Fred, a 33-year-old banking executive, was depressed. His solution was to get a tattoo, so he visited Madame Tattoo, his favourite tattoo parlour. Fred paid Madame Tattoo $1000 for the tattoo of a blood-red rose on his right shoulder. 'That's a great choice, Fred. It'll go well with all the other tattoos you have there. Here's the receipt,' said Madame Tattoo, as she gave him the receipt folded in half. Sadly for Fred it turned out to be a bad choice because he was rushed to hospital soon afterwards with a severe case of blood poisoning. Investigation revealed that dirty needles were responsible. When confronted later by Fred, Madame Tattoo said that she usually used new needles on each client but, lately, due to a downturn in business, had decided to use new needles only for every second client. Besides, she thought the client she'd tattooed before Fred had no diseases because he had just been released from hospital. Finally, Madame Tattoo pointed to a clause at the bottom of the receipt, which said: 'Madame Tattoo is not responsible for any harm to or loss suffered by her clients'. Fred had never bothered to read the receipt before and had not seen this statement. Advise Fred what terms (if any) have been breached and whether the exemption clause will protect Madame Tattoo.

Francesca operates a successful fast-food franchise called 'Fran's Food'. Tasty Pty Ltd is keen to open a 'Fran's Food' outlet in the Melbourne suburb of Caulfield. The parties reach an agreement that Tasty Pty Ltd will operate a Fran's Food restaurant in Caulfield for a period of five (5) years. The agreement contains the following terms: 9. Francesca promises that she will not open another Fran's Food franchise within the Caulfield area during the franchise period (that is, five (5) years). ... 13. Tasty Pty Ltd promises that it will operate the restaurant strictly in accordance with the laws and regulations set out in the Health Act. One year after the restaurant opened, Tasty Pty Ltd was charged and found guilty of breaching the Health Act. Francesca immediately cancelled the remainder of the franchise agreement and opened another Fran's Food franchise in Caulfield. Francesca decided to operate this new franchise herself. Advise Tasty Pty Ltd whether it has an action for breach of contract against Francesca, and (if so) what the appropriate remedies might be. Give reasons for your answer. (Assume that the answer is not affected by the Franchising Code of Conduct.)