Wal-Mart’s Response to Hurricane Katrina - 1800 Words

Wal-Mart’s Response to Hurricane Katrina So far in the American history, hurricane Katrina remains to be one of the most devastating hurricanes to have ever been witnessed. Though preparation were already in place to counter its effects, the storm’s impact turned out to be one of the most unprecedented ever seen. This is even notable from the way government agencies reacted to this disaster. It brought out the inefficiencies and inadequacies of the emergency units both at the federal and state level. This is because these governments’ response standards to this disaster were far much below the threshold expected. Government efforts could not match, and hence counter, the impacts of hurricane Katrina. This led to loss of massive property†¦show more content†¦This is possible because Wal-Mart is expansive and has a global influence. This helps it to have lots of information concerning anything of importance to them and their clients. Therefore using its emergency department, Wal-Mart was able to monitor the storm as it approached the shores of the Gulf coast using their highly computerized meteorological equipment. In addition to the storm monitoring capabilities, this department is well equipped with emergency response facilities for normal disasters. Wal-Mart began response to this hurricane when the meteorological equipment indicated that the initial signs of a storm were building up to a hurricane. This was when top level management began having special interest on the findings of the emergency operations centre whereby the then company’s business continuity director shifted his operations to the centre. This was a clear sign of how well Wal-Mart chain stores were getting prepared for this hurricane. Wal-Mart CEO, H. Lee Scott, Jr., was in the forefront into getting ready to counter the impact of Katrina. This is proven by the aspect of him giving direct authority to junior managers to make sound decisions on the way forward into dealing with the hurricane. This simplified decision making chain process and thus it saw the response become much quicker. Apart from giving deciding powers to his juniors, the CEO guided the response process on a daily basis plan. This accentuated the seriousness on preparation andShow MoreRelatedEssay on Hurricane Katrina2603 Words   |  11 PagesIntroduction The initial response or lack thereof, to the widespread disaster in the Gulf Coast, caused by Hurricane Katrina, demonstrated high levels of incompetence and disorganization by government officials. Images of desperate individuals awaiting rescue on their rooftops, and masses of people packed together in deplorable conditions in the Super Dome, circulated the globe. There was no hiding from the painful reality and the obvious inaction or inability of those responsible to care for theseRead MoreEssay on Wal-Mart’s Power: In Economy, Society, Technology1766 Words   |  8 PagesWal-Mart’s Power: In Economy, Society, Technology No one can deny Wal-Mart as the corporate superpower of this generation. A company that has international interests, its power in today’s world is overwhelming. Taking a closer look into the giant’s superpowers we are able to specify exactly how Wal-Mart interfaces with the world and exerts it power therein. In doing this it must first be determined what power is. Sociologists have identified three distinct faces of power. The first isRead MoreQuestions on Management, Business, and Finance1244 Words   |  5 Pageshis planned business. | | | | 13)  The first step in the rational decision-making model is to: | A.  Ã‚  gather data. | | B.  Ã‚  define the situation. | | C.  Ã‚  recruit team members to work on the problem. | | D.  Ã‚  develop alternative responses. | | | | 14)  __________ is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas. | A.  Ã‚  Game theory | | B.  Ã‚  PMI | | C.  Ã‚  Brainstorming | | D.  Ã‚  CAD/CAMRead MoreWalmart : Market And Social Values1599 Words   |  7 PagesLevi’s, the company who is most famous, recognized and honored by their good quality jeans, joined Walmart in 2002 (Fishman, 101). Before that, Levi’s had never sold one pair of jeans at a price lower than twenty dollars, but in order to compete with Wal-mart’s own brand, Faded Glory, and to keep up with the sale, Levi’s had to start a new assembly line to produce jeans with simpler designs for them to be easier to manufacture. (Fishman, 102) Some might argue that Walmart is pushing other business likeRead MoreCrisis Management- a Strategic Leadership Approach3992 Words   |  16 Pagesscrambled to tackle the potential technological disruption of the Y2K bug which was one of the utmost crises. Then in 2001 the US was thrown off balance by the terrorist attack on September 11, which led to a world wide upshot. A few years later the Hurricane Katrina disaster that hit the gulf coast region which led to an ineradicable images of a community and the government struggling to respond and also the Tsunami in 2004. The close of the decade was through the collapse of financial markets 2008 and theRead MoreEssay about The Walmart Case Study2799 Words   |  12 Pagesï » ¿ Wal-Mart Case Study 1 What threats and challenges is Wal-Mart currently facing Wal-Mart Wal-Mart, is an American retail corporation that runs chains of large discount department stores. The company is the worlds second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and the largest retailer in the world. The company was founded by Sam WaltonRead MoreWalmart Information Systems Essay2066 Words   |  9 Pages1962 by Sam Walton, Walmart has grown to be the largest retailer on the globe. Driven by Mr. Walton’s 10 rules to build a business, Walmart promises to â€Å"save people money so they can live better (Wal-Mart Stores, Inc., 2014)†. One of those rules is to â€Å"control your expenses better than your competition (Wal-Mart Stores, Inc., 2014)†. Walmart is recognized as leader in incorporating cutting edge information systems and processes that drive out costs and provide advantage over their competitors. Read MoreWal Mart Case Study The Challenge of Managing Relationships with Stakeholders17330 Words   |  70 Pagesof Contents Introduction Wal-Mart’s Ranking Response to Various Stakeholders Wal-Mart’s Recent Number of Ethical Issues in the News Improved Ethical Culture Positive Response to Stakeholders What are the relevant Facts? What are the Ethical Issues? a) Female Employees b) Disabled Employees c) Illegal Immigrants d) Low Benefits e) Working Conditions f) Ethical Leadership Issues g) Environmental Stakeholders What are the Primary Stakeholders 1) The Stockholders 2) The Wal-Mart Executives 3) The EmployeesRead MoreEssay on Walmart16417 Words   |  66 PagesWalmart From Wikipedia, the free encyclopedia Wal-Mart Stores, Inc. (NYSE: WMT (http://www.nyse.com/about/listed/lcddata.html?ticker=wmt) ), branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the worlds third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest private employer in the world with over two million employees, and is the largest retailerRead MoreWalmart Case Analysis11203 Words   |  45 PagesWal-Mart, 2007 Case Analysis International Business Executive Summary 4 Challenges 5 Re-Aligning the Marketing Strategy for Greater Relevancy 5 Figure 1: Wal-Mart Segmentation Strategy 8 Figure 2: Customer Segment Loyalty Analysis 10 Human Resources Lack Compliance and Governance 11 Figure 3: Wal-Mart’s Chain of Command 14 Ethnocentrism Rampant In Global Growth Strategies 15 Competitive Strategies must get Beyond Price Wars 18 Wal-Mart’s Competitors 19 Figure

Essay about Anti-bribery laws in the U.S Ethics and...

International business is risky especially when companies involved play by a different set of rules. Knowing the differences in culture, politics and the primary legal environments of a host country, allows the companies to conduct business and make quality decisions based on the business climate, creating a marketing mix specific to each country and region (CSU, module 3, 2014). Detailed research helps companies create a solid marketing mix, but does not guarantee that the obstacles of payoff’s and bribery won’t hinder the outcome. Below the surface level of many sales negotiations, like those seen in our case study of Boeing and Airbus, are driven not on their marketing mix, quality, reputation or reach, but rather on power, bribery,†¦show more content†¦What is legal in one country might not be in another. Greasing the wheels in Latin American countries is common practice to move government paperwork through faster or gifting officials helps expedite a b usiness through red tape (Cateora, Gilly Graham, 2013). Gifting or bribery is never legal in the United States and this puts the U.S. at a disadvantage against our competitors who’s illegal behavior in the U.S. is legal elsewhere. Airbus develops sales tactics to coheres buyers or political figures with large cash bribes, offering buyers business opportunities that are more appealing than Boeing’s. Multi-million dollar payoffs or bribes can change the course of a buyer’s original business intentions which could lead to the loss of sales and profit for companies like Boeing who follow the legal rules. Accounting for country rules, politics and customs that allow corrupt business practices, the U.S. finds itself at a disadvantage competing for the same business with companies like Airbus who can adapt, navigate and develop sales tactics which involve personal payoffs. Airbus Response Over the years, Airbus’ unethical business tactics have come to light. As a result, many people questionShow MoreRelatedThe Walt Disney Company and Disney Management25371 Words   |  102 PagesO UTL I N E O F CASES 2-1 The Not-So-Wonderful World of EuroDisney— Things Are Better Now at Disneyland Resort Paris 2-2 Cultural Norms, Fair Lovely, and Advertising 2-3 Starnes-Brenner Machine Tool Company: To Bribe or Not to Bribe? 2-4 Ethics and Airbus 2-5 Coping with Corruption in Trading with China 2-6 When International Buyers and Sellers Disagree 2-7 McDonald’s and Obesity 2-8 Ultrasound Machines, India, China, and a Skewed Sex Ratio CASE 2ïš º1 The Not-So-Wonderful World of BONJOUR,Read MoreInternational Management67196 Words   |  269 Pagescountries saw their economies stagnate or decline. The global political environment remains volatile and uncertain, with ongoing conflicts in the Middle East and Africa and continuing tensions in Iran, North Korea, Iraq, and Afghanistan, especially as the U.S. role in these latter two countries evolves. On the economic front, failure to conclude important trade agreements, including the so-called â€Å"Development† Round of multilateral trade negotiations under the World Trade Organization, and the lagging supportRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 Pagesto adopt the new mass-production techniques. The next change in management thinking about car assembly occurred in Japan when Ohno Taiichi, a Toyota production engineer, pioneered the development of lean manufacturing in the 1960s after touring the U.S. plants of the Big Three car companies. The management phi losophy behind lean manufacturing is to continuously ï ¬ nd methods to improve the efï ¬ ciency of the production process in order to reduce costs, increase quality, and reduce car assembly time. LeanRead MoreMonsanto: Better Living Through Genetic Engineering96204 Words   |  385 Pagesethnic composition of the population Ageing of the population Ageing of the baby boomer generation Interest rates Inï ¬â€šation rates Savings rates Trade deï ¬ cits Budget deï ¬ cits Exchange rates Antitrust enforcement Tax policy changes Environmental protection laws Extent of regulation/deregulation Developing countries privatising state monopolies State-owned industries Increasing proportion of women in the workforce Awareness of health and ï ¬ tness issues Concern for the environment Concern for customers CurrencyRead MoreExploring Corporate Strategy - Case164366 Words   |  658 PagesNew Musical Express, commented in early 2004: The dance culture as a whole got lazy. It came to be perceived as one thing: this cheesy, superclub, larging-it lifestyle. . . . Dance music came from an underground culture and was about being edgy and anti-establishment. At the height of superclub-dom, a club would be  £25 to get in and be full of slightly-older people, glammed up and wearing crap labels. If you are young and want to be cool, you are not going to buy into that.5 For many aï ¬ cionados

Managing Personal Work Priorities And Professional...

BSBWOR501B Manage personal work priorities and professional development Assessment task 1 S70617 Rahim Ghulamani Review your job description and your organization’s business plans, business goals, policies and procedures. Organization Name RG AGED CARE FACILITIES For the last 3 decade, we have rendered the best services for Victoria’s aged care nation. Our aim is that all to ensure a secure and positive environment where all the members live a prosperous life along with maintaining their dignity in the society as well as in their family. Our aged care homes are located in the peaceful areas of Brunswick, Gladstone Park and Sunshine West to provide the residents with a positive environment. We ensure every other measure to provide our residents with highly trained nursing care staff. To overcome barriers of communication, we have staff able to communicate in multiple languages. Other activities are also offered to the residents every now and then in order to refresh their mind and positively impact their health. Procedure Mission Our aged care Mission to enhance, wellbeing, prosperity of people, Looking after for the families and groups †¢ Connect with individuals in need. †¢ Stand up for their decency and equality. †¢ Care with empathy, advancement and insight. Values We believe in equalities and the work we do is to spread the message of God. †¢ Giving respect to the individual person love and life. †¢ Motivate people to cope up with their daily life issues. ïÆ'ËœShow MoreRelatedManaging Personal Work And Priorities And Professional Development1523 Words   |  7 PagesManage personal work and priorities and professional development Name: Fahad Mustafa ID: s68472 diploma of accounting term 2 introduction In this project I would like to discuss Fahad Pizza Shop. This business has been established back in 2000 and has gained the positive business popularity of its authentic gourmet tasting and pizza making styles. The business is located in 68 James Road Malvern. Job description: Pizza delivery: Make sure you check the vehicle condition before delivering anyRead MoreManage Personal Work Priorities and Professional Development1500 Words   |  6 PagesManager of Gloria Jeans Coffees, responsible for planning, implementing and monitoring marketing activates within the business. In this report I will first explain how I would establish personal work goals, set and meet my own work priorities and develop and maintain professional competence. 1. Establish Personal Work Goals List Responsibilities of position: * Produce annual planning for the marketing and public relations activities of Gloria Jeans showing initiative in developing new marketsRead MoreAssessment Manage Personal Work Priorities And Professional Development BSBWOR501B3406 Words   |  14 PagesCode 03208D Level 4, 56-58 York Street, Sydney NSW 2000 Australia Tel: +61 2 92794949 Email: info@georgebrown.nsw.edu.au Web: www.georgebrown.nsw.edu.au Assessment Manage Personal Work Priorities and Professional Development BSBWOR501B Student Name Student ID Term Year Class Trainer Name Result NYC C I declare that all work completed in this assessment is my own. Student Signature Date Contents Assessment guidelines .......................................................................Read MoreTechnical And Design Package For Navy Technical Bureau ( Ntb ) As An Engineering Officer792 Words   |  4 PagesAchieve Results: Achieving results was a huge priority during my period with Navy technical Bureau (NTB) as an Engineering officer. My key achievements were effective use of organisational resources, organisation improvement activities, managing changes and deliver intended results. My personal role was to provide support in maintaining the technical integrity of the MWV by reviewing the technical and design packages (certification basis and certification plan). Deficiencies were identifiedRead MoreManaging Up : Managing Your Boss, Know Yourself, And Develop A Plan Of Action1600 Words   |  7 Pagesconcept of managing up, even in its most basic form, can be a complex task especially when many supervisors may be younger than those they manage. Managing up is making a conscious effort to work with your supervisor to obtain the best possible outcome for you, your supervisor, and the organization. The process of managing up includes three steps: know your boss, know yourself, and develop a plan of action. (Herman, 2008) J.J. Gabarro and John P. Kotter (1993) claim that the key to managing up isRead MoreEssay about What ´s Personal Responsibility1038 Words   |  5 Pages 　　Personal responsibility to me means taking accountability for your own actions, Making a commitment and sticking to it. In order to be a success in college, you have to apply your life learned lessons to the equation, to balance both school and out of school priorities. Because You are responsible for the choices you make, you are ultimately responsible for your success. Becoming a master organizer and learning how to manage your time efficiently, will help you achieve your goals. Taking responsibilityRead MoreThe Effect of Work Environment in Balancing the Roles of Life1739 Words   |  7 Pagesï » ¿Contents Introduction 2 Effect of Work Environment in Balancing the Roles of Life 2 State of Stress 3 Time and Experience: The Two Major Aspects 3 Social Control Methods 3 Social Economic Benefits 5 Results 6 Implementation 7 Recommendations 8 References 9 Affecting Work Environment: Balancing Family and Work Life   Introduction A good professional person is one who is able to maintain the gap between his/her personal and professional life. S/he does face problems in bothRead MoreTime Management1058 Words   |  5 Pagesmanagement techniques typically involve setting goals, establishing priorities, budgeting the amount of time allotted to a given activity, and planning and scheduling the steps needed to achieve goals. Generally, time management refers to the development of processes and tools that increase efficiency and productivity. When we think of time management, we tend to think of personal time management, loosely defined as managing our time to waste less time on doing the things we have to do so weRead MoreThe Development Of A Pdp917 Words   |  4 PagesA PDP is a tool that clearly indicates identified challenges (learning or development needs) in order of priority. Each competency in the PDP assessment informs specific outcomes with the help of this tool (Francis et al., 2014). I can easily monitor my progress towards my progress towards my set goals using the high competencies of my personal and professional skills to improve my areas of opportunities. My PDP shown in table 1, highlights my competencies that needs to be achieved by July 2016.Read MoreMarketing Analysis : C Network1737 Words   |  7 Pagesstylists, hair stylists and make-up artists who work with professional models, and have their own website. As usual with anything in life, word of mouth will naturally happen. I believe that sticking those marketing strategy techniques mentioned, is the best way to stay focused on reaching my target market, and anyone willing to look into booking them as well. g. Organizational Development MANAGEMENT: Sr. Agent Duties: They are responsible for managing the talent management team and being sure that

Qantas Airlines Position Regards Delivery †Myassignmenthelp.Com

Question: Discuss About The Qantas Airlines Position Regards Delivery? Answer: Introducation During the negotiation of a contract, there are representations with regards to the products from the seller directed at the buyer. However, all these representations do not form part of the contract. The ones which are considered important by either of the parties is drafted into the contract and hence called the contractual terms. It is imperative that there must not be violation of the terms of the contract by either of the parties (Carter, 2012). The result of the violation of the term would be dependent on the fact whether the given term is a condition or a warranty. The conditions are typically those clauses which are so essential for the contract that in the absence of these, one of the parties would not enter the contract only. As a result, violation of any condition provides the right to the innocent party to declare the contract as void and also claim damages. This has been highlighted in the verdict of the Poussard v Spiers (1876) 1 QBD 410 case (Gibson Fraser, 2014). However, if the term breached represents a warranty, then the innocent party cannot declare the contract as void and instead can only claim damages to the extent of the losses suffered due to the breach of warranty. This is in line with the verdict of the Bettini v Gye (1876) 1 QBD 183 case (Harvey, 2009). One of the ways to minimize the liability of a contractual party is through the insertion of an exclusion clause. This tends to either waive the complete liability or limit the same (Carter, 2012). In order for this clause to be applicable, the following conditions would need to be fulfilled. Communication of the clause before contract enactment The exclusion clause would be valid only when the clause has been brought to notice or communicated to the other party. In this regards, the party inserting the clause is expected to take reasonable efforts to put across the same to the other party irrespective of the fact whether the other party takes notice of the same despite sincere efforts (Lindgren, 2011). The exclusion clause which are inserted after the enactment of contract are not considered as enforceable which has been made apparent in the decision given by the honorable court in Thornton v Shoe Lane Parking [1971] 1 All ER 686 and Olley v Marlborough Court [1949] 1KB 532 case (Paterson, Robertson and Duke, 2015). Legality of the underlying clause It is pivotal that the concerned exclusion clause must not be used as a defense against any misleading and deceptive conduct which is required so as to safeguard the interest of the consumer (Davenport Parker, 2014). Exclusion clause related to negligence In relation to potential negligent conduct it is necessary, that the party which inserts the exclusion clause regarding liability limitation or waiver in case of negligence must take reasonable measures to communicate to the other party that the clause has been inserted only with the intent of escaping or minimizing liability in case of negligence being exhibited (Gibson and Fraser, 2014). Application Based on the given facts, it is apparent that there has been a contract between Airbus and Qantas with regards to supply of the airplane which would lead to daily savings to the extent of $800,000. There were a number of terms included in the contract with one being that the in-flight video system would have 36 channels for the entertainment of the passengers. There were other terms related to the engine and the distance that could be covered in a single flight. The plane that Airbus provided to Qantas had only 34 channels in the inflight video on account of software error on account of confusion. Clearly, the number of in-flight video channels would be termed as a warranty as it is not so essential to the contract. As a result, Qantas can only claim damages from Airbus since it is at fault for complying with the contractual term but cannot cancel the contract. With regards to the quantum of liability, the exclusion clause which limits the liability of Airbus to $ 300,000 would not be applicable as during the contract negotiation or in the contract, there has been no mention of this exclusion clause and hence in line with the verdict prescribed in Olley v Marlborough Court [1949] 1KB 532, the exclusion clause would not apply and hence Qantas can claim all the financial damage which would be caused on account of the time delay and loss of savings.Agency law would come into existence when principal has appointed a person (agent) to execute contracts with the third party. As per this law, it is the main responsibility of the agent to follow the instruction of the principal and work accordingly. This is because the third party would enter into legal relationship with the agent by considering the fact the agent has sufficient authorization. Further, these agreements would be enforceable on the principal and the third party has the legal position to claim for damages or sue the principal for not satisfying the contractual obligations (Gibson Fraser, 2014). The enacted contract would be enforceable on principal only when any of the following authority is possessed by the agent and the agent acts within the scope of the same (Harvey, 2009). In this authorization, the principal would provide the authority either orally or through written mode. This is the case of express actual authority. While, the principal does not express the authority directly but has entitled the agent with respective profile/position to conduct the act, then this is termed as implied actual authority. The Watteau v Fenwick[1893] 1 QB 346 case is the evident of actual authority. The requisite aspect is that the principal must notify the agents authorization to the third party (Paterson, Robertson and Duke, 2015). When the agent has enacted contract with third party in order to safeguard the interest of the principal irrespective of the requisite authority, then this is called authority of necessity. The Northern Railway Co. vSwaffield(1874)LR 9 Ex 132 case provides evidence in this regard (Davenport Parker, 2014). In this case, the principals objective is not to extend any authority to agent, but because to the agents existing authority and related work, the third party presumes that the agent has sufficient authorization. In this case also, the enacted contract by the agent would be enforceable on the principal. The judgment given in Freeman Lockyer v Buckhurst Park Properties[1964] 1 All ER 630 case provides evidence in this regard (Carter, 2012). Absence of any of the above authority would not lead to the enforceability of the contract on the principal. Therefore, in this scenario, the principal is not liable to fulfill the obligations of the contract enacted by the agent with the third party. The verdict of Yonge v Toynbee[1910] 1 KB 215 case is the witness of this aspect (Lindgren, 2011). There are set of responsibilities/duties that must be adhered to by the agent in regards to the conduct towards the principal. It is the responsibility of the agent to act in good faith and safeguard the interest of the principal (Gibson Fraser, 2014). Agent must not conduct a work on the name of principal for his own personal interest as per the decision of Christie v Harcourt[1973] 2 NZLR 139 case. Agent must not make any secret money from principal as highlighted in Bentley v Craven(1853) 52 ER 29 case. Agent must not use the confidential information of principal for his own work as per Robb v Green[1895] 2 QB 315 case. Work as per the authority provided by the principal Agent must be conduct the work based on the instruction offered by the principal. Therefore, it is essential that agent must work as per the above highlighted facts or else the principal can sue agent and recover the damages. It is imperative to note that if the third party has enacted a contract with agent in good faith and the agent does not have necessary authority, then also the contract is binding on the principal. However, it is vital that the principal has not informed the third party regarding the level of authority or withdrawal of authority of agent. If principal denies, then the third party can sue the principal (Harvey, 2009). Frank is a sole trader who runs a shop which sells appliances. Gemma is working as a sales person for Frank. There is an old dishwasher in the shop with a cost of $350. Tom a customer wants to purchase this for $ 350 and he goes home to find the suitable space for dishwasher. At that moment only, Gemma called her niece and sold the dishwasher for the price $300 by misleading Frank that the true value is $ 300 and not higher. It is apparent that she has performed the work of her own interest because Tom is ready to pay $350 for the dishwasher. Therefore, the breach of fiduciary duty would extend the right to Frank that he can recover the damage of worth $50 from Gemma. Frank has employed Bob in his shop as a salesperson. Bobs duty is to sell large quantities of washing machines to laundries. Also, he has negotiated with Angela many times. Further, due to the bad habits or Bob (late coming to work and drinking), Frank has withdrawn all the authority from Bob and fired him. However, he does not notify this to Angela and later on, Bob sent an e- mail to Angela and offer 10 washing machines for $10,000. Angela accepted the offer and entered into contract with Bob and also made the contractual payment of $10,000. It is apparent that Bob has performed the act after the revocation of the authority and therefore, Frank can sue Bob for behaving fraudulently and can recover the damages. Also, Angela does not know that he has fired Bob and hence, enacted the contract in good faith. Therefore, the contractual liability would be enforceable on Frank and he has to deliver the ten washing machines to Angela at $ 10,000. If Frank refuses to deliver the order, then Angela can sue Frank and claim damages. Bo has enacted the contract irrespective of authority and hence, Frank can sue Bob and recover the amount of $10,000. Further, Frank has not notified Angela about the revocation of the authority from Bob and hence, Frank is accountable to complete the contractual liability. References Carter, J. (2012) Contract Act in Australia. (3rd ed.) Sydney: LexisNexis Publications. Davenport, S. Parker, D. (2014) Business and Law in Australia (2nd ed.). Sydney: LexisNexis Publications. Gibson, A. and Fraser, D. (2014) Business Law (8th ed.) Sydney: Pearson Publications. Harvey, C. (2009) Foundations of Australian law (3rd ed.) London: Tilde University Press. Latimer, P. (2005) Australian business law (24th ed) Sydney: CCH Australia Ltd. Lindgren, K.E. (2011) Vermeesch and Lindgren's Business Law of Australia (12th ed.) Sydney: LexisNexis Publications. Paterson, J. Robertson, A. Duke, A. (2015) Principles of Contract Law (5th ed.) Sydney: Thomson Reuters

Business Law Corporation Law 2001

Question: Describe about the Business Law for Corporation Law 2001. Answer: Solution 1 Required What is the liability of David if Daves Boating Pty Ltd (Company) could not fulfill the order to Perth Sea Rescue? Area of Law The area of law involved in this question is the formalities of a Corporation law 2001, in particular the relevant topic is in respect to section 131 of the Act. Relevant Legal Principles As per the facts, David is the person who initiated the formation of company and took actions on its behalf prior its registration, thus, David is the promoter of the company. Role of Promoter In law, a promoter is the person who forms a company and takes necessary steps for its establishment.[1] Normally, a company cannot make contracts before registration as it does not have a separate legal personality to make contracts on its own behalf.[2] In common, a pre-registration counteract has no value and are void[3] and the promoter can be held personally liable for the same. But, this common law principle has been abolished under the Corporation Act 2001 by the enactment of section 131.[4] Liability of a promoter - Section 131 of the Act As per section 131 (1) of the Corporation Act 2001, if any person makes a contract on behalf/benefit of an unregistered company then such contracts are enforceable provided the contract is ratified upon companies registration.[5] However, as per sub section 2, if the company does not ratifies the contract, then, the person who as established the contract on companys behalf is liable to pay damages which the company would have been paid if the contract would have been ratified[6]. Further, as per section 131 (4), if the company ratifies the contract that was made before registration but the company is not able to perform its obligations in the contract, then, the court if may deem think fit, may order the person who has made the contract to pay all or some part of the damages which the company is ordered to pay.[7] Application of Law It is submitted that the contract was entered into in January 2016 and the company was registered in July 2016. Thus, the contract was made when the company was not registered. So, as per common law, there is no value of any pre registration contract and David must be held liable for all the damages.[8] But, the common law approach is nullified by Section 131 of the Act. As per section 131 (1), the contract is only enforceable provided the same is ratified after the registration. It is assumed that the contract was ratified. Now, as per section 131 (4), since the contract by David with Perth is ratified but is not performed, thus, the court may impose liability both on David and the company. But, the liability of David may vary depending upon the intent of the court. David can be held liable for all the damages or damages can be imposed upon both the company and David. Conclusion Since David is the promoter of the company thus, David can be held liable for $100,000 totally or can share his liability with the company jointly. Solution 4 Required Whether the contract with Bioplastic Ltd will be enforceable? Area of law The area of law involved in this question is the formalities of a Corporation law 2001, in particular the relevant topic is in respect to section 124-126 and section 128-129 of the Act. Relevant Legal principle The contract with Bioplastic Ltd was considered not enforceable by Daves Boating Pty Ltd on two grounds, that is, The constitution of the company does not permit to engage in any activities other than manufacturing fibreglass boats. Angela does not have the authority to purchase a $40,000 machine. The law that guides both the grounds is discussed herein under. As per section 124 of the Corporation Act 2001, once a company is registered then it has a separate legal existence in the eyes of law and has legal capacity to cat on its own behalf.[9] Section 125 of the Corporation Act 2001, further submitted that if a company has its own constitution then the powers of the company can be expressed in the constitution specifying the prohibitions and restriction on the company powers. However, section 125 (2) of the Corporation Act further submits that if any act is undertaken by the company which is outside the scope of its object clause then such acts are not invalid mere rely on the ground that it is against the express prohibition or restriction which is made part of the object clause. Thus, the acts which are ultra virus to the object clause of the company should still make the company bound and is enforceable upon the company.[10] Further, As per section 126 of the Act, if any express/implied authority is granted to any person then such person has power to make/vary/ratify/discharged the contract on behalf of the company. However, if any act is undertaken by any person without any express/implied authority then such contracts are not enforceable upon the company by virtue of section 126 of the Act.[11] Authority is the power which is granted to a person (agent) under which an agent can act on behalf of the principal and the principal is liable for the entire acts that are undertaken by an agent within the scope of the authority. Authority can be express or implied or ostensible. An express authority is one wherein the authority is granted to an agent expressly by the principal. An implied authority is provided through implications by the principal. And an ostensible authority is something wherein the agent posses authority because he was presented in front of a third party as a person who has the requite authority to bind the principal. However, when an outsider is dealing with a company then as per section 128 an outsider is empowered to make few assumptions mentioned under section 129 of the Act. As per sub section 3, the assumptions under section 129 can be made even when the person with whom he is dealing is acting fraudulently[12]. But, no assumptions can be made if the outsider is aware that the person with whom he is dealing does not have any authority to bind the company and is held in section 128 (4) of the Act.[13] As per section 129 of the Act, an outsider can assume that all the provisions of the Act, replaceable rules are comply with. As per section 129 (3), an outsider can assume that all the officers and agents of the company are duly appointed and has authority to bind the company. In Crabtree-Vickers Pty Ltd v Australian Direct Mail Advertising Addressing Co Pty Ltd[14] it was held that an authority to any person can be assumed by an outsider if the situation exists so. [15] Application The managing Director of the company was David and Angela was the Sales manager of the company. There are two grounds upon which the contract was denied by Daves Boating Pty Ltds. Ground 1 It was argued by Daves Boating Pty Ltds that the contract with Bioplastic Ltd is not enforceable as it is outside the object clause of the constitution of the company. It is submitted that though the main object of the company was to manufacture fiberglass boats but the contract by Angela was to manufactures boats from a high tensile plastic, thus, the object clause was violated. But, by applying section 125 of the Act, it is submitted that even when the object clause is violated still a contract made by the company is still enforceable and is binding upon the company. Thus, Daves Boating Pty Ltds cannot deny the enforceability of the contract on the ground that the same is violating the object clause as is valid under section 125 (2) of the Act. Ground 2 Now, Angela has a spending limit of $25,000 without the approval of the managing director but she spent $40,000. Thus, she has no authority to bind the company. But, Bioplastic Ltd can take the shield of section 128 and section 129 and submit that when she telephone David to enquire about Angelas authority, the same was received by a clerk. So Bioplastic Ltd has assumed that it was David who has approved the actions of Angela and Bioplastic Ltd is assuming that all internal management rules are comply with. Conclusion Thus, Daves Boating Pty Ltds cannot refuse the contract with Bioplastic Ltd can as the actions is though beyond object clause but is protecting under section 125. Further, the assumptions under section 128 and section 12 prevails and thus, Bioplastic Ltd can sue Daves Boating Pty Ltds Reference list Books/Articles/journals Julian Bailey, Construction law (2014) CRC Press,04-Apr-2014. p 78. Krawitz A, Protecting Outsiders to Corporate Contracts in Australia (2009) Volume 9, Number 3 (September 2002). Latimer P, Australian Business Law (2012) CCH Australia Limited,Business Economics. Seddon N, Government Contracts: Federal, State and Local (2009) Federation Press. Legislation Corporation Act 2001 Case laws Aztech Science Pty Ltd v Atlanta Aerospace (Woy Woy) Pty Ltd [2004] NSWSC 967. Bay v Illawarra Stationery Supplies Pty Ltd (1986) ACLR 429 Black v Smallwood (1966) 117 CLR 52. Crabtree-Vickers Pty Ltd v Australian Direct Mail Advertising Addressing Co Pty Ltd (1975) 133 CLR 72 Commonwealth Bank v Australia Solar Information Pty Ltd (1987) 5 ACLC 124. Kelner v Baxter (1866) LR 2 CP 174. Lyford v Media Portfolio Ltd (1989) 7 ACLC 271. Salomon v Salomon Co Ltd [1896] UKHL 1. South London Greyhound Racecourses Ltd v Wake [1931] 1 Ch 496 Twycross v Grant (1877) 2 CPD 469.