200909: Enterprise Law- Western Sydney University- Kimberley & Charles- Sport n Surf- Law Assignment Help

Task:

There are two parts to this exam and students must answer both parts.

Part A:

Elle runs a Bed & Breakfast house in the Southern Highlands in NSW. To give it acertain quaintness, Elle decides to install outside shutters to frame her windows. Elleorders the pine shutters, which are on sale in the local hardware store. Elle hires ahandyman to install the shutters. The instructions are contained in a bookletsupplied with the shutters. In very small writing appears the following statement:

These shutters are for decoration only and should not be installed where exposed to harsh weather conditions.

The handyman read this clause but did not say anything to Elle. After the shutters had been in place for several months, the wood appeared to be
splitting. Elle notices that some of the shutters are damaged but does nothing about them.

On a windy evening, one of the damaged shutters is blown from the window surrounds and hits Kimberley, a guest who was in the garden enjoying her onecigarette per day. Another shutter flies off and hits Charles, a member of the public, who is taking a short cut across Elle’s property having been caught out too long on abush walk.

Kimberley suffers bruising and cuts across her arm and shoulder and develops a phobia about wind, claiming she can no longer leave the security of her own home,and cannot work. Charles suffers a head injury and is off work for six months recovering.

Elle immediately removes all the shutters.Kimberley and Charles have advised that they intend to sue Elle in negligence.Advise Elle on the likelihood of those claims being successful, giving full legalreasons for your response.

Part B:

Jacob is interested in buying a small retail clothing business called ‘Sport ‘n Surf’ inCronulla. One Saturday, Jacob runs into two former school friends, Rose, who ownsa hairdressing salon in Cronulla and Geoff, who is a business broker specialising inmatching prospective business buyers with sellers in the hotel sector. Jacob tellsRose and Geoff that he is considering buying the business. Rose tells Jacob thatCronulla is booming and that the business is sure to do well, as everyone in Cronullasurfs and plays a sport of some description. Geoff, who is not an accountant, offers
to have a look at the books of the business and give Jacob his view. The books ofthe business have been prepared by Water Accounting Services, the business’ usualaccountants. Geoff inspects the books and tells Jacob that the business is doing welland that it made a profit of $120,000 last year. In fact, due to an error by WaterAccounting Services, the profit was reported as $120,000 when in fact it was$12,000. Geoff advises Jacob that based on the past profit disclosed in theaccounts and his own observations of the business, the purchase price sought by the sellers at $250,000 extremely reasonable.

Jacob bought the business for $250,000 and at the end of twelve months is verydisappointed to find that his profit was only $12,000. He learns from other businessbrokers that a reasonable purchase price for the business, even based on a profit of$120,000 would have been $200,000, but clearly less if based on a profit of $12,000.

Discuss whether Jacob may have been owed a duty of care on the above facts, and if so, by whom. Fully explain your answer.

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200019: Australian Resident- Lindfield Sydney- Get Revenue Law Assignment Help at [email protected]

Task:

Peter, an Australian resident, has lived in his house in Lindfield, Sydney since 1990 and purchased for $450,000. The four bedroom house was located on a large 900 m block, with the property located in the front part of the block. From January 2016 to January 2017 he has been involved with online accommodation hosting site Air B and B and has had numerous people stay overnight, utilising two of the four bedrooms. The normal way the arrangement is organised is through “word of mouth”, and the listing on the online hosting site. In the year ended 30 June 2016, he received $25,000 for such Air B and B accommodation bookings. The money was never received by Peter, but transferred directly to the school account for his 15 year old daughter for her school fees. At that time the school fees were $30,000. The outstanding $5,000 has been forgiven by the school.

In January 2017, he decided to subdivide his land into two 450 m blocks, with the intention of building a townhouse. The subdivision is approved and, while he is building the two bedroom townhouse, he continues to live in his existing house. When the two bedroom townhouse is completed he moves into that townhouse, lives in it for six months, receiving all of his bills, car renewal reminders etc at that new address, and then sells it. During that six month period, he rents out his four bedroom house for six months. After the six month period, he then moves back into his four bedroom house for the next six months, receiving all of his bills, car renewal reminders etc at that new address. In March 2018 he decides to sell the four bedroom house, move to Hobart and live with his brother.

His overall development costs to subdivide and build the townhouse total $500,000 and he sold the two bedroom townhouse for $800,000 and the four bedroom house for $1.5 million.

Discuss

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2.You are asked by a Swedish company that assembles computers to draw up a by-nature and by-function income statement for year n . You are provided with the following information: Retail price of a PC: €1500. Cost of various components: E XERCISES SECTION 1 Parts Case Motherboard Processor Memory Graphic card Hard disk Screen DVD combo Price 50 200 300 100 50 150 200 50 Opening inventory 5 8 4 6 1 5 3 7 Closing inventory 13 2 11 4 13 10 3 19 Over the financial period, the company paid out €60 000 in salaries and social security contributions of 50% of that amount. The company produced 240 PCs. Closing stock of finished products was 27 units and opening stock 14 units. At the end of the financial period, the manager of the company sells the premises that he had bought for €200 000 three years ago (which was depreciated over 40 years) for €230 000, it now occupies old premises that are fully depreciated, and pays off a €12 000 loan on which the company was paying interest at 5%. What impact do these transactions have on EBITDA, operating profit and net income? Tax is levied at a rate of 35%. Over the course of the financial period, by how much did the company/the lenders/the company manager (who owns 50% of the shares) get richer/poorer?

 

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2. You are an economic advisor for a small country and you have been asked to analyze the countrys long run growth prospects

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