MLF1002
Law Assessment 3.2023
The use of Artificial Intelligence (AI) chatbot like ChatGPT for whole or part answers to the questions below
are strictly prohibited as it is a form of plagiarism (academic misconduct) because the answers provided are
not your own. A breach will be dealt with under the College’s academic misconduct policy.
Part A [20%]
Princeland is a fictitious state in Australia with a population of 5 million. Its 75-seat Parliament (legislature)
is unicameral (i.e., only one house) and is governed by the Coalition since the state election of 2022.
Structure
Liberal Party – 30 seats
National Party – 7 seats
Labor Party – 35 seats
Independent member #1 – 1 seat
Independent member #2 – 1 seat
Independent member #3 – 1 seat
The Bill (draft of a proposed law)
The Food Nutrition Labelling Bill 2023 [fictitious] is in the process of being introduced by members of the
Labor Party. If passed, Princeland will be the first state in Australia to mandate ‘traffic light’ labelling on
the front of packaged food & drink products. The traffic-light system is to warn consumers of foods and
drinks that contain excessive amount of undesirable nutrients like sugars, fat, and salt.
Currently only a handful of food producers have voluntarily adopted this labelling system.
Supporters include (a) health professional bodies, e.g., Australian Medical Association, and (b) health
insurance companies. Those who are against the mandatory labelling are the major food & beverage
producers – mainly because their mass-produced products are highly processed with many additives.
The Players
The Labor Party is in full support of the proposed law because it is in line with its ideology. All the 35
members are expected to vote the same.
The ruling Coalition, especially the Liberal Party, is against the bill – primarily because of its stand on
individual freedom (of choice) and minimal government interference.
Jack is an Independent (member #1) and together with his wealthy family own shares in many food
processing companies. He has declared that interest to Parliament upon being elected. He is unsure
whether the Parliament will have a problem with that.
Coalition
2
The various food & grocery industry associations are regular donors to the Liberal Party and National
Party – donating a total of $100,000 prior to the 2022 state election.
Mandy is the CEO of one of the beverage industry associations. She is a close friend of Liam, a Labor Party
member of Parliament. It was through Mandy that Liam learnt that the traffic-light system is flawed when
applied to beverages as it does not clearly distinguish between natural sugar (as in fruit juice) and added
sugar present in soft drinks, flavoured milk, etc. As a result, Liam intends to persuade his party to exempt
packaged drinks from the proposed law.
Megan Jones, a sitting member of the National Party, is of two minds about which way to vote. Her
husband and children are obese and are also diabetic, which she blamed on overeating and bad food
choices.
A month before the presentation of the bill to Parliament, Peter, an independent member #2 received a
‘donation’ of $20,000 from a major soft drink producer. The accompanying note read: ‘In appreciation for
all the work that you had done representing the disadvantaged people of Princeland’. The member did not
declare the gift to Parliament.
© Copyright Stratstar/K Y Lee 2023
Requirements:
Question 1:
IN YOUR OWN WORDS, explain/discuss each of these concepts within the context of the above case.
Hint: Concepts must be discussed/explained by referring to the case, i.e., as they apply to the case.
a) The Legislative process
b) Party vote vs conscience (or free) vote
c) Lobbying
[About 400 words, 10 marks total]
Question 2:
IN YOUR OWN WORDS, explain/discuss each of these concepts within the context of the above case.
Hint: Concepts must be discussed/explained by referring to the case, i.e., as they apply to the case.
a) Traffic-light nutritional labelling – legality vs ethics
b) Political donations – legality vs ethics
c) Political corruption – legality vs ethics
d) Conflict of interest
[About 400 words, 10 marks total]
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Part B [20%]
Rexton Ltd [a fictitious company] is an Australian public company with a market capitalisation of about
$100 million. The company was established 80 years ago and is well known for its generosity – donating
$500 000 every year to social causes.
It is a diversified business with several product divisions. Its core but least profitable division is its leather-
goods business which specialises in high-end jackets and handbags for both the domestic and export
markets under the Rexton brand and its associated famous tagline, ‘Always hundred percent Australian’.
Most of Rexton-branded jackets & handbags are original in design, and all products feature its distinctive
blue-on-black colour theme, and its iconic gold-silver logo. Although the brand is already well established, it
is still heavily promoted - spending about $1 million each year on advertising alone.
The Rexton’s range is sourced from Australian leather (kangaroo and sheep skin) tanneries; designed, cut,
sewn & finished in Rexton’s leather-goods factory in Perth.
Direct production costs have gradually increased over the years squeezing the profit margin of the leather-
goods division. In 2021 it recorded its first loss and had to be supported by Rexton’s other product
divisions. According to analysts the loss was partly responsible for the fall of 20% in Rexton’s share price in
2023. No dividends were paid in that period as well. Sales revenue has been stable but increasing the price
is not an option given the highly competitive markets.
Disgruntled shareholders have put pressure on the Board of Directors to address the negative return on
their investment and even to replace the current CEO, James Rexton – who is the founder of the company.
The company’s 3-year profit forecast is even more dire with a projected loss in the second year amid tough
competitive environment. Clearly a major restructuring [of operations] is required especially involving cost
reduction.
Rexton’s Board of Directors has even proposed shutting down of its entire Perth factory and outsource its
production to a low-cost country in Asia.
CEO’s Proposed Strategy
In the bid to avoid the loss of its entire production workforce and to drastically reduce production costs,
James Rexton plans to raise $8 million from shareholders to invest in the in-house development of unique,
high-tech cutting & sewing machines that only require low-skilled workers to operate.
The 2-year plan will eventually lead to the retrenchment of 50% of its current workforce of skilled workers
since their positions will be redundant when the new cutting & sewing machines are deployed. Future
workforce expansion (if required) will only come from newly hired minimum-waged workers, working
alongside their higher-paid skilled colleagues on essentially the same tasks.
© Copyright Stratstar/K Y Lee 2023
4
Requirements:
Question 3:
Discuss/explain the following issues as they relate to Rexton’s Corporate Social Responsibility (CSR)
a) Rexton’s conduct (current and planned) that may be considered as ethical
b) Rexton’s’ conduct (current and planned) that could be regarded as unethical
c) How is Rexton meeting its economic responsibility? Explain
[About 400 words, 10 marks total]
Question 4:
a) Identify and explain the distinct advantages of Rexton as a public company over a private company
b) Explain why public companies are more heavily regulated than private companies
c) Identify and explain the Intellectual Properties (IPs) available to Rexton and their advantages
[About 400 words, 10 marks total]
END
Referencing Requirements
Chicago 17th B Author-Date Referencing Guide to acknowledge your sources of information (both in-text
and as a reference list at the end).