Final Examination Question
Last Month Quentin lost his job working in the UNSW Law School photocopy room, and on his way home purchased a lottery ticket. He won big and bought a business, called Abdo ’s Diamond Cutting Works. Quentin places an order with Abdo ’s cousin in Damascus, Syria, Mussa, to buy 3 newest model diamond cutting machines at a price of $150,000 per machine “Delivered Duty Paid” at Darling Harbour, Sydney. (At the time of the order, Abdo only had one machine.) These cutting machines can only be purchased in Syria. Each new machine is to be delivered at Darling Harbour, Sydney, at the end of each month commencing June 2011. The Mussa Machines Ltd purchase order ...view middle of the document...
In the post-GFC environment, now that the stimulus moneys have been spent, demand for diamonds in Australia has dropped a great deal, and as no diamond merchants are buying machinery and fittings for jewellery, regular diamond cutting machines now sell for only $100,000 each. The newest model diamond cutting machines from Syria however, having become scarce in Australia and can only be bought second-hand on the Amsterdam and New York markets for $250,000.
Quentin has also kept up his love of vintage cars. He has always had a little-business-on-the-side because his job at the University was very boring.
His little business on the side is finding private buyers for people who want to sell vintage motor vehicles. He charges his vendor clients a 10% commission on successful sales.
In February of this year Lady Plotski came to Quentin and told him she wanted to sell her 1921 model Bentley. Quentin took some photographs of the car in her driveway, with her standing, smiling, beside it. Lady Plotski agreed that Quentin could accept any offer of $20,000 or more on her behalf. She, however, would keep the car meanwhile.
In March, B. T. Drum (the hip-hop artist) asked Quentin to sell an old Aston Martin (for no less than $50,000), and an old Harley Davidson motorcycle (for no less than $10,000) for him. He left the Aston Martin and the Harley Davidson at Quentin’s garage. B. T. Drum instructed Quentin that he would keep the Aston Martin’s registration papers until he has received his money. He insisted that Quentin not tell anyone that the Aston Martin was B.T. Drum’s Aston Martin. B. T. Drum also required that any payment must be by deposit to his numbered Swiss bank account.
After months without success in selling anything, Quentin's bank overdraft had reached its $100,000 limit and he was desperate to make a sale. Quentin arranged to meet Bernard, a second hand car dealer over a scotch at Quentin’s home. Quentin...