CASE STUDY - "DOCTOR WHO" CAFÉ

QUESTION 1-

You and three friends (Adam, Ben and Chris) have decided to open a ‘Doctor Who'themed café. It will be named "Tardis Café." You have all decided it will be a company that is limited by shares (a proprietary limited company).

You and Adam will be the two directors and all four of you will hold equal shares in the company.

Explain the steps to do the following:

A. Register as a Pty Ltd company with ASIC.

B. Register the business name.

QUESTION 2-

You and Ben decide to attend "Comic Con" to promote "Tardis Café". You have purchased a stand for yourdisplays, and both you and Ben are manning it wearing your favourite Doctor Who costumes. Both of you have been purchasing different merchandise for the café. You purchased Doctor Who themed dishes for $250.00. Ben purchased Doctor Who cutlery for $150.00.

Eddie is a fanatical Doctor Who fan and makes life size Dalek replicas. He has the display stand next to you, and you and Ben have been interacting with him during the first two days of Comic Con. You have both talked to him in detail about "Tardis Café" and the plans you have for the café. On Day 3 of Comic Con you are unable to attend and Ben looks after the stand on his own. Eddie says to Ben, "I have a great business deal for you. I know you have been buying things for your café. You can buy one of my Daleks for the café for $20,000, a saving of $5,000." Ben loves the idea of having a life size Dalek and agrees that "Tardis Café Pty Ltd" will purchase a Dalek. Ben and Eddie sign an agreement for $20,000 to be paid when Eddie delivers the Dalek to "Tardis Café" the next weekend. Under Ben's signature are the words "Director of Tardis Café Pty Ltd."

The next day Ben meets with you and Adam and tells you of his agreement to purchase the Dalek at the bargain price. Adam is upset and states that Ben had no authority to purchase something that expensive. "We cannot afford it," he says. Adam and you both agree that Tardis Café Pty Ltd will not pay for the Dalek.

Using relevant legal principles, explain who is liable for the payment of the Dalek - is it Tardis Café Pty Ltd or Ben?

QUESTION 3-

"Tardis Café" is very, very busy and you have a high turnover of customers in the café.

You have received a letter from the ACCC asking you to respond to a complaint from some customers about the price of the "Ood Spaghetti" and a complaint from your rival, Bakers Delight, about your "Delightful Baker" savoury bun.

Issue 1

Your "Ood Spaghetti" (with its special sauce) is the most popular one on the menu. On the previous Sunday when you were not in, and the restaurant was very busy, Clara, the supervisor decided the restaurant could make more money by removing the advertised price of the "Ood Spaghetti" from the wall-mounted chalkboard, and raising the price.

She justified this to her co-workers by declaring that, "After all, it is a Sunday and we have to pay penalty rates." So she increased the price of the "Ood Spaghetti" to $15.00 when its normal price was $12.00. When customers complained upon receiving their bills, Clara told them that the higher price was as a result of a "Sunday surcharge" and insisted that they pay the higher amount.

Issue 2

You have a special savoury bun in the shape of an alien, called "The Delightful Baker". The bun has been crafted in accordance with a special recipe, but it looks very similar to a savoury finger bun that Bakers Delight sells. Bakers Delight has complained to the ACCC saying that that is misleading and deceptive.

Using relevant legal principles and cases, discuss the legal obligations relating to the above surcharge and the Bakers Delight complaint.

You must use the IRAC problem - solving method. And I need to references on just a book. The book called "Business Law 3rd edition Nickolas James".