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Ultimate Diners, a company owned by Frank, Kelly and Sid, is an online site which reviews local restaurants and fast food outlets in South Wales. The company wants to develop a mobile phone ‘app’ (application) which will allow users to quickly identify ‘take way’ dining options nearby which suit their tastes but which also offer a 10% discount to users of the app. The company’s business plan suggests it aims to have 1200 users in six months’ time who will be able to download the app for free; it also hopes to have 150 restaurants in six months’ time, rising to 250 in twelve months. The restaurants will pay a set commission to Ultimate Diners every time a customer orders via the app. Tracking will be embedded in the app so that the developers can assess where, geographically, the users are most concentrated when using the app.
A major selling point of the app is the ability of a user to take a photograph of a restaurant/takeaway with their mobile phone and upload it to a web site together with their reviews.
Task one: 50 marks
Sid has been in charge of keeping the details concerning diners and restaurants. He has not spent a great deal of time on the matter and is regarded by his partners as rather lazy and lacking ‘attention to detail’. Advise the company regarding the data protection and privacy issues it needs to adhere to and suggest ways to ensure the company keeps this under review.
Task Two: 50 marks
Frank does not want to get involved with lawyers at all but his partners are anxious to put together a user friendly contract that does not put off users. What contractual content issues should Ultimate Diners consider when developing the app?
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