BUSINESS LAW 商法论文：课程 RISK CONTROL AND THE LAW

PART A - You must answer Question 1 and either question 2 or 3. A strict word limit of 900 words applies to question 1, and 600 words for questions 2 and 3. Question 1 - compulsory Li and Qiang operate a business together as buyer’s representatives for purchasing properties. Their work involved acting for others as a representative of buyers at auctions to purchase residential real estate. When Qiang was in Australia on a business trip, Li was engaged by Walter (who lives in Hong Kong) to purchase for him a property in Hong Kong for not more than $1,500,000 (HK). Li’s cousin had a residential property that met all of Walter’s requirements. The property was on the market for $1,400,000. Li said to his cousin “I have been engaged by this rich man to buy him a property like yours, and is prepared to pay $1,500,000. Why don’t we sell your property to him for $1,500,000 and split the $100,000 difference?” The cousin agreed. The sale is completed and the cousins shared the $100,000 difference. While looking through some old newspapers about a month later, Walter sees the property he has just bought advertised for $1,400,000, and finds out the truth. a) Can Walter take legal action against Li and/or Qiang? In your answer consider both the legal relationship between Walter on one hand and Li and Qiang on the other. Also consider the type of legal relationship that exists between Li and Qiang in their business operation. b) Identify the how you would minimise risk at each “risk event” you can identify in this question. (10 marks + 5 marks = 15 marks – maximum 900 words) Question 2 You have been engaged by the Hong Kong based Dragon Bank as a financial risk management consultant. Your instructions are to prepare a brief report for the board on what you consider to be the top 5 financial risk management issues facing the bank. In your answer make appropriate reference to relevant Banking Ordinances that address liquidity requirements for Hong Kong banks. (10 marks – maximum 600 words) Question 3 Chenxia was employed by the “Pink Rooster” fast food chicken shop as a shop assistant working the night shift. Her duties required attending to customer orders for fast food chicken, hot chips and other related products, cooking the food items that are sold and cleaning the shop. One evening when Chenxia was working her co-worker rang in sick. Chenxia tried to contact her boss to request another staff member be rostered on but could not contact him. Chenxia was left alone in the shop to handle everything and this left her feeling anxious. As she expected the shop got busy and she had to do everything including putting a large batch of chips in hot oil to cook. As she was running around trying to keep customers happy she slipped and her arm went into the vat of boiling chip fat causing serious burns. You are engaged by the Pink Rooster board of directors to advise them on their duties under the Occupational Health and Safety Ordinance Cap 509 and whether they may have breached that ordinance. They also want to find out how to better manage the work system at their shops to avoid OHS risks and how to better comply with this ordinance. Advise them. (10 marks – maximum 600 words) PART B - You must answer Question 4 and either question 5 or 6. A strict word limit of 900 words applies to question 4, and 600 words for questions 5 and 6. Question 4 - compulsory Energy Resources of Brunei (‘ENROB’) was listed on the Hong Kong Stock Exchange (‘HKEX’) to carry on business as an oil exploration company in the South China Sea. ENROB has expanded its activities in recent years to include a number of very risky investments in the energy sector which have created some spectacular profits as well as substantial losses. However ENROB had set up a number of creative partnership arrangements which enabled it to exclude these losses from its financial statements. As a result ENROB has appeared to be one of the most pr