QUESTION

Greg is the owner of Supa-Kart Racing Pty Ltd. He has just built a large, state-of-the-art go-kart racetrack. Every month, Greg organizes a race for local youths where entrants race off against one another. Each team pays a registration fee of $100 and must supply a driver and pit crew. Greg supplies the go-karts. The race runs for four hours, with each team having a maximum of four drivers, with each driver changing every hour. The meeting usually take place on the last Friday of every month and many spectators often come to watch.

Go-kart engines typically run on petroleum fuel or methanol. Given the rising cost of petrol, Greg is finding it hard to keep his current price structure using petrol. Greg's friend, Marcus, has recently completed his Masters degree in Engineering. Marcus has recently developed a new type of fuel that is much more efficient and adds extra power to engines. It is called Rocket Fuel. Rocket Fuel is yet to be approved by the Department of Industry, Science, Energy and Resources and is more combustible, flammable, and heats up engines quickly. Generally, engines require bigger radiators to keep them cool and overheating if they use Rocket Fuel. Greg decides to use Rocket Fuel in his go-karts but considers it unnecessary to install bigger radiators in the engines as it might slow the karts down.

On race day, Greg engages three bodyguards, Michael, Franco and Bruno, to take care of the crowd and ensure their safety. Greg is responsible for overseeing that the bodyguards carry out their duties effectively and requires them to wear his uniform and use his equipment. They are paid by Greg on an hourly basis, with deduction of income tax.

Barriers are installed on most parts of the racetrack, except for one section on the far side of Greg's property. Greg had ordered less than he expected he would need when he was building the track and hasn't installed a barrier there yet. Race day was an extremely hot and dry summer's day. The team in second place, driven by Jed, is racing very well and Jed is pushing his kart very hard. His engine is running extremely hot. Jed attempts to overtake another kart. As he approaches a corner and accelerates hard, suddenly his engine explodes and catches fire. Jed's cart spins out of control and slides off the track, where there is no barrier, and hits a tall jarrah tree. Meanwhile, Michael runs onto the track waving his arms, to stop the other go-karts. Michael is hit by one of the karts. He suffers significant injuries and requires his leg to be amputated.

Advise Jed of any claims he may have against Greg. Also advise Michael of any claims he may have against Greg.