- Discuss the reasoning of the Court and significance of the findings of Salomon v Salomon & Co Ltd with regard to the separate legal entity and piercing of the corporate veil. You can find the case on the LMS.
- Jayce has come up with a wonderful idea for a new business. He has scoped out the local offerings and believes there is a strong need for an ice cream bar in his neighborhood. Jayce lives in a very cold part of Australia where it frequently snows. While there is definitely no other ice cream bar in the area, Jayce is a bit worried about how the business will do in the winter months, which are the prime months for tourists.
The recipe for the ice cream is his daughter, Genevieve’s. She will share the recipe with the other members of the family who will be working at the bar, but she is very secretive about her recipe. Jayce wants to start the business because he wants to be able to pay for his two children, Genevieve and Grady, to study overseas.
Jayce would like his children to learn how to save their money by having some of the income from the business go directly into their accounts, but at the same time, he is worried that until they learn how to use the money responsibly, they may spend it all.
He also thinks there may be a way of saving some money on tax depending on how the money is split between the family, but he’s not really sure how that works. Jayce’s wife is Tilly. Jayce and Tilly have been having some problems in their marriage lately and have separated and gotten back together at least three times in the last year.
Jayce is very keen to have most of the work responsibilities in the business, but he knows that Tilly would like some as well. He’s not sure if Genevieve is interested in taking some of the responsibility, but he knows Grady is not. Jayce doesn’t have a lot of money and would either need to take a loan from the bank, or they would need to use Tilly’s inheritance money. Jayce is quite private and isn’t keen on disclosing how much money his business is making.
- Cadence and Harmony are sisters. They are the only two directors of MusicWithMe Ltd, a company that sells personalized musical instruments. The company uses a group of select suppliers for their instruments as they market themselves as only selling top-quality, hand-made instruments with a soft, whimsical sound. When they need a new supplier or when they visit a supplier to make an order, it is always Cadence who goes because Harmony, despite her name, is tone-deaf and can’t distinguish a well-tuned, carefully crafter instrument from the others.
Everyone at MusicWithMe Ltd knows that Harmony is tone-deaf and it was even included in her contract that she is not permitted to order or buy any instruments without Cadence being present.
A new supplier, SpringInMyStep Pty Ltd has just popped up and MusicWithMe Ltd is very keen to see what type of instruments they have. They make an appointment with Trevor, the manager of SpringInMyStep Pty Ltd, but on the morning of the appointment, Cadence feels unwell and decides to stay home in order not to spread germs around the office.
Harmony is not keen to miss the appointment with SpringInMyStep Pty Ltd so she decides to go by herself. Trevor knows that Harmony is a director and he is very attentive and shows Harmony all the instruments. Harmony is very impressed by the quality of the instruments in terms of finish and look. The instruments are very unique and limited in supply, so Harmony makes the executive decision to order 100 instruments. She signs a contract with Trevor and returns to the office.
The instruments arrive two days later, and while they do look very good, the sound is something completely different. On closer inspection, Cadence and Harmony come to realize that the instruments are purely ornamental, intended to be displayed on walls and shelves but never played.
Cadence calls Trevor to tell him that they cannot keep the instruments and that Harmony did not have the authority to purchase them in the first place because she is tone-deaf. Trevor apologies, but says that they have a no return policy and he had no idea that Harmony was tone-deaf.