Question

1. Mike and Suzanne have a daughter (Michelle) and a son (Jack). Michelle is 25 years old, working in a law firm. Jack is only 18 years old. Next year, Jack will start at the University of Adelaide as a student. As a family tradition, they have been doing lottery syndicate for years. They collect money and pay together, using their birthday numbers to play in the lottery. One day, Jack bought one lottery ticket, and later on, surprisingly found out he won 1 million Dollar. Now Jack wants to take all money for himself and leave his parents’ house to start a new life. Do you think Jack can do so? Would Mike, Suzanne and Michelle have any claim in this lotter? (10 points)

Answer 1

Solution

No,Jack cannot do so because it is given that the family has been doing a lottery as a syndicate.

Under a lottery syndicate, a group of lottery players club up together to buy the tickets.The cost associated in buying the tickets is shared among them. In case they win the reward amount is shared among themselves in the ratio of their contribution.

In this way they can reduce their risk of loosing money / increase their chances of winning the rewards because each individual's chance of winning is getting added.

It is similar to the the strategy of diversification in the field of finance where different asset classes which have different properties are clubbed up to reduce their individual risk.

So here, Yes,Mike,Suzanne and Michelle have claim in this lottery in the ratio of their respective contribution to the pool

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