Australian National University

The company immediately issued a public apology, recalling all products and offering full refunds to customers. Additionally, Vraiment launched a thorough investigation into how the defective product had bypassed their quality assurance processes. The investigation revealed a series of oversights in the manufacturing process, which was managed by a separate company Merde Manufacturing Services Ltd. (Merde) under a contract.

The board of Merde is entirely independent from Vraiment but states that it was driven by pressure from Vraiment’s CEO to meet the advertised launch date. In their haste, proper procedures were not followed, and hygiene issues were overlooked. Merde has however claimed that the negligent conduct arose from the actions of the factory foreman who was an independent contractor provided by labour hire company Hollis & Co Pty Ltd. (Hollis)

Employees of Hollis have little control over the manner in which they perform their work. They are assigned to work in a 'work roster' by Merde and overseen by the operations manager. They must also wear a Merde uniform. 

The CFO, Charles, tried desperately to steady the company’s finances and created false invoices to generate several hounded thousand dollars in fraudulent GST Input Tax Credits and maintain cash flow. He also directed one of his junior accounts to engage in a similar PAYG tax fraud.

When the board found out he was dismissed immediately. However, not wishing to frighten the markets, they maintained the appearance that he was still acting as CFO. Charles realising his career was over meet with a representative from Macquarie Bank and took out a loan for $1,000,000. Signing as “CFO on behalf of Vraiment Hideux Cosmetics Ltd”. Thereafter he fled to the Bahamas and has not been seen since.

Is Vraiment Hideux Cosmetics Ltd criminally liable for the fraud committed by Charles or the junior accountant? (10 Marks)

Use multiple Australian case and legislative law including solomon v solomon

The CFO, Charles, tried desperately to steady the company’s finances and created false invoices to generate several hounded thousand dollars in fraudulent GST Input Tax Credits and maintain cash flow. He also directed one of his junior accounts to engage in a similar PAYG tax fraud.

When the board found out he was dismissed immediately. However, not wishing to frighten the markets, they maintained the appearance that he was still acting as CFO. Charles realising his career was over meet with a representative from Macquarie Bank and took out a loan for $1,000,000. Signing as “CFO on behalf of Vraiment Hideux Cosmetics Ltd”. Thereafter he fled to the Bahamas and has not been seen since.

Is Vraiment Hideux Cosmetics Ltd criminally liable for the fraud committed by Charles or the junior accountant? (10 Marks)

Use australian law and case law with IRAC

Consider the model of the national savings market discussed in class. Imagine that we observe a

decrease in both the equilibrium real interest rate and the equilibrium level of savings and

investment. All other things being equal, this change is most likely to have been caused by:

a. A reduction in bank lending

b. A fall in the real interest rate

c. A decrease in national savings

d. An increase in national savings

A government would like to implement a cost-of-living index that gives it an early warning of

inflation. In calculating this cost-of-living index in practice

a. GDP should be used to determine the consumption basket

b. Consumer preferences rather than consumer purchases should be used.

c. It should be assumed that the current year consumption basket will be purchased in the

base year.

d. It should be assumed that the base year consumption basket will be purchased in the

current year.

Question 12.5

Sarah is employed as a personal assistant to Martha Tallis, a successful freelance lifestyle consultant and motivational speaker. One day, Martha told Sarah to go to the library and borrow a book which Martha needed to prepare for a speech. Sarah borrowed the book and gave it to Martha. Fou weeks later Sarah received an email from the library advising her that the book was overdue. Sarah asked Martha for the book so that she could return it. Martha could not find the book. When Sarah told the library that the book was lost, the library demanded that she pay a $110 fine for the loss of the book. Following on from 12.5, Sarah did not have $110 in cash in order to pay the library fine, so she charged the fine payment to her credit card, which incurred interest at a rate of 20% per annum. On that same day, Sarah also paid a $190 speeding fine with her credit card, which was the result of her speeding to get to work on time. Twelve months later Sarah was able to pay off the total amount of $300 which she had charged to her credit card. By that time, she had paid an amount of $60 in interest.Sarah felt extremely annoyed about the library fine and decided to talk to Martha about it. She told Martha that she thought that Martha should reimburse her for the cost of the library fine, since it was Martha who had lost the book. Martha replied that it was Sarah's job as her personal assistant to make sure Martha didn't lose any books, and so it was only right that Sarah should bear the cost. They argued for a long time. After the argument, Martha rang her lawyer and the lawyer advised her that she should reimburse Sarah for the library fine. The next day, Martha reimbursed Sarah $110. How does the reimbursement impact upon Sarah's ability to claim a deduction for the fine payment? Please give the basing law in ITAA.