Laura manages a motel, "Staywell" which is owned by Staywell Pty Ltd, a company of which she is the sole director and shareholder. In addition to Laura, Staywell Pty Ltd employs Adam and Chris (to take care of the housekeeping) and Elly and Jack (as chefs in the busy kitchen). Other staff are employed on a casual, as required, basis. The motel, in a remote part of Victoria, has a terrific reputation for its accommodation and restaurant. It is particularly popular with hikers who generally book out the weekends to recuperate from their long hiking expeditions in the nearby bushland during the previous week. The motel has recently been extended enabling the accommodation of 50 more people - 25 twin/double rooms - in the "Billabong Wing". While the occupancy certificate has been provided for the "Billabong Wing", Laura is holding off letting out the rooms until after the official opening to be held in 3 weeks' time. It's shaping up to be a busy weekend at the close of the university holidays. All rooms other than those in the "Billabong Wing" are booked out by a university bush hiking group, the members of which have been out walking the previous week. On Thursday evening, Laura is called back to Melbourne urgently to attend to an unexpected family matter. Her friend and neighbour, Abby, volunteers to take care of reception while she is away. Before she goes, Laura instructs Abby that, although the rest of the motel is fully booked, the "Billabong Wing" is not to be opened for unexpected guests. She tells Abby that all she really needs to do in her absence is to hand over and take delivery of the room keys and ensure all guests are comfortable. Although Abby has only ever visited the motel during mid-week when business is not brisk and although she has never previously been a receptionist, Laura is confident that the task is not too onerous for her friend. On Friday afternoon the hikers arrive in the midst of a huge electrical storm. Exhausted, wet and cold, they are unable to enter the reception area (to be allocated their room keys) because Abby has locked the door. Not expecting the hikers until later, Abby is watching her favourite TV show "House and Holiday" with the volume turned up to block the storm noises. She doesn't hear the knocking through the noise of the storm and the TV. Whilst waiting outside, a flash of lightning strikes a tree close to the reception building. Two of the waiting hikers are injured from a falling branch severed due to the lightning strike. All staff, including Abby who has now heard the hikers' screams over the TV and storm noise, race to the rescue of the injured guests. Overcome with responsibility, Abby asks Adam and Jack to arrange for the allocation of room keys for the uninjured. Adam and Jack try to call Laura as they think she would like to know that her friend Abby is not managing so well but Laura does not answer. They send text messages but receive no response. Things go from bad to worse. The storm is increasing in intensity and the force of the wind snaps the electricity pole that holds the wires for the electricity supply for the motel. All lights go out as does the ovens and hotplates in the kitchen. Adam and Chris scurry around for lanterns for the rooms. Elly and Jack, however, must have power in their kitchen to service the diners. Now in crisis mode, Abby telephones her cousin, Brian, who also lives nearby and who has a generator at his home in case of emergencies such as these. Brian negotiates a hefty fee for the use of the generator for the evening. Abby tries to contact Laura for instructions, but Laura is still not answering her phone. Without other options, Abby agrees to the deal and Brian installs the generator within the hour. Alert now, and needing to make amends, Abby is most accommodating when two travellers arrive unannounced at the motel. Distressed and on foot, the pair (Angus and Julia) are looking for a place to stay. Abby readily agrees to have the housekeeping staff make up a room in the "Billabong Wing". She expects that she need not tell Laura about letting out one room. How could she know? Feeling awful about the injured hikers, she tells Angus and Julia that their stay is "on the house". Grateful, Angus and Julia tip Abby handsomely and then traipse through the new wing with their muddied boots and dripping clothes, staining the carpet and marking the walls as they go. Finally, Laura rings the motel. She has just recharged her phone and seen all the missed calls and text messages. After a quick briefing, including about all the goings on (Abby forgets to keep Angus and Julia as her little secret), Laura is dumbfounded. How could she have thought that Abby was a suitable receptionist? Laura is angry about the exorbitant charge for the generator. Generators are cheap to hire at the local CFA. That's where Abby should have sourced the generator. She is displeased that Abby opened up the "Billabong Wing" for Angus and Julia. Now Laura will have to clean the carpet and walls that were dirtied by Angus and Julia prior to the official opening. Indeed, she would like to claim the regular room rate from them to assist with the costs of the cleaning. 1- Using relevant case law, explain the relationship between Staywell Pty Ltd, Laura and Abby. 2-Advice whether Staywell Pty Ltd is required to pay for the costs of the generator. 3-Does Abby face consequences with respect to the two injured hikers? 4-Can Staywell Pty Ltd charge Angus and Julia for their night's stay? 5-Can Abby keep the tip provided by Angus and Julia? TIPS for the assignment This form of question requires students to present arguments on the application of the law to a given practical problem. In addressing a question which requires the application of the law, it is suggested that you adopt the following five-step approach: P: PLAN - Plan your answer I: ISSUES - Identify the essential issues in the question R: RULE - Identify the relevant law, i.e. relevant legislative provisions and cases A: APPLY - Apply the law to the problem C: CONCLUSION - form a reasoned conclusion on the application of the law Always remember that your primary task in answering a problem based question is to apply the law you have studied to a particular set of facts. In answering this type of question, you should avoid re-stating the facts. As a general rule, you should only refer to facts when discussing them in the context of the relevant law. You should always support your arguments with references to legislative sections and case law. It may also be appropriate in certain situations to advance policy arguments. ISSUES: To highlight that you are aware of the key issues in a question, you should raise these at the beginning of the answer. Stating the relevant issues clearly and simply at the outset will indicate to the marker that you have a good understanding of the matters at hand. It is important to approach a problem with an open mind and not simply jump into what may appear to be the main issue while ignoring other relevant issues. RELEVANT LAW Once the essential issues have been identified, it is then necessary to identify the common law cases that are relevant to solving the problem. Always remember to cite cases that support your arguments. However, be sure to provide a balanced view, and do not forget to also mention any materials that do not support your arguments (with appropriate explanations). You will need to express, in clear and concise terms, the effect of various principles arising from the cases studied. In general, it will not be necessary to restate the facts of cases. Rather, it is the principles from the cases which are important. The facts of a case will, however, be important where you want to draw direct parallels with the case or distinguish the case based on its facts. APPLYING THE LAW It is not enough to simply state the principles of law that are relevant to a problem based question. It is necessary to apply the principles to the facts of the problem. This is similar to the position which arises in practice. A client who seeks legal advice will not just want to know what the law states the client will be primarily concerned with how the law applies to his or her given fact situation. It is imperative, therefore, that in answering the problem based question you show how the relevant client is affected by the law. In other words, you should clearly state the consequences that flow from the application of case law to the particular fact situation. CONCLUSION Finally, it is necessary for you to come to a reasoned conclusion which is consistent with the views put forward in your arguments relating to the application of the law. The conclusion should be brief and to the point and should directly answer the question posed. In some cases, you may not be able to provide a definite answer to a particular question, as you may need additional factual information which is not provided in the question. In these cases, you should state what further information is needed and explain how your answer would differ depending on the particular facts obtained. There may also be situations where the law on a particular point is conflicting. In these cases, you should clearly identify where the conflict arises and provide your opinion on the most appropriate resolution to the problem. This may require you to advance various policy arguments in support of your conclusion. The areas to cover in this assignment relate to common law AGENCY. Do not refer to any legislative provisions