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law for business
Questions and Answers of
Law for Business
Because she and her partner were unable to conceive a child naturally, Miranda Lopez visited Dr Omar Korn, a fertility expert. He suggested artificial insemination using semen collected from a donor.
Briefly explain why knowledge of the Sale of Goods Act is important for managing risk.
Muskoka Fuels Inc required a fuel storage tank that would last for at least 10 years. It contacted Hassan Steel Fabricators Ltd, which is a company with a great deal of experience in the field. Under
Define a “sale” according to the Act. Does a lease qualify as a sale? Does a gift? Explain your answers.
Western Environmental Inc decided to close down an oil refinery, which was its only substantial asset. It therefore began to sell off the various pieces of equipment that were located within the
Define “goods” according to the Act. Can a transaction ever fall under the Act if one party provides services? Explain your answer.
Karin McClain has been in the business of breeding and selling dogs for 40 years. She takes her job and reputation very seriously. Two years ago, she sold a Samoyed puppy, named Bear, to Martin
When, if ever, is it necessary to put a contract for the sale of goods into writing?
Auric Bond was seeking a safe investment for $100 000 that he had inherited from his parents. He contacted Goldcomp Inc, a company that dealt in precious metals. Goldcomp presented a standard form
Explain the Sale of Goods Act’s scope of application. Does the Act always apply to a sale of goods? Does it apply only if the parties actually choose to use it?
Denise Wharton visited Harris Motors, a car dealership, with a view to buying a new car. While she indicated that she was particularly interested in Cadillacs, she also sought the sales
“As a general rule, the risk in specific goods that are already in a deliverable state does not pass to the buyer until the seller has received the price.” Is that statement correct? Explain your
Kerasic Lumber Inc agreed to sell planks to Chios Home Supply Ltd. The parties' contract contained the following paragraph:Kerasic Lumber will deliver 1000 redwood planks to Chios Home Supply on June
“As a general rule, if the seller has agreed to do something to specific goods (such as repair or weigh them), property does not pass to the buyer until delivery actually occurs.” Is that
Syncrude Canada Inc operates a massive tar sands project in Northern Alberta. For the purposes of that project, Syncrude required two devices. First, it contracted to have a mining gearbox designed
Explain the differences between a sale, an agreement to sell, and a sale or return.
The University of Southern Alberta wanted to upgrade its football stadium. Rather than grass, it wanted a field made from a long-lasting, synthetic material that would not easily wear down and that
Explain the significance of the concept of unconditional appropriation under a contract for unascertained goods. When does unconditional appropriation occur?
After upgrading his film studio, Werner agreed to sell his old equipment to Isabelle, a young director who wanted to film a movie beginning on May 1. The equipment consisted of a number of cameras
The Sale of Goods Act implies a variety of terms into a contract. For the purposes of determining the remedies that are available upon breach, each term is classified in one of two ways. Identify and
In the course of operating a pulp mill, Port Alice Specialty Cellulose Inc (PASCI) required a large amount of oil. For many years, it purchased its oil from ConocoPhillips Co. Last July,
The Act implies a term that goods must correspond to their “description.” Does that requirement apply to both the identity and the quality of goods? Can goods be bought by description if the
What is meant by the phrase caveat emptor? Why is it important to a sale of goods contract? Does the Act entirely eliminate the need to be concerned with that phrase?
When are goods considered “fit for their intended purpose”? Explain three limitations to the rule that goods must be fit for their intended purpose.
Explain the nature and effect of a deposit.
Stoppage in transit is a dramatic remedy, and it is seldom used. Provide two explanations for that fact.
The Act allows a court to impose a remedy that occurs under the general law of contract. Outline four possibilities.
When will the seller be able to bring an action for the price? How does that type of action differ from an action for damages under a breach of contract?
Summarize the differences between a lien, a stoppage in transit, and a repossession. Why might it be true to say that repossession is the most remarkable of those remedies?
What is the “giant carrot theory”? Do Canadian courts apply that concept? Explain your answer.
Raj owned the fee simple in a piece of land known as Blackacre, which contained a small shopping mall. Although he had no children of his own, he was especially fond of his nephew, Ludwig, and his
“The Crown, or the government, is the true owner of every piece of land in Canada.” Is that statement true? Explain your answer.
Because of a number of problems that have arisen under the existing law, the provincial government intends to enact new legislation governing condominiums. Section 67(2) of that statute states,
“A private person who owns a piece of land has complete control over that property.” Is that statement true? Provide three illustrations in support of your answer.
Igor Cvokic purchased Lorenzo's Pizza for $40 000. The purchase price included a lease of the premises for three years. The landlord was John Belisario. Unfortunately, Cvokic and Belisario did not
“It is impossible to know today when the current Queen of England will die. For that reason, it is impossible to have either a life estate or a lease that is set up to last as long as the Queen
Explain why life estates are generally unattractive in a commercial context.
Cloudy Hill Road runs through a part of the Town of Trent Valley. The plaintiffs consist of a number of people who own cottages that are located immediately to the east of Cloudy Hill Road. The
Describe the right of survivorship. Explain when and how it applies. Describe two ways in which that right can be brought to an end.
BiNovo Group Inc owns a shopping mall in the business area of a large city. In 2010, it signed a lease to allow Horseshoe Corp to operate a restaurant, known as The Georgia Peach, in the mall. The
Igor Polska, an entrepreneur with varied interests, entered into two contracts with Ishtla Singh. The first was for the sale of goods. Ishtla promised to pay $5000 for a rare book. The second
What is the major difference between a registry system and a land titles system? Why is it necessary to trace a good chain of title under the former but not the latter?
Darren Munt is an unsophisticated man who has spent most of his adult life working as a custodian in an elementary school. Recently, he decided to use the money that he had inherited from his father
What is a “subsequent mortgage”? How is a subsequent mortgage related to the equity of redemption?
Briefly explain the concept of “waste” that applies in the case of a mortgage of land.(You may find it useful to refer back to Chapter 14.)
The plaintiff, Parvanh Backmirzie, owned two Persian rugs that she wanted to sell. She brought the rugs to a shop, called La Moquette Fine Rugs, which was owned by the defendant, Cathy Rinaldi. The
The plaintiff, Socratis Reppas, is a goldsmith. The defendant, Shahram Mirkalami, is an auctioneer. The parties' relationship began 10 years ago. They developed a practice under which the plaintiff
The Cameron Library for the Intellectually Gifted has one of the most comprehensive libraries of rare books in Canada. It has a public facility in Vancouver where it permits patrons to review rare
Name five forms of expression protected by copyright and give examples of each.
Like copyright, patent law attempts to create a balance between private rights and the public interest. What does this balance in patent law look like in a business setting and how does it benefit
Francesca owns and operates a small stereo store. That store was robbed last night after Francesca had locked up and gone home. The thief broke a window, entered the premises, and stole a dozen
To whom is the obligation owed in tort law and in criminal law? Identify the person or party entitled to complain in court about a tort or a crime.
Is it ever possible for the same set of events to be both a tort and a crime? Explain your answer.
Rochard owns and operates a drug store. Because business is often slow during the day, and because he worries about robberies, Rochard regularly brings his dog, Sid, to work with him. Sid has been a
Is it ever possible for the same set of events to be both a tort and a breach of contract? If so, why would it ever be desirable to sue for both?
Toronto's SkyDome was owned and operated by Sportsco. The Toronto Blue Jays rented the building for their home games. One of those games, against the Kansas City Royals, was cancelled after portions
“Tort law does not punish acts alone. A court will never impose liability if the defendant did not act with a guilty mind.” Is that statement true? Explain your answer.
Amrhein Developments Inc (ADI) is a large real estate developer with a reputation for bullying and boorish behaviour. That reputation was earned during its construction of the Buffalo Park Project, a
Explain the “one free bite” rule.
How is liability insurance related to the concept of risk management?
Paul owns Walrus Music Inc. He is also a car enthusiast, and since business has been quite good, he has purchased several vehicles for both business use and personal use. Unfortunately, Paul has been
When does a “duty to defend” arise? Why is it important?
For 14 years, Leon Brick was employed as a commissioned sales agent for La-Z-Boy Canada Ltd, a furniture manufacturer. In an effort to avoid contributing to the Employer Health Tax and Workplace
“Liability insurance creates an interesting tension between two of tort law’s most important functions.” Explain the meaning of that statement.
Syd recently was injured while attending a concert. During the performance, the band's guitarist, Arnold Layne, unexpectedly leaped from the stage while carrying his instrument. Syd, who was sitting
Is it possible to purchase liability insurance as protection against liability for every type of tort? Explain your answer.
Dominion Tankship owned a large tanker ship called The Erie Mistake that it operated on the Great Lakes. The ship arrived at the Port of Toronto carrying a cargo of Flamonol, a synthetic lubricant
What is the difference between vicarious liability and personal liability?
Jessica worked as a courier for Pony Express Deliveries. Although Pony Express had no way of knowing it when they hired her, Jessica has a pathological hatred for Simone. The source of that hatred is
On what grounds can vicarious liability be justified?
Bickle’s Cab Company owns and operates a fleet of taxis. Last autumn, one of its cars was involved in an unfortunate incident. The driver almost ran into Jody DeNiro, a bike courier, as she emerged
When will an employer be held vicariously liable for torts committed by their employees? When will an employer be held vicariously liable for torts committed by their independent contractors?
How does the vicarious liability of an employer affect the personal liability of an employee?
Are compensatory damages calculated in the same way in both tort and contract? Explain your answer.
Explain the relationship between compensatory damages and the concept of remoteness.
“Courts often refuse to award punitive damages. In most cases, they refuse to do so because the defendant failed to fulfill the duty to mitigate.” Is that statement true? Explain your answer.
Identify and explain three types of damages that are available in tort.
What is the difference between damages and an injunction?
Explain how workers’ compensation schemes create both advantages and disadvantages for workers and for employers.
Marjorie, a middle-aged entrepreneur, was involved in a terrible, single-car accident. When she was taken to a nearby hospital, the attending nurse discovered that Majorie's purse carried a card that
In what sense do the intentional torts require intentional conduct? Is tort law’s definition of “intention” fair? Explain your answer.
Debra Fairweather, a fashionable college student, went shopping for bargains on Boxing Day with her mother. As Debra walked through the front doors of Stylz Ladies Boutique, an alarm was set off. Deb
Explain the difference between assault and battery. Describe a situation in which there is assault but not battery. Describe a situation in which there is battery but not assault.
Although Jasmine Bhasin usually rode the bus to work, a one-day transit strike required her to drive instead. Not surprisingly, she was unable to find a parking space when she arrived at her office
Identify and explain a situation in which the concept of reasonable force is important to the removal of a person who is trespassing on business property.
Reverend Baldasaro, a gentleman in his late 50s, is a member of both the Church of the Universe and the Marijuana Party of Canada. He regards cannabis as part of the holy sacrament. He also hopes to
“The tort of battery exists to protect people from injury. If the defendant’s actions did not actually cause any physical harm, the plaintiff ’s claim must fail.” Is that statement correct?
As part of a promotional campaign, the Blacksox Baseball Club ran an advertisement in a local newspaper that featured a picture of about three dozen fans cheering wildly at a recent home game. In one
“The tort of false imprisonment does not require proof that the defendant actually locked the plaintiff into a prison, but it does require proof that the defendant physically prevented the
Patricia Fitz and Orville Wynne owned separate businesses that were located on neighbouring pieces of land. The parties' relationship began well enough, but disagreements over the years eventually
Describe how privacy statutes generally operate.
Elaine and Latka each operate a stall in a market. During a particularly busy day, Elaine noticed that she had nearly run out of coins. She normally walked to a nearby bank to obtain change. However,
List four ways in which tort law indirectly protects privacy.
Peter and Elizabeth are neighbours in a rural area. They are also brother and sister. Peter was unhappy with the small size of a pond on his property. He wanted to enlarge it for the purposes of
“A business person is at liberty to use any amount of force to remove or arrest an undesirable customer.” Is that statement true? As a business person, what factors would you consider before
“Police work for the public good. As a result, they cannot be held liable if, as a result of carelessly collected evidence, they mistakenly cause the plaintiff to be prosecuted for a crime.
Madeleine sees Hugh stealing her car. Because she does not know who he is or where he lives, she realizes that she would have little chance of successfully suing him in tort. She also realizes that
Describe the tort of malicious prosecution and explain how it is related to the tort of false imprisonment.
Mary operates a convenience store. Much to her dismay, it has become a hangout for teenagers. She hired Frank to act as a security guard between the hours of 3:00 pm and 5:00 pm, when the store is at
Do police officers, security guards, and private citizens have the same rights when it comes to arresting criminals and suspected criminals? Explain the special dangers that arise when a business
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