CASE STUDY: Sam owns and drives a Hire Limousine, which transports tourists from the Airport to the City. Max was recently promoted to the position of General Manager of a chain of Hotels. They both work in the Tourist Hospitality Industry in Melbourne. Sam was so impressed that he wanted to give Max a gift, a Lunch at “Jim’s Seafood Restaurant” in Lorne, Victoria. Sam made the booking, and they drove together from Geelong to Lorne. As they entered the Restaurant they did not see the big sign stating….”Please take notice that our lobster’s have not been freshly frozen. We will not be liable for any injuries caused by negligence.”… The lobsters were not removed from the menu because Jim believed he would lose money. He was already in financial trouble due to Covid lockdowns and interruptions. As Jim, handed them the Menus, he made no comments about the warning sign or that the lobsters had not been refrigerated. Sam ordered the “Fish” and Max ordered the Lobster. Max ordered beer and Sam ordered the red wine. As Sam drank his wine he suddenly saw a dead decomposed fly in his glass. He complained of stomach pain and feeling nauseous. Likewise, after eating the Lobster, Max also felt sick became was violently ill. As they were leaving in a hurry to get to the local hospital, Jim demanded they pay for their meals and beverages. Sam paid under protest. Jim, the restaurant owner said it was Wine Manufacturer’s fault – said they were called “West Wines”Sam and Max both suffered gastroenteritis (food poisoning), and both received medical treatment. Max’s injuries resulted in the following lossesa. Medical Costs ($5,000)’ b. Loss of Earnings ($30,000)’; c. Loss of his “Hotel Accommodation Deposit’ ($5,000). (Max had paid the Deposit on his Holiday Accommodation, at the Novotel Hotel, in Sydney. As a result of the gastro and medical treatment, he had to cancel his holiday. The Hotel Accommodation Deposit was non-refundable.) Sam suffered the following losses – a. Loss of Profits ($4,000); b. Medical Expenses ($2000); c. Loss of an ‘Indian Government Contract’ (worth $40,000) for the sale of 2 tons of Australian Sheep Skins. Sam had no previous exporting experience, but accepted the unusual Contract because his Business was not going well. As a result of the food poisoning and medical treatment Sam was unable to sell and deliver the Sheep Skins, and therefore lost the Indian Government Contract.)1. Identify and discuss the 3 Elements of Negligence that Max (as Plaintiff) must prove. Discuss the 2 Defences that Jim (as the Defendant) may argue. (14 marks) …………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………… 2. Explain and discuss whether Max is likely to recover damages for his losses- ‘Medical Costs’, ‘Loss of Earnings’, and ‘Loss of Hotel Accommodation Deposit’. Give your reasons with supporting case law precedents. (4 marks) …………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………… 3. Identify and explain the 3 Elements of Negligence that Sam (as the Plaintiff) must prove. Discuss the 2 Defences that Jim (as the Defendant) may argue. (14 marks) …………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………… 4. Discuss and explain whether Sam is likely to be able to recover damages for his losses-Medical Costs, Loss of Profits, and ‘Loss of the Indian Government Contract’. Give your reasons with supporting case law precedents. (4 marks)Sam and Max both suffered gastroenteritis (food poisoning), and both received medical treatment. Max’s injuries resulted in the following lossesa. Medical Costs ($5,000)’ b. Loss of Earnings ($30,000)’; c. Loss of his “Hotel Accommodation Deposit’ ($5,000). (Max had paid the Deposit on his Holiday Accommodation, at the Novotel Hotel, in Sydney. As a result of the gastro and medical treatment, he had to cancel his holiday. The Hotel Accommodation Deposit was non-refundable.) Sam suffered the following losses – a. Loss of Profits ($4,000); b. Medical Expenses ($2000); c. Loss of an ‘Indian Government Contract’ (worth $40,000) for the sale of 2 tons of Australian Sheep Skins. Sam had no previous exporting experience, but accepted the unusual Contract because his Business was not going well. As a result of the food poisoning and medical treatment Sam was unable to sell and deliver the Sheep Skins, and therefore lost the Indian Government Contract.)1. Identify and discuss the 3 Elements of Negligence that Max (as Plaintiff) must prove. Discuss the 2 Defences that Jim (as the Defendant) may argue. (14 marks) …………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………… 2. Explain and discuss whether Max is likely to recover damages for his losses- ‘Medical Costs’, ‘Loss of Earnings’, and ‘Loss of Hotel Accommodation Deposit’. Give your reasons with supporting case law precedents. (4 marks) …………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………… 3. Identify and explain the 3 Elements of Negligence that Sam (as the Plaintiff) must prove. Discuss the 2 Defences that Jim (as the Defendant) may argue. (14 marks) …………………………………………………………………………………………………..…………………………………………………………………………………………………………………………………………………………………………………… 4. Discuss and explain whether Sam is likely to be able to recover damages for his losses-Medical Costs, Loss of Profits, and ‘Loss of the Indian Government Contract’. Give your reasons with supporting case law precedents. (4 marks) …………………………………………………………………………………………………..………………………………………………………………………………………………………………………………………………………