Anne, Beth and Carl decide to combine their financial and human resources in order to open a food catering business. They verbally agree to run the business together, sharing of expenses and income equally. They have been running their business together on the basis for the past six months.

a)Explain the legal consequences if any which arise in partnership law from their agreement .

b) From a franchisee's perspective, what are the advantages and disadvantages of franchising?

act v Request Dictate Adobe PDF Signatures Styles Question 1-both (a) and (b) Editing Adobe Acrobat Voice a) Anne, Beth and Carl decide to combine their financial and human resources in order to open a food catering business. They verbally agree to run the business together, sharing all expenses and income equally. They have been running their business together on this basis for the past six months. Explain the legal consequences, if any, which arise in partnership law from their agreement. (5 marks) b) From a franchisee's perspective, what are the advantages and disadvantages of franchising? (5 marks) Question 2 Martin purchased premises which he used as the head office for his chocolate business. Martin took out a fire insurance policy over the building and its contents. The building and its contents were destroyed by fire. Insurance investigators later discovered that Martin used the premises not only as his office headquarters but also for the packaging of his chocolate products. Prior to taking out insurance, Martin had not disclosed this intended packaging use in the insurance proposal. Under the Insurance Contracts Act 1984 (Cth) can the insurer now reject Martin's fire claim? (10 marks) Focus Lo (Australia) % Accessibility: Investigate