Kates Act of Purchasing the Motel - Assignment Example

Introduction to business law. (Name) (Institution) (Course) (Instructor) Date of Submission: Introduction Business law is a wide topic that is further divided into subtopics. The division is based on the key point of the law. In this essay, contract law applies in response to the second question. The second question requires the response on the case that will be fixed in the appendix. The first question too case is in the appendix with the key law in it being based on the contract law (Lipshaw, 269). The essay is meant to introduce business law as well as give reviews on who is to blame in the cases two cases presented. The contrast law can be said to be the law governing the enforcement of promises legally as is made by a particular party to the other (Turnley, 77). The contract can be defined as the agreement that is binding two people on a bargain which is essential in commerce in nature. In a contract, several activities are involved that include hire or sales of goods and services as well. In the essay, contract case law is to be applied in answering the questions at hand. Contract Case Law as is stated in Armidale which is in Australia is an agreement binding two people in their business activities. From the two cases studied in the essay, identification of who is responsible to blame in each case is found also. Additionally, the contract segment of the business law is fully introduced in the essay. Therefore, the business law works in conjunction with the civil law in all nations for the regulation of contracts which are corporate as well as practices that involve hiring of goods to the consumer (Lipshaw, 283). Study case 1. According to Kate’s act of purchasing the motel, she had broken no business law in buying the motel. She had been convinced that on purchasing the motel, profitability rate will be high due to the financial records provided. The records show great profitability in the motel, which are not the real results obtained by the motel. She follows the right protocol to obtain the motel and purchase it. According to the records given as she was purchasing the motel, the sellers have made great financial crime in entering incorrect figures. The business law prohibits sellers from making fraud advertisements to market their product as a protection measure to the consumers. The presentation of the false business report to Kate was an offense that is against the business law on being fraud to the customers. Jo-Anne, a real estate employee who helped Kate purchase the motel is questionable for neglecting to make assessment and investigation on the financial records of the firm. Besides, she knew all about the local motel that Kate was to purchase and did not stop her from purchasing it by telling the truth about it. The act portrayed by Jo-Anne is against the business law as documented in many journals and business records. Jo-Anne who was a popular visitor to Nelson Bay, which is the motel that Kate bought to make the profit through it. The services and goods offered at the Nelson Bay motel include accommodation, hotel services, recreational areas, as well as holding international meetings (Lipshaw, 287). The records that were handed to Kate as evidence that the firm has been gaining much profit did not include the occasional events that took place in the motel thus the high profitability in the year. It was because the meetings were not to be held annually thus the years when the meetings were not hosted the financial records of the motel reduced greatly. The major boost to the financial records of the year 2016 was the key reason towards the success of the organization. The loss that Kate received according to the business law should be laid liable to Jo-Anne who did not disclose the real financial report to Kate. Also, she went against her role as a team member of real estate agent who is supposed to perform her task as an agent as well as protect the consumer from buying real estates from fraud sellers (Turnley, 71). Additionally, the Herb Accounting Ltd is liable for the loss of Kate for giving incorrect audits from the financial records handed to them by the financial manager in the motel to audit and give the report. Their act is against the business law abiding them as an organization. Therefore, the auditing company is to be held responsible for this loss since if the right audit were submitted to Kate, the great loss recorded would be fewer or none at all (Janků, et.al. 150). The selling of the motel by Kate is meant to reduce the risks of the company recording a further loss in the near future, which is a wise decision taken by Kate. The act is also meant to display clearly on the lack of transparency there being in the real estate agents as well as the unjust financial auditors who are fueling to the breakage of the business laws. Therefore, for the rescue of Kate, the civil law is supposed to be involved in the solving ok Kate’s scandal. Respective law measures are supposed to be taken upon these business law breakers thus reducing future fraud to the consumer. The response to the case will help increase more security and protection to the consumers from fraud auditors, sellers as well as real estate agents. All the responses are to act upon ensuring that the business law that voices offering protection to the consumer as well as eliminates fraud business deals in contracts and purchases. Case study 2. On this case, Angelo who was receiving vegetable supplies from his mother Stella. The making of a contract with her mother as a blindfold in his way to use his mother's business for the mortgage was a mistake against the business law on contract. He made his mother sign a mortgage without her consent. According to the contract law under the business law, the Mortgage contract between Stella and the bank is enforceable (Janků, et.al. 152). As a law under the business laws, one is not allowed to sign any document without proofreading what the papers are all about. Therefore, according to Stella’s case, she is to blame for putting a signature on papers without knowing what they are all about. Any lawful measures taken upon her by the bank, she is legible and responsible to clear the debt since no matter what the case is, the signatory in the mortgage belongs to her. She should have proofread the contract form before putting her signatory (Clarkson, et.al). Besides, the trick posed to her by her son could only be helped by the civil law where the son should be charged with practicing fraud in attaining the loan from the bank. The law is also indicated in the business law to where Stella can be given some relief on the payment terms thus allowing her to take the appropriate time as per the bank and her as well to clear the debt (Janků, et.al. 155). The son too is supposed to be part and parcel of the payment of the loan. This is as a result of the evidence that Stella is required to submit. The bank is supposed to auction the new restaurant brought by Angelo to recover their money back as well as any other auction-able item belonging to him. After the auctioning helps them recover their money lent to Angelo, according to the law, Stella is supposed to be refunded the sum taken from her vegetable business in return as documented in a journal by Knapp et.al. From the deals made by Angelo to Stella, her mother, there is no contract between them on the supply of tomatoes. The scandal created by Angelo to give the contract to her mother, Stella was meant to be a driving issue towards manipulating his mother. Therefore, Angelo according to the business law on contracts also, he is eligible over manipulation of people with interest in their property (Turnley, 75). Therefore, the mother who in this case can be termed as the seller and Angelo as the fraud consumer is also secured by the contract business law. The security has been provided to her over signing a Mortgage in place of a contract due to the illiteracy and lack of knowledge on how to read. The business law considers such cases for the safety of the illiterate in the society. Besides, it is a long process to convince the business law or the contract agents that one is illiterate and the mistake made was a result of illiteracy. It is a way of reducing the number of similar cases whereby people could take advantage of the illiterates in the society to participate in fraud activities. Additionally, a civil law measures are to be taken upon Angelo for manipulating the marginalized in the society for their benefits (Janků, et.al. 157). In conclusion, according to case study 1, all real estate agents need not practice fraud-related activities in the society since strict lawful measures will be taken upon them by the business law management as well as the civil law enforcers. Kate is not to be compensated for the loss since it happened as any other loss that could be recorded by a great profit-recording agency. Therefore, the customers will need to be keen when dealing with agents to purchase real estate is thus reducing similar cases in the near future. According to case study two, there is no contract between Angelo and Stella on the supply of tomatoes to the new restaurant (Lipshaw, 297). Also, the signing of the Mortgage by Stella is to be considered since she has been found illiterate thus any expense incurred is too refunded. The refund is to be done after all the loan fee and interest has been recovered after auctioning off the new restaurant and any other item that belongs to Angelo and can be auctioned to cater for the same. Is the fee is not fully recovered, then Stella will have a portion or the whole of her property taken in repay the loan. The action results due to the fact that she is a signatory to the mortgage used in by Angelo in applying for the loan. Works cited Clarkson, Kenneth, Roger Miller, and Frank Cross. Business Law: Texts and Cases. Nelson Education, 2014 Knapp, Charles L., Nathan M. Crystal, and Harry G. Prince. Problems in Contract Law: cases and materials. Wolters Kluwer Law & Business, 2016. Janků, Martin, and Karel Marek. "Complaints under the Purchase Contract after the Recodification of Czech Civil Law." Procedia-Social and Behavioral Sciences 220 (2016): 150-158 Lipshaw, Jeffrey M, "Cognition and Reason: Rethinking aka Ansel in the context of contract and business law". Hans Kelsen in America-Selective Affinities and the Mysteries of Academic Influence. Springer International Publishing, 2016, 265-296. Turnley, William H., and Daniel C. Feldman. “Psychological contract violations during the corporate restructuring of contract law”. Human resource management 37.1 (2010) 71-83. Read More