Scarlett had decided for some time that she wanted to purchase a motel. After looking at several different areas, she settled on Port Stephens in New South Wales as offering her both the potential for a business and the lifestyle she was seeking. She rang a number of real estate agents, inquiring whether they had any motels listed for sale. She finally found a motel and general business listed with an estate agent called Evatt. Evatt told Scarlett that once she got going in this business it would be a goldmine.

Scarlett sought an accountant's advice and then proceeded to buy the business. Within six months of buying the motel and general business, Scarlett was virtually bankrupt because there were neither the tourist numbers nor the local population to sustain the business.

It was late at night and very wet and, rather than wait for a taxi to take her home from work, Scarlett was only too happy to accept a lift from Terry. Terry smelt strongly of alcohol and had trouble keeping the vehicle on the road. Scarlett decided to continue the journey as it was raining very heavily. Shortly after, Terry lost control of the vehicle and hit a tree, leaving both him and Scarlett seriously injured.

Advise Scarlett on whether:

• she can sue the estate agent for his statements about the business and whether you think she can succeed.
• sue Terry in negligence?

Use the IRAC method (Issue, Rule, Application, Conclusion) we have used in class to answer the above scenario.

Issue	What is/are the issue(s)?
Rule	What is/are the rule(s) (the law)
Application	Apply the rule(s) to the facts in the scenario
Conclusion	Write a short conclusion which answers the legal issue(s)