Report: MGT809_Business Law and Governance

MGT809_Business Law and

Governance
by Tuhin Roy

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Report: MGT809_Business Law and Governance

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Report: MGT809_Business Law and Governance

MGT809_Business Law and

Governance
2

Business Law and Governance

Assessment 3
Legal Case Analysis
Table of Contents
Introduction 3
PART A: Short Answers 3
PART B: Case Studies 3
PART C: Long Case Study 5
Conclusion 7
References 8

Introduction
Business law and governance are one of the most critical aspects to
understand the current complexities in commercial activities. The key purpose
of business law and governance is to guide small and large business operations

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Report: MGT809_Business Law and Governance

by providing ethical and legal guidelines. In the highly connected global

economy, business law and governance help navigate the complexities related
to ethical considerations and legal regulations. This particular study consists of
three parts. By following the concept of business law and governance, three
parts will be answered systematically.
PART A: Short Answers
Concerning the first part of this study, it has been said that Plaintiff needs to
consider other alternative options and adequate measures to avoid litigation.
The Plaintiff should consider a thorough consultation with some layer about the
1
debt recovery before considering court proceedings. In order to avoid litigation,
one of the most effective methods is ADR (Alternative Dispute Resolution).
According to Akin (2023), ADR is the best suitable alternative option that is
simple and cost-effective and it also offers confidentiality and flexibility.
Moreover, it is also considered the most efficient way to recover bad debts.
Whereas, there is no guarantee about resolution which is a key disadvantage of
ADR. In terms of alternative options, ADR is the most successful dispute
resolution method. By following this method, a letter of demand will be sent to
the debtor by the creditor that includes all essential information such as total
debt amount, time for repayment, and the payable circumstances (Schindeler,
2022). The letter also mentions clearly to the debtor about the consequences of
not paying debts.
PART B: Case Studies
Case Study 1
Based on the case scenario, it can be inferred that the fitness business
company Gyms 'R' Us has claimed the business's profit margin and its
prospects in an advertisement for selling the business. By relying on this
advertisement, Otto bought the business and later realized the exaggerated

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Report: MGT809_Business Law and Governance

information. Whereas, the company claimed that Otto should have verified the
claims. However, the Australian Consumer Law offers significant protection to
consumers from businesses that claim false promises (Hardy & McCrystal,
2022). Regarding the particular situation, Otto can use this law to sue the
fitness business for its misleading behavior. According to the ACL section 18, it
is forbidden for businesses to engage in deceptive behavior. However, in order
2
to get justice and strengthen the lawsuit against Gym 'R' Us, Otto needs to
prove that the advertisement was false and misleading by showcasing the
financial statements. It is also essential for Otto to demonstrate that this
misleading information may cause financial losses to him.
Moreover, as the financial data of the fitness business was unaudited, the
accuracy of the financial data may vary which subsequently strengthened the
claim of Otto. According to section 236 of Australian Consumer Law, if a person
faces loss or any type of harm from misleading information about a business,
then the person has the right to claim remedies or compensation for the loss.
For instance, in the case of In Allergy Pathway vs ACCC, the company breached
the law by making false promises (Lee et al., 2022). Hence, it becomes difficult
for Gym 'R' Us to defend itself by providing misleading information for sales.
Based on the legal framework of Australia, Otto holds a strong position
regarding his claim against the company. As Otto faces financial losses due to
misleading financial information provided by the company, the company needs
to compensate for the damage that occurred to Otto. Thus, it can be said that,
while pursuing large sales and purchases, every business should provide
accurate information to its customers (Harkin, Mann & Warren, 2022).
Case Study 2
Considering this case study, Gaia is a permanent part-time worker at a factory
that is owned by her aunt Ashely and Ashely's husband Jhonny. During a

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Report: MGT809_Business Law and Governance

discussion at a family dinner, Jhonny terminated Gaia's employment from the

company. Although Jhonny is entitled to terminate the employment of the
company's employees, it is required to inform the employees about termination
by providing a notice under the labor law of Australia. According to the Fair
Work Act of 2009, an employer should provide notice about termination to the
employee for job dismissal. In case of serious misbehavior, no minimum notice
period is applied to the terminated employee (See et al., 2022). Thus, the owner
of an organization is entitled to terminate its employees for any kind of major
breach committed by an employee. However, as Gaia has not committed any
serious misbehavior, it is not a legal way to terminate her employment without
any notice.
As Gaia is a permanent part-time worker at Organicola and she has not
3
committed any serious mischief, it is unfair and totally wrong to terminate her
employment. Gaia can sue the company for wrongful termination. However,
there are certain requirements associated that need to be ensured to
strengthen the claim. First, Gaia should have working for the company for the
last six to twelve months. Regarding the unfair dismissal of Gaia, she can be
entitled to bring this issue under section 385 of the Fair Work Act (Pittard,
2022). As Gaia is not alleged of any misconduct or serious misbehavior, the
termination of her employment is not appropriate and she can bring unfair
dismissal claims. If Gaia meets certain requirements, she can claim allegations
against Organicola regarding wrongful termination.
In terms of consequences, if the allegations made by Gaia are true then legal
actions will be taken against Organicola and the company will need to
compensate Gaia for her loss. As no notice has been given to her regarding
termination, further remedies from the company may also include (Hardy &

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Report: MGT809_Business Law and Governance

Kelly, 2022). Thus, by analyzing this case study, it can be said that although
Johnny is entitled but can not terminate Gaia legally.
PART C: Long Case Study
Based on the case study scenario, Alfred is an owner of a cycling club and
Tianna is one of the members of the cycling club who have won many races. On
a race day, Alfred and Tiana were celebrating the win and Tianna went to the
kitchen to grab some food while celebrating. Due to an uncertain explosion in
the kitchen, Tiana was badly injured. In the kitchen, Tiana often encounters the
gas leak and forgets to tell anyone about it. On that day after the explosion,
Tianna was primarily treated by one of the members of the paramedic team
Khadija. As Tiana refused to admit to the hospital, Khadija treated the wounds
and gave her painkillers. However, after some days Tiana experienced severe
pain despite using the painkillers and was rushed to the hospital where she got
proper treatment. The doctors also claimed that Tianna was not properly
treated by Khadija. The key problem of this case study involves whether Tiana
can put allegations about Khadija and Alfred for carelessness and what are
grounds available for Alfred to defend his grounds.
4
From the case scenario, it can be encountered that Tianna can definitely sue
Alfred regarding negligence for her loss. As the owner of the club, Alfred is
responsible to maintain a healthy and secure environment for its members.
Alfred should be well aware of the club amenities and ensure that all the
equipment is working properly and efficiently. As the unfortunate situation
happened due to a gas leak, Alfred should have inspected the safety of the club
kitchen (Devereux & Beran, 2022). According to the law of Tort, it is of utmost
importance for Alfred to address any potential causes of harm due to gas leaks.
Due to negligence of Alfred, Tianna faced severe injury from the explosion.
Alfred failed to fix the kitchen issue with a gas leak which subsequently caused

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Report: MGT809_Business Law and Governance

severe damage to Tiana (Joseph & Kyriakakis, 2022). As a result, Tianna lost her
arm flexibility and incurred an infection. Moreover, this issue also affected
Tianna mentally as well as physically. Thus, according to the Civil Liability Act
of 2002, Alfred is directly liable for the damage that occurred to Tiana. Based
on the legal framework, If Tianna makes allegations against Alfred about mere
negligence, Alfred needs to compensate for her loss (Cooney, 2023). Hence,
Tianna can put allegations against Alfred for negligence.
After the explosion at the cycling club, Tiana was primarily treated by a
paramedic Khadija. As the doctors of the hospital claimed that Tianna was not
properly treated by Khadija, Tianna can also put allegations against Khadija
regarding negligence. At the scene of the incident, it was the duty of Khadija to
provide efficient care to Tianna by meeting the desired standard of medical
care (Bradfield et al., 2022). Based on the evaluation of injuries to Tianna,
Khadija needs to provide proper care. Khadija breached her duty of care by
treating Tiana primarily without sending her to the hospital. If Tianna was sent
to the hospital on time, she would have not faced severe discomfort, lack of
flexibility, and infection. Moreover, due to the mere negligence of Khadija by
providing ineffective medical care to Tianna, Khadija can be alleged of the tort
of negligence. This has resulted in an infection of Tianna's arm which affects
flexibility. Hence, regarding the negligence of Khadija for failing to provide
effective care, Tianna can sue Khadija for her loss. Based on the severity of the
case, Tianna has the right to avail compensation for her deterioration from
Khadija (Martin, 2022).
Concerning the claim that Tianna can make against Alfred for negligence, there
are some measures that Alfred can consider to defend himself from potential
allegations. Although the incident happened due to an explosion from the gas
leak, Alfred can prove that he had performed safe and security inspections

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regularly. Moreover, Alfred can also argue that Tianna was aware of the gas leak
and still she wanted to go to the kitchen. On the other hand, Alfred can also
avail a ground of action by saying that the entire mischief happened due to the
failure of Tianna to report the gas leak. Hence, if the honorable court founds
Tianna's fault, the compensation will be lowered (Panaccio et al., 2023).
However, the damages will be evaluated under the Civil Liability Act 2002
before providing compensation to Tianna.
Conclusion
Based on the above discussion, it can be concluded that the legal framework of
Australia is efficient enough to provide justice to individuals. This study has
discussed several case scenarios and provided adequate recommendations for
each case. Concerning the first part, the effectiveness of alternative measures
is analyzed and apprised in the case of Plaintiff. Moreover, in the case of Otto vs
Gym 'R' Us, some crucial actions are suggested for Otto under Australian
Consumer Law. Next, the case study of wrongful termination was discussed
and its consequences are explained. Furthermore, the case study of mere
negligence has been discussed by answering all relevant questions.

References
Akin Ojelabi, L. (2023). Improving Access to Justice through Alternative Dispute
5
Resolution: the Role of Community Legal Centres in Victoria, Australia,
research report.
https://opal.latrobe.edu.au/articles/report/Improving_Access_to_Justice_thro
ugh_Alternative_Dispute_Resolution_the_Role_of_Community_Legal_Centres_
in_Victoria_Australia_research_report/22216087/1/files/39485056.pdf
Bradfield, O. M., Bismark, M., Scott, A., & Spittal, M. (2022). Vocational and
psychosocial predictors of medical negligence claims among Australian

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doctors: a prospective cohort analysis of the MABEL survey. BMJ open, 12(6),
e055432. https://bmjopen.bmj.com/content/12/6/e055432.abstract
Cooney, H. (2023). Trespass to the person and contributory negligence. Law
Quarterly Review, 139. https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=4289410
Devereux, J., & Beran, R. G. (2022). Medical Negligence Law in Australia.
Medical Liability in Asia and Australasia, 1-12. https://doi.org/10.1007/978-
981-16-4855-7_1
Hardy, T., & Kelly, C. (2022). Unfair dismissal in franchise networks: A regulatory
6 7
blind spot?. TheSydney Law Review, 44(2), 229-260.
https://search.informit.org/doi/10.3316/informit.653359469605101
Hardy, T., & McCrystal, S. (2022). The importance of competition and consumer
law in regulating gig work and beyond. Journal of Industrial Relations, 64(5),
785-800. https://doi.org/10.1177/00221856211068868
Harkin, D., Mann, M., & Warren, I. (2022). Consumer IoT and its under‐
regulation: Findings from an Australian study. Policy & Internet, 14(1), 96-113.
https://doi.org/10.1002/poi3.285
Joseph, S., & Kyriakakis, J. (2022). Australia: Tort Law Filling the Human Rights
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(Bloomsbury, 2022): https://www. bloomsbury. com/au/civil-remedies-and-
human-rights-in-flux-9781509947591.
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Lee, K., Wilding, D., Paterson, P., & Lindsay, D. (2022). Submission to the
Australian Competition and Consumer Commission: Digital Platform Services
Inquiry: Discussion Paper for Interim Report No 5-Updating Competition and
Consumer Law for Digital Platform Services.

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https://opus.lib.uts.edu.au/bitstream/10453/156209/2/4722a184-dc36-4184-
a768-6263b9c3866c.pdf
Martin, S. (2022). Tortious liability of government ministers for climate change:
Aristotelian potential and the limits of negligence. The Cambridge Law Journal,
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journal/article/abs/tortious-liability-of-government-ministers-for-climate-
change-aristotelian-potential-and-the-limits-of-
negligence/DA96DB55081C4777CE6F6E50D6128015
Panaccio, D., Ierino, F., & Goodman, D. (2023). Correctional health care and
Australian prisoners as recipients of kidney transplants: Legal and ethical
issues. Nephrology. https://doi.org/10.1111/nep.14197
Pittard, M. (2022). A Fair Deal? Justice in Dismissal in Australia. King's Law
Journal, 33(2), 248-277. https://doi.org/10.1080/09615768.2022.2106677
Schindeler, E. (2022). Unanswered Questions-Family Dispute Resolution in the
Shadow of the Law. Journal of Social Welfare and Family Law, 44(1), 84-102.
https://doi.org/10.1080/09649069.2022.2028411
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