Lizzie and her best friend Peggy have decided to take a holiday in to Broome to celebrate Lizzie’s engagement. They visit they local travel agent BestHolidays Ltd and speak to a travel agent, George. George is very enthusiastic and presents Lizzie and Peggy with a number of great holiday options. Lizzie and Vanessa are keen on the stay at Palm Tree Springs and 4 star holiday resort, but George suggests they go with the all inclusive 5 star option at the Pink Lagoon Hotel and Spa. George tells Lizzie and Peggy all about the Pink Lagoon package and states that the all inclusive package includes a deluxe sea view room, all meals at the hotel’s restaurant the Pink Flamingo from a luxurious organic buffet, beverages, activities including snorkelling and horse riding on the beach and 3 spa treatments of their choice.While the Pink Lagoon option is more expensive and Lizzie wanted to go to Palm Tree Springs as she had holidayed there many years before and thought it was great.
George makes a bigger commission from bookings at the Pink Lagoon Hotel and Spa and sensing Lizzie and Peggy their indecision shows the girls the hotels pamphlet. Tye pamphlet shows all of the activities, the spa facility and says in big ‘All inclusive’. There is also a number of reviews on the pamphlet saying how wonderful the stay at the Pink Lagoon is, including one from a well known celebrity, Georgia Kingsley stayed there. The pamphlet is dated September 2021 packages.
Lizzie and Peggy decide to book the trip and three weeks later arrive at the Pink Lagoon Hotel and Spa. They wait at the reception counter which is extremely clean, with only one large ornamental lamp on display. Behind the counter there are various pieces of artwork.
When Lizzie gets to the room Peggy suggests they go down to the pool. Lizzie mindful of her new engagement ring takes it off and leaves it on the bed in her jewellery box.
After a leisurely swim, Lizzie and Peggy go down to the Pink Flamingo for dinner that night they find the the restaurant is closed with a sign saying ‘Closed from May 2021 - December 2021 due to Covid restrictions.’ When Lizzie inquire at the desk where they are supposed to eat, she is handed two paper bags with a pre made sandwich and an apple and is told for breakfast they will receive muffins with a piece of fruit. Peggy goes down to the Spa to book herself a massage treatment but is told their are no booking available. When Peggy protests that the Spa treatments are supposed to be included the attendant shrugs. When they try to book horse riding they are charge an additional $100 fee each for the use of a helmet.
When they head back to their room that afternoon, to Lizzie’s horror, her engagement ring is gone. When they go down to reception to report the theft and ask how to make a claim from the hotel, the clerk tells them that they are not able to make a claim because in their
guest information book, which is located in their room it clearly says that the hotel is not responsible for any damage or theft for personal property left in hotel rooms. Further, the clerk points to a sign on the wall which is right next to the artwork The sign, however, rather than looking like a warning, has various paint blobs splattered over it, making it look like a piece of artwork. Lizzie hadn’t even noticed the writing.
Many of the guests are talking and are really unhappy with their holiday. One of the guests Jeremy says that he knows the owners and the place is a huge scam. He also says that the food isn’t organic and that the testimonies in the pamphlet are total fakes and made up. He also says that Georgia Kingsley did stay at the resort, but not the well known celebrity Georgia Kingsley, but rather the owners nice who has the same name.
- a) Peggy and Lizzie have come to you for advice. They are very unhappy with their holiday and want to know if they have grounds to bring an action under Australian Consumer Law. Advise Lizzie and Peggy. (15 marks)
- b) Whether Lizzie can make a claim for the ring from the Pink Lagoon resort? (5 marks)
As Lizzie and Peggy were leaving the hotel, the lobby had beeb closed for floor washing. The clerk insisted that they could not cross because it would be too dangerous. Instead, Peggy and Lizzie were told to walk around the building by the patio As they made their way past the pool area with their luggage Peggy slipped and fell on the wet floor. There was no sign warning guests that the floor was wet or slippery. Peggy has broken her ankle and won’t be able to return to work fore a number of weeks.
- c) Peggy has come to you for advise and mould like to know whether she can bring a claim of negligence against the Pink Lagoon Hotel and Spa. (10 marks)
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