Reference no: EM133331045

The Coffee Shop

Stella decides to open a coffee shop in Melbourne. Rather than operate as a sole trader, she registers a company as the owner of the business. Acting on behalf of the company, Stella leases business premises, employs waiters, gets a loan from the bank, and purchases equipment and supplies. She gets permission from the local council to put chairs, tables and umbrellas on the pavement outside the coffee shop.

When she opens for business the following things happen:

1. Stella does not properly secure one of the umbrellas and a customer is injured when it blows over in a gust of wind. The customer demands compensation.

2. The espresso machine she bought to make coffee turns out to be defective. Stella wants to return it.

3. A person (Peter) enters the shop and steals $1,000 from the cash register. He is caught by the police.

4. John owns the shop next door to the coffee shop. He claims that Stella's tables are encroaching on his space and starts pushing the tables out of the way each day.

Analyse and discuss the legal issues that arise from facts in the case study.

1. Is Stella (or Stella's company) liable to pay compensation to the customer who was injured by the falling umbrella?

2. Is Stella entitled to return the defective espresso machine to the person from whom she bought it?

3. Does the placing of Stella's tables and chairs near her shop constitute a wrongful interference with John's legal rights? If so, what remedies are available to John?