CASE STUDY DEALING WITH CUSTOMERS AND COMPETITORS
CASE STUDY 2.3: DEALING WITH CUSTOMERS AND COMPETITORS
Pease read the following case study and complete the 2 assigned tasks
You are the proprietor of a restaurant/café in which you employ Rosa as the front of house manager. She has the responsibility for organising the staff roster, supervising the day to day running of the business and ordering stock. The wine list was especially compiled by you and comprises popular selections at affordable prices. Rosa is responsible for re-ordering stocks of wine as needed, however, she is not authorised to order wines that are not on the wine list.
One day when the wine representative comes to the café to take orders for wine he shows Rosa a bottle of 2014 Metala Shiraz which she knows is an expensive red wine that usually sells for about $50 bottle. The representative offers Rosa a taste of the wine which she thoroughly enjoys. The next day you discover that Rosa has disobeyed your instructions by purchasing 2 dozen bottles of the Metala Shiraz for $900.You immediately contact the wine suppliers and insist that they take back the bottles of Metala Shiraz and return the purchase price.
Discuss Rosa’s relationship to the business in relation to this transaction and your entitlement (if any) to return the wine and have the purchase price refunded.
You have added a new range of pasta dishes to the menu and have had the following words painted in large letters on the restaurant window:
The Best Pasta in Town – Made With Only Fresh Ingredients
Angelo, the owner of Bene, an Italian restaurant next door, accuses you of misleading customers because he knows that your chef uses tinned olives in some of the pasta dishes. Your response is that even if the olives are from a tin, they are fresh from the tin.
Angelo has now threatened to take legal action against you under ACL s 18.
(a) Is she entitled to bring such an action?
(b) If so, is such an action likely to succeed?
TOTAL: 10 marks