Reference no: EM132241432

Fact Scenario Rachel is a regular visitor to a local ChunkyChicken restaurant that provides a self-service facility where customers have the option of selecting drink and food items from a menu displayed on a touch screen located just inside the entrance. To select a product, a customer only has to touch an image or icon showing the desired product or products they wish to consume, the customer is then confronted with a message that states “do you agree to be bound by ChunkyChickens terms and conditions?” The customer can select to read the terms and conditions and then press Ok button or merely press the virtual Ok button. Once the Ok button has been pushed the customers order is submitted. The order is relayed to food preparation area where the customer’s order is prepared. Once prepared ChunkyChicken’s front counter staff are made aware the order is ready and the customer’s ticket number is displayed on a large screen that symbolises their order is ready for collection. Customers using the touch screen are immediately issued with a printed ticket containing an order number and the price payable at the front counter. Customers present these tickets to the cashiers who confirm the relayed order appearing on their screens. At this point, the customers pay for their purchases and await delivery. This system is designed to save time during peak periods and is very popular. Some customers place their orders as takeaways, while others, like Rachel, prefer to be seated and consume them on the premises. These preferences are preselected by the customers when they use the touch screen. When Rachel reached the cashier, she paid $7.50 for the hamburger and drink, collected her order located a vacant table and enjoyed a leisurely meal. A couple of days later, Rachel returned and instead of her normal meal decided to order the new gourmet chunkiest chicken burger and hand cut chips. The order was placed through the self-service ordering system. The total cost was $17.50 which she duly paid. Following the payment being processed Rachel received the normal printed ticket which included her order number, order and price. Rachel’s order number appeared on the screen, and after collecting the order Rachel found a vacant table and started to eat the meal. As Rachel took a second bite of her gourmet chunkiest chicken burger she struck something hard and broke a tooth. Rachel examined the chewed remains and found a piece of metal that had somehow been lodged in the burger. Rachel alerted management to this incident and demanded compensation for her anticipated dental repair. The manager expressed regret and directed Rachel to ChunkyChickens terms and conditions which included a clause stating: ChunkyChicken accepts no responsibility or liability for any injury caused to customers by consumption of food or drink sold. In response, Rachel exclaimed, ‘I’m a consumer and I have rights’ Required

Explain how the contracts Rachel made with ChunkyChicken were formed. You will need to address all the essential elements of a contract (including consideration) as well as analyse the legal status of each step or event that led to ChunkyChicken supplying Rachel with its products. Refer to relevant case law. In this part, do not discuss the impact, if any, of consumer protection laws. You may, but are not obliged to use the IRAC format for this part, given that each step or event must be analysed separately.