Question: Question 2: (8 marks) Joy has been running a small business growing organic vegetables on his farm and sold the produce from his farm at
Question 2: (8 marks) Joy has been running a small business growing organic vegetables on his farm and sold the produce from his farm 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 Agri Ltd (New Agri) and he was well known to New Agri because of his poor credit record. When Organic Produces was formed, Joy told New Agri that it was now dealing with the company, Organic Produces. However, he did not make any changes to the way in which he carried on the business. Joy owned the farm and used the companys truck for deliveries. Organic Produces did not pay any rent or wages to Joy. The income from the sale of the farms produce and payments to suppliers were paid into and from Joy's personal bank account. Organic Produces did not lodge any tax returns in 2020 and 2021. and Joy himself did not submit his tax returns for some years. New Agri eventually 4 | P a g e sued Organic Produces to recover the debt of $10,000 owed by Organic Produces to New Agri and sought to add Joy as a defendant in the action against Organic Produces. What legal grounds could New Agri rely on to support its claim to have Joy added as a defendant in its action?
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