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Donovan has been working for years with a famous restaurant at a Five Star Hotel in Paris, France with keen interests in applying his expertise

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Donovan has been working for years with a famous restaurant at a Five Star Hotel in Paris, France with keen interests in applying his expertise in opening a private catering business from a premises in Hong Kong, after retired from his post. After he inspected for various locations and requested assistance from a real estate agency, Ricky Property Agency, a specialized Real Estate agency located in Wanchai District with sole agency right for Heaven Avenue ("HA"), a pedestrian shopping mall in Wan chai. The general manager of the Ricky Property Agency, Francisco Tse sought consent from HA and offered Donovan's restaurant, a prime space on a popular laneway location in HA suitable for the Western restaurant business, at a monthly rental of $220,000, for him to enter into a five-year lease agreement. Donovan negotiated with Francisco with a discounted rental on $200,000 per month instead. Donovan also placed $500,000 for guarantee that he has the financial means to rent the premises. In order to induce Donovan to sign the lease 2 BUS2107 Legal Aspects of Business 2021-22 2nd Term agreement, Francisco guaranteed over the phone that HA would consider Donovan's offer for a month and indicate that Donovan's restaurant can get ready to move in. After Donovan had begun to prepare and run his restaurant in HA in three months, Francisco leased the shop to another famous Belgium-French Restaurant and Bar at the monthly rental of $280,000. As Donovan used to work in France and he is not familiar with the legal systems in Hong Kong, advise Donovan on the following: (a) Donovan found out after his intended agreement with HA that, the owner of Belgium-French restaurant provided $1 million of personal loan to Francisco to buy a luxurious studio, to entice Francisco to sign up with their restaurant instead of Donovan's. In relation to the Agency AND Prevention of Bribery Ordinance ('PBO') in HK, advise Donovan as to whether Francisco has committed any crime. (15 marks) (b) Donovan also learned the Sale of Goods Ordinance in HK can protect consumers' rights. Therefore, he would like to know more about how this law could guarantee merchantable quality of products by imposing duties on sellers. Could you explain the relevant rules to Donovan

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