Question
Question One Nadine, known for being a nosey stockbroker, knew that one of her clients (an airline) was about to be cleared by the aviation
Question One
Nadine, known for being a nosey stockbroker, knew that one of her clients (an airline) was about to be cleared by the aviation safety board of allegations of unsafe management practices. Nadine urged all of her friends to buy stock in the airline today because the finding of the safety board was to be made known tomorrow.
a)What is Nadine's position on the evidence above?
b)Is your answer to a) any different if Nadine bought shares in the airline stock herself?
Question Two
Money Boomers Ltd is an investment business owned by John. John has numerous clients who use his services for advice on investment decisions. John has one client, Sergio, whom he suspects may be involved in money laundering. Advise John on some of the indicators which may elude Sergio being involved in money laundering.
Question Three
Benny wants to buy some shares now that he is working and earning money. Benny decides to catch up for lunch with Mandy, a friend from University. Mandy and Benny both did a business degree and graduated in December 2020, but Mandy majored in accounting and finance, so Benny considers her an expert on such matters.
Over lunch, Mandy advises Benny to purchase shares in Red Sky Mining Ltd. Benny trusts Mandy and purchases $20000 worth of shares. Benny does not know that Red Sky Mining Ltd is currently in voluntary administration and that Mandy's parents and herself are the three directors of Red Sky Mining Ltd.
a)Does Mandy owe Benny a common law duty of care? Can Benny get his money back for the "advice" Mandy gave him?
b)Would your answer in a) be different if Mandy and Benny shared two bottles of wine over lunch?
Question Four
Benny now seeks your advice as he is very confused about his entitlements in his new job. The reason Benny is confused is that when he looks at his payslip, he notices some deductions being taken out under the heading of "Superannuation". He cannot understand what the amount is taken out for and wants this money back to spend on investing in shares.
Advise Benny.
Question Five
a)What does the common law concept of "unconscionable" conduct mean and how has it been introduced into statute relating to financial services?
b)Explain briefly the facts of the Australian case that introduced this concept into Australian law including the "special disabilities" that placed the respondents in the case at a disadvantage?
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