Question 1: Business Entities: Beautiful Black Beans Terry and Willow decide to go into business together following the completion of their studies at university. After extensive market research they write up a business plan for an online Coffee bean roasting business named Beautiful Black Beans (BBB). Willow has recently inherited $100,000.00 which she contributes as start-up capital. Terry doesn't have any savings but contributes her van, tools, and other equipment. They agree to lease a small warehouse space from which to operate the business. The pair agree that Willow will pick up the raw beans each week from their distributor and then roast the beans. Terry will manage all customer enquiries, and both will undertake deliveries. Profits will be split 50:50. After the first month of operations, they are struggling to keep up with the orders and decide to hire Django to take care of deliveries. Over the next month the following events unfold: Beautiful Black Beans (a) Without asking Willow, Terry orders a new roasting machine from Matching and Roasting International Applications (MARIA). valued at $10,000 believing that they would be able to roast more quickly for handling customer orders. However, Willow says she never would have agreed to this if she had been asked. Now, MARIA has demanded payment of the outstanding invoice of $10,000 from Willow. (b) While delivering coffee beans to a café, Django, the delivery driver, gets caught in heavy traffic. Under pressure from Terry to get the coffee beans delivered on time to "a very important customer", Django is speeding and crashes into a car stopped at a roundabout. Nobody is injured and the delivery van is protected by a bar at the front, however, there is $5,000 of damage caused to the other driver's car. (c) Without asking Willow, Terry starts a separate business, a café named Mo's Salon (MOS). It appears that Terry had negotiated a special rate for MOS to purchase their beans. So far BBB haven't opened a café at the front of their roasting premises as there are many administrative hurdles they would have to overcome first, however, Terry and Willow have previously discussed the lucrative nature of running a café exclusively with the beans they have roasted. Discuss Terry's potential liability. Support your response with relevant case authorities. Question 2: Contract Law: The Drowned Rat Isla owns a restaurant in Parramatta by the river named "The drowned rat". She decides to include a coffee machine to her business to provide coffees to people walking past on their way to work. Isla and her boyfriend, Klopp, decide to buy lotto tickets each week. They don't want to argue over sharing so setup a company named Klopp Isla Lotto Longing Pty Ltd (KILL), they are both directors and shareholders. They agree to put $100 each month in the business account then each week spend one quarter of the balance on an affordable entry. They take it in turns to pay for the ticket from the business account. One Friday afternoon, Isla visits Barca Brewing, a coffee supplies business in Parramatta and sees in the window a first-class coffee machine, the Messi Maestro on sale for $5,000. They are normally sold for $10,000. It is 4:25pm and she asks about the machine. The owner, Ronny Kawasaki, explains they are closing and they will reopen Monday morning at 9 am. Isla offers to pay and collect it on Monday but Ronny says he has closed the payment machine. On Monday Isla arrives at Barca Brewing to purchase the Messi Maestro. It is not in the window and she is excited to think it will be boxed and ready for her to take to her restaurant. She sees Ronny and he says, sorry, I just sold it 15 minutes ago. She leaves very angry. She contacts her boyfriend, Klopp, who owns a courier business, and tells him of her troubles and anger. He explains he saw another Messi Maestro on sale at Pots of Pep in Sydney. She immediately rings Pots of Pep and speaks with the owner Pep, who says she can have it for $3,000 but it must be picked up by 4pm on Friday. She transfers the money to Pep explaining Klopp will collect the machine. She then texts Klopp with the message "All good to go, please collect Friday afternoon". On the Friday, Klopp rings her at 4:30pm explaining that the shop has closed and there are no goods in the window. Isla says, "you idiot, if you don't have my machine, don't come back to me". Isla suddenly remembers it is her turn to buy the lotto ticket and buys the ticket at the shop next door to her with her business bank card. On the Saturday night, she is frustrated, alone, sitting with her cat, Ronaldinho, when Klopp rings her saying "we won $2 million". Isla replies "no, it's all mine" and hangs up. Isla comes to see you seeking advice on her contractual rights or obligations with: (1) Barca Brewing, (2) Klopp for the coffee machine, and (3) Klopp for the Lotto ticket. 700254 Enterprise Law - 2024, Term 1 Page 3 of 4 Assessment Task 2: Assignment

Question 1: Business Entities: Beautiful Black Beans Terry and Willow decide to go into business together following the completion of their studies at university. After extensive market research they write up a business plan for an online Coffee bean roasting business named Beautiful Black Beans (BBB). Willow has recently inherited $100,000.00 which she contributes as start-up capital. Terry doesn't have any savings but contributes her van, tools, and other equipment. They agree to lease a small warehouse space from which to operate the business. The pair agree that Willow will pick up the raw beans each week from their distributor and then roast the beans. Terry will manage all customer enquiries, and both will undertake deliveries. Profits will be split 50:50. After the first month of operations, they are struggling to keep up with the orders and decide to hire Django to take care of deliveries. Over the next month the following events unfold: Beautiful Black Beans (a) Without asking Willow, Terry orders a new roasting machine from Matching and Roasting International Applications (MARIA). valued at $10,000 believing that they would be able to roast more quickly for handling customer orders. However, Willow says she never would have agreed to this if she had been asked. Now, MARIA has demanded payment of the outstanding invoice of $10,000 from Willow. (b) While delivering coffee beans to a café, Django, the delivery driver, gets caught in heavy traffic. Under pressure from Terry to get the coffee beans delivered on time to "a very important customer", Django is speeding and crashes into a car stopped at a roundabout. Nobody is injured and the delivery van is protected by a bar at the front, however, there is $5,000 of damage caused to the other driver's car. (c) Without asking Willow, Terry starts a separate business, a café named Mo's Salon (MOS). It appears that Terry had negotiated a special rate for MOS to purchase their beans. So far BBB haven't opened a café at the front of their roasting premises as there are many administrative hurdles they would have to overcome first, however, Terry and Willow have previously discussed the lucrative nature of running a café exclusively with the beans they have roasted. Discuss Terry's potential liability. Support your response with relevant case authorities. Question 2: Contract Law: The Drowned Rat Isla owns a restaurant in Parramatta by the river named "The drowned rat". She decides to include a coffee machine to her business to provide coffees to people walking past on their way to work. Isla and her boyfriend, Klopp, decide to buy lotto tickets each week. They don't want to argue over sharing so setup a company named Klopp Isla Lotto Longing Pty Ltd (KILL), they are both directors and shareholders. They agree to put $100 each month in the business account then each week spend one quarter of the balance on an affordable entry. They take it in turns to pay for the ticket from the business account. One Friday afternoon, Isla visits Barca Brewing, a coffee supplies business in Parramatta and sees in the window a first-class coffee machine, the Messi Maestro on sale for $5,000. They are normally sold for $10,000. It is 4:25pm and she asks about the machine. The owner, Ronny Kawasaki, explains they are closing and they will reopen Monday morning at 9 am. Isla offers to pay and collect it on Monday but Ronny says he has closed the payment machine. On Monday Isla arrives at Barca Brewing to purchase the Messi Maestro. It is not in the window and she is excited to think it will be boxed and ready for her to take to her restaurant. She sees Ronny and he says, sorry, I just sold it 15 minutes ago. She leaves very angry. She contacts her boyfriend, Klopp, who owns a courier business, and tells him of her troubles and anger. He explains he saw another Messi Maestro on sale at Pots of Pep in Sydney. She immediately rings Pots of Pep and speaks with the owner Pep, who says she can have it for $3,000 but it must be picked up by 4pm on Friday. She transfers the money to Pep explaining Klopp will collect the machine. She then texts Klopp with the message "All good to go, please collect Friday afternoon". On the Friday, Klopp rings her at 4:30pm explaining that the shop has closed and there are no goods in the window. Isla says, "you idiot, if you don't have my machine, don't come back to me". Isla suddenly remembers it is her turn to buy the lotto ticket and buys the ticket at the shop next door to her with her business bank card. On the Saturday night, she is frustrated, alone, sitting with her cat, Ronaldinho, when Klopp rings her saying "we won $2 million". Isla replies "no, it's all mine" and hangs up. Isla comes to see you seeking advice on her contractual rights or obligations with: (1) Barca Brewing, (2) Klopp for the coffee machine, and (3) Klopp for the Lotto ticket. 700254 Enterprise Law - 2024, Term 1 Page 3 of 4 Assessment Task 2: Assignment