Problem for (a), (b), and (c): Jack, Jill and Murray were students at Ashmon College (AC) in Melbourne. All of them needed extra money. So, in January 2019, Jack and Jill decided to establish a business and sell textbooks to students attending Ashmon College and University by using Amazon and eBay. They also opened small store on campus. Murray lent Jack and Jill $50,000 and is repaid the loan by receiving 15% of the profit until the loan is repaid in full. Murry also helps out in the shop when it is busy. He normally does the security as there was a lot of theft when they first opened the business. Jill is responsible for buying the textbooks but agreed that when buying textbooks to sell, Jack must also approve the transaction if the volume is over 100 books. This is to ensure all textbooks are the latest editions. Initially, sales were very slow but through word of mouth, sales have increased to the point where stock was running out. While Jack and Murray were away on holidays, Jill took the initiative to replenish the stock and purchased the business law textbooks from Jerry, a new university textbook supplier, to prepare for Trimester 1 2022. Jerry convinced Jill to order 200 copies of the Commerce in Law textbook at a 70% discount. When Jerry asked for identification to approve the purchase, Jill showed her business card which stated she is a partner. When the books were delivered, Jack was furious that Jill did not tell them about the transaction despite their agreement. Later, when Jill examined the textbooks she purchased, she discovered there was a later edition which was just published a week ago! When Jerry attempted to claim the amount owing for the books, Jack and Murray told him that only Jill is responsible for paying the debt. (a) (i) What business structure is being used to run the business? (ii) Are Jack, Jill, and Murray all partners under the Partnership Act? (6 marks) (b) Jerry argues that Jack (and maybe Murray) are also liable to pay for the books purchased by Jill. Is Jerry correct under the Partnership Act? (5 marks) 1 A B I iii III C? (c) (i) If Jack wants to leave the business, will he be liable for old debts? (ii) What should Jack do to avoid liability for any new business debts if he decides to leave? Refer to the relevant sections of the Partnership Act. (4 marks) 1 A B