LAW105 Business Law Assignment

Carys owns a fast-food business called Silver Spoons Pty Ltd. Carys does not own the land where the business is located but has exclusive possession of the premises under a lease. Hungry for a quick bite on the evening of 3 October 2020, Alban uses Silver Spoon’s DriveThrough service to order some food. Silver Spoons’ employee Leighton is operating the microphone for the Drive-Through. Alban has a severe allergy to sesame seeds so when he orders his food he asks Leighton whether the burger he is ordering has any traces of sesame products. Leighton thinks that most customers who say they have allergies are just making things up. He’s also aware that Carys has said she wants to see a minimum of 60 sales every hour and it has been a slow hour so far. Even though Leighton is pretty sure the burger is processed in an area with sesame seeds, and in his induction he was briefly told to give customers allergy information upon request, he tells Alban, “No, I know our kitchen well and that burger is a hundred percent sesame free!” Delighted, Alban orders and pays for the burger. He parks in the parking lot and takes a bite. He feels his mouth start to tingle and throat swell. Recognising the signs of a severe allergic reaction. Realising his airways will soon be blocked, he manages to stumble out of the car and into Silver Spoons to call for assistance. Luckily for Alban, a customer happens to have an Epipen and administers a dose to Alban whose allergic reaction subsides, though not before someone calls an ambulance. Alban then sees Leighton standing nearby and is furious. He yells at Leighton: “You almost killed me, you murdering scum! How many other customers have you already killed?” There are numerous people in the store, including Stephanie, a customer who records the unfolding drama on her mobile phone and posts it to Twitter with the caption: ‘Wow! Silver Spoons trying to murder this customer?’ Carys arrives at her store, unaware of what has taken place and finds Alban at this point yelling swear words. Horrified at the impact on her customers, she walks up to Alban and firmly demands that as the store owner she requests that he leave the premises immediately. Alban says he refuses to leave until the ambulance arrives to check he is ok and also that he won’t go until Carys sacks Leighton ‘for trying to kill me!’ Carys tells him he’s welcome to sit and wait for the ambulance if he stops yelling, but if he’s going to keep yelling she needs him to wait outside as it is disrupting the other customers. Alban refuses to go outside and keeps loudly arguing with Carys. Stephanie, who is still watching, privately messages her friend: ‘OMG now the crazy manager is trying to kick out the poor guy. She doesn’t even care that he was almost killed. Maybe SS really is secret murder factory. Wonder where they hide the bodies? Maybe the burgers aren’t beef?? Lololol!!!!’ The ambulance arrives and checks Alban. They decide to take him to the hospital for further observations and he leaves with them. There is community outrage and calls to boycott Silver Spoons over the incident. At first, Carys tries to ignore it, but she has definitely noticed an impact to Silver Spoon’s sales. Two years later, Carys becomes aware that a private Facebook group has for some time been circulating a copy of Stephanie’s private message to her friend and joking that Silver Spoons uses human remains in its burgers. Asia Pacific College of Business and Law Semester 2, 2022 Page 4 of 4 As her business starts to struggle, Carys looks for ways to reduce costs. She decides to look for some new suppliers of fresh vegetables as her contract with the current supplier, Veggies Galore Ltd, will expire in two weeks. Visiting Rapid Creek markets, she speaks to Xiujuan who sells vegetables grown on her farm. They discuss the current prices Carys is paying and Xiujuan tells Carys she’s sure she can provide vegetables more cheaply and estimates a price of $1200 for the first delivery. Carys asks when Xiujuan could start delivering and Xiujuan says: ‘three weeks’. Carys says, ‘Look, if you could do it in two weeks for $950, I’d be sold.’ Xiujuan indicates that is too soon and not enough money. Disappointed, Carys continues to look for a new supplier and signs a new six month contract with Veggies Galore Ltd, which she assumes will have the same terms and conditions as their previous contract. Carys is startled when, two weeks later, Xiujuan delivers the vegetables they discussed and demands payment of $950. Carys explains she has already made arrangements with Veggies Galore Ltd and refuses to pay. Xiujuan is furious and says, ‘You’ll be hearing from my lawyer!’ Unfortunately, Carys’ week gets worse. She gets an invoice from Veggies Galore Ltd for $18,000 instead of the usual fortnightly bill of $3000. She contacts Veggies Galore Ltd thinking there must be a mistake, but they tell her that under her new contract, she is required to pay for 12 weeks of deliveries in advance. Carys checks the latest contract and sees that it states: ‘This agreement is subject to the new standard terms and conditions set out on Veggies Galore’s website’. She checks the website and it clearly states that retailers are required to make an initial payment for the first 12 weeks of deliveries, then continue to pay 12 weeks in advance.

Questions

(a) Has Silver Spoons Pty Ltd committed the tort of negligence? Make sure you discuss vicarious liability. (10 marks)

(b) Carys wonders if she can sue Alban for refusing to go outside when she asked him to do so. Advise Carys. (5 marks)

(c) Leighton is prosecuted for attempted murder. During the court case, Stephanie is called as a witness. While giving evidence, Stephanie says that she was only joking about Silver Spoons using human remains, but ‘Silver Spoons is so shonky they probably pick up floor scraps and use them in the food.’ Carys now wants to sue Stephanie for defamation. Discuss whether she’s likely to be successful. You should discuss: Stephanie’s first Twitter post, the message to Stephanie’s friend, and Stephanie’s remarks in court. Make sure you consider defences and discuss any other obstacles that Carys might encounter. (10 marks)

(d) Advise Carys as to whether she is contractually bound to pay Xiujuan $950? (5 marks)

(e) Advise Carys as to whether she is contractually bound to pay $18,000 to Veggies Galore Ltd?