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Scenario
Sporting Supplies Trading Incorporated is a global business that sets up and runs businesses around the world focused on designing, producing, distributing and selling sporting goods of all types under their brand ‘Pra–Form‘. Its head office is in Soul, South Korea.
The company has identified a global opportunity for quality sporting goods based upon the sporting game culture for boxing, running, football and other accessories, the company has the capacity to manufacture and produce sporting goods for any sport for New Zealand. This has arisen because of the New Zealand sporting teams winning world cups and in the Olympics. Other factors are related to the clean and green image of New Zealand and increasing global interest in the traditions of indigenous peoples around the world.
The company prefers to set up a new subsidiary in each country in which it has an interest for products. This not only yields authenticity to the products, but also reflects the company‘s desire to demonstrate its corporate social responsibility. To be viable, any subsidiary company to be established would employ around 170–200 staff. It would be operated in a manner typical for its size in the target country.
To decide whether setting up a subsidiary in this instance is appropriate, the company must perform an assessment of the country‘s legal context. This is to understand the laws with which the company would need to comply if it were to operate such a subsidiary business in New Zealand. The company is considering New Zealand and setting up Sporting Supplies Trading with it‘s brand ‘Pra–Form‘ as its subsidiary there. This assessment is performed in a series of stages as detailed below.
Assignment
You are the legal professional consulted by Sporting Supplies Trading during the process of their assessing and progressing the New Zealand opportunity. The company seeks your input at 3 key stages in the process. Each stage requires the development of a specific response by you.
Task 1 – 10 marks
Introduction
You are to produce a short briefing paper (no more than 300 words +/–10%) for Sporting Supplies Trading‘s executive team that provides an overview of the principle considerations relating to New Zealand‘s legal context.
The purpose of the briefing paper is to enable the executive team to consider how the overall legal context currently in place in New Zealand might affect their decision whether to set up a subsidiary in that country.
Note: whilst it might be tempting to just detail the full history of New Zealand‘s legal context, this is NOT what is required. Instead, you should focus on identifying the key points of the current state of NZ legal context that is RELEVANT to the purpose of the document.
Task 2 – 50 marks
You are to assume that Sporting Supplies Trading has decided to consider setting up a New Zealand business in principle. However, they now need to evaluate whether their existing standard business model can be used in New Zealand.
You are to produce a business report (no more than 1,800 words +/-10%) for Sporting Supplies Trading’s executive team that details the principle NZ statutes that will impact upon the operation of the subsidiary business.
Key to this report will be the identification of laws that make the NZ legal context: – unique when compared to other jurisdictions, and also – expected to be in existence given the maturity of the economy
For each law, a brief summary of its purpose and an explanation of its likely impact on the operation of the proposed ‘Pra-Form‘ subsidiary company is required.
The purpose of the report is to identify any considerations within the New Zealand body of laws that the executive team should take into account when considering the application of their standard business model to the opportunity.
The identification of any such issues should form the basis of the conclusions of the report and, based upon these, recommendations should be made to the executive team about how best to address them.
Task 3 – 30 marks
You can assume that the executive team of Sporting Supplies Trading have approved the setting up of a subsidiary business, Pra-Form’, in New Zealand. The subsidiary has now been set up and is compliant with all relevant NZ legislation.
The management team of the new subsidiary, ‘Pra-Form’, wants to train its new business development and commercial team in the key principles of NZ contractual law.
You are to produce a business presentation (maximum 15 slides and/or 750 words) suitable for training a team of 15 business development and commercial staff in the principles of NZ contract law.
The purpose of the presentation is to train the staff in the principles of NZ contract law in an informative and relevant manner. This means using examples and illustrations relevant to the ‘Pra-Form‘ business.
Task 4-10 marks
You will be awarded marks for the structuring and quality of your submissions. This includes the formatting, referencing, presentational look and feel, etc. Also, for each component, whether it is ‘fit for purpose’ as a business document.
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The given case study on exemption clauses has the following components:
In this report, the different English legal laws will be discussed which are applicable to the two cases against Excelsior and Red Lion Hotels.
The case against Excelsior can be analysed with English Tort law, specifically related to negligence.
The hotel had clearly mentioned in the back of the bedroom door that the hotel would not be responsible for any losses due to injury or any damage caused to the property of the customer. The customer, Simon faces the following losses and damages:
While the first damage was caused due to negligence of Porter employed by the hotel but the second damage was completely accidental. As the injury caused was purely accidental, Simon cannot claim liability for the injury. However, as Porter was employed by the hotel, and the damage was due to negligence of Porter, the exemption clause can't prevent Simon from winning the case against Excelsior.
English Tort law can be used to analyse the current case. The English Tort law is a law that governs inherent civil authorities that people need to know in order to oppose specific obligations laid out in agreements (Treitel, 2003). It gives legal remedies, i.e. pay money to those who have been harmed due to the negligence of the other person and fail to meet these inherent responsibilities. Unlike criminal law, it mostly deals with the responsibility of individuals to the state where a court has the right to prohibit the freedoms of people.
