Property Management Company Ltd - Assessment Answer

Business Law Assessment Task

SCENARIO 1

Felix and Oberlisk decide that they need some extra help in the administration of their business and they hire Jacky to work two or three days a week in their office, depending on what Jacky finds most suitable. At the end of a fortnight, Jacky is paid an amount which is calculated on the number of days worked based on a daily amount. No amount is deducted for tax payments as Felix and Oberlisk have told Jacky she will have to submit her own quarterly tax statements to the ATO and pay according to their requirements. Jacky attends to the various office tasks which Oberlisk gives her, including a considerable amount of time working on the computer. However, since the computer supplied by Felix and Oberlisk is old and not always reliable, she usually brings in her own and works on that.

One day Jacky was discussing her work situation with a friend and her friend advised her to investigate whether her work conditions were in accordance with the law. Her friend thought Jacky was an employee but was not being treated like one. Jacky said Felix and Oberlisk had told her she was an independent contractor.

a) Using the relevant law and including at least one case as authority, discuss whether the friend or Felix and Oberlisk are correct.

b) Explain why it is important for all concerned to understand and act on the difference.

SCENARIO 2 Felix and Oberlisk have continued with a successful photography business, using drones. They have decided to lease a small office and found that Better Building Company Ltd. (BBC) owns a block of offices which it leases to tenants. Since January 1, 2018 BBC have contracted with Property Management Company Ltd. (PMC) to manage the leasing of the shops on their behalf. Recently they became unhappy with the service provided by PMC and terminated their agreement, sending letters to all tenants informing them of this.

However, Felix and Oberlisk did not receive this information because their letter was lost in the mail. As a result at the end of the month they paid their rent of $3,000 to PMC as always. Unfortunately PMC has now closed and after an extensive search, its directors and the money, cannot be located. The lease of the offices is now managed by Alfred Bert and the sign at the main entrance to the property with the offices now clearly shows this, although it did take BBC seven weeks after the termination of PMC to replace PMC's name. BBC claims that Felix and Oberlisk still owe them the rent of $3,000 and the payment they made to PMC is Felix and Oberlisk’s loss. Felix and Oberlisk disagree.

Using the relevant law and including at least one case as authority, discuss whether BBC is likely to succeed in their claim against Felix and Oberlisk.

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