Business law - bl17 advice enterprise cafe if a valid


Your Café has now been operating for 12 months and you decide to have a first-year anniversary party called "TREKKY CELEBRATION" You have invited 100 people and have asked them all to dress as their favourite character.


Because you know a lot of the outfits will be valuable, you set up a cloak room for people to check in their extra belongings. Donna is running the cloakroom.

She is instructed by you that when a person hands over a piece of clothing, Donna is to give them a ticket which has a number on the front and states on the reverse side:

"We do not take any responsibility or liability for clothing checked in to our cloakroom."

Travis has made himself an amazing Star Trek Enterprise hat. He decides to check it in at the cloakroom because he has not been able to see where he is going with it on. He hands his hat to Donna and receives his ticket with the disclaimer on the back.

When he goes back at midnight to collect it, it is no longer there. Donna has got confused when handing back hats and has incorrectly given it to a different person whom she cannot remember. Travis wants Enterprise Café to pay for the replacement of his hat which cost him $200.00.

You wish to rely upon the exemption clause on the ticket.


The special drink of the party is the "To Boldly Go" cocktail which contains a high quantity of alcohol. Yourself and Adam (the two directors) have been served a lot of the cocktail by Donna and are quite intoxicated. You have been able to still talk to the guests but you are both swaying on your feet.

Seamus has been with you all night and has not consumed any alcohol at all.

Seamus runs an Italian restaurant that has not been doing very well. He says to you and Adam, "I think you should make pizzas here, and I have just the pizza oven for you. You can have it for $5,000." You and Adam reply, "Yes, we accept your great big fat oven, you big Irish Italian guy" and then you both fall over onto the floor due to intoxication, laughing.

The next morning a small electric pizza oven is delivered from Seamus' Italian Restaurant with an invoice for $5000. You have a very bad hangover and very little recollection of anything that was said the night before.

Advice Enterprise Cafe if a valid contract has been made.


You have decided to sell Enterprise Café T-Shirts and mugs at the café. Donna is again working for you and you tell her to put a price on the T-Shirts of $35.00 and the mugs $5.00. Donna accidently makes the signs incorrectly and they are on display with T-shirts $5.00 and mugs $35.00.

Peta loves Star Trek and sees the T-shirts. She approaches Donna and says she would like 5 T-shirts for $5.00 each.

Is Donna, acting on behalf of Enterprise Cafe, obligated to sell the T-shirts to Billie at $5.00 each?


You have had enough of Donna's mistakes; losing hats, getting you drunk, mixing up signage. You terminate her employment. As she is leaving she fires off the following words to you, "I am going to join another café around the corner and I am going to help make it so much better than your silly Enterprise business."

You point out to Donna that when she was hired 12 months ago you put into her contract an express clause that says: "I, Donna, agree, upon my leaving the employment of Enterprise Cafe, not to work at any other café within five kilometres' radius of any Enterprise café, for a period of 24 months."

She has signed the contract at the end and remembers reading that clause.

Can you enforce the clause against her?


You have has decided to open another café in Norwood. You have found an ideal premises on The Parade and you have made enquiries about it. You decide to go ahead with the lease.

a) What is the landlord required to give you in writing in relation to the lease and what must be included in it?

In your new café at Norwood, you want to install old cinema row seats alongside long tables. These seats are in sets of 4 seats, and each set needs to be bolted to the floor. They will stay there indefinitely and will not be unbolted and moved around because that would involve a lot of work.

Will you be able to take the seats when they vacate the premises in due course?

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