BLO1105 Business Law

Question:

When Stan reached the cashier, he paid $10 for the hamburger and drink, collected his order located a vacant table and enjoyed a leisurely meal.

A couple of days later, Stan returned and instead of his normal meal decided to order the new gourmet burger and hand cut chips.  The order was placed through the self-service ordering system.  The total cost was $17.50 which he duly paid.  Following the payment being processed Stan received the normal printed ticket which included his order number, order and price.

Stan’s order number appeared on the screen, and after collecting the order Stan found a vacant table and started to eat his meal.  As Stan took a second bite of his gourmet burger he struck something hard and broke a tooth.  Stan examined the chewed remains and found a piece of metal that had somehow been lodged in the burger.

Stan alerted management to this incident and demanded compensation for his anticipated dental repair. The manager expressed regret and directed Stan to the ticket he had received which on its reverse side, contained a clause stating:

This restaurant accepts no responsibility or liability for any injury caused to customers by consumption of food or drink sold.

In response, Stan exclaimed, ‘I’m a consumer and I have rights!’

Required

Part A

Explain how the contracts Stan made with the café were formed.

· You will need to address all the essential elements of a contract (including consideration) as well as analyse the legal status of each step or event that led to the café supplying Stan with its products. Refer to relevant case law. In this part, do not discuss the impact, if any, of consumer protection laws.

· You may, but are not obliged to use the IRAC format for this part, given that each step or event must be analysed separately.

Part B

Explain whether the café is legally entitled to rely on the clause printed on the ticket to avoid liability in relation to Stan’s mishap.

· For the purposes of this part you should consider both common law as well as consumer protection legislation (confirming whether Stan qualifies as a ‘consumer’).

· Please use IRAC format for this part.

Overview of the task 

Task: Assignment consisting of one main question with two related parts.

Total length of both questions: 2,000 (minimum) - 2,500 Words (not including references and bibliography)  

Due Date: end of Week 9 of the semester

How to submit

 (1) You must submit a softcopy of your assignment through VU Collaborate drop box by the due date. This allows for official receipt of the assignment, and Turnitin analysis.

Details of the task 

· The assignment is to be completed individually and requires students to undertake their own research of academic materials outside of those prescribed or provided in the unit as a basis for their completed assignment (e.g., legal journal articles, case summaries, other texts). 

· Students must read and follow all instructions carefully and familiarise themselves with the VU Academic Integrity and Plagiarism policies. 

· Both question 1 and question 2 of the assignment should be written using the IRAC method.

· Statements of law should be supported with appropriate references to Australian law (cases) and relevant textbooks/articles/journals.

· Students should be wary of using internet sources that are not of acceptable academic standard. For example, wikipedia, or similar sources are not acceptable.