Assessment 3 – Individual Assignment

Business Law

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Executive summary
Fraud and Anti-corruption case according to Australian legal system is integrated into many
set of policies to control for better penalisation and prosecution of offenders. To make sure
about the fraud controls, government of Australia has designed fraud control framework
through the help of legal, policy and various governance requirements exercised by the
Australian Public Service (APS). Fraud control strategies incorporated by the government are
basically designed as per the bi-annual preparation for managing fraudulent activities as a
fraud risk assessment. Increasingly, this implementation of the effective fraud control
strategies by the government is helping to get proactive measures as an integrated response.
Like any deceitful conduct or some potential loss due to other person’s benefit is considered
as Fraud, and the risk of fraud can be further justified as internal as well as external practices,
as there are many justification of fraud, such as concealment, false representations, theft,
destruction as well unauthorised use of data, are few to mentioned that are regarded as crimes
in a more vary complex way as per the Commonwealth Authorities and Companies Act 1997
(CAC Act).

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Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Case study 1...........................................................................................................................................4
Introduction to the case:.......................................................................................................................4
Initiating Principles of Australian Business law to observe the given case study...................................4
Possible solution and legal steps for Angela..........................................................................................5
Case study 2...........................................................................................................................................6
Introduction to the case........................................................................................................................6
Policies that govern over unfair business practices...............................................................................6
Food expiration regulation....................................................................................................................7
Suggestion as per Consumer Law..........................................................................................................7
References.............................................................................................................................................8

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Introduction
In the year 1987, the government of Australia has first initiated their program against fraud
through a Commonwealth Fraud Control Policy (the Fraud Control Guidelines). In 2002, the
Australian government has again incorporated several other policies to update their legal
developments in terms of managing modern business practices, corporate governance and
string control of fraudulent activities (www.anao.gov.au, 2011). Here, there are two case
studies that have directed two different issues to take care about. However, in both the case,
there is an organised crime and in order to solve the issue, it is imperative to observe as per
the Commonwealth Fraud Control Guidelines under Regulation 19, issued by the Minister
for Justice and Customs in 1997.

Case study 1

Introduction to the case:

Here, in order to investigate the conflict, it is imperative to analyse Angela and her
involvement with Jessica, for purchasing a restaurant. While Angela wanted to make sure
about the profit history of the restaurant, Jessica has lied to her about $10,000 per year.
However, this is not exactly the truth, as for the last 5 years, the restaurant is only making
$2,000, which is a complete lost business. While negotiating, Angela wanted to confirm
about the profit stature of the business, and even received all the papers, and necessary
account information from Jessica, but had neglected every paper, and ended up only to
review the year 2007, and its record that is $10,000.
We are still not sure about the status and its respected details regarding the contract, and most
importantly, it is necessary to divulge more into the case, if the information provided by
Jessica is misleading, there are some important steps that are necessary to take by Angela to
make further amendment.

Initiating Principles of Australian Business law to

observe the given case study
Most of the policies of the Australian contract law is inspired from the English common law
and codified as the Australian contract law to provide each party to choose their bargain or
conducting successful business. In meantime, the negotiation process is the ultimate formula
to realise the needs of each other, and so to achieve successful result, the process of negation
is necessary (Legislation.gov.au, 2018). Negotiation needs set of strategies and preparation to
challenge, and thus, there are several series to close the deal, and they are:
i. Planning negotiation

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 ii. Involving other party to witness the negotiation
iii. Closing the negotiation
Moreover, it is been observed that too often, one seller party use to push the buyer party to
agree with the deal. The agreement is the significant part that needs discussion, examination
as well as thorough inspection to get realistic offer regarding the resources and services. As
illustrated earlier, to sign the deal, negation is the primary step to follow between two parties
but understanding the bargaining position is necessary to resolve with given knowledge, with
the help of the PAN approach: Preferred position, Acceptable position, and Not-negotiable.

Possible solution and legal steps for Angela

If the parties have signed an agreement on the basis of important terms related to bargain,
there are certain details that are needed to incorporate as building a preliminary contract, such
as ‘term Sheet’ that discusses agreed terms, details of each party and remaining detail of the
negotiation words. The Australian Government has programmed their policies in order to
protect the, expenditure, property and revenue from fraudulent activity, but it is difficult to
say in this case as it is been observed that Jessica has submitted every papers related to the
restaurant business to Angela, but she is not alert enough to check out every necessary details
that requires a systemic approach. Moreover, if the contract also reflected the same false
information by Jessica, then Angela can file legal action against her (Johnson and Millar,
2014). To the management of fraud across the Australian Public Service (APS), Angela can
take necessary actions to retain loss, and it is also installed by the Financial Management and
Accountability Act 1997 (the FMA Act) to articulate the commitment rightly to prevent any
fraudulent activities. The Commonwealth Authorities and Companies Act 1997 (CAC Act)
has also entrusted the same only after identifying the fraud (Business.gov.au, 2018).
Moreover, to encompass the Fraud and Corruption Control Framework, it is necessary to
determine internal and external issues that further lead to legislative requirements. Hence, the
framework suggest few of the guidelines before taking any further action and they are as
follows:
i. Reporting process
ii. The mention of the Fraud and Corruption Control Policy in the document
iii. Training and awareness
iv. DJAG fraud risk controls
v. The Risk Management Framework
vi. Interpret business law legislation
High chances to get maximum benefits from the business is to avail the right kinds of words
while signing off the deal. Effective communication is imperative for both the party, and
sealing the deal requires satisfactory elements as per the Australian contract law
(Austrade.gov.au, 2018). There are five stages of negation, and they are mentioned as per the
demand:

Stage 1: During this stage, it is necessary for the buyer party to realise the
Prepare potential value of the service and also needs to observe negative as well
positive attributes in connection with the ‘property’, here the product is
the restaurant that is facing heavy loss after 1st year of its introduction o

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 the market (Legislation.gov.au, 2018). Developing fact based is another
important approach for the Buyer (Angela) before buying.
Stage 2: Trust is a valuable aspect for doing business but cross check those
Exchange of information is also necessary to execute. Discovering and creating value
information over the words of the respective party is sometimes not accurate and so it
and validation is necessary to assess interests, and background of the information, which
Angela had not performed while closing off the deal.
Stage 3: Make and prepare concessions about the agreement is also very
Bargaining important, and so constant addressing those interest is necessary.
Power
Stage Confirming the interest from both the party is very important and so
4:Conclude the arresting those values in the agreement is required.
deal
Stage 5: All the changing interest, and expanding values must be finalised in the
Execute the contract, so that it can be useful during the time of conflict, like in this
necessary step case of Angela vs Jessica

Some important legislations are always there to help such case only after investigating the
brad statement of principle set by Competition and Consumer Act 2010 (Cth), for overriding
issues and other subject of fraud, if there is any liability of contract breach
(www.anao.gov.au, 2011).

Case study 2

Introduction to the case

Without knowing much regarding the Carton of cola bought by Sandra Smith from a local
store is turned into one of the nightmares for the family. Few weeks later, her husband got
sick terribly after consuming a chilled can, and started to become very ill and admitted to a
nearby hospital for three days. After thorough inspection by the medical team, it was later
announced that the Coke can had got remains of cockroach. The medical bill was huge and
the family is presently suffering to pay the bill as they are engaged into casual jobs that got
affected due to their medical situation. The dilemma is right now is to take action against the
corner store or the Australian manufacturer itself, known as Acme Cola Company Ltd. As a
matter of fact, it is also important to realise that the corner store is already gone out of
business because of bankruptcy.

Policies that govern over unfair business practices

There are some important sales practices that are been barred as per the Australian
Competition and Consumer Commission and they are as follows:
i. Unconscionable conduct
ii. Referral selling
iii. Unfair contract terms
iv. Pyramid schemes
v. Accepting payment without intending to supply

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 vi. Different condition of unfair treatment
According to this case study, Referral selling is the most appropriate as that signifies that the
Australian Consumer Law designs such policies for illegal practices by the business
organisation while persuade their consumer in a wrong way, by selling products or services,
promising benefits. Unconscionable conduct is also one of them that suggest those
approaches of the business who are executing their deals in an oppressive way. The consumer
does not know the real deal and falls prey and gets exploited by the manufacturer of the
certain product (Australian Competition and Consumer Commission, 2018).
Here, the family does not have any idea that they are buying exploited product, and without
knowing much, they are consuming it till their condition got disturbed. Therefore, as per
referral selling policies, the family can frame their actions against the company Acme Cola
Company Ltd.

Food expiration regulation

There are few stores that sell expiry product in a much reduce price, and if it is observed
minutely, the consumer are willing to pay less for having those product with out of date.
However, in this case, Smith family does not have any idea regarding the damaged food
product that actually contributed a great health as well as monetary loss. In Australia, cases
associated with Food expiration and damaged is governed by Food Standards Australia and
New Zealand (Consumerlaw.gov.au, 2018). The type of ingredients to the expiry date,
everything gets regulated by this governing body. If the things go wrong, liked the case
connected with Smith family, there are few other measures that are necessary for the family
to look for to get judgment, as crime should not go unnoticed or unpunished (Jager, 2016).
Hence, the Australian Competition and Consumer Commission has suggested various
interesting policies to protect and helps to promote fair trade and competition, consumer
protection law as well as referred consultation.

Suggestion as per Consumer Law

The consumer protection law is entirely in support with the people who suffered in many
ways, while buying products or avail services (Business.qld.gov.au, 2018). Thus, ACL offer
many polices to resolve and protect and they are as follows:
i. Lay-by agreements
ii. Right safety of the product that are being sold in the market
iii. Strong consumer rights when buying goods and services
iv. Covering standard form and unfair contract terms that go against the consumer
contracts
v. Unsolicited consumer agreements such as telephone sales and covering door-to-door
sales

As per the unfair business practices to avoid, it is imperative for the Smith Family to file case
against the company Acme Cola Company Ltd. Moreover, it is also to be noted that local
store has nothing to do regarding selling corrupted goods, as here, the subject is not about
expiry date. The Coke can does contain the remains of cockroach that actually triggered life-

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threatening condition for Mr Smith. The family must consult with legal profession respected
to this situation as they are liable to get recovery money as well as medical compensation
from the company due to selling of contaminated product. Thus, avoiding unfair business
practices guide will help to covers misleading or deceptive conduct by the company. Here are
few steps that help to make the process easy and they are:
i. Report the problem to local food enforcement contact
ii. Name, address and phone number
iii. The brand (company) name, food product name and selling store location
iv. The package type
expiry date and condition
v. Package codes
vi. Bill of the product you purchased it.

As, false or misleading, unconscionable conduct have been confirmed so clearly, and thus, th
family must take legal action to the representations and must complain to the related official
body regarding offence, with all records, as per the information standards. Food poisoning is
strictly a punishable offence, and FSANZ used to coordinates this kind of food recall
information (Foodstandards.gov.au, 2018).

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References

Austrade.gov.au. (2018). Australian business and environment laws - Austrade. [online]

Available at: https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-
a-business/Understanding-Australian-business-regulation/Australian-business-and-
environment-laws [Accessed 1 May 2018].
Australian Competition and Consumer Commission. (2018). Unfair business practices.
[online] Available at: https://www.accc.gov.au/business/treating-customers-fairly/unfair-
business-practices [Accessed 1 May 2018].
Business.gov.au. (2018). Legal essentials for business. [online] Available at:
https://www.business.gov.au/info/plan-and-start/start-your-business/legal-essentials-for-
business [Accessed 1 May 2018].
Business.qld.gov.au. (2018). Food and beverage industry regulations and compliance |
Business Queensland. [online] Available at:
https://www.business.qld.gov.au/industries/hospitality-tourism-sport/food/food-
beverage/regulations [Accessed 1 May 2018].
Consumerlaw.gov.au. (2018). Consumers and the ACL – Australian Consumer Law. [online]
Available at: http://consumerlaw.gov.au/consumers-and-the-acl/ [Accessed 1 May 2018].
Foodstandards.gov.au. (2018). Food complaints. [online] Available at:
http://www.foodstandards.gov.au/consumer/safety/complaints/Pages/default.aspx [Accessed
1 May 2018].
Jager, C. (2016). Ask LH: Are Grocery Stores Allowed To Sell Expired Food?. [online]
Lifehacker Australia. Available at: https://www.lifehacker.com.au/2016/05/ask-lh-are-
grocery-stores-allowed-to-sell-expired-food/ [Accessed 1 May 2018].
JOHNSON, M. and MILLAR, J. (2014). Doing Business in Australia: Contract law -
Knowledge - Clayton Utz. [online] Claytonutz.com. Available at:
https://www.claytonutz.com/knowledge/2014/june/doing-business-in-australia-contract-law
[Accessed 1 May 2018].
Legislation.gov.au. (2018). Commonwealth Fraud Control Guidelines. [online] Available at:
https://www.legislation.gov.au/Details/F2011L00511 [Accessed 1 May 2018].
www.anao.gov.au. (2011). Fraud control in Australian government entities: better practice
guide. [online] Available at:
https://www.anao.gov.au/sites/g/files/net616/f/2011_Fraud_Control_BPG.pdf [Accessed 1
May 2018].