Kylie is the exclusive sales agent in Australia for the New York based cosmetics company, Classy Cosmetics (‘CC’). Kylie was recently approached by the Los Angeles based cosmetics company, Glamour Lady (‘GL’) to act as GL’s exclusive sales agent in Australia. GL has offered Kylie a lucrative commission arrangement. GL is a competitor to CC, offering a very similar range of products to those available from CC. GL has suggested to Kylie that she can appoint anyone she likes to act as a ‘front’ for her, so that CC do not become aware of Kylie’s role with GL. With reference to applicable agency law principles, advise Kylie whether there are any legal issues and why, if she proceeds with the above arrangement as proposed to her by GL. (25 marks) QUESTION 2 (Note: This question is separate from the question above): Access the link below and read the article by Ms Adele Ferguson, in the Sydney Morning Herald (June 6, 2020) titled: “Insurers deny business insurance claims as battle begins”. https://www.smh.com.au/business/banking-and-finance/insurers-deny-business-insurance-claims-as-battlebegins-20200605-p55000.html Having regard to Ms Ferguson’s article and applicable Australian insurance law principles, identify and explain the key business and regulatory issues addressed in this article.
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