Fundamentals of Business Law

LAWS101 Fundamentals of Business Law

Summer Semester 2022

 

AT3 CASE STUDY ANALYSIS

 

 

 

Kentucky Fried Chicken (KFC) Outlet Villawood sued over brain damage to a

 

14 year old girl

 

Monika Samann, a 14-year-old girl from Sydney, Australia, was left brain-

 

damaged and now must use a wheelchair to get around, after she ate a

 

salmonella-tainted KFC chicken twister seven years ago.

 

In April, an Australian court ordered KFC to pay Monika and her family, 8

 

million Australian dollars ($8,349,600 in U.S. dollars) in damages.

 

"As a result of her injuries, it is clear she will never enjoy the normal life that

 

was expected of her prior to this catastrophic event," NSW Supreme Court

 

Justice Stephen Rothman said in April.

 

Monika Samaan and her entire family were sickened with salmonella

 

poisoning, but she was the only one in the family not to recover from the

 

illness. She became so sick that she fell into a coma and was hospitalized for

 

several months.

 

During the trial, some staff members at the KFC store in question testified that

 

restaurant employees would sometimes handle the food without gloves, and

 

would even throw around the food and let the chicken fall on the ground.

 

 

 

You can find further information about this case study from the following links:

 

 https://www.smh.com.au/national/nsw/kfc-ordered-to-pay-8m-to-brain-

 

damaged-girl-20120427-1xpkc.html

 

 https://www.abc.net.au/news/2009-08-03/girl-11-launches-10m-kfc-

 

lawsuit/1377228

 

Analyse the information for the case study given above and prepare a report

 

addressing the following questions. Your case study report must be

 

structured as follows:

 

 Executive Summary

 

 Introduction

 

 Findings

 

 Discussion

 

 Conclusion

 

 

 

Questions

 

1. Does KFC owe a ‘duty of care’ to its customers in relation to the food it

 

serves? In your answer discuss the legal principle of duty of care, with

 

particular emphasis on duty of care in a restaurant business.

 

2. Discuss whether KFC was negligent in service of salmonella infected

 

chicken to Monika Samann? (apply section 5B of the Civil Liability Act

 

2002 (NSW)).

 

3. Did Monika Samaan have a contract with KFC when she bought the

 

chicken twister? What is the nature of such contracts? Note: you will need to

 

consider the impact of the Australian Consumer Law on the terms of the

 

contract.

 

4. What defences under the tort of negligence KFC could have argued in their

 

defence. In particular, could KFC argue it was not responsible for the actions

 

of its employees?

 

5. Discuss whether KFC complied with Australian legislation related to the

 

safe service and handling of chicken and food to Monica Samaan.

 

6. What processes should KFC implement to avoid future incidents as

 

described in the article above?