Question: Joy has been running a small business growing organic vegetables on his farm and selling them at the farm gate and at Sunday markets. In
Joy has been running a small business growing organic vegetables on his farm and selling them at the farm gate and at Sunday markets. In 2019, on the advice of his accountant, Joy formed a company called Joy's Organic Produces Pty Ltd (Organic Produces). Joy had always bought his seeds and seedlings from New Agriculture Ltd (New Agriculture) and he was well known to New Agriculture because of his poor credit record. When Organic Produces was formed, Joy told New Agriculture that it was now dealing with Organic Produces. However, he did not make any changes to 4 | P a g e the way in which he carried on the business. Joy owned the farm and the truck used for deliveries; Organic Produces did not pay any rent or wages to Joy. The income from the sale of vegetables and payments to suppliers were paid into and from Joy's personal bank account. Organic Produces did not lodge any tax returns and Joy himself did not submit his tax returns for some years. New Agriculture eventually sued Organic Produces to recover the debt of $10,000 owed by Organic Produces to it and sought leave to add Joy as a defendant in the action.
What legal grounds could New Agriculture rely on to support its claim to have Joy added as a defendant in its action?
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