Australian business : Law

Demonstrate  working knowledge and understanding of the principles of Australian business law within the context of the prescribed readings.

Identify and analyse relevant facts, problems and legal issues from a given scenario and develop an argument in response, discussing available options in the context of business law.

When it comes to business activities, individuals, corporate and business houses are required to obey the applicable rules and regulations stipulated by the Commonwealth, State Governments, local bodies and other authoritative bodies for the time being in force. This process of obeying the existing legislative stipulations is known as compliance. Effective corporate management and corporate governance is presently the essence of doing business. Companies and individuals are required to be ethical in imparting their duties and business activities in order to promote a healthy industry (Abr.gov.au 2016). In the given scenario, a family runs a seafood restaurant in Sydney and intends to call it “the Great Catch!” This essay is directed towards discussing the various legislative provisions that will be applicable to the business and the nature of compliance that is required of the business.
Sydney is the capital of New South Wales (NSW) and local laws of NSW with respect to the food and beverage industry will be applicable to the given restaurant business. Along with the local laws, Food Safety Standards applicable in Australia will also have to be complied with in this respect. According to the Food safety Standards, food business is a business or any other activity that involves dealing with any kind of food that are offered for sale (Abr.gov.au 2016). The standards are applicable to any kind of sale of food that takes place in Australia. Food Safety Standards are necessarily to be followed by businesses that produce food. The standards stipulate that such food produced shall be safe and suitable to eat. The standards also impose health and hygiene obligations on business units producing, processing and selling foods. At present, there are mainly five types of Food Safety Standards namely, interpretation and application, food safety programs, food safety practices and general requirements, food premises and equipments and food safety programs for food service to vulnerable persons (Asic.gov.au 2016). These standards are required to be adhered to in a strict manner and compliance of all the five types of standards is required.
Apart from the Food Safety Standards, there are other legislative requirements that a business has to comply. The first being registration of a business name. A business name can be registered under the provisions of the Australian Securities and Investment Commission Act 2001 (ASIC) (Asic.gov.au 2016). Business name is required to be registered when a business is carried on in Australia and trading does not take place under the name of the owner. The registration process can be completed by using the ASIC portal online. Another important legislative requirement is obtaining an Australian Business Number (ABN). An ABN can be applied from the portal of Australian Business Register. The information required to be provided at the time of application determines whether and ABN can be issued to the applying party or not. An ABN is required while filing income tax with the Australian Taxation Office (ATO) (Asic.gov.au 2016). Another important requirement related to taxation is obtaining a Tax Filing Number (TFN) for business. A TFN for business purposes can be applied from the portal of Australian Business Register. Goods and Service Tax (GST) is an important element for a business enterprise. The seafood restaurant will be selling food and will be subject to GST. A business or enterprise is required to be registered under the GST regime if it has a GST turnover of $75,000 or more. Registration for GST can be done at the time of registering the business or at a later period (Abr.gov.au 2016). At a time when the business is expected to cross the GST threshold in near future, steps should be taken to get the business registered under GST. All these compliances are required to be done for a business or enterprise while conducting its business activities. These compliances are related to business laws applicable to the concern and taxation norms that the business is required to follow.
As far as the nature of business and the food and beverage industry is concerned, several other regulations and legislations are required to be followed and complied with by the business. In the state of NSW, a business belonging to the food and beverage industry is required to comply with a few primary legislations such as Australia New Zealand Food Standards Code (FSANZ), Food Act 2003 and Food Regulation 2015 (Foodauthority.nsw.gov.au 2016). These legislations are primary applicable dur to the nature of the business that is to be carried out through a restaurant (Business.qld.gov.au 2016). Apart from these, provisions of some other legislations are required to be complied with namely Trade Practices Act 1974 (Cwlth), The Fair Trading Act 1987 and the Australian Consumer Law (ACL) and other regulations related to weights and measures. The primary objective of the Food Regulation is to minimise the incidences of food related illness (Abr.gov.au 2016). The regulations provide a framework and a set of standards that entities engaged in the food business are required to follow. The aim is to provide healthy and safe food to the customers that will ultimately cater to the growth of healthy food habits (Business.qld.gov.au 2016). These regulations are related to the nature and quality of food that is to be produced, processed and served by the restaurant.

It can be seen from the above discussion that a wide range of rules and regulations are applicable to a business. Some of these legislations are exclusively applicable to businesses engaged in the food and beverage industry. At the beginning of the business, there are certain registration requirements and the rules thereof are required to be complied with along with other requirements so that the business can be commenced. In the next paragraph, detailed discussions of the types of legislations that are required to be complied with while conducting the business have been stipulated. Lastly, a legislative framework has been provided, that a food business is required to follow and comply with. Apart from the above legislations and regulations, the rights of customers are to be ensured by complying with the ACL. The ACL stipulates the rights of customers and the obligations of the business entities that tend to serve their customers. Therefore, this essay portrays the entire legislative framework within which the restaurant business has to work. 

In the course of undertaking business activities, business entities are required to ensure that they do not harm the interests and rights of their consumers. The business activities should not be detrimental to the rights of the customers. Protecting these customers’ rights is a legislative obligation of business entities. In Australia, a wide legislative framework floated by the Commonwealth and the State Governments protects these rights of the customers (Australiancontractlaw.com 2016). One such obligation of business entities is to be fair and honest in their trading activities and prevent themselves from misrepresenting facts to the customers. In the given case,     Manny and Bella wanted to buy a pizza oven that will be able to bake 30 pizzas at a time for 16 continuous hours. They specifically mentioned this to the manager of Tuscan Ovens Pty. Ltd while placing the order. The manager after understanding their requirements suggested a product that was later purchased by Manny and Bella depending upon the recommendations of the manager. Eventually, the product that was supplied to the couple was not according to their requirements and as a result, the couple incurred a substantial amount of financial business loss. This essay aims to bring out the legislative provisions of the applicable laws in this regard (Lawhandbook.sa.gov.au 2016).
The main topic of discussion in the given case is the misrepresentation that was made by the manager of the Tuscan Ovens Pty. Ltd, to the couple. Many and Bella incurred a significant amount of financial loss and eventually lost many of its customers because they were not able to serve them at the required time and as per their demands. The requirements were specifically pointed out and communicated by the couple before they bought the oven. The concept of misleading and deceptive conducts has been stipulated under the Australian Consumer Law that is contained in the Second Schedule of the Competition and Consumer Act 2010 (Australiancontractlaw.com 2016). Section 18 of the ACL states that a person must not engage in a conduct that is deceptive or misleading while undertaking a trade or business activity (commerce). For the purpose of this section, “trade or commerce” excludes any private sale but includes most of the commercial sale contracts. Cases where any violation of the above-mentioned section 18 occurs, several contractual remedies are available to the aggrieved party (E-lawresources.co.uk 2016). Remedies are available in the form of damages, variation of the contractual terms or even avoidance of the specific contract. The nature and extent of relief to be granted is decided by the court. One of the most recent cases relating to misrepresentation is the case of Google vs. ACCC (2013).
The Misrepresentation Act 1972 also governs misrepresentation. Section 4 of the Misrepresentation Act relates to misrepresentations made in the course of business or trade and states that a person is guilty of an offense if in the course of doing business or trade such person makes any misrepresentation that induces the other party to enter into a contract. Such a person making the representation that is false or misrepresentation in the course of employment can also be held guilt of the offence (Lawteacher.net 2016). The provision also states that if a party is induced to make a payment as a result of misrepresentation, the party making such misrepresentation can also be held guilty of the offense. Therefore, it can be seen that the Misrepresentation Act and the Australian Consumer Law forms a complete code to protect the rights of the customers.
Damages are also available under the provisions of the Misrepresentation Act. Section 7 of the Act states that where misrepresentation has been made fraudulently and has caused a considerable amount of loss to the other party, the aggrieved party will receive damages according to the laws of tort. The court may allow the aggrieved party to rescind the contract entirely or it may enforce any part of the contract as it deems fit (E-lawresources.co.uk 2016). When a contract is held to subsist by the court, the rights and liabilities of each party to the contract are determined accordingly by the court. All the above legislative provisions will be applicable in the given case scenario. Therefore, legislative remedies will be available to Manny and Bella against Tuscan Ovens Pty. Ltd. On the other hand, the couple advertised the oven in their own name before they received the same (Lawhandbook.sa.gov.au 2016). The oven was promoted under a false name. However, this did not result any financial loss for the company. After the sale, ownership of the oven was transferred to the couple and there is no legal basis for initiating a legal against the couple by the company.

It can be inferred from the above discussion that the rights of consumers are well protected under the existing legislative framework. The Australian Consumer Law and the Misrepresentation Act provides effective remedies to the aggrieved parties to a contract. In the given case, misrepresentation caused the couple to enter into a contract and buy an oven from the company. The requirements were clearly communicated by the couple to the manager of the company before placing the order. Based on the recommendations made by the manager, the couple went ahead and bought the oven. Later when the product was delivered, it was not according the specifications. This resulted in a considerable financial and business loss to the couple. The misrepresentation made by the manager on behalf of the company was intentional and the couple may resort to legal proceedings against the manager and the company in a competent court.

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