 576

5MEDIA REPORT ANALYSIS
How do the media influence public perceptions about the law and its
administration? How might public pressure impact legislators and judges in
establishing the law?
The media plays a very vital role in the recognition of laws and its principles. However,
media plays the role a third party to convey the information to the common people. It is the
manner in which the case or the information is portrayed to the people that influences the
perceptions of law.
Government is the acting party which is responsible for the enactment of rules,
regulations and various laws to control the behavior of the people in the civilized society.
However, government in spite of taking major steps of enacting various legislations, it is the
people who find loopholes in the laws and act in a manner to depict innocence. Thus, it is people
who regulates the terms of application of law by way of identifying loopholes in the law and
acting in that manner. The Criminal Code defined fraud and stealing. But still the accused in the
analyzed media report, found the loophole to submit the altered invoices for reimbursement.
Public pressure is a never-ending pressure upon the Government for the acceptance of
changes to be brought in the legislation8. Many a times, it is the public pressure which creates
demand for a change and hence, it is accepted by amending a provision of law or enacting a new
legislation in the regard.
8 Graber, Doris A., and Johanna Dunaway. Mass media and American politics. Cq Press, 2017.

6MEDIA REPORT ANALYSIS
BIBLIOGRAPHY:
Case Laws:
Australian Woollen Mills Pty Ltd v The Commonwealth [1954] HCA 20, (1954)
92 CLR424, High Court.
Balcombe vs. De Simoni (1972) 126 CLR 576
Bolitho vs. West Australia [2007] WASCA 102
David v Baker [2015] NSWSC 393, Supreme Court (NSW).
Garcia v National Australia Bank Ltd [1998] HCA 48, (1998) 194 CLR 395, High Court.
Petelin v Cullen [1975] HCA 24, (1975) 132 CLR355, High Court.
Roberts vs. State of West Australia [2005] WASCA 37
Legislations:
Slp.Wa.Gov.Au (Webpage, 2019) https://www.slp.wa.gov.au/statutes/swans.nsf/%28DownloadFiles
%29/Criminal+Code.pdf/%24file/Criminal+Code.pdf
Journal and Scholars:
Graber, Doris A., and Johanna Dunaway. Mass media and American politics. Cq Press, 2017.