I U v ab X, X AvPvA v E v 1 Styles Scenario 1 Jack, Harry and Winston are students at Deakin College. They saw an opportunity to make some money by selling flowers near the college. They decided to use the name Fresh Flowers and started the business by each of them investing $1000. A shop in the Burwood shopping mall was rented to carry out the business. They think that there will be about $1500 profit per fortnight from the business. Jack is good with accounts and took responsibility for the financial aspects of the business. Harry is in charge of the flower shop and deliveries, while Winston deals with the suppliers. Jack, Harry and Winston are permitted to make purchases up to $500 individually and anything above that amount is required to be approved by all of them. The flower shop displays different types of flower arrangements and Harry makes all floral arrangements to be displayed at the shop. . . The following incidents/transactions occurred during last few months: Jack saw an advertisement for professional flower cutters and placed an order to buy three of those for $200. Leena, a regular customer, was stung by a bee while inspecting a flower bouquet displayed at the flower shop. Leena had a severe allergic reaction and was admitted to the hospital. Her one-week treatment in hospital cost $850. Jack has allowed his friend, Karl, to use the flower shop during the weekend to sell souvenirs in exchange for $200 per week. Harry and Winston are not aware about this transaction and Jack advised Karl to keep it between themselves. Winston entered into a contract with Sam in January 2021 for the supply of Red Poppies for the next three months. His usual order was for $300 per month. In view of the increased demand for Red Poppies during April due to Anzac Day, Winston increased the order for month of April to $700. Sam noticed that the amount was larger than usual and checked with Winston about this. Winston forwarded Sam his business card which stated, 'Supply Manager' and Sam agreed to supply the flowers. Unfortunately, due to COVID-19, the Anzac Day celebrations were largely cancelled, and this resulted in way less than expected sales. Advise Jack as to the following questions. (a) Are Jack, Harry and Winston partners of a partnership business? (b) Does Jack have authority to purchase 3 flower cutters for $200? (c) Can Jack and Winston be held responsible for the hospital bill of Leena? (d) Are Jack and Harry responsible for the Red Poppies order made by Winston? (e) What is the fiduciary duty Jack breached when he rented the shop to his friend for $200 per month? Advise Jack as to the following questions. (a) Are Jack, Harry and Winston partners of a partnership business? (BRoom 1) RL: Section 5 regarding the business and section 6 regarding people who share profits (b) Does Jack have authority to purchase 3 flower cutters for $200? (BRoom 2) RL: Common Law Express Actual Authority; Implied Actual Authority; and Apparent Authority (c) Can Jack and Winston be held responsible for the hospital bill of Leena? (BRoom 3) RL: Section 14 and 16: Wrongful acts by a partner (test: done in the ordinary course of business) (d) Are Jack and Harry responsible for the Red Poppies order made by Winston? (BRoom 4) ORL: Section 9 and 13: Joint liability of partners for contractual debts entered into by a partner (2 part test: relate to the business? Done in the usual way?) (e) What is the fiduciary duty Jack breached when he rented the shop to his friend for $200 per month? (BRoom 5) RL: Section 32, 33, and 34: duties of a partner (say which ones have been breached)