BUSINESS LAW 1018
2016 (3)

ASSIGNMENT 1

BUSINESS ENTITIES AND NEGLIGENCE

CASE STUDY (10%) – No more than 400 words

THE FACTS
Read the followin” rel=”nofollow”>ing facts and answer the 3 questions.

Joe has fin” rel=”nofollow”>inished train” rel=”nofollow”>inin” rel=”nofollow”>ing as an auto mechanic. He has saved his money and opened his own busin” rel=”nofollow”>iness. He does not want to buy in” rel=”nofollow”>into any mechanic franchise, but wants a busin” rel=”nofollow”>iness model best suited for him to do his own thin” rel=”nofollow”>ing. His former boss wants to go in” rel=”nofollow”>into partnership with him, but Joe is undecided. One day he left one of his screwdrivers in” rel=”nofollow”>in the walkway of his busin” rel=”nofollow”>iness. Mary, a customer, came in” rel=”nofollow”>into Joe’s busin” rel=”nofollow”>iness and slipped on the tool and broke her arm in” rel=”nofollow”>in the fall. Joe immediately called an ambulance for her and she was taken to hospital.

Question 1

Discuss the best busin” rel=”nofollow”>iness model for Joe’s auto mechanic shop.

In decidin” rel=”nofollow”>ing which busin” rel=”nofollow”>iness form is best for Joe, you will need to consider the followin” rel=”nofollow”>ing options: sole trader, partnership, or proprietary limited company, in” rel=”nofollow”>includin” rel=”nofollow”>ing the advantages and disadvantages of each.

Question 2

If Joe decides to operate the busin” rel=”nofollow”>iness under a name other than his own, briefly describe the appropriate steps that would need to be taken.

[2 marks]

Question 3

Mary sued Joe for negligence. Describe what she would have to prove for Joe to have been negligent. From the facts given, can she prove this.

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