Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ben is an elderly man in his eighties. He has recently inherited $10 million from his parents. He is financially illiterate and has very limited

image text in transcribed
image text in transcribed
Ben is an elderly man in his eighties. He has recently inherited $10 million from his parents. He is financially illiterate and has very limited English language skills. He mostly communicates in his native language which is Spanish. He has never had to work a day in his life. Ben's parents had graciously paid for all his day to day expenses. In return, Ben had cared for his parents until Ben's parents both passed away. Ben is now grieving the loss of his parents and is living in an aged care centre in Brisbane. Chloe is an aged care worker who works at the centre full time. Chloe has been the primary carer for Ben since he moved into the aged care centre. In order to earn extra income, Chloe seeks out potential clients for Blissful Retirement Ltd ("BR"). She is given a lucrative commission for every successful client she manages to recruit for BR. BR is a wealth management company. It has developed a high-risk stock market strategy that seeks to provide wealth management services to potential customers in exchange for a management fee. The money entrusted to BR for investment is managed by BR on their client's behalf. This way their clients are able to potentially generate enough wealth so that they are able to retire comfortably. Last year Chloe approached Ben to consider appointing BR to manage his money. Chloe provided Ben with the relevant contract documentation to engage BR as his wealth manager without explaining what the contents were. She did not inform him that she would benefit from a BR commission should he decide to appoint BR. Ben signed off on the documents as he had complete trust in Chloe. The $10 million in inheritance received by Ben was then transferred to BR for BR to invest on his behalf. Business conditions have taken a plunge due to COVID-19. Ben's investments with BR are now only worth $100.000. Ben is anxious to recoup his losses REQUIRED Advise Ben regarding whether he will be successful in alleging unconscionable conduct by BR. [15 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers

Authors: Gary A Porter, Curtis L Norton

8th Edition

1111534861, 9781111534868

More Books

Students also viewed these Finance questions

Question

Whats My Basic Personality? (I. A. 1.)

Answered: 1 week ago