CASE SCENARIO

Karla is a professional chef and now is currently running a new Italian restaurant in Victoria. As a professional chef, she has decided to add a new range of pasta dishes to her menu. In order to attract more customers, Karla has placed a new large sign in the restaurant window promoting her new "gluten free pasta" range as "the best pasta in town, made with all fresh ingredients". Tom, a regular customer read the sign and he decided to take his wife Julie there for dinner on Friday night. Knowing that Julie cannot eat regular pasta, Tom thought that it would be good idea to take her to Karla's restaurant where she would be able to enjoy the gluten free pasta. Julie ordered a pasta dish "Ravioli" and she asked the staff to confirm if the pasta was gluten free and the staff confirmed that all the pasta was gluten free. Unfortunately, this staff member was new and did not know that "Ravioli" was not gluten free. After a few minutes of eating the "Ravioli", Julie started to feel very unwell and Tom had to take her to hospital. The doctor confirmed that she had had an allergic reaction to something that she ate. As Julie knows that she is intolerant to gluten, she suspected that the "Ravioli" that she had eaten at Karla's restaurant was not gluten free. As a result of her allergic reaction, she will not be able to work for the next two days. One of her major concerns it that as she works as a sole trader, she is unable to claim any sick leave benefits and if she doesn't work for those two days, she will lose $500 in income. Please explain if Karla as the owner of the restaurant could be liable under contract law and consumer law, for her staff that have indicated to customers that all the pasta was gluten free.

QUESTION 1

In your answer explain the meaning of Contract and how the Elements need to be satisfied in order to make a Valid Simple Contract. (5 Marks) You will need to address all the "essential elements of a contract" including (Offer and acceptance, intention and consideration) as well as "elements of a valid contract" (Capacity, Legality, Genuine Consent, Mistake (Unilateral, Bilateral, Mutual), Misrepresentation (Innocent, Fraudulent, Negligent), Durres, Undue Influence and Unconscionability. (5 Marks) You will need to address and explain Remedies & Limitations available for Julie (5 Marks) Please make sure you use statutory provisions and relevant cases to support your legal arguments.

QUESTION 2

Please advise Julie if Karla breached her Australian Consumer Law Guarantees or warranties under the Competition and Consumer Act 2010 (Cth) Schedule 2. (5 Marks) In your answer explain to Julie what are her Australian Consumer Law Guarantees under the Competition and Consumer Act 2010 (Cth Schedule 2. You need to justify your view as to whether these guarantees are available and make sure you provide relevant statutory provisions to support your arguments. (5 Marks) Explain the Remedies and Limitations available to Julie and Penalties that can be imposed to Karla (5 Marks) Please make sure you use statutory provisions and relevant cases to support your legal arguments.