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Roles of law and courts in today's business environment
Case studies company law
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In given case study about Mr Manfredi and HappyHippie Pty Ltd
This essay will discuss the requisite elements for establishing Fraudulent Misrepresentation. Where false information is provided with knowledge, or without belief in its truth, or recklessly, or carelessly as to whether it is truth or false, with the intention to induce a person to enter into a contract, causing the innocent party to suffer. This area of business law is supported by a number of cases, which have established and clarified the factors required to mount an argument for damages based on negligent misstatement. In this case Mr Manfredi is the innocent party to suffer as HappyHippie intentionally provide Mr Manfredi with false historical account, which were inflated
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As this case is about unfair trade and misleading representation leading to business activities. Mr. Manfredi was given intentionally. Krakowski v Eurolynx Proprieties Ltd [1995] established, by way of obiter that a fraudulent misrepresentation that cause pure loss of innocent party intentionally or recklessly. In the scenario provided by one party (Mr. Manfredi) acted upon the historical figure provided by another (Elvis Eggplant), by entering into a financial transaction and purchase vegetarian café from HappyHippie Ply Ltd only on base of faith on HappyHippie Pty Ltd, But the historical figure shown by HappyHippie Pty Ltd were inflated by 60%. While in Krakowski v Eurolynx Proprieties Ltd [1995] due to failure to disclose of all information at time of settlement by Eurolynx Proprieties Ltd therefore it was misleading and considered as …show more content…
the bill of lading showed the shipment date as 15th December 1976 which was the last date for payment, while in fact shipment was on 16th December. So the Defendant bank refused to pay. In our case the past and future profitability of café was inflated by 60% on which base Mr. Manfredi purchased the café. But it can not be seen that HappyHippie Pty Ltd Director Elvis Eggplant know that Mr. Manfredi would only rely on its decision at that point of time. But Mr. Manfredi was having faith on representation of Elvis Eggplant therefore he is responsible for the sale of
First, when a creditor (ICE) extends credit to a debtor (Top Quality) and takes a security interest in some property of the debtor, Top Qualities inventory in this case, it is called a secured transaction. The inventory is then considered collateral for the financing that ICE provided for Top Quality, which was made clear in the financing statement that ICE filed. Any secured transactions where personal property is used as collateral is governed by Article 9 of the Uniform Commercial Code. The UCC was revised in 2001 to better adhere to modern times, and since this case took place from 2007 to 2009, we will be applying the revised edition. There are many sections of Article 9 that should be considered when examining this case. First, the filing of a financing statement, form UCC-1 in Article 9, should be confirmed as filed with the appropriate state office. Once this has been done, confirming the attachment of Top Quality’s inventory to ICE, we can then look to confirm that the initial sale to Chrisman was paid in full to Top Quality, which it was. If this were not the case, ICE would be entitled to the remaining sale proceeds. Now we move on to the requirements of a buyer in the ordinary course of business, per Article 9 of the UCC. According the textbook, “A buyer in the ordinary course of business who purchases goods from a merchant takes the goods free of any perfected or unperfected security interest in the merchant’s inventory, even if the buyer knows of the existence of the security interest” (Cheeseman). The textbook then continues to explain that this rule is necessary because buyers would be reluctant to purchase goods if the merchant creditors could recover the goods if the merchant defaulted on the loans owed to secured creditors. These statements come from the Revised Article 9, section 320(a). This is based on the idea that the buyer purchases in good faith, meaning that they are
Friganim Importing Co. v. B.N.S. International Sales Corp. Facts: Friganim Importing Company sued B.N.S. claiming that B.N.S. breached warranties in two contracts that they had entered into. In the first of the two contracts, Frigalimnet had agreed to sell 75,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. The second contract consisted of 50,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. (smaller chickens where priced slightly higher in this contract than the first agreement)
Andrea may decide not to inform the limited partners about the misrepresentation of Skyline Views’s financial statements; to avoid conflict, this decision permits Ed to deceive the company and limited partners. In addition, by deciding not to inform the limited partners of Ed’s deceit, Andrea would be disregarding the American Institute of Certified Public Accountants Code of Professional Conduct in her being unreliable, dishonest and deceitful. Andrea has the responsibility of protecting her client, which involves encouraging the correction of financial statements in order to prevent suspicion during audits that could lead to fines and imprisonment. Andrea’s second option is to inform the limited partners about how misrepresentations of Skyline Views’s financial statements are permitting Ed to claim a higher management fee; this decision will fulfill her due diligence obligation to the limited partners while maintaining her integrity as a certified public accountant in supporting the American Institute of Certified Public Accountants Code of Professional Conduct.
A Chinese toy manufacturer known as Fan Li approached Tegan to distribute its accessories for its Chinese made products in Europe in the May of 2007. According to the case, it was specified that Tegan’s traditional products had generally been £50 whereas Fan Li’s accessories were priced below £5. As their order’s size decreased, the growth of direct sales to consumers had increased their number of transactions. But it was a threat as Fan Li’s project provided a boost to the sales as tegan said agreed for Fan Li’s agreement. To get the appropriate outputs, Tegan’s account payables played a major role where tegan received discounts on most of its payables in prior payments as per the agreement.
Equuscorp Pty Ltd v Haxton; Equuscorp Pty Ltd v Bassat; Equuscorp Pty Ltd v Cunningham's Warehouse Sales Pty Ltd (2012) 246 CLR 498
The issue in this case was whether California and Hawaiian Sugar Company could recover the liquidated damages from Sun Ship. Where there is a contract between the parties for liquidated damages and d there were no misrepresentations or unfair dealing in creating the contract,
This case comes from the city of Happy Talk in the country of The United States of America. It concerns sexual discrimination in the work place that forced a woman, Betty Smith the plaintiff, to quit her secure job due to a hostile work environment that inflicted ill health upon the plaintiff. Specifically, she requests that the defendants, Cell Phone, Inc., pay her back wages that total 2 years of her standard pay, reinstate her to the job with a lighter workload, compensation for emotional mistreatment, and retroactive payment for the period of time when she worked for less. With these being the terms, the facts of the matter must be discussed in depth to see that a conclusion is reached that is both fair and reasonable. To put the decision
The facts of BP Oil, as set out in the judgment: 1. The principal (P) in this case is BP Oil, who hired the oil tanker ‘Target’ from her owners, Target Shipping. The issue is whether BP is entitled to recover some $1 million that Target Shipping charged them by way of overage freight and which, as BP claim, they paid by mistake. A1 would be Mr Andrew Finlinson, working for BP as a trader, who handled the charter of the oil tanker. A2 would be Mr Rickwood and/or Ms Myers, who authorised payment of Target Shipping’s freight invoice as part of BP's Demurrage Department.
Hanson, J. R. (n.d.). Fraud or confusion? RDH Magazine, 19(4). Retrieved 3 15, 2014, from http://www.rdhmag.com/articles/print/volume-19/issue-4/feature/fraud-or-confusion.html
The second element that must be there for the courts to consider the issue of fraud is knowledge on the part of the defendant that the statement is untrue. In this element, he must show that Happy Hippie Pty Ltd made some fault statements with the intention of deceiving him into buying the premises. As described by Bozeman (1990, p. 23), this is an easy element to proof for Mr. Manfredi because he has all the evidence required by the court of law to prove that the statements provided by Mr. Elvis Eggplant were all false. The court will most probably rule in favour of the buyer for all the evidence provided on
Misrepresentation – giving a false statement to the other party with the intentions to benefit or to exploit the other party than the law can end the contract in that case.
Dowd (2016) runs above and beyond with the clarification to state accounting fraud incorporates the change of accounting records in regards to sales, incomes, costs and different components for a profit motive, for example, boosting organization stock prices, getting ideal financing or maintaining a strategic distance from obligation commitments. Dowd is of the feeling that covetousness, absence of straightforwardness, poor administration data and poor accounting interior controls are a couple of explanations behind accounting fraud. (Dowd,
In today’s day and age, there is a lot of news that is related to corporate accounting fraud as companies intentionally manipulate their financial statements to show a better picture of their financial health. The objective of financial reporting is to provide financial information about a company to its various stakeholders such as investors and creditors so that these stakeholders can make decisions accordingly. Companies can show a better image of their financial well being by providing misleading information. This can be done by omitting material information from the books or deceitful appropriation of assets such as inventory theft, payroll fraud, check forgery or embezzlement. Fraudulent financial reporting will have an effect on the This includes but is not limited to; check forgery, inventory theft, cash or check theft, payroll fraud or service theft.
The defendant is an Airlines Company that had 900 employees. The economic crisis followed with monetary crisis gave bad effects to the defendant. They should decrease the number of their airplanes form 9 to 2 airplanes. They also had to do the efficiency on their employees to 700. On the efficiency process, there was an agreement between the defendant and employees representation on October 30 1998. The agreement stated that they would bring Independent Public Accountant to analyze company financial condition. During the process, all side should work on their duty. The Defendant should pay employees’ wage. The agreement was not guarantee that didn’t mean the dispute process was over, but the negotiation still moved on. During the process, there was another agreement between the defendant and several employees. They agreed the finish the disputed process and the employees would get separation pay. Meanwhile, other employees, who were 153 people didn’t agree with that agreement. Because they didn’t agree each other, so the employees gave the case to the “Panitia Penyelesaian Perselisihan Perburuhan Pusat (P4P)”.
Moreover, the auditors had looked out the attitude or rationalisation of the company to justify the fraudulent action. The top management may behalf on their own interest but not the behalf of shareholders to maintain or raise the stock price of the company. In Cendant case, the CUC’s management allegedly inflated earnings by recording increasing revenue and reducing expense to meet expectation.