Swinburne University of Technology School of Law, Business and Entrepreneurship LAW20045 Finance Law Semester 1 2022 Take Home Exam Instructions Total Marks: This assessment represents 60% of the total assessment for this unit. Duration: 24 Hours This final assessment is available for students to access on Canvas from 16 June 2022 (9am AEST). This final assessment is due on 17 June 2022 (9am AEST). Students must submit their response to the task on Canvas (and reviewed via Turnitin). Students must answer both parts for a total of 60 marks. Word Count The maximum word count for this task is 3000 words (inclusive of headings and references). Students who exceed the maximum word limit by more than 10% will be penalised with 1 mark for every 10 words. Referencing Students are expected to reference cases and other legal authorities, but will not be required to comply with the AGLC. For referencing, it is sufficient to reference in the same style and manner as you would in a written exam. For e.g., it is sufficient to cite the case in brackets, without full citation details (Donoghue v Stevenson) or cite the legislation as, for e.g., s 916A Corporations Act. Blackout Period prior to Exams It is a general school policy to have a blackout period prior to an exam scheduled and during the formal exam period. This blackout period starts on midday of the previous business day of your exam. What this statement means is you should not expect a response to any exam related question from this point onwards. For exams scheduled on a Monday, you should only expect a response to questions asked before midday on the previous Friday. The blackout period covers email contact, queries in person, via office phone and Canvas. Discussion boards on Canvas will also be locked for this period, in order to protect you from the creation of last-minute panics and confusion on Canvas. All Swinburne Law School staff members are required to adhere to the blackout policy unless there are exceptional circumstances to deviate from it; for example, if you want to seek advice about special consideration or you cannot sit an exam. The blackout period also includes the 24 hours during which your Final Assessment is scheduled. 1 Swinburne University of Technology School of Law, Business and Entrepreneurship LAW20045 Finance Law Semester 1 2022 Extensions and Late Submission Students applying for extension will be required to use the normal process for Special Consideration. Unless an extension has been approved, late submissions will result in a penalty. You will be penalised 10% of your achieved mark for each part of a day that the task is late, up to a maximum of 5 days. After 5 days, a zero result will be recorded. Technology and Health Issues Remember, do not leave your submission until the final few minutes. If, in the unlikely event there is an issue with the electronic submission via Canvas, students should submit their work to the convenor by email to ensure they submit on time. Students will still be required to later submit their work through Canvas (Turnitin). If you experience any significant technical issues during the completion of your scheduled final assessment task, you are able to apply for Special Consideration. In this case you must provide evidence such as a screen shot or a photo from your phone, clearly showing the date and time, and then apply using the normal process for Special Consideration. There is no need for a Registered Practitioner Statement in this scenario. If you become unwell during the completion of your final assessment task, the normal Special Consideration processes are available for you, you would need to have a Registered Practitioner Statement as part of your application. Special Consideration All applications for special consideration must be submitted using the appropriate online form. Please see how to apply for special consideration (Links to an external site.) here. Plagiarism Warning Students must agree and adhere to the Student Charter regarding their obligations of maintaining academic integrity and be familiar with the Uni ersit s plagiarism policy. The Assessment Declaration (Links to an external site) form part of e er students agreement when submitting this assessment item. For more information see: https://www.swinburne.edu.au/current-students/managecourse/exams-results-assessment/plagiarism-academic-integrity/ (Links to an external site.) All papers will be reviewed by Turnitin. 2 Swinburne University of Technology School of Law, Business and Entrepreneurship LAW20045 Finance Law Semester 1 2022 PART A Answer all questions in this part. Question One (10 marks) In light of the various consumer protection mechanisms offered by the Australian Consumer Law, the ASIC Act, rules of common law, and codes of practice, is the doc ine kno n a he mo good fai h uberrimae fides) relevant in insurance law? Question Two (5+ 5 = 10 marks) (a) Jenny aged 16 approaches Betty at the local branch of First National Bank Ltd. seeking a loan of $10,000 for a second-hand car. Advise Betty about the legal position of lending money to a minor in Victoria. What can the bank do to ensure that if the amount is loaned that it will be recovered? Give reasons for your answer. (b) Michael recently migrated from the United States of Orangutan. Whilst he cannot speak much English, he is an awesome chef. So, he has started working as a chef at the Hilton Hotel in Melbourne, but is unsure about which Superannuation fund he should join. He speaks to a financial advisor at THATBank who advises Michael to join the HelpMe Super Fund, a super fund operated and controlled by a subsidiary company of THATBank, because they also offer income insurance, and if he ever needs a home loan, he ill be offe ed a g ea deal f om THATBank IF he i a membe of HELPMe Super Fund. The premiums will cost approximately $100 per week and the premium payments can be made by using the funds from his superannuation account. Michael thinks this method of payment is illegal, and ha he ad i o i ick . Advise Michael. Question Three (10+ 10 =20 marks) (a) Helen, an interior decorator, arranged to sign a lucrative contract with a client in Sydney. On Friday she stopped at the ATM on the way to her travel agent. There was a special airfare on offer and she intended to withdraw The machine a e p he ca d and igno ed he in c ion o withdraw the cash. She tried to phone the bank, but could not get through. On Monday she went to the Bank and reported the incident. However, the branch manager refused to release her card, claiming to be concerned about some irregularities. She had to postpone her trip until a week later when her card was finally released. The special airfare was no longer 3 Swinburne University of Technology School of Law, Business and Entrepreneurship LAW20045 Finance Law Semester 1 2022 available and she had to purchase the ticket at the regular price. Dissatisfied with the delay, the client in Sydney eventually decided not to go ahead with the contract. Her complaints to the Bank have gone unanswered. Advise Helen as to her liability, if any, for the unauthorised transactions. (b) Mr. Chan is a financial adviser with First National Bank Ltd. Tom had $500,000 to invest. Tom hired Mr. Chan to advise on some appropriate investments. Mr. Chan advised Tom to put $250,000 into Vic Properties Ltd (VPL) and $250,000 into Oil Explorers Ltd (OEL). Tom paid Mr. Chan $2,500 for his advice. Tom invested $250,000 in VPL immediately. However, he only invested in OEL after making some enquires from an oil expert. If Mr Chan had made the proper enquires he would have found that: Because of the downturn in the property market VPL is expecting to make a la ge lo Y in e men i no o h onl $100,000. OEL is being sued for $100 million. It has since gone into liquidation (bankruptcy) and Y has lost its $250,000. Advise Tom. (20 Marks) PART B: Multiple Choice Questions Please answer all questions in this part. Each section is worth 5 marks (4 x 5 = 20 marks). For the following questions, please note down the letter (for example: a, b, c, or d) of your response which is most correct and EXPLAIN your answer. Be careful that more than one of the multiple-choice answer options may be correct. Question One (5 marks) Fennessey, a lawyer, was recently charged with money laundering offences. Details of the charges were reported in the local newspaper. Fennessey claims he is the victim of a "frame up" by the Federal Police and intends to plead not guilty to the charges. Soon after the report Fennessey went to the races and collected $9,000 in winning bets. The following day he visited the ZNA Bank and deposited his winnings in cash. The bank manager is considering reporting the transaction. She contacted Fennessey's partner to alert him to the bank's concerns about Fennessey and to the possibility of an investigation into his professional dealings. Ultimately the charges against Fennessey are dropped. 4 Swinburne University of Technology School of Law, Business and Entrepreneurship LAW20045 Finance Law Semester 1 2022 Advise Fennessey. (a) The bank has breached its duty of confidentiality. (b) The bank has not breached its duty of confidentiality. (c) The bank manager would have been liable for misleading and deceptive conduct if it had remained silent about Fennessey. (d) None of these answers are correct. Question Two (5 marks) The Cutting Edge Pty Ltd is a company which owns several hairdressing salons. Joanne Snip was the company's bookkeeper. The company's two directors, Madge and Trim are authorised signatories on the bank accounts of the company. Over several months Joanne signed Madge's name, without her knowledge, on company contracts. The contracts include one contract to purchase an expensive computer em Tha a in alled in Joanne ho e A h a he ZNA Bank had picion about Joanne's honesty, but because the company's financial records were hopelessly inadequate and because he had been having an affair with Joanne, Arthur did no make an in e iga ion Madge e en all di co e ed Joanne f a d len actions. The company sues the bank. Advise ZNA Bank. (a) The compan claim again he ZNA Bank ill fail beca e Joanne ha acted unconscionably. (b) The compan claim again he ZNA Bank ill fail beca e he presumptions in s 129 Corporations Act 2000 (Cth) do not apply. (c) D e o A h ac ion ZNA Bank ha b eached he Code of Banking Practice.. (d) All of these answers are correct. Question Three (5 marks) Betty owns and operates a childminding business. Her business has prospered for some years, earning approximately $1,000,000 in annual profits, and she made plans to expand, including building a new centre in Hawthorn estimated to cost $2,000,000 on completion. She borrowed $1,000,000 from Second National to pay for the centre. Her business deteriorated when Covid-19 restrictions came into effect in 2020-2021, and all construction work came to a halt. Betty approached her bank, Second National, asking the bank to suspend loan repayments until after the Covd-19 restrictions were lifted. They refused to do so unless the loan plus interest must be repaid within 5 years. If not, then Second National would take ownership and control of the business completely. Advise Betty. (a) Second Na ional (b) Second Na ional eq e abo e ill b each he Code of Banking P ac ice eq e abo e o ld be ncon cionable 5 Swinburne University of Technology School of Law, Business and Entrepreneurship (c) Second Na ional eq e abo e complie Practice and is not unconscionable. (d) None of these answers are correct. LAW20045 Finance Law Semester 1 2022 i h he Code of Banking Question Four (5 marks) An in ance b oke i an agen of he in ed no he in e (a) This statement is correct. (b) This statement is incorrect because an insurance broker acts on behalf of the insurer. (c) This statement is incorrect because an insurance broker does not act on behalf of either the insured or the insurer. (d) None of these answers are correct. ----oo00 End of Exam 00oo--- 6
