Monash University (Australia) MCD2070 Business Law 2024 Final Exam

let's do the final exam of the course MCD 270 business law from M University we will choose question four to explain the background is that there is a partnership created by two people one of form is responsible for purchasing white boards for business she chose a lowcost supplier which had no license the quality of the product is poor and installation process hurts students the students use the company for damages the question asks should the partnership pay for the damage the question is is the company liable for 10,000 USD under the company's act then look at the rule section 180 stay said a director must exercise reasonable care in making decisions on behalf of the partnership a director has a duty to exercise care in making judgments directors must be able to understand the companies operations well enough to fairly assess its Financial condition on the section1 directors must act in the best interests of the partnership ship and in good faith no way appli this to the case the director decided to work with a supplier due to a significant price reduction in the pups even though the supp's materials were of poor quality in making this Choice the director did not adequately consider the interests of the partnership and did not exercise du diligence he should have therefore it is the director who violate section 180 and 181 it is concluded that the partnership is not OB to pay the 10,000 P the damage should be bor by the director