Different Aspects of Business and Laws Governing That Process: Law and Legal Assessment Answer
Law and legal
A business is referred to as an entity or organisation that is involved in commercial activities, industrial activities, or professional work. In order to govern these activities or works done by the business, several laws have been set up within the country so that the rights and interests of the market players and consumers may be protected. This report deals with the different aspects that are involved in the process of the business and the laws governing such processes. A case study has been discussed in the later part of the report to develop a better understanding of the rules and regulations governing the course of the employment in the business.
Part 1: Right and Remedies to the parties for Breach of Contract
Contract is referred to as an agreement between more than one parties for making any of the deals. Deal may be either related to buy or sale anything, or to deliver any of the agreed responsibilities. If any of the parties in the contract breaches the terms of the contract then the opposite party may have right and remedies to claim for the damages that has been suffered by them on account of the breach (Beale and Vogenauer (2019)). The suffering party may sue the other party for the following types of damages:
- Compensatory Damages
- Punitive Damages
Following are the some of the rules and definitions that must be known for making any of the judgements or conclusions:
Contract law has provisions that regulate the matters involved in any of the contract entered across the country. Contract is referred as an agreement entered into between the two or more parties that may be either written or oral which is enforceable in eyes of law (Eldridge (2019)).
Contract law basically encompasses over the common law of contract. In broader sense, the law has basically 5 things to cover that have been mentioned hereunder,
- Formation of contract
- Contract’s scope and content
- Negligence of obligations in the contract
- Closure and execution of the contractual terms
- Remedies/reliefs for any kind of breaches in the terms of contract.
Consumer Law in Australia
The consumer law in Australia has been enforced to protect the rights and interest of the consumers of the country. It mainly aims to provide the remedies to the consumers in the cases when they become victims of the unfair trade or terms of the sellers or the manufacturers (Bant and Paterson (2019)).
Advise right and remedies against 7-11
In the given case a person named Sunny does not want to work anymore and decide to open a business. For business he borrows $ 50000 money from his parents to be repaid in 12 months. Sunny entered in a contract with a company called 7-11 in which 7-11 company will help him to set up the business and sunny will give the right to 7-11 to change the store colours with no notice. Sunny started business and unfortunately as per the license agreement 7-11 company force to sunny to renovate the store with their new brand colours
Sunny is bound with the contract entered with the terms and conditions of the 7-11 that 7-11 will help him to establish his business and in return sunny has to obtain a license and pay the requisite fees. Later on, 7-11 has ordered him to change the colour of the store with new brand colours which is in ambit of the conditions of the contract. Hence, Sunny can’t claim any rights and remedies against 7-11 as he has already started the business with the terms that gives right to 7-11 to change the colour of the store. 7-11 is just exercising its right in the contract and it cannot be considered as the breach of -the terms of the contract. So no remedies can be placed against 7-11, unless they have not breached any of the conditions of the contract. However, in the end Sunny has closed the business due to the some of the issues and here the contract ceases to have effect. As the main condition was -that the 7-11 will assist in establishment of Sunny’s business. So when the business is no more in existence, then all the terms and conditions of the conditions come to an end. Sunny may take this case to the doors of court to seek relief against the 7-11 for the damages.
Part 2: Responsibility for Superannuation and PAYG Tax
Following are the rules or the laws that must be understood before making any judgements and conclusions in regard of disputes in course of employment:
Employment law has been setup to regulate all the aspects related to the course of employment. The prime responsibility of employer and employee is to be honest for each other. The prime duties of employers and employee are to finish the contract requirements and complete the work as per the contract (Young (2019)).
The main of purposes for setting up of the employment laws have been discussed hereunder:
- To states the primary sources for the course of employment
- To throw light over the primary kinds of employments awards and responsibilities
- To differentiate employees and independent contractors.
- To throw light over the primary duties of the employees and employers in course of employment.
- To list the conditions in which the employment contract will cease to have effect and the reliefs available in case of unfair deeds.
- To list the legal duties of the employers with special focus over the provisions related to anti discrimination.
Fair Work Act 2009
All the pays and conditions of almost all the employees in Australia are regulated by a system of national workplace (place of business) relations that is entirely based on Fair Work 2009 federal system. Fair Work Australia is a body that centrally regulates the relations of the workers and the owners in the industry or business (Abdullah and Murshamshul (2017)).
Fair Work (FWA) Australia has the below provided objectives:
- Set up of minimum wages that are required to be paid by the employers to the employees (Forsyth and Landau (2017))
- Provide approvals of the terms and conditions of the contracts and help in tackling the negotiations between employees and employers
- Address the cases of unfair removal and dismissals
- Regulate and controls the actions taking place in the industry
- Resolve the disputes happening within the industry.
Sunny responsible for Steven for superannuation and PAYG tax:
Sunny doesn’t have much money for renovation so he hires Steven an international student with payment for cash in hand. Steven worked 60 hours a week but sunny did not pay to him money. Steven’s friend Warwick advised him to ring up Fair work Australia. Fair work Australia said to Sunny that he needs to pay Steven wages and superannuation but sunny closed the business and returned to academia.
Sunny has hired Steven and he will receive the payment for his work in cash. So it is clear that Sunny is an employer and Steven is an employee of Sunny. Also, it is evident that Steven has provided his service in return of cash. Thus there is an employer- employee relationship between them. Hence, the Sunny as in position of the employer has to pay the amounts due for the work of Steven. However, superannuation is the amount that is paid by the employer for being part of the business for a considerable time period. From the situation in the given case, it is evident that the business of Sunny has not gone a long way in terms of time duration. Hence, the superannuation amounts payable to employees has not even became due. So Sunny does not hold any liability to pay the superannuation amounts. Also, the PAYG tax is paid by the employer for meeting the requirements of tax payable on account of employee. So if the income of the Steven is taxable as the rules then only Sunny has liability to pay the PAYG Tax or else not.
Steven can file his appeal to Fair work Australia as FWA is a body that assist employees and employers in maintaining well-balanced and healthy workplaces (Cabrelli (2016)).
Part 3: Rights of the party to recover the repayment of Loan
When the parties enters into a contract in which one party provides loan to the others and the terms of the repayment have been duly discussed or informed to all the parties, then in case if breach of the terms like non payment of the amounts provided as loan, gives right to the other party to knock the doors of the courts to support assistance for the claiming the remedies against the defaulters (Williams (2019)).
Sunny's parent’s rights and remedies to recover repayment of the loan
In this case Sunny’s parents gave him $ 50000 money to set up a business. It is deemed that there was a contract between sunny and his parent and according to this contract sunny will repay money within 12 month to his parents but sunny was unable to pay money as he does not have money and closed his business (Young, 2019). Thus sunny has breached the contract and As per contract law if a party breaches a contract there are a number of remedies available for another party, including:-
1. liable to compensate the innocent party for any loss suffered.
2. Innocent party can file an appeal in court then court will pass order to requiring the breaching party to carry out his liability or obligations.
3. Court will pass order for forbidding the party from breaching the contract.
4. Court can order to terminate the contract and require the party who has breached it to put the innocent party in the position he was in before the contract was entered into.
5. Court can order to party for settlement and order to pay compensation to innocent party.
In this case Sunny’s parents has right to do appeal in the court then court will pass order against sunny and order to sunny to pay $ 50000 to his parents along with compensation amount. It is totally in hands of Sunny’s parent to drag the case to the doors of the court otherwise they may settle this case out of court, after Sunny is their Son. However, in eyes of Law every individual has its own separate legal entity. And Justice shall be served even in the case when child is adjudged guilty for the payment in hands of the parents.