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Chapter: 8 -Problem: 5 >> Derek was a minority shareholder and employee of Bridge Decks Ltd (Bridge), a corporation that provided concrete work on new bridges.When Bridges sold all its assets to Concrete-Works-R-Us Ltd, Derek and Bridge agreed to a non-competition clause with the purchasers which, among other matters, restricted them from competing with Concrete-Works-R-Us Ltd in any jurisdiction in Canada.This meant that
Answer Preview: The enforceability of the noncompetition clause that Derek agreed to would depend on a variety of fa…

, Chapter: 26 -Problem: 14 >> What is a deficiency?
Answer Preview: A deficiency is the amount still owing a…

, Chapter: 15 -Problem: 9 >> Are shares freely transferable? Explain.
Answer Preview: In the absence of a restriction in the articles on the transfer of shares shares are presumed to …

, Chapter: 9 -Problem: 5 >> The Canada Radio-television and Telecommunications Commission (the CRTC) has put in place the Wireless Code (the Code) in order to deal with a number of cell phone issues, including customers receiving extremely high bills for data roaming charges. In response to this perceived unfairness, the Code places a cap on a customer’s national and international data roaming charges in certain cases unless
Answer Preview: A case of regulatory market intervention is the Wireless Code which the Canada Radiotelevision and Telecommunications Commission CRTC implemented to address concerns about cell phone usage and billing …

, Chapter: 26 -Problem: 3 >> What are the rights of an unsecured creditor on default by the debtor?
Answer Preview: An unsecured creditor has the right to su…

, Chapter: 12 -Problem: 6 >> What is nuisance in tort law?
Answer Preview: A nuisance is any activity on a…

, Chapter: 3 -Problem: 9 >> How can a business evaluate its legal risks? What is the purpose of evaluating legal risks?
Answer Preview: The techniques used to evaluate legal risks vary from …

, Chapter: 9 -Problem: 16 >> What is specific performance?
Answer Preview: An order by the court for the equitable remedy …

, Chapter: 25 -Problem: 1 >> Grenville agreed to facilitate transfers of funds from a Taiwanese businessman who he did not know. Grenville was to deposit cheques in his account and forward the funds to Asian accounts in exchange for a 5% commission. Without Grenville’s knowledge, the first cheque (in the amount of $10 000) that he deposited in his credit union account had been altered and forged. Several months after the cheq
Answer Preview: In this case, Grenville agreed to accept checks deposited in his account and move the money to Asian …

, Chapter: 10 -Problem: 17 >> What are punitive damages? How are they different from aggravated damages?
Answer Preview: Punitive damages are an exception to the general rule that damages are i…

, Chapter: 3 -Problem: 1 >> Ransomware is malware (malicious software) that locks a user’s computer or files and demands a ransom to lift the restriction. Typically the ransom demand is in bitcoin, a virtually untraceable digital currency. Ransomware often gains access to a computer system when users click on links or attachments usually disguised as authentic communications. Once clicked or accessed, the ransomware encrypts
Answer Preview: A ransomware attack most often involves the loss of the use of data and thereby a dis…

, Chapter: 7 -Problem: 6 >> When one party signs a contract containing an exclusion clause, that party may later argue that it is not bound by that exclusion clause because he or she did not see it or realize it was there.The Ontario Court of Appeal in Fraser Jewellers, supra note 33, makes it difficult to succeed with such an argument in a commercial setting (i.e., business to business), stating that “in the absence of frau
Answer Preview: Given the relative experience and sophistication of those in commercial contracts versus consumer ones for example Fraser Jewellers comes to the right …

, Chapter: 25 -Problem: 4 >> In 2015, it was discovered that 1859 individuals linked to Canada, including a number of prominent billionaires, had secretly been keeping money in HSBC’s Swiss private bank, presumably in some cases to avoid the payment of Canadian income taxes. Largely through programs which provide leniency in exchange for voluntary disclosure, tax authorities have so far recovered $63 million in unpaid taxes,
Answer Preview: Voluntary disclosure and other amnesty programs ca…

, Chapter: 13 -Problem: 6 >> The agency relationship creates considerable risks for the principal. What is the nature of these risks in both contract and tort? How can these risks be managed? Does the agency relationship create risks for the agent? Explain.
Answer Preview: The agency relationship is created when one party the principal authorizes another party the agent to act on their behalf in legal transactions with t…

, Chapter: 3 -Problem: 2 >> What is the primary goal of a legal risk management plan?
Answer Preview: The primary purpos…

, Chapter: 21 -Problem: 9 >> In the calculation of reasonable notice, which factor is the most important? Explain.
Answer Preview: In the context of employment law reasonable notice is the amount of notice an employer must provide …

, Chapter: 23 -Problem: 12 >> What are “unascertained” goods?
Answer Preview: Unascertained goods …

, Chapter: 12 -Problem: 3 >> Mr. Smith is the owner and operator of a consultation company. Due to a downturn in business, he decided to terminate the employment contract of Ms. Jones. Smith softened the blow by giving Jones three months’ pay to end their contract. This was all he was required to do by law and is not subject to criticism on this front. Smith had always held a very good opinion of the quality of Jones’s work,
Answer Preview: To succeed in a defamation claim against Smith Jones will have to prove the following elements That …

, Chapter: 22 -Problem: 17 >> What is a professional’s duty of confidentiality?
Answer Preview: The duty is the obligatio…

, Chapter: 24 -Problem: 14 >> What is abuse of dominant position?
Answer Preview: Abuse of dominant position …

, Chapter: 10 -Problem: 13 >> What might be a defence to a claim for vicarious liability?
Answer Preview: A defence to a claim of vicarious liabilit…

, Chapter: 9 -Problem: 2 >> Breach of a condition can signify the end of the contract, while breach of warranty does not. How does the court distinguish between these two kinds of terms?
Answer Preview: As defined in the textbook a condition is an importa…

, Chapter: 27 -Problem: 6 >> Why does the bankruptcy legislation treat individuals differently from corporations regarding a discharge from bankruptcy? Is this treatment appropriate?
Answer Preview: Society has an interest in ensuring that individuals are not condemned to poverty for th…

, Chapter: 17 -Problem: 1 >> Are all things capable of being privately owned?
Answer Preview: Not all things are capable of being priv…

, Chapter: 1 -Problem: 1 >> What are the reputational costs to Maple Lodge Farms for its recent convictions and how can those be managed?
Answer Preview: There is no doubt that Maple Lodges convictions for animal cruelty havejustifiablytremendous reputational costs particularly as the company appeared i…

, Chapter: 8 -Problem: 2 >> What factors should a business consider in developing a policy on documentation ofcommercial relationships?Should it insist that all contracts be in writing or is more flexibility in order?
Answer Preview: When developing a policy on documentation of commercial relationships a business should consider sev…

, Chapter: 27 -Problem: 18 >> What are the differences between an individual being bankrupt and a corporation being bankrupt?
Answer Preview: Individuals who are bankrupt are eligible for a discharg…

, Chapter: 14 -Problem: 16 >> Is a joint venture a partnership? Explain.
Answer Preview: A joint venture …

, Chapter: 3 -Problem: 3 >> A major legal risk for business is a cybersecurity breach that results in the disclosure of customers’ and /or employees’ personal information. The loss in sensitive health, personal identification, financial, and other information can result in great financial and reputational damage to the business. How can business use risk avoidance, risk reduction, risk transference, and risk retention in man
Answer Preview: To manage the risk of a cybersecurity breach business can use all four approaches A business …

, Chapter: 9 -Problem: 14 >> What is unjust enrichment?
Answer Preview: Unjust enrichment occu…

, Chapter: 24 -Problem: 4 >> Great Buys Inc. imports a wide range of consumer goods from China for online resale in Canada. One of their most popular products are cell phone and laptop replacement batteries, which use lithium ion technology. In recent discussions with its Chinese supplier, Great Buys has discovered that one shipment of batteries was inadvertently shipped to Canada before quality inspection was completed and,
Answer Preview: Great Buys can take two approaches to this situation: the legal approach (in which …

, Chapter: 13 -Problem: 7 >> How is an agency by ratification created?
Answer Preview: Agency by ratification is created …

, Chapter: 7 -Problem: 5 >> Why are express terms preferable to implied terms?
Answer Preview: Express terms in a contract are those that are specifically and clearly stated either in writing or …

, Chapter: 26 -Problem: 7 >> Why are payday loans regulated differently than other loans?
Answer Preview: The key problem is the actual cost of these loans, which can be as high as 1200 percent when the …

, Chapter: 14 -Problem: 12 >> How is a corporation created?
Answer Preview: A corporation comes into existence only if pro…

, Chapter: 22 -Problem: 8 >> What are the three types of professional responsibility?
Answer Preview: The three types of …

, Chapter: 26 -Problem: 5 >> What are the disclosure requirements for a consumer loan?
Answer Preview: Lenders must disclose the total amount of the loan, the true cost of …

, Chapter: 13 -Problem: 4 >> Kelly Gregson(a real estate agent) contacted Rhonda Meadows (a corporate lawyer) to get a listing for the sale of Meadows’s home. Meadows did not list the property but allowed Gregson to show it to potential buyers. Immediately following a showing, Gregson announced that she had an offer to purchase but would not provide the details until Meadows agreed to give her the listing. Meadows agreed and
Answer Preview: This situation is based on Partners Realty Ltd v Morrow 2014 ONSC 124 CanLII and the facts set out a…

, Chapter: 3 -Problem: 18 >> What is the role of lawyers in legal risk management?
Answer Preview: The role of the lawyer in legal risk management dep…

, Chapter: 9 -Problem: 1 >> A contract is considered frustrated in limited situations and it can be difficult to predict exactly when it will apply. How can this problem be addressed proactively at the drafting stage of the contract?
Answer Preview: As described in the text the doctrine of frustration involves the termination of a contract upon the …

, Chapter: 27 -Problem: 3 >> In 2009, Nortel Networks Corporation filed for protection from creditors under the CCAA. Nortel initially sought to emerge from bankruptcy protection as a viable business, but in June of 2009 Nortel announced that it would sell off all its assets and cease operations. Nortel’s share price went to $0.185 after having been as high as $1245. Ninety thousand people would lose their jobs as a result of
Answer Preview: The Nortel saga was indeed a sad story, and students are u…

, Chapter: 15 -Problem: 4 >> The Internet has had a tremendous impact on the securities industry—it has spawned online brokerages, has emerged as the primary source of information for investors, and is the means by which businesses can distribute prospectuses, financial statements, news releases, and the like. It also poses considerable challenges as its global, invisible nature increases the likelihood of fraud. Because scam
Answer Preview: The rationale for regulating trade in securities is to preserve the integr…

, Chapter: 8 -Problem: 8 >> Julie Langille decided to sell her large recreational vehicle (RV). Considerable portions of the RV floor had suffered termite damage and this, in turn, had led to some rotting. Before dealing with any potential buyers, Julie decided to purchase several small area rugs and place them throughout the RV, including over all the areas that had termite damage. “I’m entitled to do any kind interior rede
Answer Preview: This scenario concerns precontractual misrepresentations False statements made prior to a contract can have legal consequences as misrepresentations d…

, Chapter: 24 -Problem: 15 >> When is it acceptable to state “recommended retail price” on a product?
Answer Preview: Producers may state the recommend…

, Chapter: 13 -Problem: 17 >> What is an undisclosed principal?
Answer Preview: An undisclosed principal is o…

, Chapter: 21 -Problem: 16 >> What should a termination settlement contain?
Answer Preview: A termination settlement should address …

, Chapter: 26 -Problem: 16 >> What are the issues with standard form guarantee contracts?
Answer Preview: Banks often use standard form guarantee contracts that are very favourable to the lender and …

, Chapter: 10 -Problem: 11 >> Under what circumstances might an injunction be awarded in tort?
Answer Preview: A legal remedy accessible in Canadian tort law is an injunction An injunction is a directive from th…

, Chapter: 3 -Problem: 12 >> What is an example of risk avoidance? When is this strategy most appropriate?
Answer Preview: Examples of risk avoidance are eliminating produc…

, Chapter: 7 -Problem: 13 >> What is the parol evidence rule?
Answer Preview: The parol evidence rule applies to written contracts and limits the …

, Chapter: 27 -Problem: 7 >> How can lenders and other creditors protect them selves from the possibility that debtors may seek and obtain bankruptcy protection?
Answer Preview: Lenders and other creditors have options for safeguarding themselves against the potential that debtors would file for bankruptcy and be granted prote…

, Chapter: 11 -Problem: 17 >> Why is strict liability rare in Canada’s tort regime?
Answer Preview: The most prevalent reason is …

, Chapter: 2 -Problem: 16 >> Describe aboriginal rights and treaty rights. How are these rights protected?
Answer Preview: Aboriginal rights which are protected under section 35 of the Constitution Act 1982 concern rights t…

, Chapter: 10 -Problem: 6 >> Archie became drunk at the office Christmas party. When he was leaving the event, his employer grew concerned and offered to drive him home, particularly as the winter weather was getting bad. Archie declined, notwithstanding a snowstorm and his own impairment. Archie was in a serious car accident, resulting in his suffering brain injuries and multiple fractures. Is the employer responsible to Arc
Answer Preview: It can be proven that the employer owed Archie a duty of care and disregarded that responsibility b…

, Chapter: 23 -Problem: 13 >> When do the rules in the Sale of Goods Act regarding the transfer of title apply to a sale of goods transaction?
Answer Preview: The rules will apply …

, Chapter: 11 -Problem: 4 >> What is the role of reasonable foreseeability in defining whether a duty of care is owed?
Answer Preview: In order for a duty of care to exist in tort law one must establi…

, Chapter: 9 -Problem: 19 >> When can the innocent party treat the contract as at an end?
Answer Preview: The innocent party can elect to …

, Chapter: 13 -Problem: 1 >> A real estate agent may sometimes act for both the buyer and the seller in a real estate transaction. What are the advantages and disadvantages of an agent acting for both parties?
Answer Preview: The advantages of an agent working for both parties …

, Chapter: 8 -Problem: 10 >> Name one statute that makes certain kinds of contracts illegal.
Answer Preview: Any of the three examples give…

, Chapter: 12 -Problem: 6 >> Do you agree that the intrusion upon seclusion tort should permit damages for distress, humiliation, or anguish, or should the tort be limited to financial loss, if any, that arises from the tort?
Answer Preview: Invasions of privacy do not always or only cause financial …

, Chapter: 10 -Problem: 4 >> How can business avoid being ordered to pay punitive damages?
Answer Preview: Since punitive damages are about proportional punishment for egregious behaviour a business can avoi…

, Chapter: 16 -Problem: 3 >> There are literally dozens of statutes that impose personal liability on directors and, in many cases, officers. Directors and officers face liability, for example, under securities, environmental, employment, tax and bankruptcy, and insolvency legislation. Why do you think this has occurred? What are the problems associated with holding directors to higher standards? How can directors protect the
Answer Preview: The imposition of personal liability on directors and officers under various statutes is intended to …

, Chapter: 9 -Problem: 20 >> How can a plaintiff avoid the application of an exclusion of liability clause?
Answer Preview: The plaintiff must establish on the basis ofTerco…

, Chapter: 10 -Problem: 14 >> How does contributory negligence affect the amount of damages a plaintiff may receive?
Answer Preview: If the defendant uses the defence of con…

, Chapter: 9 -Problem: 2 >> Mr. White woke up one morning to find that the interior of his car had been consumed in a fire, rendering the vehicle a total write off. He promptly made a claim under his car insurance policy. Soon after that, the insurance company accused White of starting his own car on fire and refused to pay out the claim. When White asked the insurance company to explain on what basis it was alleging arson,
Answer Preview: This Situation for Discussion is based on Whiten v Pilot Insurance Co 2002 SCC 18 which is mentioned …

, Chapter: 12 -Problem: 1 >> How does the law define the occupier of property?
Answer Preview: An occupier is someone who ha…

, Chapter: 7 -Problem: 15 >> What is an entire contract clause?
Answer Preview: An entire contract clau…

, Chapter: 15 -Problem: 1 >> What does limited liability mean?
Answer Preview: The term limited liability describes shareholders …

, Chapter: 8 -Problem: 12 >> How are non-competition covenants used in employment contracts?
Answer Preview: A noncompetition covenant …

, Chapter: 14 -Problem: 2 >> Joint ventures are appropriate in situations where a complex project requires the combining of the expertise and resources of two or more entities for a limited period of time. From a legal perspective, what are the risks associated with joint ventures? How can the parties manage the risk?
Answer Preview: The legal risk associated with a joint venture is the possibility that the venture is d…

, Chapter: 22 -Problem: 18 >> How does the duty of confidentiality differ from lawyer–client privilege?
Answer Preview: The duty of confidentiality is a general …

, Chapter: 14 -Problem: 7 >> How can a partnership come to an end?
Answer Preview: A partnership may end in the manner set out in the partnership agreement If the agre…

, Chapter: 9 -Problem: 8 >> What elements need to be established in a successful action for breach of contract?
Answer Preview: The plaintiff must prove a number of matters incl…

, Chapter: 16 -Problem: 2 >> How does a corporation enter a contract? Explain.
Answer Preview: A corporation enters into a …

, Chapter: 7 -Problem: 2 >> What are two major rules of construction used by the courts in interpreting a contract?
Answer Preview: The plainmeaning rule requires the court to interpret the …

, Chapter: 7 -Problem: 6 >> How does the doctrine of business efficacy affect the interpretation of implied terms?
Answer Preview: Through the doctrine of …

, Chapter: 8 -Problem: 14 >> What four types of contracts relevant to business law are required to be in writing?
Answer Preview: Contracts not to be performed with…

, Chapter: 9 -Problem: 12 >> When will a court award punitive damages for breach of contract?
Answer Preview: Such damages will be awarded …

, Chapter: 8 -Problem: 6 >> Before the weaker party can rely on a defence of mental incapacity through illness or intoxication, he or she must prove that the other party was aware of such an impairment.Is this requirement a reasonable one? If a person does not have the capacity to contract, should that not be the end of the matter?
Answer Preview: On the one hand if the weaker party lacked capacity there is a good argument that …

, Chapter: 21 -Problem: 18 >> What is the grievance process? When is it used?
Answer Preview: The grievance process is a procedure for resolving di…

, Chapter: 22 -Problem: 1 >> Who is a professional and how are professionals different from other service providers?
Answer Preview: A professional is someone engaged in a selfgoverning occupation …

, Chapter: 24 -Problem: 11 >> What is a due diligence defence?
Answer Preview: Due diligence is a leg…

, Chapter: 9 -Problem: 18 >> What is the remedy of rescission?
Answer Preview: Rescission mea…

, Chapter: 24 -Problem: 16 >> What is bid rigging?
Answer Preview: Bid rigging is a co…

, Chapter: 16 -Problem: 16 >> When is a shareholders’ agreement appropriate? What issues should a shareholders’ agreement address?
Answer Preview: A shareholders agreement is appropriate in a small c…

, Chapter: 22 -Problem: 5 >> What are the options for setting professional fees?
Answer Preview: Fees can be charged by the ho…

, Chapter: 28 -Problem: 5 >> What is a deductible? What effect does it have on insurance premiums?
Answer Preview: A deductible is that part of a los…

, Chapter: 11 -Problem: 16 >> Is the commercial host liable if one of its patrons is injured because of the patron’s own impaired driving? Explain.
Answer Preview: Depending on the local laws and the circumstances surrounding the incident a bar or restaurant for e…

, Chapter: 9 -Problem: 7 >> Imperial Brass Ltd wanted to computerize all of its systems. Jacob Electric Systems Ltd presented Imperial with a proposal that met Imperial’s needs. In August, Imperial accepted the proposal, along with Jacob’s “tentative” schedule for implementation, which led Imperial to expect a total computerized operation by mid-January, with the possibility of a 30-day extension. In October, it became clear
Answer Preview: This scenario is based on Imperial Brass Ltd v Jacob Electric Systems Ltd 1989 72 OR 2d 17 HCJ and p…

, Chapter: 28 -Problem: 17 >> What is the purpose of an insurance adjuster?
Answer Preview: The purpose of an insurance a…

, Chapter: 15 -Problem: 7 >> Former RBC Dominion Securities investment banker Andrew Rankin was found guilty in Ontario provincial court of 10 counts of tipping a friend, Daniel Duic, about pending corporate deals. Duic used the tips to make a net profit of over $4.5 million in stock trades in a 12-month period. Insider-trading charges against Duic were dropped in return for his testimony against Rankin and the payment of a $
Answer Preview: An insider is defined as a person whose relationship with the issuer of the securities is such that …

, Chapter: 8 -Problem: 1 >> Why should contracts that appear normal on the surface be subject to challenge on the basis of the relations between the parties or the surrounding circumstances?
Answer Preview: Such legislation creates certainty by defining in adva…

, Chapter: 26 -Problem: 12 >> Why is a secured creditor in a better position than an unsecured creditor?
Answer Preview: A secured creditor can enforce a debt by looking directly to …

, Chapter: 15 -Problem: 20 >> What is a prospectus? What is its purpose?
Answer Preview: A prospectus is the document a corporation must publish when offe…

, Chapter: 10 -Problem: 4 >> When a plaintiff who has been injured in a car accident has been contributorily negligent—by travelling over the speed limit, for example—the court will reduce the size of the damages award accordingly. In a small number of American jurisdictions, however, if a plaintiff is contributorily negligent to even the slightest degree, the plaintiff’s recovery in a personal injury case is barred in its en
Answer Preview: There is every argument that the approach taken in certain US jurisdictions is unduly …

, Chapter: 11 -Problem: 15 >> What is the thin skull rule? Give an example of when it would apply. How does the thin skull rule protect the plaintiff?
Answer Preview: The thin skull rules says that a defendant is liable fo…

, Chapter: 7 -Problem: 9 >> What are three ways that a party can control its exposure to liability for breach of contract?
Answer Preview: First a party could insist on a conditional agreement s…

, Chapter: 16 -Problem: 12 >> What three main rights do shareholders have?
Answer Preview: The three main rights …

, Chapter: 10 -Problem: 3 >> Georgina owned and operated her own delivery truck. She disliked the headrest behind the driver’s seat because it was uncomfortable and did not regard it as a safety device. She therefore removed it. Georgina also disliked the feeling of being restrained and so never wore a seat belt. One day, Georgina was in car accident while making a delivery. The court has found the other driver liable for cau
Answer Preview: if the defendant successfully invokes contributory negligence Georgina s damage award will b…

, Chapter: 11 -Problem: 1 >> An important part of the legal test for finding a duty of care focuses on analysis of policy considerations. What is meant by policy considerations? What are some examples? What might be policy considerations in product liability cases as compared to other types of cases?
Answer Preview: Policy considerations refer to broader societal factors that may influence the legal duty owed by on…

, Chapter: 9 -Problem: 5 >> How is a new contract created through novation?
Answer Preview: Novation is a mutually …

, Chapter: 15 -Problem: 6 >> What is the difference between a widely held and a closely held corporation?
Answer Preview: A widely held corporation m…

, Chapter: 9 -Problem: 15 >> What is restitutionaryquantum meruit?
Answer Preview: This kind of quantum me…

, Chapter: 14 -Problem: 4 >> What are the advantages and disadvantages of a partnership?
Answer Preview: The advantages of a partnership relate to simplicity cos…

, Chapter: 9 -Problem: 3 >> The privity rule is one of the basic elements of contract law. What is the purpose of the rule?
Answer Preview: The privity rule states that generally speaking only those who are parties of a contrac…

, Chapter: 12 -Problem: 17 >> What is injurious falsehood?
Answer Preview: Injurious falsehood is the utt…

, Chapter: 10 -Problem: 5 >> Louise arrived for a two-week vacation at a Mexican resort. She spent the day at the beach and, on returning to her room, found a bottle in the fridge containing a clear liquid. Louise assumed the liquid was water and started to drink from the bottle. It turns out that a member of the cleaning staff had inadvertently left a bottle of caustic cleaning solution in the fridge in Louise’s room and thi
Answer Preview: Under Canadian law Louise can sue the cleaning staff member for negligence In order to succeed in a …

, Chapter: 13 -Problem: 1 >> Perry Logan owned a small office building in suburban Halifax. As he was nearing retirement, Perry listed his building for sale with Alice Marshall, a real estate agent. While Perry was on an extended visit to Florida looking for a retirement property, he authorized Alice to sell the building on his behalf provided the offer was for at least $600 000. Alice showed the property to Dee Shannahan dur
Answer Preview: There is a contract between Perry and Dee if Alice had the actual or apparent authority to ent…

, Chapter: 7 -Problem: 3 >> Kristin signed a user agreement with Hagel’s Cable, Inc. (Hagel’s), upon installation of high-speed Internet service in her home. Included in the agreement was a provision that the agreement could be amended at any time, and that customers would be notified of changes on Hagel’s website, by email, or through regular mail. Hagel’s later added a clause to the agreement that any right to commence or
Answer Preview: Kristin signed a user agreement with Hagels Cable Inc Hagels upon installation of highspeed Internet service in her home Included in the agreement was …

, Chapter: 11 -Problem: 7 >> Does the normal or ordinary standard of care vary in any specific circumstances? Explain.
Answer Preview: In the context of specialized skills …

, Chapter: 9 -Problem: 1 >> What kinds of issues can a construction contract raise in relation to the termination and enforcement of contracts?
Answer Preview: The Business Law in Practice scenario of course provides a fruitful so…

, Chapter: 10 -Problem: 10 >> What is the purpose of damages in tort?
Answer Preview: The primary purpose is to …

, Chapter: 10 -Problem: 5 >> Tort law judgments have an educational function because they set out when certain activities will lead to liability and why. For example, one could argue that the availability of a tort action in the hands of hockey player Steve Moore helps to make hockey games safer. Do you agree? Is tort law the best mechanism for deterring dangerous conduct? How is its role different from that offered by the cr
Answer Preview: The law of tort permits a plaintiff like Moore to answe a measure of accountability from defen…

, Chapter: 7 -Problem: 8 >> What is the expression used to describe an implied legal promise to pay a reasonable price for goods or services?
Answer Preview: The ter…

, Chapter: 22 -Problem: 4 >> If you were an accountant retained to provide an opinion on the financial health of a client, what steps would you take when negotiating your terms of engagement to limit your liability in the event you are mistaken in your opinion?
Answer Preview: As an accountant providing an opinion on the financial health of a client is a significant responsib…

, Chapter: 21 -Problem: 11 >> What is constructive dismissal? Give an example.
Answer Preview: Constructive dismissal occurs when an …

, Chapter: 8 -Problem: 4 >> Describe the doctrine of undue influence.
Answer Preview: Undue influenc…

, Chapter: 8 -Problem: 7 >> What is an unconscionable transaction?
Answer Preview: An unconscionable trans…

, Chapter: 8 -Problem: 8 >> What is a misrepresentation?
Answer Preview: A misrepresentatio…

, Chapter: 9 -Problem: 2 >> Should the court enforce contracts as they relate to aesthetics and matters of taste, or should contractors be given the discretion to follow cheaper alternatives?
Answer Preview: The default rule is that courts should enforce contracts in relation to aesthetics oth…

, Chapter: 17 -Problem: 12 >> What is a bailment?
Answer Preview: A bailment is a tem…

, Chapter: 10 -Problem: 1 >> The law requires employers to keep the workplace safe. How can the risks of a workplace accident be managed?
Answer Preview: A business should seek to make workplace safety an important a…

, Chapter: 6 -Problem: 2 >> Joel went to his local convenience store and purchased a lottery ticket at exactly 8:59 P.M. for a May 23 Lotto Saskatchewan draw. The deadline for a ticket to be included in the May 23 draw was 9:00 P.M. Joel’s ticket was registered on Lotto Saskatchewan’s central computer at 9:00:07P.M.The ticket was printed out at the convenience store, showing that it was entered in the May 30 draw. This resul
Answer Preview: Assuming that Lotto Saskatchewan made the offer acceptance must come from Joel Was his acceptance co…

, Chapter: 7 -Problem: 7 >> Lucy Smith became interested in enrolling as a member in Trident Ltd’s online discount service for goods and services in exchange for a monthly membership fee. She decided to join up and linked to the enrollment page. The message on the enrollment page promised “up to” $20 off on select purchases including “10% to 40% savings at over 10,000 Participating Restaurants. ”The form required Lucy to ent
Answer Preview: Lucy may be bound by the new class action waiver clause if it was included in the Terms Conditions t…

, Chapter: 17 -Problem: 14 >> How do bailments for value differ from gratuitous bailments?
Answer Preview: Commercial bailments involve paymen…

, Chapter: 8 -Problem: 2 >> Madeline was 35 years old when she was seriously injured in a car accident caused by the other driver. She was hospitalized for over a month. An insurance adjuster (an employee of the insurer of the culpable driver) visited Madeline at her home upon her release from hospital with the hope of getting her to agree to settle her case out of court for a set amount of money. Though the adjuster knew Ma
Answer Preview: The following doctrines may be in play Misrepresentation The adjuster told Madeline that he had her best interest at heart in recommending what was cl…

, Chapter: 22 -Problem: 3 >> The decision in Liventclarified the extent of an auditor’s liability to those who might rely on audited financial statements of a corporation that were prepared to satisfy statutory requirements.Did the Supreme Court of Canada define the liability of auditors too narrowly?Does the Livent decision reflect reality in terms of how such financial statements are actually used by corporations?
Answer Preview: The Supreme Court of Canadas decision in Livent did clarify the extent of an auditors liability to those who might rely on audited financial statement…

, Chapter: 4 -Problem: 6 >> What is mediation? What are the advantages of mediation as a method of resolving a dispute?
Answer Preview: Mediation is an alternate dispute resolution p…

, Chapter: 9 -Problem: 6 >> When is a contract frustrated?
Answer Preview: The doctrine of frustration involves the termination of a co…

, Chapter: 9 -Problem: 1 >> Leonard purchased an unconstructed condominium in a large development. The contract stated that delivery of the completed condo was to be on a date set by the developer before February 1, 2010.Construction proceeded on schedule except on April 25, 2009, the whole development burned to the ground. After spending some time looking for the cause of the fire, the developer started the process of rebui
Answer Preview: This Situation for Discussion is based on Fishman v Wilderness Ridge at Stewart Creek Inc 2010 ABCA 345 except that the Situation for Discussion does not include what is called in Fishmana force majeu…

, Chapter: 21 -Problem: 15 >> What is the duty to mitigate? When does it arise?
Answer Preview: The duty to …

, Chapter: 22 -Problem: 13 >> During a disciplinary process, why is it important to protect the rights of the professional against whom a complaint has been made?
Answer Preview: It is important to protect the rights of the professional against whom a complaint has been made dur…

, Chapter: 7 -Problem: 5 >> It is fair to conclude that the party who is forced to rely on an implied term for assistance, rather than an express one, has done a poor job negotiating the contract in question?
Answer Preview: While doing a poor job negotiating a contract can lead to needless gaps in the contract incompete…

, Chapter: 8 -Problem: 2 >> How does legislation governing electronic signatures help create certainty in the marketplace?
Answer Preview: Such legislation creates certainty by defining in adva…

, Chapter: 8 -Problem: 17 >> Who is a minor?
Answer Preview: A minor is someone w…

, Chapter: 23 -Problem: 4 >> Should parties to a business transaction for the sale of goods be allowed to exclude or modify the terms implied by the Sale of Goods Act?
Answer Preview: Although some businesses may be vulnerable to being taken advantage …

, Chapter: 8 -Problem: 1 >> Why would an employer want to include a non-competition clause in its contract with an employee? What are the dangers of such a clause?
Answer Preview: Employers want to include noncompete clauses because they are investing time resources and training …

, Chapter: 19 -Problem: 14 >> What are a lender’s remedies if the borrower fails to make mortgage payments?
Answer Preview: The lender has four possible …

, Chapter: 8 -Problem: 11 >> What is the role of public policy in contract enforcement?
Answer Preview: At common law contracts are cont…

, Chapter: 19 -Problem: 2 >> Can a new owner be liable to clean up contamination that was caused by a previous property owner? What about the liability of the prior owner whose activities caused the contamination? Why are there practical limitations on the effectiveness of environmental protection remediation orders and what can be done about this situation?
Answer Preview: Yes environmental protection legislation in most jurisdictions can result in li…

, Chapter: 8 -Problem: 6 >> Give an example of economic duress.
Answer Preview: Economic duress includes threatening to break a cont…

, Chapter: 20 -Problem: 2 >> In 2017, the government of Canada introduced legislation to legalize and regulate access to recreational (non-medical) marijuana. The legislation, which came into force on October 17, 2018 specifies legal conditions for the use of marijuana similar to the use of other controlled substances, such as alcohol. What challenges does the legalization of marijuana pose for employers?
Answer Preview: Although the use of recreational marijuana has been legalized employers continue to have the r…

, Chapter: 8 -Problem: 3 >> Which doctrines discussed in this chapter would be likely to arise in a business context? Why?
Answer Preview: Several doctrines discussed in this chapter are likely to arise in a business context in Canadian la…

, Chapter: 6 -Problem: 9 >> When must an offeree communicate acceptance to the offer or in a specific form?
Answer Preview: If the offer stipulates a ma…

, Chapter: 10 -Problem: 3 >> Should the defendant’s ability to pay be a consideration in the awarding of punitive damages?
Answer Preview: This has to be a factor since …

, Chapter: 20 -Problem: 1 >> Since 2017, gender identity and gender expression have been prohibited grounds of discrimination in the Canadian Human Rights Actand in the human rights legislation of all Canadian provinces and territories.“Gender identity” is an individual’s sense of being a woman, a man, both, neither, or anywhere along the gender spectrum, which may be the same as or different from birth-assigned sex. “Gender
Answer Preview: As human rights legislation prohibits discrimination on the basis of gender identit…

, Chapter: 7 -Problem: 10 >> What is a limitation of liability clause?
Answer Preview: It is a term of a cont…

, Chapter: 18 -Problem: 1 >> Three-dimensional printers have the capacity to reproduce solid objects. Using computer modelling software, they can reproduce an object using materials such as rubber, plastics, ceramics, and metals. The potential is to reproduce everything from automobile parts to toys to household items. How does this technology possibly impact intellectual property-rights holders? How should companies deal wit
Answer Preview: The availability of threedimensional printing technology has the potential to significantly impact i…

, Chapter: 7 -Problem: 8 >> Trackers is three days late in delivering the tracking to Coasters. Amritha now wants to rely on the clause in the contract that Trackers will pay $5000 for each day that the tracking is late, and she is claiming that Trackers owes Coasters$15000. However, Trackers points out that Amritha has not been inconvenienced by the late delivery, because construction on the rollercoaster had already been d
Answer Preview: Both parties in this scenario have legitimate arguments Amritha is relying on the strict interpretat…

, Chapter: 8 -Problem: 13 >> How does the Statute of Frauds affect contracts?
Answer Preview: Contracts caught by a writi…

, Chapter: 10 -Problem: 2 >> Dennis Schulz was catastrophically injured at a Bon Jovi concert. Schulz alleges that several people starting fighting in the stands and one of them ended up falling on him from above, breaking his neck and resulting in quadriplegia. What kinds of damages should Schulz seek and why?
Answer Preview: According to media accounts because Schulzs C45 vertebrae were snapped he canno…

, Chapter: 4 -Problem: 3 >> York University launched a lawsuit against its former assistant vice-president Michael Markicevic, accusing him of masterminding a $1.2 million fraud. The case was a year and a half old and not close to trial when Ontario Superior Court Justice D.M. Brown ruled on a preliminary matter and speculated that the final legal bills for the defendants might be more than $800 000. He wrote: “If we have re
Answer Preview: According to Justice Brown at the root of the problem is a belief that trials are bad and mediation …

, Chapter: 22 -Problem: 7 >> What is the basis for determining the cost of professional services if there is no formal contractual term addressing the issue?
Answer Preview: The principle of quantum meruit …

, Chapter: 22 -Problem: 11 >> What is the meaning of “self-regulating profession”?
Answer Preview: A profession is selfreg…

, Chapter: 5 -Problem: 1 >> June is a hair stylist who wants to open her own business. Though June has absolutely no experience in the business world, she is determined to succeed. June begins negotiations with a landlord to lease appropriate space for her new salon. The landlord insists that he will only enter into a lease with June if June’s parents also agree to co-sign the lease, making them responsible should June defau
Answer Preview: It is virtually certain that June does not have the grounds to have the lease set aside since on the …

, Chapter: 22 -Problem: 14 >> What are LLPs?
Answer Preview: LLPsarelimited liability partnerships organized pursuant to …

, Chapter: 6 -Problem: 1 >> Why is spam objectionable?
Answer Preview: Spam is objectionable because it wastes the ti…

, Chapter: 5 -Problem: 4 >> Assume that Amri tha negotiates all the basic terms of a contract with Trackers (including price, quality, delivery, and terms of payment). However, when Trackers drafts the contract and presents it for signature, there are several new and complex terms that protect Trackers from liability if it fails to deliver on time. When Amri tha inquires about these new proposed terms, Trackers replies that
Answer Preview: Amri tha should carefully review the proposed new terms and seek legal advice to determi…

, Chapter: 4 -Problem: 12 >> Why is settlement out of court more common than and preferable to going to trial?
Answer Preview: There are many reasons …

, Chapter: 6 -Problem: 1 >> What must an offer contain?
Answer Preview: An offer must …

, Chapter: 4 -Problem: 5 >> Why might a well-capitalized litigant use third party funding?
Answer Preview: A litigant might seek third party funding in cases where The lit…

, Chapter: 4 -Problem: 16 >> How does the winner of a lawsuit enforce the judgment?
Answer Preview: The winner enforces the …

, Chapter: 19 -Problem: 5 >> How can ownership of land be divided by time?
Answer Preview: The most common method of divi…

, Chapter: 4 -Problem: 11 >> What happens during the “discovery” stage of litigation?
Answer Preview: The discovery stage …

, Chapter: 18 -Problem: 5 >> An inventor may be able to protect a new and improved method to cure and smoke ribs using flavored wood chips, by an obtaining a patent or she may be able to protect the method by keeping it a secret. What are the advantages and disadvantages of patents versus trade secrets? What factors should be considered in making a choice between secrecy and patenting?
Answer Preview: A patent gives the patent holder a monopoly for 20 years in return for disclosur…

, Chapter: 5 -Problem: 9 >> What is the role of reputation management and public relations in contracts?
Answer Preview: The reputation of a business should b…

, Chapter: 6 -Problem: 18 >> How does the relationship between the parties affect presumptions concerning their contractual intent?
Answer Preview: The law presumes that agree…

, Chapter: 17 -Problem: 4 >> How is personal property different from real property?
Answer Preview: Personal property is …

, Chapter: 18 -Problem: 17 >> One of the exemptions under the Copyright Act is fair dealing. What is fair dealing?
Answer Preview: Fair dealing exempts the copyin…

, Chapter: 5 -Problem: 1 >> What are the dangers of taking a highly legalistic, inflexible approach to contractual disputes?
Answer Preview: Such an approach can exacerbate a conflict instead of facili…

, Chapter: 19 -Problem: 6 >> What is the purpose of registering title to land?
Answer Preview: There are two purposes of regis…

, Chapter: 6 -Problem: 11 >> When can an offeror revoke or withdraw an offer?
Answer Preview: The offer or can revok…

, Chapter: 18 -Problem: 2 >> What are the major forms of intellectual property rights?
Answer Preview: The major forms of int…

, Chapter: 4 -Problem: 7 >> In 2007, the Flynns hired Applewood Construction to build them an environmentally friendly home. The house was erected on a concrete slab. The Flynns moved into their new home and discovered within the first year that the concrete slab had cracked, causing considerable damage to the structure. The Flynns successfully sued Applewood for damages, but before they could collect, Applewood went out of
Answer Preview: This case illustrates the crucial importance of limitation periods as a potential …

, Chapter: 18 -Problem: 3 >> What is a patent? Give an example.
Answer Preview: A patent is a monopoly to make use or sel…

, Chapter: 4 -Problem: 6 >> A plaintiff or the defendant in a civil case (for example, a motor vehicle accident) may request a jury trial. The other party may oppose that request. The judge hearing the case has the discretion to determine whether the case is a proper case to be heard by a jury. In making that determination, the judge will consider primarily the complexity of the issues to be tried. What are the advantages an
Answer Preview: For a helpful comprehensive summary of the law on civil jury …

, Chapter: 18 -Problem: 4 >> Are life forms patentable in Canada? Explain.
Answer Preview: Higher life forms are not patentable because they are neither manufactured nor …

, Chapter: 17 -Problem: 5 >> The self-storage industry is growing rapidly as businesses and individuals need extra space to store their excess property. Does the rental of a storage locker fit the definition of bailment? Are there specific issues in this type of transaction that require a different set of rules from those in place for other bailment-type situations?
Answer Preview: The rental of a storage locker does not nicely fit within the definition of bailment because there i…

, Chapter: 20 -Problem: 7 >> What is the “duty to accommodate”?
Answer Preview: It is the duty of an employer t…

, Chapter: 21 -Problem: 2 >> Employees are required to provide employers reasonable notice of resignation unless the employment contract provides for a different period of notice. How much notice should the employee provide? What factors are relevant in determining an employee’s reasonable notice of resignation? Should employers sue employees who do not provide reasonable notice of resignation? Why or why not?
Answer Preview: Employees are required to give reasonable notice of resignation unless …

, Chapter: 22 -Problem: 15 >> What rules establish who can be a member of a particular profession?
Answer Preview: The relevant professio…

, Chapter: 4 -Problem: 10 >> What are the major steps in the litigation process?
Answer Preview: The major stage…

, Chapter: 20 -Problem: 9 >> Do employees have fiduciary obligations? Explain.
Answer Preview: Some employees do depending …

, Chapter: 10 -Problem: 1 >> Larry Jones and his co-worker were on shift as security guards in a large warehouse. They heard noise coming from a far corner of the building and went to investigate. At that point, three men jumped out of the darkness and began to viciously beat both Larry and his co-worker. Throughout the assault, the attackers kept yelling“ You’re dead!! I’m going to kill you!! You’re dead!! You’re so dead. ”L
Answer Preview: Based on canadian law arry Jones and his coworker were on shift as security guards in a large warehouse They heard noise coming from a far corner of t…

, Chapter: 17 -Problem: 8 >> How is ownership of personal property acquired?
Answer Preview: Ownership of personal property can be acquired through a variety of means including Purchase The mos…

, Chapter: 19 -Problem: 11 >> What is clear title?
Answer Preview: Clear title is demo…

, Chapter: 5 -Problem: 5 >> How important is it to be aware of the law when negotiating a contract? Does it depend on whom you negotiate with ?Does it depend on the size and complexity of the contract in question?
Answer Preview: It is essential to be aware of the law when negotiat…

, Chapter: 18 -Problem: 8 >> An employee of Coca-Cola Co., was convicted of conspiracy to steal and sell Coca-Cola’s trade secrets. The employee, an executive assistant to a high-level Coca-Cola executive at the company’s Atlanta headquarters, provided co-conspirators with confidential information and a sample of a new Coca-Cola drink. One of the co-conspirators wrote to PepsiCo, claiming to be a high-level employee with Coca
Answer Preview: In civil law trade secrets are protected through a combination of contractual obligations and legal …

, Chapter: 4 -Problem: 1 >> General Mills, one of America’s largest food companies updated the legal terms on its website. The new terms provided that any dispute related to the purchase or use of any General Mills product or service would be resolved through binding arbitration. If consumers “liked” General Mills’ social media pages, downloaded coupons from its website, or entered any company-sponsored contests, they were a
Answer Preview: The public appears to be upset because the clause would prevent consumers from br…

, Chapter: 18 -Problem: 3 >> Canada Goose Inc. is one of the world’s leading makers of winter outerwear. In an effort to protect the brand associated with its high quality, fur-trimmed, down-filled parkas with the red, white, and blue circular patch on the left sleeve, it has sued competing manufacturers for trademark infringement. It has alleged that both International Clothiers and Sears Canada intentionally designed logos
Answer Preview: Trademark infringement can harm a brand in several ways It can lead to consumer confusion as in this …

, Chapter: 23 -Problem: 3 >> When should a business exclude or modify the contractual terms that are implied by the Sale of Goods Act?
Answer Preview: The answer to this question depends to a large extent on the facts of the specific ca…

, Chapter: 5 -Problem: 8 >> How does the presence of a written contract assist in dispute resolution?
Answer Preview: A written record helps establish the …

, Chapter: 18 -Problem: 6 >> What are the three requirements for patentability?
Answer Preview: The inve…

, Chapter: 6 -Problem: 1 >> Daniel owned some out-of-town real estate which Paul had been eyeing for some time. On June 1, Daniel’s real estate agent passed along an offer to Paul, whereby Daniel offered to sell Paul that land for $590000. The offer was expressly to be “open” until June 8 and acceptance had to be in writing. Paul was delighted and even more pleased to learn from the realtor that there was plenty of time to c
Answer Preview: The offeree must comply with what the offeror asks for by way of acceptance Here acceptance had to b…

, Chapter: 21 -Problem: 6 >> Office romances are exceedingly common. The long hours that co-workers often spend together coupled with minimal social contact outside the job can create the ideal conditions for love to flourish. What are the risks of office romances for employees? What are the risks for employers? Should companies have policies regarding workplace romances? If so, what should such a policy contain?
Answer Preview: Risks for employees There are no laws against office romance However if a company has a strict policy against office romance then fraternization may b…

, Chapter: 17 -Problem: 11 >> How is ownership of intangible property protected?
Answer Preview: Many forms of intellectual property ar…

, Chapter: 23 -Problem: 3 >> What is the purpose of sale of goods legislation?
Answer Preview: The purpose of sale of goods legislati…

, Chapter: 4 -Problem: 2 >> Cameron and Tyler Winklevoss entered into a settlement with Facebook over their allegations against Mark Zuckerberg, the founder of Facebook. They alleged that they had hired Zuckerberg, their classmate at Harvard University, to work on their social networking site, ConnectU, but instead, he stole their idea and launched his own site. The dispute was settled for $20 million cash and $45 million in
Answer Preview: Courts are reluctant to reopen settlements because of the sanctity of contracts and a desire to ensu…

, Chapter: 18 -Problem: 2 >> The legalization of non-medical marijuana creates business opportunities for those who are entering or have already entered the marijuana market. Marijuana related inventions such as new varieties of plants, growing methods and techniques, cannabinoid compounds and ancillary items and equipment will contribute to the business opportunities. How does Canada’s intellectual property system protect in
Answer Preview: Inventions related to the marijuana industry can be protected through the Patents Act the Industrial …

, Chapter: 17 -Problem: 13 >> What are some examples of bailments?
Answer Preview: Storage of property …

, Chapter: 18 -Problem: 21 >> How is injunctive relief used in intellectual property disputes?
Answer Preview: In many intellectual property infringement cases it is common for the plain…

, Chapter: 5 -Problem: 5 >> Why is clear communication so important in contractual negotiations?
Answer Preview: Clear communication is crucial to s…

, Chapter: 20 -Problem: 11 >> What is the purpose of employment standards legislation? Give an example of an employment standard.
Answer Preview: The purpose is to set ou…

, Chapter: 5 -Problem: 2 >> What are the elements of a contract, according to the common law?
Answer Preview: An agreement that is Complete De…

, Chapter: 20 -Problem: 6 >> Background checks are an important part of an employee’s recruitment process as they help identify the best qualified candidates and manage the potential risks associated with a poor hiring decision. Are employers entitled to conduct background checks into the educational, employment, criminal, or credit history of candidates for employment? What legislation must be considered in answering this qu
Answer Preview: Background checks are generally permissible in Canada provided that they are conducted in compliance …

, Chapter: 4 -Problem: 17 >> What factors should be considered before appealing a court decision?
Answer Preview: Many factors sho…

, Chapter: 6 -Problem: 8 >> How is the postal rule different from the “ordinary rule” for acceptance?
Answer Preview: The postal rule is an exception to the n…

, Chapter: 6 -Problem: 1 >> What is the justification for changing the traditional common law rule that contractual variations must be supported by fresh consideration? Explain.
Answer Preview: Traditionally under the common law any variation to a contract had to be supported by fresh consideration Fresh consideration refers to a new promise …

, Chapter: 20 -Problem: 5 >> In 2015, female servers at Ontario and Quebec locations of Bier Markt (a chain of restaurants featuring beer on the menu) were told that their work uniform of black shirt and black pants would change to a skintight, sleeveless, short blue dress made of stretchy, sheer polyester and black high heels. After complai

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10 Reviews for Canadian Business And The Law Textbook Questions And Answers