Fact Scenario Rachel is a regular visitor to a localChunkyChicken restaurant that provides a self-service facilitywhere customers have the option of selecting drink and food itemsfrom a menu displayed on a touch screen located just inside theentrance. To select a product, a customer only has to touch animage or icon showing the desired product or products they wish toconsume, 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 thenpress Ok button or merely press the virtual Ok button. Once the Okbutton has been pushed the customers order is submitted. The orderis relayed to food preparation area where the customer’s order isprepared. Once prepared ChunkyChicken’s front counter staff aremade aware the order is ready and the customer’s ticket number isdisplayed on a large screen that symbolises their order is readyfor collection. Customers using the touch screen are immediatelyissued with a printed ticket containing an order number and theprice payable at the front counter. Customers present these ticketsto the cashiers who confirm the relayed order appearing on theirscreens. At this point, the customers pay for their purchases andawait delivery. This system is designed to save time during peakperiods and is very popular. Some customers place their orders astakeaways, while others, like Rachel, prefer to be seated andconsume them on the premises. These preferences are preselected bythe customers when they use the touch screen. When Rachel reachedthe cashier, she paid $7.50 for the hamburger and drink, collectedher order located a vacant table and enjoyed a leisurely meal. Acouple of days later, Rachel returned and instead of her normalmeal decided to order the new gourmet chunkiest chicken burger andhand cut chips. The order was placed through the self-serviceordering system. The total cost was $17.50 which she duly paid.Following the payment being processed Rachel received the normalprinted ticket which included her order number, order and price.Rachel’s order number appeared on the screen, and after collectingthe order Rachel found a vacant table and started to eat the meal.As Rachel took a second bite of her gourmet chunkiest chickenburger she struck something hard and broke a tooth. Rachel examinedthe chewed remains and found a piece of metal that had somehow beenlodged in the burger. Rachel alerted management to this incidentand demanded compensation for her anticipated dental repair. Themanager expressed regret and directed Rachel to ChunkyChickensterms and conditions which included a clause stating: ChunkyChickenaccepts no responsibility or liability for any injury caused tocustomers by consumption of food or drink sold. In response, Rachelexclaimed, ‘I’m a consumer and I have rights!’ Required
Explain how the contracts Rachel made with ChunkyChicken wereformed. You will need to address all the essential elements of acontract (including consideration) as well as analyse the legalstatus of each step or event that led to ChunkyChicken supplyingRachel with its products. Refer to relevant case law. In this part,do not discuss the impact, if any, of consumer protection laws. Youmay, but are not obliged to use the IRAC format for this part,given that each step or event must be analysed separately.