Pam is an accountant attending a convention held at the Western Sydney convention centre owned by WSCC Pty Ltd. The convention was being run by the professional association, Aussie Accountants. On arrival at the convention, Pam was presented with a welcome package which included seminar information and a promotional T shirt with the Aussie Accountants logo printed on the front. The T shirt had been ordered and bought from a specialist manufacturer (U Beaut Products) and was in a sealed plastic bag.

Pam put the T shirt on as soon as she arrived in her room, ready to attend the welcome function. Within 10 minutes she began to feel very ill and a painful rash appeared on those parts of her body that came into contact with the material of the T shirt. Worse still, Pam then found she had difficulty breathing.

Pam was rushed to hospital where laboratory tests on the T shirt revealed that the material contained traces of a toxic chemical used in the manufacturing process which could not be detected by normal inspection. These chemicals should have been easily washed out of the T shirt is proper procedures had been in place in the manufacturer's factory.

After receiving medical treatment in hospital for a period of 6 weeks, the rash has reduced but there has been permanent damage to Pam's lungs. Her doctor has recommended that she work part-time for at least the next 6 months. Pam has worked out that her medical treatment costs, including the out-of-pocket hospital costs total $150,000.

Further, the week after the convention, Pam had an interview planned with the Australian Accounting Standards Board for a position with an annual salary of $200,000 (double what is presently on) and she was very confident of gaining that position, which she was not able to attend. The position has now been filled.

Applying only the tort of negligence, advise Pam of any action she may take, against whom, why she may take it and the likely consequences of that action. 10 marks