Question 2

Jamie is interested in leasing a premise to run a restaurant at a shopping centre called Shop-World. She approaches Emma, who is the Managing Director of Shop-World Pty Ltd ('Shop-World'), the company which owns the shopping centre. Emma makes the following representations to Jamie that:

1. Her restaurant will be the only one allowed to sell French food at Shop-World;

2. The floor area of the restaurant has a seating capacity of 128; and

3. Shop-World expects 30,000 visitors per week.

Based on these representations, Jamie enters into a lease with Shop-World. The lease has not contained any of the representations made by Emma. Three months later the business is operating at a substantial loss. Jamie seeks your advice. She informs you that: 1. Another French restaurant, owned by Emma's husband has opened at Shop-World.

2. Her (Jamie) restaurant was only able to get a licence from council to seat 80 people; and 3. Approximately only 15,000 people have visited the shopping centre per week.

Advise Jamie of any rights she may have against Shop-World at common law and under the Australian Consumer Law (including case law decided under its predecessor, the Trade Practices Act 1974).