Assessment item 3
Problem questions
Value: 20%
Due date: 20-Sep-2015
Return date: 12-Oct-2015
Submission method options
Alternative submission method
Task
Please note that the word limit of 2 000 words is a total for both questions (ie, it is not 2 000 words for each question). I would however expect that students should be able to answer both questions in far less than 2 000 words. Your bibliography is not included in the word limit.

You must use the ILAC format when answering these questions.

**In this subject, assignments are marked on-line, using an adapted MS Word programme. You therefore MUST submit your assignment in Word format, NOT as a PDF document. If you submitin PDF it will not be able to be marked.**

***If you anticipate applying for an extension for this assignment, please read the rules on extensions in this Subject Outline before doing so.***

Question 1 (10 marks)

Sue, Grabbit & Runne is a firm of solicitors. There are three partners, Anne, Mary and Jane. There is a partnership agreement which states that each partner may enter into contracts worth up to $ 50 000, but that any contract in excess of that amount requires the prior agreement of all partners.

Anne and Mary are away at a law conference when Jane sees an advert in the local Law Society Journal for a set of law reports being sold by a local barrister, Tom, who is retiring. The set would cost in excess of $ 100 000 if all the back issues were bought from the publisher, so Jane thinks that the asking price of $ 60 000 is very good, and she agrees to buy them for the firm.

She also decides that because she and Mary both did film studies as part of their undergraduate degrees, the firm would make money if it branched out into film-making, and so she buys a movie camera for $ 20 000 from Edgar. When Anne and Mary return from the conference they are furious to find out what Jane has done and refuse to authorise payment for the law reports and the camera from the firm’s bank account.

Advise Tom and Edgar as to their legal position, citing relevant law.

Question 2 (10 marks)

Mark worked as route manager for United Trucks Pty Ltd in Queensland from 2003-10. A term of his contract was that if he should leave the company, he could not engage in the trucking industry in Queensland for six years. In 2011 he registered a company called Sunshine Trucks Pty Ltd. Mark owns 99% of the shares. The other 1% is owned by his brother, Greg, whom he elected as sole director and CEO.

Sunshine Trucks operates from Townsville and carries goods all over Queensland. All contracts for haulage of goods are signed by Greg in the name of Sunshine Trucks Pty Ltd. Greg also signed a contract on behalf of the company, taking out a loan of $ 2 million from Grasping Bank in 2011 as start-up capital. The company did well during 2011, 2012 and the first half of 2013, but in July 2013 was not able to repay a loan instalment of $ 100 000 owing to Grasping Bank Ltd.

Mark comes to you for advice after receiving two letters: One from United Trucks Pty Ltd requiring him to cease the operations of Sunshine Trucks Ltd in Queensland, the other from Grasping Bank Ltd threatening to sue him for $ 100 000. Advise him, citing all relevant legal authority.

Please note that you should assume that the restraint of trade clause in the contract that Mark had with United Trucks is valid under the law of contract, and so you should therefore not address that issue.
**Please check that your assignment complies with the rules in the Style Guide before you hand it in.**
Rationale
This assessment will allow you to demonstrate your ability to:
• engage in legal research;
• identify the legal issues arising out of novel factual situations, to analyse the applicable law and to differentiate between which rules are applicable and which are not and then apply the law to the problem;
• to explain and summarise the applicable law in such a way as to create a report for a client which states what liabilities arise from novel factual situations

And more specifically:
• your knowledge of the law of partnership and of the legal effect of incorporation, and your knowledge of the law governing the legal relationships within partnerships and corporations and the relationships between these types of business organisation and with outsiders ;
• your ability to undertake an assessment task relevant to the workplace and professional practice.
Marking criteria

CRITERIA HD DI CR P FL
Students are required to answer two problem type questions in order to demonstrate: To meet this level you will achieve a cumulative mark of 85-100%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 75-84%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 65-74%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 50-64%. A mark in this range indicates that a student: At this level you will obtain a mark of 0-49%. A mark in this range indicates that a student:
Identification of relevant legal issues

Comprehensive coverage and identification of all legal issues, which are formulated with consideration of all contextual factors .
Correctly identifies legal issues and formulates them with consideration of contextual factors connected to relevant law, with only minor errors. Identifies and correctly formulates most major legal issues connected to relevant law. Identifies some legal issues. May or may not formulate them correctly. Considers links to relevant law. Identifies no relevant issues or only a few of them. Some of these may be unclearly formulated. Considers few contextual factors of relevant law.
Explanation of law and citation of relevant legal authority

Provides a complete explanation of the law, justified by relevant statute and case law authority, with no errors. Discussion identifies key rules of law, stating relevant principles and shows insight in identification and discussion of potentially hidden issues. Research of relevant legal authority shows a breadth of investigation through detailed analysis and discussion. Provides a comprehensive explanation of the law with few errors, substantiated by relevant case and statute law stating relevant principles.. Research of relevant legal authority shows a breadth of investigation through detailed analysis and discussion.. Provides a substantial explanation of the law but with some errors, substantiated by significant legal authority in the form of statute and case law. Provides a basic explanation of the law, but with significant errors, substantiated by some legal authority. Provides incorrect or limited explanation of the law using no, or only a limited range of, authority.
Application of legal principles to the facts

Applies the law to the facts so as to reach a correct conclusion on all issues, with no errors. Argument discusses linkages between facts and the law and considers counter-arguments, evaluating the impacts of applying the law to the situation considering a broad range of factors that may affect the application. Conclusion draws together advice for client. Applies the law correctly to the facts so as to address all issues, with only minor errors. Argument discusses linkages between facts and the law, evaluating the impacts of applying the law to the situation considering factors that may affect the application. Conclusion draws together advice for client Applies the law correctly to most issues arising from the facts, but with some errors. Argument discusses application of the law. Conclusion summarises advice for client. Makes a basic attempt to apply the law to the facts, but applies wrong law and / or contains significant errors in the application. Argument summarises application of the law. Advice to client is incomplete. Paper does not correctly apply law to the facts and / or applies incorrect law. May be descriptive, rather than putting forward a reasoned argument.
Compliance with the Style Guide and overall structure.
Uses Style Guide comprehensively, accurately and consistently. Uses ILAC model. Extremely well structured and organised, with one main argument introduced per paragraph, supported by well-written supporting sentences. Uses Style Guide accurately and with only minimal errors.
Uses ILAC model. Well structured, with one main argument introduced per paragraph. Adequate use of Style Guide, with some errors or lapses. Uses ILAC model and is clearly structured. Limited or inconsistent use of Style Guide. Some attempt at use of ILAC model and at structuring of answer.
Poor, inconsistent or inaccurate use of Style Guide. Poorly structured. Inadequate or no use of paragraphs. May have disregarded the ILAC model.
Written expression and editing. Uses appropriate academic writing which is formal, impersonal and which contains no spelling, grammar and punctuation errors. Paper demonstrates careful proofreading. Uses appropriate academic writing which is formal, and impersonal with only very minor spelling, grammar and punctuation errors. Paper demonstrates careful proofreading. Uses appropriate academic writing which is formal and impersonal, with a few spelling, grammar and punctuation errors. Paper demonstrates evidence of proofreading. Significant spelling, grammar and punctuation errors but the paper is readable and demonstrates some attempt at proofreading. Poor grammar, spelling and/ or punctuation. Paper gives no evidence of having been proof-read.

Presentation
Please comply with the Style Guide which appears after Assessment item 2.