COML 1001: Foundations of Business Law – ASSESSMENT 2,
BEFORE PROCEEDING, READ THE FOLLOWING FACTS:
You are the owner and manager of Cozinha Do Pilaõ, a restaurant in Adelaide. Your
sisters Bethany and Princesa, just opened “As Reinas do Bacalhau” a fishmonger across
the road. As a good brother you order some of their fish for your restaurant. Upon
delivery you can see that the fish is not of great quality and that it is not well covered
with ice, which raises concerns about whether it can be consumed.
You then ask Lua, your employee, to store the fish properly. As Lua is walking towards
the cold room, he slips over some water spilled a couple of minutes before by another
employee and falls flat on his face, breaking his jaw. As you help Lua to get up from the
floor he smells strongly of alcohol and appears to be drowsy.
Your head cook, the great Fundi Sarassino, usually finishes his shift at 11.00 pm, but on
this particular night the restaurant appears busier than you expected. You tell Fundi to
stay until 12.00 am. Seeing his disappointment, you promise to pay him $150.00 bonus
cash in hand if he works the extra hour. Because Fundi wants to buy some new and good
quality running shoes on eBay for $150.00, he agrees to work the extra hour. He
immediately purchases the running shoes through his smartphone. You then remember
that the Opera Theatre next door has a play scheduled at 9.30 p.m. Due to this, your
restaurant becomes quiet just after nine, leaving Fundi with nothing to do. On seeing this,
you tell Fundi that he can leave at 11pm and that the bonus will therefore not be paid.
Fundi decides to stay until midnight however, as initially asked.
YOU MUST ANSWER ALL OF THE FOLLOWING THREE QUESTIONS. EACH QUESTION
IS WORTH 10 MARKS.
Are you in a contractual relationship with your sisters about the fish?
Can Fundi require the payment of $150?
Consider whether Lua has an action against you and whether you can defend yourself?
FOR EACH QUESTION PLEASE PROVIDE DETAILED EXPLANATIONS TO JUSTIFY
YOUR POSITION / ANALYSIS
SUPPORT ALL STATEMENTS OF LAW BY REFERRING TO THE RELEVANT
LEGISLATION OR CASE LAW.