Gwen owns a dry cleaning business. The business employs one full time staff member, who is currently in Australia on a Student Visa. Last week, a customer brought in a wedding dress to be cleaned. Unfortunately, the dress was damaged when the staff member ate her lunch right next to the white dress and spilled a can of red soft drink all over the dress. The customer is claiming $19,000 compensation for the dress. Gwen and Sven believe they can escape liability, because they have a sign displayed next to the cash register which reads ‘NO REFUNDS… EVER. !!’. 

Required: How many legal issues can you identify in this case study? Give reasons. You DO NOT have to refer to law.