Posted: November 13th, 2022

Libby and Stephen Hunter are a young couple

International Business Law BLAW 2007 case studySemester 1 of 2016Part A:(worth 20 marks)Libby and Stephen Hunter are a young couple who both studied arts anddesign at a university in Western Australia. Soon after graduating, they boughta block of land with a house and a large workshop in Gooseberry Hills,Western Australia. Stephen specialises in furniture design while Libby loves towork with textiles. Together they have decided to set up a business to designand manufacture wooden daybeds with colourful, handmade coverings andcushions. Stephen developed the design for the wooden frames, and they arecurrently working in a team of five. Libby and the couple’s employee Sallydesign and sew the coverings and cushions, while Stephen’s cousins Nickand Noah help Stephen with the production of the wooden frames. The couplestarted off selling the daybeds through local retailers, but they now alsowholesale their products to a retailer in Mandurah.Libby and Stephen recently displayed their daybeds at the ‘ScandinavianOutdoor Furniture Expo’, to see whether there was an interest in their productin the European market. They were approached by a number of Europeanretailers who were very keen to sign contracts to purchase several hundreddaybeds each. Libby and Stephen are very excited about the prospect ofexporting their product. However, the increase in demand means that theynow need to consider growing their business. They have decided to continuewith the present arrangements at Gooseberry Hills for the WA retail supply,and to have the products for wholesale and for the European marketmanufactured elsewhere. They have narrowed their choices (for thewholesale and export markets) down to the following two options.Option one: They could purchase more tools, sewing machines and otherequipment to build the wooden frames, and lease a factory unit close by. Thiswould of course require significant initial capital, and at least six more peopleto help them with the production.Option two: The frames and coverings for the wholesale and Europeanmarkets could be produced cheaply in South East Asia.Instructions: You are required to identify and briefly introduce aspects(relating to International Business Law BLAW 2007) that may impact uponLibby and Stephen’s decision where, and under what arrangements, to havethe products for the wholesale and overseas markets manufactured.In each topic studied in this unit, there are at least one or two areas orprinciples of law relevant to the couple’s decision whether and how to growthe business. It is expected that students advise them on matters covered intopics one to nine inclusive. 1 Students who have a background in taxation lawor any other laws that may impact upon Libby and Stephen’s decision arewelcome to cover such additional aspects, as long as 75% of the papercovers materials studied in BLAW 2007. Please do not discuss cases and/orprinciples of law in any great detail. Simply apply your knowledge of therelevant principles of law to the business proposals outlined above, to makethe couple aware of possible legal implications and risks. This part of thepaper should be approximately 1800 to 2000 words. It is not necessary foryou to reference this part of the assignment because the advice you giveshould all be your own work. Please read these instructions in combinationwith the information in the unit outline and the information on how your paperwill be marked (this has been posted to the assignments folder onBlackboard).Below is an example of possible advice relating to conflict of laws (studied intopic one) and how Libby and Stephen would benefit from having anawareness of conflict of laws:Any legal issues arising from the operation of Libby and Stephen’s businessat present will be determined according to the law of Western Australia,assuming all contracts are entered in WA. However, once they operate thebusiness at the international level, a conflict of laws may arise. For example, ifa dispute arose between the couple and an overseas buyer (and the contractwas entered in Sweden) it is likely that Swedish law, rather than WA lawwould be applied. This, however, depends on the circumstances and theclosest connection with the contract. If Libby and Stephen wanted to makesure that any disputes were to be settled under West Australian law, theycould incorporate a choice of law clause into their contract.Part B:(worth 10 marks)Libby and Stephen are a little worried about the quality of the frames, shouldthey decide to have the daybeds manufactured in South East Asia. Pleaseadvise them of their legal liability, if any, in case a customer gets hurt, shouldany of the frames collapse. For this part of the question assume that theframes are assembled by the purchaser after delivery. Please advise thecouple.There is no set format on how to answer this part of the assignment. Pleaseuse any format that results in a clear, well-structured answer. This part of theassignment should include case discussions and must be referencedappropriately. Your answer should be between 700 and 800 words in length.Please read the instructions above in conjunction with the instructions in theunit outline. Information on how to submit assignments through Turnitin isavailable on Blackboard, in the assignments folder.1 We will cover topics 8 and 9 after the due date for the assignment. It is not necessary for you topre-read the entire topic. Simply select one or two areas or principles from each topic to include in acouple of short paragraphs. 

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