LAWS20058 Australian Commercial Law Assessment Task 3 Term 1 2025  | CQ

Background Facts

You recently completed your postgraduate studies and started a graduate position in the corporate services group at Globex Corporation Pty Ltd. After your manager learned that you studied LAWS20058, you were assigned to the ‘Start-Up’ team as a business law specialist. You will assist clients in understanding the legal requirements of establishing a new business. 

Your first client is Lisa, a recently retired sports consultant who migrated to Australia from the United States. Lisa lives in Brisbane and is embarking on a new business career in gardening. Lisa has started a nursery called Scorpion Shrubs Pty Ltd in Brisbane’s suburbs. The business will sell a range of trees, shrubs, vegetable and fruit seedlings, garden supplies and decorations and equipment. While Lisa is very knowledgeable about the sporting industry in the United States, she knows little about the laws that govern business. 

Your Task

After your first two consultations with Lisa, she has returned seeking advice on the laws that govern business. You must write a business report for Lisa that provides advice on all law in context questions in Parts A, B and C of this assessment task. The report will be given to Lisa at your next meeting as a resource he can use in setting up and then operating his business. Lisa can use the report to seek further advice on any specific legal issues. 

Assessment Task Questions

Part A – Choosing A Business Structure

Starting a business involves choosing a business structure. Lisa must understand the benefits and limitations of the different business structures when setting up his business.

 In Part A of your report, you must: 

• Identify three legal or commercial factors that are relevant in choosing a business structure.
• Describe whether a sole trader or company is the best business structure for Lisa’s business. In your answer, describe which business structure is most effective in mitigating legal risks. Your answer must be supported by relevant legislation and common law.
• Define what a fiduciary duty is. In your answer, describe two statutory duties owed by directors of companies.
  450 words – 10 marks 

Part B – Business and Tort Law

Businesses can cause legal harm to a range of individuals and businesses. A business may be legally liable for some harms under tort law. In setting up his business, Lisa must be familiar with tort law and specifically the tort of negligence.

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In Part B of your report, you must: 

• Identify three examples of whom a business can harm. In your answer, identify how a business can cause these harms.
•  Identify and describe each element of the tort of negligence, including relevant rules. In your answer, describe how each element may affect Lisa’s gardening supply business. Your answer must be supported by common law. 

550 words – 15 marks 

Part C

Identify the type of privacy governed by Australian law. In your answer, identify which businesses are governed by privacy legislation. Your answer must be supported by legislation.

Evaluate the types of privacy that exist when using social media. In your answer, describe whether the types of privacy on social media interact.

Identify and describe the three most important privacy principles in the Privacy Act 1988 (th). In your answer, describe how each privacy principle shapes the obligations of businesses in obtaining and storing customer information