Task A - New Business Compliance Report

The Chief Operating Officer (COO) of TRI Fitness, Tracy Yap is reviewing the viability of acquiring a business; YES Fitness located in Adelaide, South Australia. This initiative is in line with TRI Fitness expansion plans to grow their fitness business Australia wide. The plan would be to purchase YES Fitness and then rebrand it as another TRI Fitness branch.

In the course of Tracy reviewing YES Fitness documents she has a number of legal concerns that she would like your advice on.

Tracy has compiled all her concerns in the TRI Fitness New Business Compliance Report.

You will also need to review the YES Fitness Membership Contract to complete the report.

i. Undertake research and address each issue raised by Tracy in the TRI Fitness New Business Compliance Report in the space provided.

ii. Use the TRI Fitness Email Template to draft an email to Tracy attaching the completed report with your advice.

• TRI Fitness New Business Compliance Report
• YES Fitness Membership Contract
• TRI Fitness Email Template

Task B - Making Changes to the Membership Contract

Tracy is happy with the work you have done on the New Business Compliance Report. Your work has highlighted some one major issue; that the YES Membership Contract needs to be amendment to make it legally compliant before we would use it.

i. Refer back to your work on the New Business Compliance report and using the existing YES Fitness Membership Contract amend the contract to make it legally compliant. Ensure you highlight your changes in yellow.

ii. Using TRI Fitness Email Template draft an email to the TRI Fitness CEO Klara Abrams, who was a lawyer in the past seeking her advice on the changes you have made to the membership contract. Ask her if she can confirm that the changes you have made are in compliance with the relevant legislation.

• YES Fitness Membership Contract

• TRI Fitness Email Template

TRI Fitness New Business Compliance Report

1. Please review the Yes Fitness Membership Contract and provide advice on the following issues:

a) Advise whether the Yes Fitness Membership Contract complies with s 60 (Guarantees relating to the supply of services) of the Competition and Consumer Act 2010 (Cth) - Schedule 2 ACL.

b) Advise whether the Yes Fitness Membership Contract complies with s 4 (Membership agreements) of the Fair Trading (Health and Fitness Industry Code) Regulations 2007 (SA).

2. An email was received from an Adviser representing a YES Fitness member. The email advises that their client intends cancelling the membership contract and asking for a refund of their membership fees claiming:YES Fitness is in breach of the agreement as they failed to supply adequate fitness equipment for members during busy times at the fitness centre. The organisation's records include two warning letters sent to this member. The letters were used to formally warn the member to stop using foul language and wearing clothing with racist slogans in the Fitness Centre, which is against Yes Fitness policy. Since sending the warning letters the member has not paid his membership fees nor attended the Fitness centre. Inquiry confirms that the member cancelled his payment debit authority with his bank. The member will not respond to phone calls or emails.

(a) Review the Yes Fitness Membership Contract. Advise if the member can make a legal claim against Yes Fitness for breach of contract under Australian Contract Law.

(b) Advise whether YES Fitness has grounds for a counter claim against the member for breach of contract because the member has stopped payment of his membership fees.

(c) Advise one strategy that can be used to help resolve this legal issue at least cost to the both parties.

3. Records indicate that Yes Fitness members have not been receiving copies of their Yes Fitness Membership contracts

(a) Advise any requirements under s 7 of the Fair Trading (Health and Fitness Industry Code) Regulations 2007 (SA) to provide copies of member agreements.

(b) Advise if there are any penalties that may apply under s3 of the Fair Trading (Health and Fitness Industry Code) Regulations 2007 (SA) if copies of member agreements are not provided to members.

Attachment:- Membership Contract.rar