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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 protect

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Answer the following questions with reference to the relevant statute law and general common law principles operating in Australia concerning the consequences of the company being a separate legal entity and the application of the internal rules of a company. Do not consider the effects of legislation potentially applicable other than that specifically identified. Students may make whatever additional factual and/or legal assumptions are necessary or convenient. As a guide, students should write about 2000 words, or about 500 words per 10 mark allocation. Assessment Task Question 1 15 ...

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Answer the following questions with reference to the relevant statute law and general common law principles operating in Australia concerning the consequences of the company being a separate legal entity and the application of the internal rules of a company. Do not consider the effects of legislation potentially applicable other than that specifically identified. Students may make whatever additional factual and/or legal assumptions are necessary or convenient. As a guide, students should write about 2000 words, or about 500 words per 10 mark allocation. 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 band’s 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 2 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 Ltd’s 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. Assessment Criteria Fail You will have shown evidence of the following: • the written expression is poor and difficult to understand • the answer is poorly organised • referencing is generally inadequate • lack of familiarity with the legislation and its application • failure to identify and address the issues in the question • reasoning and application demonstrated is poor. Pass You will have: • made a conscientious attempt to address the topic and/or answer the question • shown evidence of having done the required reading and of having understood the reading • presented a reasonable argument to back up your conclusions • demonstrated a reasonable level of spelling and grammatical usage • used referencing but this may need improvement 3 • issues that may need to be identified and addressed in more depth. Credit You will have: • addressed the topic and/or answered the question directly • presented soundly based arguments and backed these up with reasons • gone beyond description to analysis of key issues • used the English language well • shown evidence of reading widely • demonstrated understanding of the reading • used referencing that is satisfactory. Distinction You will have: • met the above criteria for a credit • demonstrated the attainment of a high degree of understanding of the concepts of the course • demonstrated deep insight into the application of knowledge and skills acquired to complex theoretical and practical situations • used referencing correctly • made reference to all appropriate legislation. High Distinction You will have: • met the above criteria for a distinction • demonstrated the attainment of an outstanding level of achievement regarding the objectives of this course • demonstrated an interesting and/ or original approach/ idea/ argument • demonstrated mastery of the relevant referencing system • ensured conclusions are backed by well-reasoned arguments demonstrating a detailed insight and analysis of issues • ensured references are made to the appropriate legislation for particular issues.

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Alice is partially correct about her opinion of incorporation of a company for doubling the catch of scallops fishes in the coastal water of Jervis Bay in New South Wales. Her views are contradictory to regulation and legislation practised in the region and in the country. The current legislation ensures regeneration of scallops due to limited stock in the regional coastal water. In addition, the Scallop Fishing and Marketing Act is the primary legislative law for

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