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MBS502 Law For Business Assignment Help

This assignment consists of two questions adding up to 30 marks.  Student must complete both questions. It must not exceed 3000 words (excluding footnotes). It will be graded to 30% of unit marks.

Assignment Format

The  assignment  must  be  typed/word  processed  unless  prior  agreement  has  been obtained from the unit controller.  Please observe the following requirements:

Font                                –     Times New Roman, 12 point

Spacing                           –     1.5

Margin                            –     Normal: Top: 2.54cm   Bottom: 2.54cm

Left: 2.54cm  Right: 2.54cm

Paper                               –      A4

Word Count                    –      No more than 3000 words

Referencing                    –     Legal   referencing   style   in   accordance   with    the Australian Guide to Legal Citation


Assignment submission

You will submit electronically by 12 noon via the assignment ‘drop box’ link available on LMS. You MUST also ensure that you have put your assignment through Turnitin available in main LMS page. Follow the following additional instructions:

a. When submitting assignments electronically, please use the Electronic Cover Sheet available.

  1. Assignments should be submitted electronically.
  1. c. Where assignments are submitted in Microsoft Word, the coversheet and assignment should be submitted as a single
  1. So your work doesn’t get mixed up with others’, use a filename which follows the convention: Unit Code, Assignment Number, the first three characters  of  your  last  name,  your  first  initial  and  your  Student

Number. e.g. MBS502Assign1ChoJ12345678 for student Jun Chong.

  1. e. If  you  need  to  submit  a  coversheet  separately  (e.g.  when  the assignment is written in another package, such as Excel), append CS to the same filename, to signify that this is a covershee

Assignments that do not have a signed electronic coversheet will not be accepted for marking.


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Plagiarism-checking software

Your Unit Coordinators may use software called Urkund when viewing work that you submit. Urkund is a pattern-matching system designed to compare work submitted by students with other sources from the internet, journals/periodicals, and previous submissions. Its primary purpose is to detect any submitted work that is not original and provide a thorough comparison between the submitted document and the original sources. Urkund will be replacing Turnitin (the previous pattern-matching software used by Murdoch) from 2016. More information about how to avoid plagiarism is contained within the Murdoch Academic Passport (MAP) unit . University policies on academic integrity can be accessed.

Assignment marking guide

The mark for your assignment follows the IRAC method of answering legal problems and will be determined by reference to the quality of its analysis, its clarity and organisation,  and  its  presentation,  including its  freedom  from  distracting stylistic errors (grammatical, spelling, punctuation and typographical).

The following grading guide provides a summary on how the grading will be reflected based on the IRAC structure. However, it should be noted that the guide is  NOT an accurate predictor of the grade. Some factors carry more weight that others especially  the  application  section.  Students  should  be  aware  that  grading  is  a balancing act and combines several factors. Thus, a paper may fail overall even though it fulfils a passing standard on some of the criteria.


Extensions can only be granted by the Unit Coordinator, Dr. Dennis Ndonga.  Requests for extensions will only be granted if made prior to a due date and the request must be sent via email stating the reason for the request.

Extensions will usually only be granted in valid pressing medical or compassionate situations, where the student acts promptly to contact the Unit Coordinator. Work obligations, family celebrations such as weddings, moving house, computer failures, car failures or other transportation difficulties, other study commitments and similar matters are not valid reasons and thus are not accepted as grounds for an extension. It assignment is completed on a progressive basis over a number of weeks.

As such, any valid request for an extension must be accompanied by the assignment completed up to the point of the request as well as supporting evidentiary documentation. There is little point in requesting an extension if you have made no progress with your assignment as this simply indicates lack of time management skills as well as disregarding the instructions contained within this unit learning guide in terms of treating the assignment as a “work in progress”.

Late submission penalties

Late assignments will have 10% of the marks deducted per day or part thereof (i.e. 3 marks per day).

Word Length Penalties

Word lengths are an important indicator of the depth expected for a specific assignment. Some assignments are very short and require you to develop the skill of concise argument construction. Longer word lengths indicate a more in-depth discussion/argument.

Each assessment you are given will include specific instructions, including a designated word length. You are required to state the accurate word count for your assessment on your cover page. This word count will include all in-text references and subheading. Assignments which are within 5% of the designated word length will not attract a penalty. Assignments which are more than 5% over the designated word length will attract a penalty of 5% of the total possible marks for that assignment per

5% over the designated word length.

Markers will not read more than 15% over the designated word length.

*****Remember to always retain a copy of your assignment.

PharmCo International is an international pharmaceutical wholesaler with its head office in Sydney, Australia. Over its 20 years of existence PharmCo has developed a broad investments portfolio with stocks in several blue chip companies, assets distributed in several subsidiaries and funds stored in a number of offshore accounts. PharmCo’s complex finances are managed by Goldman Asset Management (GAM) based in Sydney. This has enabled the managers at PharmCo to focus on improving their  drug  distribution  networks  without  having  to  bother  about  their  financial position.  In  January  2015,  PharmCo  negotiated  a  distribution  arrangement  with Paratol Ltd, the manufacturers of Paratol pain relief medicine. The terms of the arrangement required Paratol Ltd to release, on credit, a large stock of Paratol painkillers valued at $2,000,000 to PharmCo for distribution. PharmCo would then have a 6 month grace period to pay off the $2,000,000. As a precondition to the agreement PharmCo was to provide a letter of guarantee from its asset managers verifying that PharmCo was liquid and had assets that could cover the $2,000,000 in the event of default.

In August 2015 PharmCo prepared and signed a letter of guarantee which was forwarded to GAM for signing. The guarantee was sent to GAM’s Processing and Payment’s Department. This department handled matters relating to payments of creditors, processing payment cheques for orders, and verifying payments. It was the department  that  PharmCo  invariably dealt  with.  The manager of this  department signed the guarantee and affixed GAM’s stamp.

The  guarantee  was  then  sent  to  Paratol  Ltd  which  then  delivered  the  stock  to PharmCo. In December 2015 PharmCo became insolvent and defaulted on the payment. It was discovered that PharmCo had actually been operating under a deficit for the past eight months as most of its assets had been devalued.

Paratol Ltd tried to enforce their debt against GAM but they have claimed that they are not liable. According to GAM’s internal procedures, guarantees are signed by the Guarantee and Valuation Department and not the Processing and Payment’s Department. GAM’s Processing and Payment’s Manager also insisted that she signed the document to verify the PharmCo signature (as she did with all agreements that PharmCo entered into) and not to indicate that GAM accepted the guarantee and

confirming PharmCo’s liquidity. However, the document made no mention of this. On its face value the guarantee document looked just like any other normal guarantee letter. Neither Pharm Co nor Paratol Ltd was otherwise told that the manager’s signature was for the limited purpose of verifying PharmCo’s signature.


Using the Common Law of Agency, advice Paratol Ltd on their legal position? [15 Marks]

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As part of their end of semester party some Business law students decided to play a joke on their Lecturer, Bob. One of the students, Amy, phoned Fast Gravel Pty Ltd, said she was acting on behalf of Bob, who was having some home renovations done, and purported to make an order for some sand on his behalf. Fast Gravel Pty Ltd delivered the sand on Bob’s garden and left the bill for $200 (which included the delivery charge of $50) in the letterbox. Bob found the bill when he returned home, so he phoned Fast Gravel Pty Ltd to complain, and asked them to come and take their sand away. Fast Gravel Pty Ltd spent time reloading the sand and hired a gardener for

$100 to replant some lawn that was destroyed.

a) What is Fast Gravel Pty Ltd’s rights and liabilities in relation to Amy and Bob in this situation? [10 Marks]

b) Assume that Bob did, in fact, want to do some garden improvement On seeing the sand delivered on his garden he tells Fast Gravel Pty Ltd that he would keep the sand, but that he was is not prepared to pay for the delivery charge of $50. [5 Marks]



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