Commercial law Essay Example | Topics and Well Written Essays - 2000 words

Commercial law - Essay Example This particular Act is stated to be applicable for all personal properties that comprise the tangible properties i.e. the items which have physical presence such as office equipments, motor vehicles, inventory, currency and livestock among others. Moreover, the Act also includes the intangible properties which embrace intellectual properties, licences as well as contract rights owned by organisational as well as individual entities. However, the properties which include lands and licences as well as the statutory rights such as water along with gambling licenses are excluded from the list of personal properties of the Act (Hempel, 2011). There were several personal properties which have been mentioned in the case of Rats River Pty Ltd (Rats River). The properties owned by the corporate entity includes a high tech bottling machine which was to be installed by Rats River in order to increase its production quantity and the oak barrels which were purchased by the company for the product ion purpose of a new brand of red wine named the Rat Box. Moreover, the personal properties which were referred in the case scenario comprise the new office block built by Rats River for expanding its business operations and original prints which the company borrowed on bailment for setting-up a new and more advanced working atmosphere. Among the aforementioned personal properties, it can be stated that the new office block of Rats River will not covered by the PPSA. This is due to the reason that the new office block built by the company for its business expansion would be treated as a land and is not granted by a Commonwealth (Cth), a Territory or a State law as an entitlement, right or authority. Thus, the asset has been excluded from the register of personal properties of the PPSA Act (Hempel, 2011). Apart from the new office block, the other personal properties belonging to Rats River are duly covered by the PPSA 2009 (Cth). Question 2 Rats River would have a better claim to th e grapes which were delivered for toll pressing. This is due to the reason that the company had developed a business plan following legal contracts with 30 local vineyards in order to process their grapes. For entering into the contracts with different local vineyards, Rats River felt the need of obtaining finances from two different banks such as EastPac and BAN. These two banks provided significant amount of financial support to Rats River as a loan for the expansion of the vineyard. In the meantime, the company had also recruited an Assistant Accountant named Ms. Onsen for managing the expanded business operations. Unaware of the personal trait possessed by Ms. Onsen to be seriously addicted to gambling habits, the company had to face severe financial losses. It was in this context that as days passed by, Ms. Onsen exhausted all the funds in the bank account of Rats River which consequently hampered the financial viability of the company to repay its debts within the stipulated p eriod. Therefore, if the company cannot repay the loan amount which they had acquired from the two banks i.e. EastPac and BAN, these two banks would possess the actual claim to the grapes which were delivered for toll pressing. Question 3 According to Section 14 of the PPSA 2009 (Cth), Purchase Money Security Interests (PMSI) is regarded as a specific kind of security