CORPORATIONS LAW TERM ASSIGNMENT QUESTIONS

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Assessment Task
Question 1 15 Marks
Bob Beech is a scallop fisherman and involved in commercial scallop fishing in
the coastal water of Jervis Bay in New South Wales. The stock of scallops in this
water is limited and subject to protective legislation to ensure regeneration.
Hence, the Scallop Fishing and Marketing Act provides for a quota system. Under
the quota system, a person must apply for a quota which will permit him or her
to catch 50 tonnes of scallops in a calendar year. Further, the Scallop Marketing
Authority will purchase any scallops up to the quota limit for each person.
The Act also provides for a number of offences. It provides that it is an offence to
sell scallops caught in New South Wales waters to any person other than the
Scallop Marketing Authority and it further provides that it is an offence to catch
more than the quota limit. Each offence carries a fine of up to $100,000.
Bob has the physical capacity to catch more than 50 tonnes of scallops in a year
and wishes to make more money from his business. His daughter Alice tells him
that by incorporating a company he could double his catch.
Is she correct?
Question 2 10 Marks
New Nirvana Ltd is a company controlled by the members of the hard rock band,
N/N. A number of wholly owned subsidiaries of New Nirvana Ltd are involved in
setting up and running the bands concerts. One of the subsidiary companies,
Nuclear Blast Sounds Pty Ltd, is responsible for setting up the sound equipment
at N/N concerts in Australia. At a recent N/N concert in Sydney, Nuclear Blast
Sounds Pty Ltd negligently set the sound levels too
high with the result that five audience members suffered permanent hearing
loss. Unfortunately for those audience members, Nuclear Blast Sounds Pty Ltd
had no negligence insurance and cannot pay the likely damages claims.
Advise the injured audience members whether they can make New Nirvana Ltd
liable for Nuclear Blast Sounds Pty Ltds negligence.
Question 3 15 Marks
Simon, Michael and Don set up a project management company called
Millennium Pty Ltd. Don is a solicitor and the constitution of Millennium Pty Ltd
nominates that Don will be the solicitor for any land purchases or sales made by
the company. The articles also provide that any disputes which arise between
the company and its members should be first referred to an arbitrator before
there are any court proceedings.
After a number of years, Simon and Michael meet another solicitor who they
think is more efficient than Don and they appoint him as solicitor for Millennium
Pty Ltd.
Don brings legal action against Millennium Pty Ltd over the matter. Advise the
company as to their legal position.