3. When instructing our team, the Managing Director of CTB stated: 'to conduct a thorough compliance check you should consider all relevant State and Commonwealth legislation'. Elucidate the rationale for this instruction, by explaining:

(a) Why it is important for an Australian business to examine both State and Commonwealth legislation; and

(b) How conflict between State and Commonwealth legislation is resolved in Australia? (4 marks)

You have secured a competitive internship with a start-up technology firm which develops innovative solutions for companies entering the Metaverse (the next generation of online social interaction). The technological solutions developed include the conversion of cash into 'cryptocurrency', the implementation of 'blockchains' and the transformation of profile photos into 3D 'metaverse characters'.

For the first month of your internship, you have been assigned to work with a team that is performing risk and compliance assessments for the firm's latest 'metaverse character' software: Avatar Creator 3.0. Your supervisor, Aanya, has just emailed you the following urgent task:

Dear Intern, To fulfil our 2022 risk assessment strategy, our team is required to investigate whether all aspects of WS' new software - Avatar Creator 3.0 - comply with Australian laws and regulations. Since you are currently studying law at university, we would like you to tackle some preliminary questions concerning the legal and regulatory context of this software.