ALL QUESTIONS RELATE TO THE FOLLOWING SCENARIO:

Three years ago, after a number of years as a successful IT Manager at a multinational firm, you decided to quit and do something you enjoy: hair dressing. You decided that your neighbourhood, Parramatta, would be the perfect place to open a hair dressing shop. Even better, your friend Joshi, a certified hair dresser, had just moved to town and was willing to cut hair at your studio. You initially offered haircuts for $10 for men and $12 for women. You also offered children's hair cuts for $5 which was a big success. You now have ten casual hair dresser's , and a full-time employee, Garima, who provides reception, administration and marketing services as well as a large hair dressing studio overlooking Parramatta river , for which you currently have a 5- year lease. The business is presently run by you as a sole trader.

1. Last month, one of your casual hair dresser's, Aisha, contracted COVID-19 while cutting hair at your studio. As a result, Aisha became very ill and was hospitalised and unable to work for a month. Aisha contracted the infection from your receptionist, Garima, who in turn contracted the virus from her husband, who works at a Quarantine Hotel, where he has contact with travellers arriving from overseas. You were aware that Garima's husband worked at the Quarantine Hotel and that he had tested positive for COVID-19, but you didn't require Garima to take a COVID-19 test or stay home until she received a negative test result. Now you wish you had not been so careless. Aisha is demanding compensation for her hospital and medical expenses, and lost wages. Are you liable to pay this? Give reasons.
2. Your standard client contract, which is available on your website, and to which clients must click 'I agree,' contains an exclusion clause which states (the client) agrees:

"that I will not sue the business in relation to any injury or loss arising out of my receiving a hair cut."

Sammy injured his head during a hair cut with one of your casual hair dressers. Sammy was hospitalised and required surgery. The hair dresser had no relevant hair dressing qualification or training and did not respond when Sammy advised his head had been cut during the hair cut and was bleeding. A careful and skilled hair dresser would have told Sammy to go to the doctor straight away. Had the hair dresser done this, Sammy would not have been hospitalised or required surgery. Sammy is demanding compensation. Are you liable to pay this? In your answer address:

1. Whether Sammy can sue you for breach of contract (not negligence)(note: consider s60 of the Australian Consumer Law);
2. Whether the exclusion clause in the client contract will protect you from being sued (note: consider s64 of the Australian Consumer Law);

Whether you think the law adequately protects consumers in this situation.

3.You have ordered 100 shampoo bottles from an online supplier based in Port Macquarie on the north coast of New South Wales for your store. The contract of sale doesn't specify the place of delivery. You assumed that the shampoo would be delivered to the hair dressing studio in Parramatta, but the supplier says that you must arrange to collect the shampoo from Port Macquarie or pay an additional $2 per shampoo bottle for 'postage and handling.' Do you have to pay this? Give reasons.

4.Australia's largest hair dressing company ('Toni & Guy") (which has a market share of 80 per cent) has decided to expand its business line to purchase small independent hair dressing studio's, which are operated predominantly in the western suburbs so that they can dominate the market. Toni & Guy has just launched its first hair dressing salon in Parramatta, just 50 metres from your studio. According to its advertising flyers, Toni & Guy is offering hair cuts for just $1. You also suspect that it has engaged in typo squatting, to direct internet traffic from your website to theirs. You predict that these factors will cause you to go out of business within six (6) months if you don't do something to stop this.

Yesterday you organised a meeting of other locally owned businesses (including ten competitor hair studios) to discuss how to save your respective businesses from this new competitor. At the meeting, the other hair dressing owners agreed that Toni and Guy's new pricing policy will cause them to go out of business within six (6) months too. With the support of the owners of surrounding small coffee shops, you all agreed that the coffee shops will not serve coffee to customers of the Toni and Guy hair studios, and that you will all ban from your own hair studio anyone who has had a hair cut from Toni and Guy during the previous 2 years.

1. Has Toni and Guy done anything illegal? Give reasons.

Have you or the other local business owners done anything illegal? Give reasons.

5.You want to join together with a well-known Parramatta coffeehouse, 'Nectar,' to provide a combined hair studio and cafe. Nectar is owned by a renowned Parramatta Businessman, Bilu Singh. The coffeehouse is next door to the hair studio and you have received planning approval from the local government to create a covered outdoor area joining the coffee shop to the hair studio. You have agreed to enter into a partnership with Mr Singh for this new venture. Is this a good idea? What type of business structure would you recommend? Give reasons.