BUSN1101 Introduction to Commercial Law
BUSN1101 Introduction to Commercial Law
Problem Paper 2
Instructions
Problem paper 2 is to be submitted via Turnitin on the course wattle site.
Due: 9 am, 4 October 2022
Word limit: 1500 words (10% tolerance either way acceptable). Please include word count on your submission.
Marks: this assignment is worth 20% of your final mark.
Please refer to the course summary for details on how the assignment will be assessed. Note that late penalties apply.
Referencing: this is a problem solving exercise and not a research exercise so we are not expecting you to research widely for this. References in the text and lecture slides are sufficient. You do need to correctly cite appropriate sources in accordance with the Australian Guide to Legal Citation.
Here is a link to a short guide to how to cite the most commonly used references:
https://libguides.library.usyd.edu.au/c.php?g=508212&p=3476376Here is the link to the full guide:
https://drive.google.com/file/d/1TGvYqdqQnOU-GtSV3I25ft6EyYIx_w4U/editInformation and further links can be accessed via the Academic Study Skills web page.
https://academicskills.anu.edu.au/IRAC: You should answer the question in this format. A guide has been posted to wattle.
Masoud is the owner of Casbalanca Brasserie. A little over 12 months ago the head chef resigned in order to return home to Morocco. Masoud had been unable to employ a suitable replacement and he had been employing underskilled casual staff. Customer reviews on social media were very negative. Masoud approached Ali who was the head chef at another local restaurant specialising in north African food. Ali was quite happy in his job and not keen to move but Masoud was in urgent need of a good chef. He said to Ali, I will offer you 25% more that you are currently being paid. Ali said, I am being paid $80,000 per year. If you pay me $100,000 per year I will come to work for you but I dont want to work on Sundays. It was agreed that Ali would give 7 days notice to his existing employer and commence work with Masoud in a fortnight. An employment contract for two years was signed which specified the annual salary for the first year as $100,000 and provided for a 5 % increase in the second year. The contract said that Ali will work 6 days a week at the direction of Masoud between the hours of 4pm and 12 midnight with two breaks of half an hour each. The contract did not specify that Ali could not be asked to work on Sundays.
Ali commenced work and the customer reviews were fabulous. An article also appeared in the Canberra Times written by a food critic. Ali, the head chef at Casabalanca Brasserie, was described as the jewel in the north African restaurants crown. Masoud had customers booked in for weeks in advance.
Ali thought he might move to Sydney soon and mentioned the possibility to Masoud who was horrified. He said, I will pay you a bonus of $10,000 at the end of the year if you stay working for me.
At the end of the year Masoud refused to pay Ali the $10,000 bonus. Ali was upset and was also annoyed that he had been asked to work one Sunday a month during his employment. Ali left and moved to Sydney and his solicitors have contacted Masoud demanding payment of $10,000.
Masoud has contacted you for advice. He has discovered that Ali had only been paid $60,000 by his former employer and not $80,000 as Ali claimed. He wants to know whether
he has to pay the $10,000 and
he can claim back from Ali $25,000 in what he regards as overpayment of salary
Whether he can claim the additional salary he has had to pay to employ another chef for the second year. The replacement chef is being paid an annual salary of $120,000.
Advise Masoud and support your advice by reference to cases and any relevant legislation.
Only answer this question on the basis of work done in weeks 4, 5 and 6 of lectures and weeks 5, 6 and 7 of tutorials and workshops. You do not need to consider whether this might be covered by an industrial award or fair work legislation.
