Highlights
Question 1. You have come up with an innovative business model for a chain of convenience stores using an app (smartphone application), CCTV (closed-circuit TV) and artificial intelligence (AI). Customers link their debit or credit card when they sign up to use the app. The app is activated when customers enter the premises of the convenience store allowing them to choose products from the shelves, return products to the shelves, and take new products from the shelves as they wish. The CCTV-AI system enters the price of the item in the customer’s virtual shopping cart once the customer takes the product from the shelf. The system also deletes an item from the shopping cart once they return it to the shelf. Once the customer leaves the store, the app charges all the items to the customers debit or credit card. If the customer picks up an item from the shelf that requires authorisation under the law such as prescription drugs (requiring a medical prescription), the app will alert a certified pharmacist to either accept or reject the transaction from a computer in a regular checkout counter. Your potential investors have doubts regarding whether the business model infringes the law.
Advise your investors as to how and when the agreement between the business and customers takes place.
Question 2. Anthony offers to sell his car to Ben for $20,000. Ben is not quite sure whether he will be able to borrow money from his father. Ben really likes the car so he asks Anthony if he would take a 10% deposit to keep the offer open for one week. Anthony accepts the deposit to allow for one week until Ben persuades his father to lend the money. Three days after Anthony takes the deposit, Carl offers to buy the car for $25,000 and Anthony accepts Carl’s offer. Before the end of the week, Ben’s father lends the money to buy the car, but Ben is disappointed to learn that Carl is the new owner of the vehicle.
Advise Anthony concerning any legal obligations towards Ben.
Question 3. Before Carl pays for the car, he goes to the Motor Services Registry to check the registration expiry date. The registry officer without conducting a thorough check tells him that the registration is current and there is nothing to be worried about for the next 12 months. The officer issues a handwritten clearance notice form because the computer system is under maintenance. In his haste to complete the transaction, the officer did not notice that the registration was to expire next week on 30th April this year and not next year. Carl uses his car to deliver pizza for Roma’s Pizza and makes good money to pay for accommodation while he is a University student. Two weeks later, when Carl is delivering pizzas, the police pull him over because the registration is expired. He is carrying a major delivery of pizzas to a conference and the police impound the car because they believe the vehicle has been used in a recent armed robbery. Carl has not only lost his car but also has to pay a heavy fine plus impounding fees. Carl’s boss is furious and deducts his losses from Carls’ payment for the failed delivery.
Carl would like to know whether he could claim damages against the Motor Services Registry for carelessly representing that the car was registered for the next 12 months.
Question 4. Roma’s Pizza owner, Denise, is facing losses as a new restaurant opened across the road from hers. The new restaurant, New York’s Pizzas advertises its pizzas in a gigantic billboard as the healthiest pizzas in town. Erika, Denise’s cousin, who is a truck driver, tells her that she has been delivering low-quality ingredients to New York’s Pizzas with her truck. It seems obvious to any restaurateur that the owners are saving on ingredients to recoup their investment. New York’s Pizzas is relying on this strategy before customers find out that their pizzas are made of cheap processed meat and cheese, as well as canned vegetables. Denise, who always takes care of her customers and the future of her business, is facing an ethical dilemma.
Is Denise entitled to bring a legal action under section 18 of the Australian Consumer Law against New York’s Pizzas? If so, would she be successful?
Question 5. Carl finally recovers from the incident with the police and Roma’s Pizza and starts delivering fast food using his own bicycle for a new chain of local restaurants called Speedy. He is happy because he passed all the practice tests and he just has to follow a straightforward manual on how to collect, transport and deliver the food. Carl can choose to accept deliveries using a smartphone application provided by the Speedy chain and he is paid a fixed rate for delivery to the customers. There is a penalty if customers complain that the delivery has taken more than the 15 minutes in the Speedy guarantee. However, he thinks he looks very handsome in his new Speedy uniform and he will get fit for the next Olympics because he can work seven days a week taking as many deliveries a day as he wants. One day Carl comes back from delivering to a new neighbourhood and a vicious dog bites him on the leg causing severe lacerations. He falls from his bicycle and fractures his left wrist. Carl cannot work for six weeks and his best friend––a university law student––tells him to claim workers compensation. Emma, the owner of Speedy, tells Carl that she is afraid that he is an independent contractor.
According to your professional opinion, is Carl entitled to workers compensation?
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