Pleas follow this format of an answer

Issue: What is the question that is being asked? You need to identify the correct issue/s. If there is more than one issue in a question, each issue needs to be responded to separately. Relevant Laws: Mention relevant cases and sections and explain them. For sections, you need to summarise the section's content. You do not copy the section word for word. For cases, you do not need to mention the facts of the case. You need to mention the judgment. It is important to have a clear section of the law. You do not only mention the name of the case or the number of the section without any explanation Application: You will apply the law to the facts of the problem. You need to use the facts of the problem and check if they fulfil the requirements of the law. Conclusion: What is the outcome? This part is only one line and is the answer to the question raised in the issue.

Question

Morris and Jordan are the shareholders and directors of AeroCraft Pty Ltd, a small aerospace parts manufacturing company. Several of the company's clients have expressed dissatisfaction with the quality of the aerospace components produced by AeroCraft. The parts manufactured were often found to be substandard and had led to operational issues for the clients. A few of AeroCraft's clients had even raised the possibility of taking legal action against the company, claiming that the components provided did not meet the expected quality standards and had defects. Morris and Jordan were concerned that AeroCraft Pty Ltd might face legal challenges if the clients decided to sue for compensation. They feared that the company might not have adequate financial resources to cover the compensation if the clients won a lawsuit against AeroCraft Pty Ltd. Morris and Jordan believed that the best course of action would be to create a new company and continue their aerospace operations under a fresh entity. They named the new company AeroTech Solutions Pty Ltd and transferred all the assets from AeroCraft Pty Ltd to the new company. AeroCraft Pty Ltd remained registered but ceased its business activities and held no assets.

Suggest AeroCraft Pty Ltd's clients if Morris, Jordan, and AeroTech Solutions Pty Ltd will be liable to pay compensation for the defective products produced and sold to them by AeroCraft Pty Ltd by referring to relevant statutory provisions and case laws.