Read the case study carefully and answer the questions.

XYZ Pty Ltd is the sole trustee of Packer Family Trust. The business activities of the trust mainly involve managing the commercial and domestic properties (valued at $10.2m) owned by the Packer Family trust including the maintenance and repairs. The properties are mainly commercial - retail outlets, factories and some blocks of land.

Maria, the sole director of XYZ Pty Ltd has recently bought a brand new Mercedes worth $120,000 on loan from Mercedes Pty Ltd using the Packer Family Trust. This purchase was made even though the trust was seriously in debt and had insufficient cash to service its existing loans. In signing the contract of sale, Maria made it clear that she was signing 'as trustee of the Packer Family Trust'.

The Packer Family Trust has failed due to downturn in demand for leasing for commercial property and cannot meet its debts. The $120,000 owed to the Mercedes Pty Ltd has not been paid and there are many outstanding debts.

Required:

1. Can Mercedes Pty Ltd recover money? If yes, from whom? Explain your response.
2. If the beneficiaries decided that the Mercedes should be sold, would Maria be able to buy the car for herself? You must mention relevant case law.