BIBM622 The Law of Business Entities - Assessment 1

INSTRUCTIONS:

1. This is an open book assignment. Any notes or reference material can be used but must be correctly referenced under APA (7th ) requirements.

You will need to gain an understanding of the issues, and research the questions, to present answers of a high standard.   It is advisable to start as soon as you are able. Students may jeopardise their chances of obtaining a pass mark if they leave this assignment to the last minute.

2. The assessment may be completed individually or in pairs.  If you elect to form a pair, then the following rules will apply.
   1. Movement into or out of a pair will only be allowed before the end of week eight of the course. NOTWITHSTANDING this, the Course Examiner reserves the right to dissolve a pair at any time in the If this happens, the students will then be required to complete the assessment individually.
   2. It is reasonable to assume that each member of the pair will complete their tasks and duties assigned to them punctually and to a good standard. ‘Communication’ is emphasised. If there is a problem – communicate. If things are going well - communicate. It is recommended that members of the pair share contact details such as email
   3. If a member of a pair does not complete tasks and duties assigned to them punctually and to a good standard, the Course Examiner must be The Course Examiner reserves the right to adjust marks for the assessment based on the feedback from the pair.
   4. You are advised to keep minutes of your meetings that relate to this assessment. The minutes should include: the date; key issues discussed and any allocation of tasks to be completed (i.e. action plan).
   5. Each pair is required to fill out and submit Report Cards with the See page 5 for the form of the Report Card. Both members must sign an individual Report Card.
   6. Submit one copy per pair.

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3.            You are required to submit your assignment electronically through Turnitin via Moodle by 12 p.m. on FRIDAY 14TH OCTOBER 2022 [“the due date”].

Click on the My Submissions button under Turnitin – Assignment when you are ready to upload your assignment. Enter the Title of your assignment (e.g. 622 Assignment), Browse to find your assignment then click on Add Submission to upload. It will go to Turnitin to be checked for referencing so please have a look at the Turnitin report and make changes

before submitting again before the due date. Note, if you want to see the Turnitin report before submitting the final copy you will need to submit a draft at least 24 hours before the due date.

When submitting, separately email a signed Cover Sheet for the assignment and, in the case of pairs, the report cards to grady.pahl@wintec.ac.nz. Assignments may not be returned, nor student marks/grades given, until a signed Cover Sheet and the report cards are provided to the Course Examiner.

Late assignments (those submitted after the due date) will incur a penalty unless the Course Examiner has granted an extension. The late penalty will be 10% of that assignment’s weighting, for each 24-hour period the assessment is late.

4. WORD LIMIT - The assignment (excluding reference list and in-text citations) must not exceed 2,000 words (the total for both questions). Marks may be deducted if the word count exceeds this number. If a penalty is imposed, for every three hundred words, or part thereof, over the word limit, the number of marks equal to 10% of the student’s awarded mark for this assignment will be deducted from the awarded
5. There is no need to copy out long extracts from cases, statutes, articles or A short reference and explanation in one or two sentences is preferable. Always support your answers with references to decided cases or legislation as appropriate.
6. Students must include a reference list and in-text citations for the books, articles or other works used in the completion of this assignment. A minimum of five are expected. Up to five marks will be awarded to a student on the basis of their use of APA referencing in the completion of this assignment. Library Guides on APA (7th ) can be found on the Wintec Library web pages.
7. Students must TYPE [word process] their answers on A4 paper with 2.5mm margins Arial or Calibri font 12, and 5 line spacing.
8. Please type your ID number(s) [NOT your name(s)] in the top right-hand corner of EACH PAGE USED.

QUESTION ONE                                                                           [TOTAL: 45 MARKS]

Sabert Enterprises Limited was registered in 2014 and does not have a constitution. It has three directors and five shareholders. Only one of the directors, Garry Sabert, is also a shareholder.

Sabert Enterprises Limited wishes to replace its motor vehicle. Garry Sabert agrees with the company to buy it for $15,000.

Earlier Garry had talked to a car dealer, Top Dollar Motors. The dealer said it would buy the car for $20,000 cash or accept it as a trade-in for $25,000.

Under the contract between Garry and the company, it was agreed that payment of the purchase price would be delayed (with no interest) for 12 months.

Required:

Advise the parties in relation to the legal issues that arise.

QUESTION TWO                                                                        [TOTAL: 50 MARKS]

Lily and her three friends, Rose, Violet and Poppy formed a dress manufacturing business, Fashion Leaders Limited (‘FLL’).

FLL does not have a constitution.

Although each owned 25% of the shares, and were directors and employees of FLL, Lily largely ran the business, providing the designs and marketing skills that gave the company its reputation.

Poppy has grown to be unhappy with Lily who would not listen to suggestions from the others. Poppy was more interested in obtaining a return on her investment, but Lily insisted on putting the profits back into FLL. Rose and Violet usually agreed with Lily, although most of the time the pair took little part in the business.

Lily became so frustrated with Poppy’s opposition to her proposals for the business that she called a (properly constituted) special shareholders’ meeting and, with the other two, voted Poppy from the board of FLL.

Required:

Advise Poppy of any rights and remedies she may have. Focus on her rights as a shareholder.