QUESTION 1:

Zoka Zola was a keen bushwalker who enjoyed adventurous outing taking him far off the beaten tracks. On his last outing he was hiking in the Evergreen National Park which was managed by the North South City Council. There were clearly marked and well-maintained walking tracks throughout the park which was a bushwalking destination. Zoka decided to venture off the track into the scrub. He hacked his way through some particularly dense scrub and stumbled onto an overgrown, disused track. After following the track for about 50 metres, he came across a large branch overhanging the track. While trying to push it aside, he suddenly found himself balancing on the edge of a cliff at the bottom of which was the bitumen sealed road which led into the park. Zoka overbalanced and fell over the edge, landing on thick grass in an area between the road and the cliff face.

Zoka suffered multiple bruises, scratches and fractures in the fall but escaped more serious injury because of the thick grass and the fact that the ground had been softened by recent rain. He dragged himself to a position in which he would be clearly visible to passing motorists but ensured that he was a safe distance from the road. About 30 minutes later Zoka was relieved to hear a car approaching.

The driver of the car was 16 years old Bilbo Junior who had taken his parents' car for a joy ride without their knowledge. His best friend Wayne was with him in the car. Bilbo was travelling at 80 kilometres per hour even though the speed limit on the winding section of road was 40 kilometres per hour. Due to his lack of driving experience he lost control of the car when he swerved to avoid a kangaroo which had wandered onto the road.

The car skidded off the road and tragically, hit Zoka causing serious spinal injuries and rendering Zoka a quadriplegic. Wayne also suffered serious injuries in the accident.

Advise Zoka and Wayne as to possible actions available to them in negligence.

QUESTION 2:

Mario and Nancy were looking for an investment opportunity in the inner west of Sydney and they found an advertisement in a local newspaper appealing. It was from Ben, a local producer of protein bars using organic ingredients. The product was the best selling item on his stall at the Inner West Organic Markets. Because of its success in the local area, Ben decided to go into mass production and market the product in department stores. Unfortunately, he was not able to fund the expansion of his business as he had never been very good at managing his money. He therefore decided to try to attract outside investors by advertising in the local newspaper. He also asked Kelly, his long time friend and a business broker to help him in finding a potential investor.

The day after they saw the advertisement in the paper Mario and Nancy were having lunch at the local pub. By chance they sat at a table beside Kelly. Kelly overheard Mario and Nancy discussing the possibility of investing in Ben's venture. Seeing an opportunity, she introduced herself to Mario and Nancy and told them that she could personally vouch for Ben's business abilities and financial expertise. At the same time Kelly stressed that they should use their own judgment but that it would a tragedy to let such a fantastic opportunity pass them by.

On the strength of Kelly's recommendation, Mario and Nancy did invest in Ben's venture. Unfortunately, the venture was a total failure due to Ben's poor financial management and Mario and Nancy lost all their money.

Advise Mario and Nancy whether they have been owed a duty of care on the above facts. Fully explain your answer.