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BACC101: Zain v Gary Legal Issues Assignment 2:

September 26, 2013 0 Comment

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Assignment 2: Semester 2, 2013
This assignment is for my course BACC101 and has to be 1200 words in Length and must adhere to GLC reference guidelines.
Zain, an accountant and Gary, a barista, travel into the city each morning on the same tram. They have travelled on the same tram for many years and have become friends. Gary has recently inherited $60,000 from his Grandmother and asks Zain whether he should invest his inheritance in Widget Ltd. Zain tells Gary that he thinks Widget Ltd is a good investment. Gary then purchases a large parcel of shares in the company with his $60,000. However, the following week, Widget Ltd goes into liquidation and Gary losses all of his inheritance. Gary discovers that many accountants were aware of the poor financial position of the company and warnings had been published in several accounting journals and financial newspapers that Widget Ltd was in trouble.
a) Discuss whether Gary has any legal rights against Zain (25 marks).
b) Would your answer be different if Zain had charged Gary for his advice? (3 marks)
c) Is there anything Zain could do to protect himself if he had charged Gary for is advice? (2 marks)
• This assignment is designed to assess your ability to identify issues in a legal problem.
• You are required to use the IRAT format for your answer and refer to relevant precedents where applicable.
• NB. The referencing style for law subjects follows the Australian Guide to Legal Citation (3rd ed) (AGLC). This is the standard Australian guide for referencing in Law. It is a footnote style and will be taught to students during initial tutorials.

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