PR $17.$ Case Study: Edie.

Bree is a financial advisor and Edie has recently become her client. Edie informs Bree she wants to safely invest a sum of money she has inherited. Edie owns a small marketing firm but she is also hoping to become a screen writer and has two interviews arranged.

Edie instructs Bree that she wants a low risk investment and Bree advised Edie to invest in Safe Ltd$,$ which she reassured Edie had a long history of stability and conservative growth. Edie took Bree$$s advice and invested with Safe Ltd$.$

Bree is keen to improve her public profile and asked many of her clients, including Edie, to a client function where drinks and food were served, provided by the caterer, Miss Yummy. Edie ate several prawn puffs, the a couple of hours later, finds herself in hospital in agony, suffering from food poisoning along with many other party goers. It is later confirmed by the hospital that the prawn puffs had been contaminated by bacteria during the cooking process in Miss Yummy$$s kitchen.

Sadly, Edie suffers permanent damage as a result of the food poisoning and is unable to work for five months in her marketing firm. She is also too unwell to attend her interviews and is later informed that other applicants have been appointed to the screenwriter positions. Edie is very disappointed.

A year later, Edie suffers another blow when she realises that Safe Ltd has failed and gone into liquidation, thereby losing all her investment. On making enquiries, Edie discovers that Bree advised her to invest in the company because she based her advice on gossip, friendship with the now disgraced managing director and financial information that was out of date and incorrect.

Edie is furious and is determined to confront Bree. Edie walks into the entrance hall of Bree$$s office only to trip over files which have been left on the floor by the receptionist, breaking both her legs.

In order to answer this case study, you are required to:

$$ Collect and collate the client$$s information in order to identify the clients circumstances relevant to applicable consumer law matters,

$$ Research the current laws to identify the applicable legal principles relevant to the clients

$$ Analyse the legal issues and risks associated for these clients$$ businesses,

$$ Seek advice and guidance of a legal specialist if required

$$ Ensure you apply this knowledge and advice when explaining your answer.

Giving reasons for your answers advise Edie of any action she may take, against whom she may take it and the likely consequences of such action. $($Please ignore the Australian Consumer Legislation when answering this question$).$

$17\mathrm{.}1$ Explain what client information you would collect and collate given the circumstances.

$17\mathrm{.}2$ Explain which laws you identified as applicable given the specific clients situation.

$17\mathrm{.}3$ Explain how you analysed the legal issues and potential risks faced by the client's?

$17\mathrm{.}4$ What is your advice$/$recommendation to the clients:

$17\mathrm{.}5.$ Having identified the different actions Edie may bring, identify the different types of insurance the defendants should have to cover themselves if found liable for such actions.