Dealing with Customers.

QUESTION 1 – Dealing with Customers.

Peter and Jane are holding a pizza party at High Hilton for 40 people.
While waiting for the pizzas to be served, Peter observes the menu that reads “ we have a wide range of pizzas….the best pizzas in town, made with fresh ingredients!”. At Peter’s request for confirmation of the ingredients, Ali Baba, the waiter, tells Peter that High Hilton uses tinned pineapple on the pizzas, but fresh from the tin. Peter is unhappy when he hears this.
At the end of the party Peter pays the balance amount of $4,500 in cash to Ali Baba. Although instructed by the manager of High Hilton not to receive cash payment, the waiter accepts the cash and disappears.
The manager of High Hilton demands the full payment and insists that Peter should not have paid cash in such large amount to Ali Baba. Peter pleads that the amount be reduced as he had already paid Ali Baba the full amount.

Question A
Is the statement on the menu “ we have a wide range of pizzas….the best pizzas in town, made with fresh ingredients!” in relation to the of use of tinned pineapples in breach of s 18 of the Australian Consumer Law?

Question B
Did Ali Baba have apparent authority to receive payment within the scope of his employment on behalf of High Hilton?

 
QUESTION 2 - Dealing with Customers & Competitors
Your opening night of a Sports Bar was great with a huge turnout of customers. Three weeks later, however, you have received a letter from the ACCC asking you to address some matters that have been brought to their attention.

1. You have run a number of full page advertisements stating “Come and have a drink with David Beckham.” David Beckham was not there but you have large life size cardboard cut-outs of him in the bar.
2. You continue to advertise on local radio that on Friday nights there are a number of special drinks available. One that is mentioned in the advertisement is a cocktail called “Beckham strikes” which is available at the special price of $5.00. But this drink is not available yet because you have not been able to source the special ingredient needed. You offer an apology for this state of affairs on a chalkboard at the back of the bar.
3. Your signature dish is “Beckham’s Balls” which are meatballs done in a spicy sauce. The restaurant two doors away has a special signature dish called “Beck’s Special Meatballs” and the owners of the restaurant have accused you of engaging in misleading and deceptive conduct.

QUESTION 3 – PROPERTY - LEASING
The bar next door has closed down and the landlord of that premises has approached you to see if you are interested in expanding to this space. You are very keen. You have been supplied with a standard lease.

1. What else does the landlord need to provide to you in relation to the rental property?
2. What South Australian Act applies to the lease agreements?

QUESTION 4 – COPYRIGHT
Carol has won a contract to produce a sculpture of birds at the Adelaide Shopping Centre. She is a well-known sculptor and has a high profile in Adelaide with her works selling for thousands of dollars.
Carol completes the work and is very happy with it. Six months later, just before Christmas, when she visits the shopping centre she notices they have placed sale price tags all over the birds. She was told they have been there for 2 weeks for the pre- Christmas sale.
When Carol also saw in the Advertiser a feature on the centre with her sculpture with the sale tags she was furious.
Advise Carol whether she has any cause of action against Bayside Village under the Copyright Act 1968 (Cth) for their changes to her sculptor.

Sample Solution