Use the IRAC method to structure your answer and separate headings for 'Issue(s)', 'Rules', 'Application' and 'Conclusion'.

Question 1 (25 Marks).

Annie made a reservation at "Frederico's" to meet some friends who she hadn't see for a while. While Annie was getting a drink from the bar, a waiter carelessly spills a tray of drinks onto Annie's expensive handbag, which she left on her seat. When she complains to the restaurant manager, he directs Annie's attention to a sign on the wall that states:

'The restaurant takes no responsibility for goods lost, damaged or stolen'.

Annie didn't notice the sign when she walked in because it was obscured by a large cactus.

Meanwhile in the kitchen, Frederico the restaurant owner had decided to add a new range of taco dishes and salads to his menu. He had placed a large sign on the restaurant window promoting his mexican dishes as 'the best Mexican in town, made with all fresh ingredients!'. Marco, the owner of "Marco 's", the Italian restaurant next door, is rather annoyed about the sign. He has been serving freshly made pasta for years. Marco had noticed piles of empty tins outside in the parking area and accused Frederico of misleading customers. He thinks that Frederico uses tinned jalapenos in his dishes. Frederico's response is that even if the jalapenos are from a tin, they are fresh from the tin. Marco has now threatened legal action under s 18 of the Australian Consumer Law.

Focus on the disclaimer and s 18 of the Australian Consumer Law (ACL).

Is the disclaimer valid? Does the sign prevent Annie from suing the restaurant? Can Annie seek compensation? Is Marco entitled to bring such a legal action under ACL s 18? If so, is such an action likely to succeed?