CASE STUDY ASSESSMENT: POP UP SPORTS BAR
Legal forms of doing business.
You and your friend Adam have decided to open a ‘pop up' sports bar in your local area. You have not yet done anything about the business structure. You have each invested $50,000 into the business by depositing money into a newly created bank business account, which thus has $100,000 in it. The account is in the name ‘Pop Up Sports'.
You, and not Adam, have negotiated the leasing of a disused 19th century factory building in your name. You have paid the first six month's rent from the ‘Pop Up Sports' bank account.
Again from the bank account you have purchased equipment and materials for the pop up bar so you are ready to go when the lease documentation is finalised. But the furniture that you are going to use belongs to you (from a previous business venture). Adam has written up your business and marketing plan including asking his mate David Beckham to be the ‘face' of your bar. He has spoken to David Beckham who has agreed to do that (the barwill have a soccer theme) but at this stage there are no contracts with him, nor, indeed between you and Adam.
You set an opening date for 3 weeks hence.
1. Have you formed a partnership? Ensure that you explain the definition and criteria and cite cases where relevant.
2. Assuming that there is a partnership, what are the legal consequences for you and Adam if you have not yet written up a partnership agreement and things start to go wrong?
3. What is the preferred business approach for you and Adam to formalise your business relationship?
Dealing with Customers& Competitors
The opening night was a great success. David Beckham was there and you had a very large turnout. Three weeks later, however, you have received a letter from the ACCC asking you to address some matters relating to deceptive and misleading conduct 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 has not been there but you have large life size cardboard cut-outs of him in the bar.
2. 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.
Please address the issue raised by ACCC - Have you engaged in deceptive and misleading conduct?
Employing Staff
You have employed a total of 7 staff of which three are:
Donna - Waitress - University Student who works for $150.00 a day but only when she is available, which is usually 1 day a week, or three days a week during university breaks.
Emma - Mixologist - expert at making cocktails, employed on a regular employment contract 5 nights a week.
Freddy-Cleaner
Address the following legal issues in relation to these staff members.
1. Donna has slipped over on some meatball meat spilt (by someone unknown) on the floor and has broken her wrist. Adam does not think she is an employee.
Is Donna an employee and what are the consequences for Adam and you if a court determines that she is an employee?
2. Emma keeps turning up to work in very revealing clothing including short skirts and low cut tops. You do not feel this is appropriate and want her to stop wearing revealing clothes. You give her an ultimatum: change her outfit to something more acceptable or lose her job. Can you do that?
3. Freddy the cleaner has complained to you about Donnamaking sexist comments including telling him "he is hot" and "he is cute" all the time. You think he is overreacting and want to get rid of him. So you ignore his protests, telling him he should know "how to take a joke." He complains to the Equal Opportunity Commissioner. Are there any likely consequences for you and Adam?