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Abs202: Corporate Structuring - Assessment Answer

Assignment Task:

LEARNING OUTCOMES 

On successful completion of this assessment, students will be able to: 

• Demonstrate a fundamental understanding of key laws applicable to setting up a business; 

• Identify the various organisational structure options required to complete the process of setting up and incorporating a new venture; 

• Demonstrate an understanding of the sources of regulation that govern the operation of businesses; 

• Apply legal principles to everyday business situations; 

• Demonstrate an understanding of acceptable business behaviours.

 

ASSIGNMENT INFORMATION 

In this assignment, you are required to put yourselves in the shoes of a legal advisor to a small business owner, Joseph, who has just opened a small bakery/ restaurant. Joseph is excited about the new venture, especially since he has designed his restaurant around a pastry that he believes he’s invented – the croissconenut – the combination of a croissant, scone and doughnut. HIs restaurant will serve this delicious pastry as well as other more traditional pastries, along with coffees and teas. At the outset of this business, Joseph has encountered several different issues which he is asking you to advise him on. 

First, Joseph located the restaurant in a quaint location that is sure to get foot traffic, but the size of the kitchen prevents him from cooking the signature croissconenut on the premises. He has outsourced the creation of his baked goods to his cousin, Alfred, who has agreed to supply all of the needed baked goods on a daily basis. This has worked for the first few days of operations, but Joseph now wants to increase his output to 100 croissconenuts per day and he is not sure if Alfred can, or will, increase his supply. Nothing has been put in writing, and Joseph is wondering if he should continue in this manner, and also wondering what specific elements are necessary to make an enforceable contract with Alfred. 

Second, Joseph is partnering with his two siblings in the endeavour and wishes to divide the ownership equally among them, but he also wants to protect them (along with himself) from full liability in the event that anything should go wrong in the business. Joseph would like to know which business structures would satisfy these needs, and which one you might recommend for his business. 

Third, Joseph is concerned about protecting the value of his unique baked good. He has named the restaurant “The Croissconenut” and he would like to be the only restaurant in town that uses that name for his bakery. He would like to obtain a Design on his signature baked good and is wondering if this is an appropriate form of protection. In addition, he is asking you to help him find a way to protect his intellectual property. 

Fourth, on the first day of operations, an unusual accident occurred wherein a bicyclist crashed into Joseph’s “Grand Opening” sign which was positioned on the sidewalk directly outside of the restaurant. The sign was destroyed, and the bicyclist suffered a minor injury and was quite angry after the accident—so angry that he threatened to sue Joseph for recklessly placing his sign in the middle of the sidewalk. Joseph estimates that the injury would likely be no more than $4,000, but he is asking you for assistance on this matter. Specifically, he wants to know how a court may interpret negligence in this particular situation, and he also wants to know what court he would likely appear in, in the event this matter goes to trial. 

With the above information, please provide a written report addressing the four major questions to the best of your ability. Please feel free to utilise the information provided in the chapters, as well as outside sources, which may include books, periodicals, journal articles and information sourced from other legal websites (both those sited on in the chapters and otherwise)

 

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