Question

1. Scenario-based questions

Sally has recently opened her own café. Her café is located in the CBD (central business district) of Perth where she leases the premise. Business has been doing so well she decides to offer food catering services and delivery to businesses around her. In order to meet the demand for the new service she decides to hire a manager and 2 more employees. Sally is now in need of a new vehicle so she can transport the food and make deliveries. Sally approaches Happy Bank to obtain a loan for $25,000 which she uses to purchase a new vehicle.

One day Sally and her manager were preparing food for an office party when she receives a phone call. Sally picks up the phone and the caller tells Sally that he ate at her café yesterday and had sever food poisoning immediately after. At that exact moment a Food and Health inspector from the Australian Department of Health (Government agency) enters the café and informs the staff at the café that he would like to inspect the premise and kitchen area to ensure compliance with food production, sale and storage under the Food Act 2008 (WA).    

1.Which one of the following is an example of how the law allows people to plan for the future with reasonable certainty?

1. Sally having a strategic plan in place that promises up to $ 120,000 worth of sales in the first year of business.
2. Sally being able to get a loan from Happy Bank that requires her to make regular payments of interest and principal.
3. Sally expecting that the food catering and delivery will continue to improve in Australia.
4. Sally’s being liable for food poisoning to customers and therefore is liable to pay compensation.

2. If Sally is found liable for food poisoning, this will fall under which area of law?

1. Criminal law.
2. Remedial law.
3. Poisons law.
4. Tort law.

3. Which of the following statements is INCORRECT?

1. When Sally caters food for the businesses and companies around her their agreement falls under corporations law.
2. When Sally hires a manager to assist in running her café and manage her staff this falls within the area of agency law.
3. When Sally enters into an agreement with Happy Bank for $25,000 this fall under contract law.
4. Sally’s lease for her café premise falls under the area of property law.

4. When Sally’s business is investigated by the health and food inspector from the Western Australian Department of Health (State Government agency) which of the following statements is CORRECT?

1. When a health inspector from the Department of Health investigates Sally’s business it is applying the rules of official decision making which fall within criminal law.
2. When a health inspector from the Department of Health investigates Sally’s business it is applying the rules of official decision making which fall within constitutional law.
3. When a health inspector from the Department of Health investigates Sally’s business it is applying the rules of official decision making which fall within administrative law.
4. When a health inspector from the Department of Health investigates Sally’s business it is applying the rules of official decision making which fall within tort law.

Answer 1

1. Which one of the following is an example of how the law allows people to plan for the future with reasonable certainty?

Answer=Sally being able to get a loan from Happy Bank that requires her to make regular payments of interest and principal.

Reason= The banks are subjected to the different laws formed by the government to facilitate the loan and receive the payback of the loan

If Sally is found liable for food poisoning, this will fall under which area of law?

Answer=Tort law.

Reason- Restaurants are subjected to the strict liability of the product or services that fall under tort law.

Which of the following statements is INCORRECT?

Answer=When Sally caters food for the businesses and companies around her their agreement falls under corporations law

Reason- The contract between the bank and Sally will fall under the finance-related civil laws.

When Sally’s business is investigated by the health and food inspector from the Western Australian Department of Health (State Government agency) which of the following statements is CORRECT?

Answer=When a health inspector from the Department of Health investigates Sally’s business it is applying the rules of official decision making which fall within tort law.

Reason- Restaurants are subjected to the strict liability of the product or services that fall under tort law.