ASSESSMENT QUESTION:

Kevin is the owner of Flyties Pty Ltd. He has just built a large, state-of-the-art indoor skydiving arena. Kevin organizes a competition where entrants compete to see who can complete the most intricate aerial acrobatics whilst suspended in the air. Each person pays a registration fee of $100 and must have certifiable, prior skydiving experience. Kevin facilitates the event and controls the fans which simulates free-falling. The competition runs for four hours, with each person having a maximum of ten minutes to perform their acrobatic routine. This is the first year running the event. The venue is full of spectators and is very crowded.

Indoor skydiving operates by using giant fans housed in a vertical tunnel which expel air at up to 200km/h. Given the rising cost of electricity, Kevin is finding it hard to keep his current price structure using standard indoor skydiving fans. Kevin’s friend, Lucy, has recently completed her Master’s degree in Aeronautical Engineering.

Lucy has recently developed a new type of fan that is much more energy efficient because it uses technology from windfarms to reverse cycle energy into an internal lithium-ion battery. This fan is yet to be approved by the Australian Government as safe to use for indoor skydiving as there is a risk that the lithium-ion battery may heat up and combust. Lucy is sure this will not happen due to her crafty new engineering techniques. Generally, skydiving fans require radiators to stop them from overheating. Kevin decides to use the new fans in his skydiving tunnels but considers it unnecessary to install radiators as Lucy has assured him that there is no risk of overheating.

On event day, Kevin engages three security guards, Mitch, Sab and Bruce, to take care of the crowd and ensure their safety. Kevin is responsible for overseeing that the security guards carry out their duties effectively and requires them to wear his Flyties uniform and use his radio equipment. They are paid by Kevin on an hourly basis, with deduction of income tax. Padding is installed at various sections inside the skydiving tunnels, except for the very top where people enter the tunnel. This top section is supposed to be sealed shut when the skydiver enters the tunnel. Event day was an extremely hot and dry summer’s day and unfortunately the venue’s air conditioning broke that morning.

To combat this, Kevin has partially left the top of the tunnels open so that the air from the fans will circulate throughout the venue.

 

Justin is an ex-gymnast competing in the event. He is in the middle of a complex aerial acrobatics routine when suddenly, the lithium-ion battery in the tunnel fan overheats and causes the blades to spin much faster than usual. Justin is pushed to the very top of the tunnel and, because it was not secured, launches through the top of the tunnel, hits the roof and is concussed. Mitch leaves his security post and runs to catch Justin. He is successful but is crushed by Justin’s weight and suffers significant injuries and requires his right arm to be amputated.

Advise Justin of any claims he may have against Kevin. Also advise Mitch of any claims he may have against Kevin.

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