Identify the legal issues arising from the case

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Reference no: EM133423837

Case Study: Sweet Treats Limited, a private company, is a bakery that specializes in the production of mini cakes, specialty donuts and biscuits in your local jurisdiction. The company is the main supplier of baked goods in the public high schools across the island. The company was incorporated in 2019 and its shareholders are step-sisters, Mindy, Maya and Mulan, who are also directors of the company. Mindy and Mulan each hold 400 shares while Maya owns the remaining 200 shares. Mulan is also the head pastry chef, and Mindy is the chief pastry decorator.

Prior to the incorporation of Sweet Treats Limited, Maya purchased an industrial oven for $800,000 which she sold to the company immediately after it was incorporated for J$1M Mindy and Mulan has recently discovered the price Maya paid for the oven and they are furious. They have convened a meeting to discuss the matter and have decided to take legal action against her.

On June 3, 2020, Sarah, a student at St. Peter High School purchased and ate two strawberry jelly donuts from the school's cafeteria. The donuts were supplied by Sweets Treat Limited. This was the only thing she ate that day. Later that evening, she began to complain of intense stomach pains and had to be admitted to the Hospital where she was diagnosed with severe food poisoning.

Sarah's mother has decided to sue Sweet Treats Limited for the injury her daughter sustained and the cost of her hospital bill. Maya sends Sarah a letter advising her that she should sue Mindy and Mulan instead, as they are the ones who prepared the donuts.

REQUIRED:

Identify the legal issues arising from the case
Explain the legal principles that relate to your issues and support your answer with relevant cases and sections of Companies Act 2004
Apply the legal principles explained to the facts of the case
Advise Sweet Treats Limited

Reference no: EM133423837

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