Commercial and Corporations Law case study

Commercial and Corporations Law case study

Order Description

this is a case study.

MLC707 Commercial and Corporations Law
Trimester 3, 2014
Due Date:
Monday 12h January 2015 by 11.59 pm
Word Count:
1,500 words. Any words over this limit by more than 10% will
not be marked
Total Marks:
15% of the final grade
Please read the instructions carefully at pages 2 to 4 of this
Alan a retired carpenter and Bridget a retired caretaker are husband and wife in their 70s.
They were migrants from Russia who came to Australia in 1956 and have two children,
Carlos and Doris, both were born and educated in Australia. Both Alan and Bridget have no
formal education and both have very limited command of English. In the past, most of the
important documents have been translated for them by their children or by qualified
translators. They have worked hard during their working lives and they own a modest family
home in Victoria that has a current market value of about $400,000.
Property Division Pty Ltd is in the business of buying properties and subdividing them into
smaller plots to re-sell them with profits. Carlos is a director of the company. The company
has been operating successfully in the past 10 years. However, in recent years, property
market has dropped in value and there is now less demand for smaller plots further out from
Melbourne CBD. Carlos is finding it difficult to re-sell the subdivided properties as quickly
as he has hoped for, and in the meantime the interest payments on the loans that the company
has with East West Bank are escalating and the company often falls behind in the repayments
to East West Bank that has repeatedly sent letters of demand for payments. Carlos
approaches Bruno who is a friend and a finance manager at East West Bank for assistance.
Bruno suggests refinance as a way of getting out of bank troubles and says that his parents
can be the guarantors and they can use the home they own to take out a further mortgage.
Over dinner, Carlos explains to his elderly parents and his sister about how successful his
property subdivision business is and that he needs a little help to expand his business and this
would take about 12 months. The elderly parents seem happy that their son is doing well in
business and so they agree to provide him with $30,000 as requested as a way of assisting
him to expand his business and agree to sign the guarantee and the mortgage document.
Bruno is mostly quiet during dinner, except that he walks away a couple of times to answer
his mobile phone. Bruno then presents the documents for the elderly couple to sign, he says
to Alan and Bridget that they should take a few days to read through the documents, think it
over and ask for professional advice from someone else if necessary. Nothing more is said
about this until after the dinner when Alan and Bridget say that they do not need to think it
over as their son is doing well in business and they have known Bruno since he was a child.
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One and half years later, Property Division Pty Ltd goes into receivership. The company
owes the Bank about $150,000. East West Bank now attempts to enforce the mortgage and
the guarantee against the elderly couple.
Advise Alan and Bridget. Explain with clear and full reasons as to whether they have a
strong claim against East West Bank. (15 marks)
Instructions for the Assignment:
The following instructions must be read together with the information contained in the Unit
Guide which is posted on CloudDeakin. In particular but not exclusive, I draw your attention
to the point regarding “Avoiding plagiarism and collusion” at page 13 in the Unit Guide.
1. This is a group assignment, with the group size being 3 – 4 students in a group. That
is, you may work in a group or a team with a minimum of 3 students and a maximum
of 4 students. You can have a mix of on campus and off campus students working on
the assignment. Whatever mark awarded for the assignment in any particular group,
all members in that group will have the same mark.
2. One student from each group must submit only ONE copy of the assignment on
behalf of all the students in that group. ALL names of the students, including student
IDs in that group must be printed clearly on the front page of the assignment before
you submit on CloudDeakin.
3. This research assignment is compulsory and is worth 15%.
4. Word limit for the assignment is 1,500 words. Any words over this limit by more
than 10% will not be marked. Please note that footnotes are only for referencing
purpose and do not form part of the word limit.
5. You are to find your own teammates to form a group, and it is your responsibility to
work co-operatively and harmoniously as a team in your group. This is important in
any industry.
6. The marks for the assignment will be released within 15 working days or thereabout
after the due date and feedback for the assignment will also be given around the same
Due date and Method of submission:
1. This Assignment is due on Monday 12th January 2015 by 11.59 pm. As this is a
group assignment and you have more than adequate time to work on the assignment,
extension of time will not be granted unless the student has suffered a serious
disadvantage, for example, serious illness or death in the family, and a written
application with clear supporting evidence is sent to your lecturer at least three (3)
working days prior to the submission due date for consideration. Late submission
without an extension being granted will be penalised at the rate of one (1) mark per
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2. Only ONE copy of the assignment must be submitted on behalf of all the students in
that group. ALL names of the students in that group and all student IDs must be
clearly printed on the front page of the assignment. The assignment must be
submitted online via CloudDeakin website by the due date. You must not email your
assignment to the lecturer directly.
Assessment measures:
This Assignment is a case study, which requires you to analyse a specific legal problem or a
specific legal area. The assessment measures for the assignment will be on:
Critical thinking and thorough analysis of the facts and the relevant laws, and this
includes identification of legal issues and principles both from common law and
from legislative provisions;
Adequate legal research
Clarity in your communication, in the structure and in presentation and
Proper referencing and citations
Note: It is therefore important to spend some time thinking and talking through on how the
assignment is to be structured and to give yourself some time to edit and proof-read the work.
A piece of writing may need to go through a few drafts.
Presentation (general):
Please include word count and insert the page numbers on your assignment.
Organise your assignment using headings and sub-headings.
Use footnotes to refer to your sources of information.
Provide a brief bibliography on a separate page at the end of your assignment.
Include reference to any textbooks, articles, loose-leaf services, internet sites used.
Do not include case references and legislation in the bibliography – these go in
the footnotes.
5. Please do not include an “executive summary” or “synopsis” in your assignment.
Using Footnotes:
Citations of your sources of information should be in footnotes. Here are some tips on
Legislation should be cited initially as, for example, s.180(1) Corporations Act 2001
(C’th) and thereafter, s.180(1) CA.
A book should be cited as, for example, Hanrahan P, Ramsay I, and Stapledon G,
Commercial Applications of Company Law, 2013, 14th edition, CCH Australia Ltd,
When you cite from the same book more than once, later references should just
mention the surname and page numbers, for example, Hanrahan, Ramsay &
Stapledon, p.143.
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Cases are cited as, for example, Mabo v. The State of Queensland [1989] HCA 69;
(1989) 166 CLR 1865.
A journal article should be cited as, for example: L. Thai, “How Popular are Statutory
Derivative Actions in Australia? Comparisons with United States, Canada and New
Zealand” (2002) 30 Australian Business Law Review 118, at 136.
Internet sources should contain the full internet address and the date you accessed the
In addition to the University’s policy on plagiarism, you should pay particular attention to the
following issues:
If you are quoting directly from another person’s work, you must place that sentence
in quotation mark and provide a clear citation in the appropriate footnote.
If you are paraphrasing that work, or expressing in your own words an idea or
argument from another author, quotation marks are not required but a footnote
reference must still be provided.
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