Case Study 6 JKL
PUTRA BUSINESS SCHOOL
GSM 5131 – Business Law & Ethics
Lecturer: Dr Tengku Naufal Tengku Mansor
Case Study 6
JKL Wedding Bridal Gallery
Jack, Kenny and Lenny were partners in JKL Wedding Bridal Gallery (JKL) since three (3) years ago, having their business in Serdang Raya. To expand their business, Kenny, the managing partner ordered a brand new of 30 pair of bridal clothes and accessories worth RM80,000-00 from Jai Pong Brides Couture. Kenny had been financially assisted from Bank Berniaga Berhad (BBB) under the business name. The lending transaction was not disclosed to the other partners. In fact, Kenny was fully in charge of JKL’s financial aspects.
Two years later, Kenny had brought in 100 pieces of contemporary batik silk and linen from local batik artist, Mat Soh. Kenny also mentioned that Mat Soh joint the partnership as a new partner last 2 weeks. Jack and Lenny opposed to Kenny’s decision as it was not connected to their nature of business’s product and services. They also had never agreed on Mat Soh’s appointment as the new partner to their business and at the same time, they heard from Mat Soh that Kenny had opened another new bridal studio, Sweet Bridal Studio at Seri Kembangan, with one of the JKL’s contact. Jack and Lenny felt betrayed and frustrated that Kenny’s new business would become a direct competitor to JKL.
Six months later, BBB had initiated a legal proceeding against JKL and all the partners for recovery of the money owed. Jack and Lenny have denied their liability as they claimed that they were not the managing partners and their scope of job was merely decorating main stage in the wedding ceremonies. They also never agreed to the idea of having batik in JKL. Pursuant to that, Jack and Lenny had insisted Kenny to surrender the business accounts to them for the purposes of auditing. Kenny said all book keeping and accounts were at his home.
(a) Advise Jack and Lenny on their duties and liabilities under the law of partnership.
GSM 5131 – Business Law & Ethics
Lecturer: Dr Tengku Naufal Tengku Mansor
Case Study 6
JKL Wedding Bridal Gallery
Jack, Kenny and Lenny were partners in JKL Wedding Bridal Gallery (JKL) since three (3) years ago, having their business in Serdang Raya. To expand their business, Kenny, the managing partner ordered a brand new of 30 pair of bridal clothes and accessories worth RM80,000-00 from Jai Pong Brides Couture. Kenny had been financially assisted from Bank Berniaga Berhad (BBB) under the business name. The lending transaction was not disclosed to the other partners. In fact, Kenny was fully in charge of JKL’s financial aspects.
Two years later, Kenny had brought in 100 pieces of contemporary batik silk and linen from local batik artist, Mat Soh. Kenny also mentioned that Mat Soh joint the partnership as a new partner last 2 weeks. Jack and Lenny opposed to Kenny’s decision as it was not connected to their nature of business’s product and services. They also had never agreed on Mat Soh’s appointment as the new partner to their business and at the same time, they heard from Mat Soh that Kenny had opened another new bridal studio, Sweet Bridal Studio at Seri Kembangan, with one of the JKL’s contact. Jack and Lenny felt betrayed and frustrated that Kenny’s new business would become a direct competitor to JKL.
Six months later, BBB had initiated a legal proceeding against JKL and all the partners for recovery of the money owed. Jack and Lenny have denied their liability as they claimed that they were not the managing partners and their scope of job was merely decorating main stage in the wedding ceremonies. They also never agreed to the idea of having batik in JKL. Pursuant to that, Jack and Lenny had insisted Kenny to surrender the business accounts to them for the purposes of auditing. Kenny said all book keeping and accounts were at his home.
(a) Advise Jack and Lenny on their duties and liabilities under the law of partnership.