Subject Code & Title :- PDCV101 Foundation Legal Knowledge
Assessment Type :- Assignment
Instructions :- Read the scenario and answer the following problem questions. Please clearly identify with appropriate headings each question that you are answering.
PDCV101 Foundation Legal Knowledge Assignment
Your answer to each of the questions should begin with an introductory paragraph summarising the legal issues which you have identified from the scenario and following paragraphs which explain the legal issues with reference to relevant legal authorities that is legislation or common law).
NB: It is not acceptable to answer the questions from a ‘common sense’ point of view or your own knowledge and experience.
PDCV101 Foundation Legal Knowledge Assignment
You should use footnotes for your references or legal sources.
Word limit: not to exceed 2000 words. Marks will be deducted for excess length.
Scenario :-
Elinor and Edward decide that they want to start a business together, collecting children from schools and taking them to tutoring music sport dance lessons and other activities after school then picking up and dropping the children at home afterwards. They will charge a fee for every collection and drop- off.
Elinor and Edward decide that Elinor will drive the van and do the collections and drop-offs. Edward will handle the promotion of the business and bookings, as well as dealing with invoicing of parents. They further agree to keep each other informed about major business decisions and meet regularly to go through the books.
Edward finances the majority of the start-up costs of the business, including, renting a small office buying the van organising the training correct licencing and certifications with a loan of $40,000 from his friend Maryanne.
PDCV101 Foundation Legal Knowledge Assignment
About three months later and after a great deal of hard work and promotion Edward and Elinor have more bookings than Elinor can manage. They meet weekly to go over the books talk about progress and discuss expansion of the business.
Elinor and Edward buy a second van and hire their first staff member, Brendan. Brendan’s first few runs go very well and the feedback that Edward gets from parents is very positive.
Brendan is approached by Kerry, a dance school owner, whose business is struggling. Kerry offers to pay Brendan $20 for every student that Brendan is able to convince to leave their current dance studio and join Kerry’s studio. Brendan can’t see any thing wrong with that as it doesn’t affect Elinor and Edward’s business and in fact may attract new clients. Feeling inspired Brendan approaches a number of other businesses and offers to bring them new students for a small fee.
Over the next few months Brendan talks to children on the bus about the lessons and how he has heard of better teachers at other places. Brendan receives about $1,500 from the businesses. He keeps this for himself.
Elinor notices that Brendan has made his own business cards and added the title ‘NSW Promotional Co Ordinator under his name and in emails. Elinor is not impressed and tells Edward who finds it amusing and tells Elinor not to worry about it because it makes their business look more impressive.
PDCV101 Foundation Legal Knowledge Assignment
Edward pays Maryanne back the $40,000 but she refuses to accept $10,000 of the repayment telling Edward that she would like to become part of the business and receive a return from profits.
Edward spends $2,000 of the money playing poker machines at the local RSL club and wins $3,000.
He keeps the additional $1,000 and deposits the $10,000 into the business account telling Elinor about Maryanne’s proposal to become part of the business.
A few parents start making complaints to Brendan about their children suddenly talking about changing their dancing and sporting teams and Brendan becomes worried that Elinor and Edward may find out so he offers the parents a 10% discount on the fees.
One day Brendan is approached by board member of the local RSL club who asks him whether the club can place signage on the sides of the van to promote facilities at the club for child minding and activities for children.
Brendan thinks this is fantastic way of making more money for the business and emails the club saying The promotional signs are a great idea. We can go ahead whenever you are ready.
PDCV101 Foundation Legal Knowledge Assignment
The men arrive two days later with signage for both vans.
One of the parents contacts Edward to ask about the discount some of the parents are talking about.
One of the music studios complains to Elinor about the loss of students to competitors.
Edward and Elinor are very un happy with the discounts the bonuses that Brendan has been receiving and the RSL signage and they tell Brendan that he did not have any authority to make these decisions.
PDCV101 Foundation Legal Knowledge Assignment
Questions:
What is the basis of the legal relationship between Edward and Elinor.
Is Edward liable for the $1,000 and, if so, to whom and on what basis?
What is the basis of the legal relationship between Brendan with Edward and Elinor.
Are Elinor and Edward bound by Brendan’s actions with the RSL Club and if so in what capacity?
Is Brendan liable for anything and if so, to whom?
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