Jim and John have always wanted to start a business selling seafood pizza. The price of seafood has dropped in the market making it easily accessible at a low price. In 2018, they set up the business in Jim's garage. Jim applied for a permit (license) to trade so that they would not run into legal problems later.They both agreed that they should sell in the first quarter of the year when they receive the delivery of the seafood and whenever there is no supply they will continue with other important tasks associated with the business. Jim then ordered RM5,000 worth of seafood. The business grew and both Jim and John took a profit of RM10,000 for the first quarter of 2018. However, Jim secretly started selling pizza made of chicken and kept the profits to himself. Jim also contracted with Karim to sell Karim's pizza (made from the seafood from Karim's own farm), where Karim's shares take 80% of the profit from the seafood pizza sales. Jim, desperate to make quick sale, started selling pizza made from filling which is not seafood. Jason bought a pizza made from filling which is not seafood and suffered severe food poisoning. Jason intends to sue Jim for $10,000.

1.What are the issues arising in this question? Explain by referring to the relevant sections of the Partnership Act 1892 (NSW) and case law.

What type of business organization exist between Jim and John? Discuss referring to statute and case law. (6 marks)

2. Can Jason bring an action against Jim and John jointly or individually (severally) for his suffering? Give reasons for your answer based on the provisions of the Partnership Act 1892 (NSW) and relevant case law.

In advising Karim, is he entitled for full compensation from John alone? Discuss referring to statute and case law. (4 marks)