Case Study Business law assignment Business and finance homework help
Case Study (max 1000 words) (AUSTRALIAN LAW)
Alan runs a beauty salon called Tender Treats. . Alan decides to promote the business by advertising a â€˜special offerâ€™ in the local paper. The advertisement he places in the local newspaper states that Tender Treats will, on the production by the customer of the advertisement, give that customer a manicure/pedicure (mani/pedi) for the low price of $15.
The day after the advertisement is published some 60 people arrive at the salon asking for the special manicure/pedicure for $15. Alan is overwhelmed by the response and realises that the salon will lose a lot of money if this promotion continues. Alan decides to put up a sign in the Salonâ€™s window which states THE OFFER OF MANICURE/PEDICURE AS ADVERTISED HAS NOW FINISHED.
Explain the law as it applies to the following persons:
- 40 customers who produce the advertisement before the notice goes up in the window. Are these customers able to enforce any legal agreement? Explain with reference to contract law.
- 20 customers do not have the advertisement with them, but still want to participate in the promotion. Are these particular customers able to enforce any agreement?
- Could Alan argue that the payment of $15 is insufficient for the promise of what would normally be a $60 manicure/pedicure, and consequently there are no legal obligations on the business?
Alan believes he has now withdrawn the promotion and has no further obligation to provide cut price mani/pedis. Is this correct?
The next week Alan puts the price up to $75 and puts out a new advertisement in the paper saying your nails will look so good, that anyone who doesn’t get a date within 7 days of getting a mani/pedi will given a free haircut. Jill gets a mani/pedi, does not get a date and comes in two weeks later for a free haircut, Does Alan have to comply?
Note .Use reference and example in every question