WORKS OF ART: Not an artistic free-for-all
Published by Law Society of New South Wales
In an industry where references to other fashion looks is rife, the courts have upheld an appeal by a company that another had copied its T-shirt designs.
Initially, a judge found that the second company had created a different design by making changes to the colours and numbers in the original.
However, on appeal the courts found that the ideas and concepts of a design had to be taken into account and that the company had reproduced a substantial part of the original.
GUARANTEES: Security for lenders
Published by Law Society of New South Wales
In a recent case, the court of appeal considered a case where a mortgage was varied, lengthening the term, increasing the principal and raising the interest rate, after the guarantors had resigned as directors of the company which had taken out the mortgage. The lender, who suffered a shortfall on the sale of the security, sought to recover from the guarantors.
The court concluded that the variations altered the nature of the guarantors’ obligations. By reason of the increase, the guarantors would have been exposed to a potentially greater risk of being called upon to meet a default by the company of its obligations under the mortgage, “even if their liability was limited to the original sum lent to the company ($240,000) plus interest”.
CLASS ACTIONS: Things to know
Published by Law Society of New South Wales
In the current economic climate it is not surprising that investor class actions are receiving increased attention.
There is some suspicion and confusion about class actions. Some people have an enduring belief that they must be taking on an unacceptable level of risk if they get involved. Equally, some may just have an aversion to continuing in a claim commenced without their express consent, despite the fact that it could benefit them financially to do so.
MARK UP FULL PRICE: New rules on advertising goods and services
Published by Law Society of New South Wales
There are new laws regulating the way businesses advertise the price of goods and services with possible fines of up to $1.1 million for a corporation and $220,000 for an individual failing to specify the full price.
Businesses are now required to specify as a single figure the full price of goods or services “of a kind ordinarily acquired for personal, domestic or household use or consumption”.
This means the GST and all other taxes, duties and levies must be included in the cost price of the goods, and the single figure must be displayed in a prominent way in advertising. This includes newspaper advertisements, promotional brochures, price lists on websites, and even when providing prices verbally.
TRUSTS: Blow the dust off that deed
Published by Law Society of New South Wales
Many clients are totally unaware of the limited life of trusts.
Trust deeds can sit in safe custody for years without being looked at. But if you are planning to do something with a trust, it is important to check the trust deed first. You may be in for a shock if you find that the date when the trust will mature is coming up soon.