Assessment Item TwoCASE STUDYDUE: 2 October 2018 11.00 pm Weighting 40% 2000 words (excluding the bibliography, in-text citations and footnotes) Use IRAC problem solving method to answer the questions/issues. For more about the instructions, please check the files located under the Assessment tab in the learnonline site of this course.POP UP SPORTS BARYou and your friend Nick 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 Nick, 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). Nick 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 bar will have a soccer theme) but at this stage there are no contracts with him, nor, indeed between you and Nick.You set an opening date for 3 weeks hence.Dealing with Customers & CompetitorsThe 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 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. (6 marks)2. You continue to advertise on local radio that on Friday nights there are a number of special drinks available. One that is mentioned in the advertisement is a cocktail called “Beckham Strikes” which is available at the special price of $5.00. But this drink is not available yet because you have not been able to source the special ingredient needed. You offer an apology for this state of affairs on a chalkboard at the back of the bar. (7 marks)
3. 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. (7 marks).Employing StaffYou have employed a total of 7 staff of which three are:Sarah – 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.Jully – Mixologist – expert at making cocktails, employed on a regular employment contract 5 nights a week.Richard – Cleaner.Address the following issues in relation to these staff members.1. Sarah has slipped over on some meatball meat spilt (by someone unknown) on the floor and has broken her wrist. Nick does not think she is an employee. Is she? What are the consequences for Nick and you if a court determines that she is an employee? (5 marks)2. Jully 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? (5 marks)3. You also find that Jully has been sharing your special Beckham cocktail and Beckham Balls recipes with another bar at which she works, and you have some evidence to show that there has been a downturn in your customer numbers since that started happening. You decide to terminate her employment on the basis of breach of confidence. Can you do that? (5 marks)4. Richard the cleaner has complained to you about Sarah making 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 Nick? (5 marks).