Question 1

Look up the case of Australian Safeway v Zaluzna (1987) 162 CLR 479. In this case, Mrs Zaluzna visited a supermarket on a very wet day. She did not make it into the actual shopping area but slipped on the vinyl tiles in the foyer. Mrs Zaluzna was injured as a result of her heavy fall; she sued the supermarket but was not successful and appealed to the High Court. Discuss the following:

(a) What were the legal issues in this case?

(b) Why did Mrs Zaluzna have to go to the High Court? What was the decision of the lower court?

(c) What did the High Court decide? State the principles in law that they formulated and the significance of those principles.

(d) Was it a fair decision, do you think? What kind of precautions might a supermarket take?

(e) There have been some criticisms of the case why, and what are the concerns of the critics?

Question 2

Swimmingpool Co Pty Ltd ('Swimmingpool Co') employs Martin as the manager of their Tasmanian sales division. Martin is to quote to potential customers on the cost of installing the various pools that the company offers, draw up any new contracts on behalf of the company and, further, ensure that a deposit is paid by potential customers. These monies are then deposited in the company's bank account. Martin is on a fixed salary, but his contract of employment allows for the payment of a bonus if he exceeds his annual target of signing new customers. The company is very impressed with Martin in the first month of his employment; he has signed at least 20 new customers and work has begun on at least half of the new projects signed. After another month has elapsed, the company receives a number of complaints from customers who claim that the construction of their swimming pool is substantially different to what they had contracted for. A number of customers were given wrong advice on the suitable placement of their new swimming pool, which means some newly constructed pools are sinking into the ground, the repair of which will cost the company considerably. It appears also that some of the deposits have not been paid into the company's bank. Martin appears to have kept part of the money collected. The company also discovers that Martin is in the process of setting up his own business, which will compete with Swimmingpool Co. In considering the facts above, make some legal observations on the following: a) Is Swimmingpool Co liable for Martin's actions? See 2.29 - 2.34 b) On what basis in law would this be the case? c) Can the company claim they are not liable for Martin because he has not followed instructions? Explain. d) Is Martin liable to his employer for any of his actions? On what basis in law would he be liable? e) Has Martin breached any law if he is planning to set up his business? Explain.

Question 3

A company is considering expanding its operations and needs capital to do so. What are the options available to the company in raising further funds? Explain the considerations the company must undertake when taking account of the advantages and disadvantages of different fund raising.