Corporate Law Essay

787 Words May 5th, 2012 4 Pages
THE UNIVERSITY OF ADELAIDE COMMLAW 7011 CORPORATE LAW (M)
BUSINESS SCHOOL
Week 3, Semester 1, 2012

TUTORIAL QUESTIONS

WEEK 3 (Commencing Monday 12 March)

Acknowledgement: These Tutorial Questions were originally devised by Martin Markovic, Senior Lecturer, Business School, University of Adelaide.

Question 1

A, B and C are long time friends from University days. They share common interests especially with respect to making money. A is a computer programmer for a bank, B is a chartered accountant and C a corporate lawyer. While having drinks after work one evening in May, A indicated that he had become disenchanted with the lack of challenge at his work. He
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In July, A, B and C entered into a joint venture agreement with D whereby:

(i) A, B and C were granted the sole distribution rights for the products in South Australia for a fee of 20% of the annual net profits of A, B and C’s business;

(ii) A, B and C agreed to comply with any marketing instructions issued by D;

(iii) A, B and C agreed to purchase all their computing products exclusively from D. This was most unusual as all their competitors purchased products from a range of computing companies.

(iv) D had a right to inspect the business venture’s books of accounts and a right to receive quarterly statements.

In December, at a computing trade exhibition, A is overcome by an exciting range of new products being offered by IBN Computers Ltd. He immediately attempted to phone B and C on his mobile phone but was unsuccessful. A, being the impetuous person he was, couldn’t wait and ordered $250,000 of computing products from IBN.

Provide advice with respect to:

(i) the nature of the relationship between A, B and C;

(ii) the nature of the relationship between A, B and C and D;

(iii) The legal consequences of the $250,000 order with

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