Wednesday, May 6, 2020

Business Law Goods and Services

Question: Discuss about the Business Law for Goods and Services. Answer: Introduction: Procurement of goods and services through tender process is common among the private organizations and government agencies that involve compliance of legal regulations under Australian Common Law. Tender processing refers to the process of invitation before entering to a contract for the purpose of satisfying the participation conditions in terms of request documentations and tenders. Further, the contractual rights between the supplier and buyers cannot be established unless the respective tender is accepted which requires to be processed as per law and court orders (Karl 2015). In the given situation, Millennia University called for tenders for the supply of green seed stating the closing date June 01. Accordingly, three suppliers submitted the tenders that involve Greenland, Enviro and Plant Forever as per the relevant dates. Greenland submitted the tender as hand delivery on 29 May that was deposited into the tender box whereas Enviro submitted the tender on 15 May, which was received by the University on 17 May and filed by the administrative instead of submitting in the tender box. Additionally, Plant Forever submitted the tender on 30 May that was received by the University on 2 June and deposited into the tender box. Out of three tenders, only two tenders considered by the administrative officials while the tender of Enviro was not considered even though it was lowest because the concerned administrative forgot its filing source. Further, University confirmed the tender of Plant Forever even though it was submitted after the closing date, confirmation of which was not received by the organization as it was destroyed by a postal worker. Considering the legal regulations under Australian Common Law, contractual right between the traders can be formed after the confirmation and acceptance of tender. It can be said that the process of tender precedes the contractual relationship purpose of which is to provide invitation. As per the decision in the case of Pratt Contractors Ltd v Palmerston North City Council (4) tender process is generated to request for bids by the suppliers that is considered as invitation and cannot raise any contractual obligations. Moreover, the processing of tender should be undertaken as per the terms and conditions with respect to the submission date, closing date, bidding limits or accompany of documents (Distinto, dAquin and Motta 2016). It is essential to submit the tender invitations as on the closing date as well as stating the biding price in fair and transparent manner while the purchaser is expected to be a public body. Accordingly, in the given situation it has been observed that Greenland supplier complied the requirements of terms and conditions for submission of tender process. On the contrary, Plant Forever submitted its tender after the closing date, which cannot be validate as per the regulations of Australian Common Law. In case of Enviro supplier, tender was submitted before the opening date and hence was lost in filing due to the administration negligence. According to the decided case of Hughes Aircraft Systems International v Air services Australia (1997) it has been stated that the tender process cannot be established since it breached the requirements of submission. Similarly, tender of Enviro cannot be considered since the actual tender process has been lost by the administration due to its submission before the opening date. Further, the tender process submitted by Plant Forever cannot be considered since it was deposited after the closing date and as per Australian Common Law, submi ssion of tender after closing date cannot form legal existence (Woerner and Wixom 2015). Therefore, tender submitted by Greenland can only be established as per the legal requirements under common law since it complied all the requirements. Even though the tender of Enviro contained lowest bidding and attractive features it cannot be accepted by the University since it was not deposited in the tender box. Besides, contractual position for the University with respect to the three tenders is not legally binding since it has not been accepted however, successful tender of Plant Forever could not be reached to the supplier due to disgruntled worker. Hence, the acceptance of tender by the Plant Forever could not be established and the contractual position on the University cannot be formed as per Australian Common Law. According to the provisions of Australian Common Law, acceptance and delivery of correspondence should be done during the proceedings of administrative stating the required details. It has been mentioned under section 37(4) and (5) of Administrative Procedure Code, the correspondence should be submitted by affixing the legal stamp and placing the intimation of its delivery to the concerned person. However, in case the correspondence is submitted through legal person and the data box of the entity does not require a signature to validate the correspondence document (Martinsuo and Sariola 2015). In the given case study, Footloose Pty placed the notice in the Daily newspaper on October 1 with respect to the subject Special Shoes Special Discounts. It stated the product details along with the description, design and price of the products including the inquiry details of sales manager, Simone. On October 2, one of the footwear designers Famous Footwear delivered a correspondence to accept the offer of the organization for 500 pairs at $2000 per hundred while the delivery details intimated to be sent later. Further, a shoe retailer, James submitted the correspondence to the organization to accept the offer for 2000 pairs of footwear at the best price $30,000 including the charges of GST and delivery. In view of the response for the offer, sales manager of Footloose replied to the shoe retailer, James on October 6 for accepting the order of 2000 pairs at $30,000 but excluding the delivery charges along with the form of payment through cash or cheque mode. Accordingly, the concern ed retailer responded to the sales manager on October 8 to arrange a meeting in order to confirm the deal while Simone, the sales manager confirmed the order and delivery date of footwear on 10 October. Considering the principles and regulations of Australian Common Law, it can be said that the validity of the contract between the supplier and buyer occurs only on the acceptance of the offer with the written consent. Further, it is essential to incorporate all the necessary details with respect to product details, order quantity and price along with the date of delivery (Cortina, Khler and Nielsen 2015). In order to legally enforce a contract between the parties it is important to form the contract as the capacity to enter the contract as well as with the intention to form legal relations among the suppliers and buyers. Similarly, submission of correspondence requires compliance of certain regulations to establish the authenticity of the documents and offers made through the correspondence. For instance, in case of public limited company, a correspondence affixing of signature by two directors is mandatory while in case of private companies it is not relevant if the same is deposite d in the data box. In the decided case of Daniels Corp v ACCC it had been contended that the substantive law should be placed for the production of documents to sustain appropriate communications to confirm the trade offers. Accordingly, it is important to provide acceptance to validate the correspondence that can be delivered either through postal service or through electronic modes along with the confirmation on it acceptance. It had been stated that the validity on the confirmation of correspondence could be made through public announcement provided the matter of the correspondence is not confidential (Tan and Chintakananda 2016). Therefore, in case of correspondence presented by the buyers for the products of Footloose Ltd should be as per the organizational requirement including the date of delivery and date of response. With respect to the correspondence provided by the Famous Footwear on October 2, the organization responded against the notice of Footloose Pty to accept the offer. The correspondence stated the product details, quantity and respective price structure while the delivery details stated to be sent later. Since there is no information on the date of delivery of products until 10 Octobe r, it cannot be said that the offer has been accepted. In order to consider the legal effect of the correspondence it is important to provide all the relevant details of products in response to the acceptance of the suppliers offer (Gerasymenko, De Clercq and Sapienza 2015). Therefore, in case of Famous Footwear, the correspondence had no legal effect since the date and other detail of product delivery was not mentioned. On the contrary, correspondence occurred between Footloose and James, the shoe retailer considered to have a legal effect since the document presented all the relevant information and details along with the confirmation on delivery date of the products. Employment in the organizations is regulated by the employment contract as provided under the Australian Common Law, which states the relationship between the employer and employee along with other employment terms and conditions. It states the service conditions with respect to the period of employment, remuneration package including perquisites and leaves, requirement on reasonable notice period along with the policy on change of workplace as per the management requirements. The contract also involves the clause on modification on terms of employment contract if the same is required to do so with respect to the service length, professional standing, job mobility, seniority level or job termination (John, Knyazeva and Knyazeva 2015). In the given case study, employment contract was established between Richard Anderson and Cube Laboratory Pty Ltd. who was one of the talented chemists in the organization. It has been stated that under the employment and guidance of Richard, the company received several grants and government contracts and experienced success in conducting business activities. It had been mentioned that Richard was under five- year contract, which was expiring on June 30 while he received information on another chemist job with the rival lab. As per the requirement of the proposed job, Richard would need to relocate to a new place along with the family while the old job was convenient but the period of employment was about to expire. However, on discussion for continuation and modification of contract between Cube and Richard it was assumed that the period of employment would be extended by the company and therefore, Richard dropped the job offer from rival lab. Besides, on 25 June Cube company refus ed to modify the employment contract due to liquidity issues resulting in consideration of labor and employees turnover from the company. In view of the principles and regulations of Australian Common Law, the contract on employment should be in written form specifying the necessary details and clauses on employment terms. In case of modification of employment tenure with the organization, there must be modification clause in the contract while the modification should be mentioned in writing (Brown and Dolan 2016). In case of Richards employment, extension of employment tenure was not mentioned orally nor it was mentioned in writing by Cube Ltd. Response of Warren to Richard was merely on his achievement and talent which was assumed to be the extension of employment contract for another five years. Moreover, in case the previous contract contains the clause on extension of service or employment period then that can be considered by Richard to claim for the losses as per the decided case of Lau v Bob Jane T- Marts Pty Ltd (2004). Whereas loss on certain amount of salary from undertaking new job can be considered as an o pportunity cost for which the organization cannot be held liable unless it is specifically mentioned in the contract (Acharya, Baghai and Subramanian 2014). Accordingly, it can be concluded that Richard has no legal rights to claim the damages against Cube because there was no written consent. The employment contract is required to contain the clause on eligibility of claim against the loss on remuneration or other payments due to termination of employment term. Hence, if the old contract contains any particular clause on reimbursement of loss due to employment termination then Richard can avail the claim on loss. Reference List and Bibliography Acharya, V.V., Baghai, R.P. and Subramanian, K.V., 2014. Wrongful discharge laws and innovation.Review of Financial Studies,27(1), pp.301-346. Brown, L.A. and Dolan, C., 2016. 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Tan, B.R. and Chintakananda, A., 2016. The effects of home country political and legal institutions on firms' geographic diversification performance.Global Strategy Journal,6(2), pp.105-123. Taussig, M. and Delios, A., 2015. Unbundling the effects of institutions on firm resources: The contingent value of being local in emerging economy private equity.Strategic Management Journal,36(12), pp.1845-1865. Woerner, S. and Wixom, B.H., 2015. Big data: extending the business strategy toolbox.Journal of Information Technology,30(1), pp.60-62. Wright, J.D., 2015. The Supreme Court Should Grant Certiorari in FTC v. McWane.McWane (December 21, 2015).

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