The Law And Business Administration In Canada 15th Edition J.E. Smyth, Dan Soberman, Alex Easson, Shelley McGill - Solutions

• How does the theory of precedent balance the need for both certainty and flexibility?
Public and private law? The civil and common law legal systems?
• What is the difference between substantive and procedural law?
4. Ticketmarketer is a company that sells tickets online for concerts, plays, and sporting events. Payment is made by credit card, but purchasers are asked to provide their home address, phone number, and email. The company uses this information for verification of identity when tickets are picked
3. Primtel Ltd., a wireless telephone company, produced a telephone directory that included all the telephone numbers of its subscribers except numbers that were “unlisted.” The directory was initially available to only other subscribers. When Primtel decided make the directory public on the
2. KDP Limited operates a pool-servicing business in Vancouver with eight service vans on the road. Each van has two employees. It seems that fewer and fewer service calls are being completed each day, and the manager is concerned about productivity. The employees say it is the increased traffic in
1. Ashley’s restaurant always has a line-up of walk-in customers on Fridays and Saturdays. Approximately 50 percent of the tables are reserved. To discourage “no-shows” and maximize profit, Ashley has a policy that requires the hostess to obtain a credit card number (plus expiry date) and a
4. Midas Prospecting Inc. is a corporation incorporated in British Columbia that is engaged in mineral exploration. Goldfinger, its CEO, lives in Vancouver.From time to time, Goldfinger likes to search the internet for references to his company. One day, using his favourite search engine, Gargle,
3. Altanet Inc. is incorporated in Alberta and carries on the business of providing internet access and related services to its clients. In March 2007, it registered the domain name altanet.ca. One of its employees, O’Connor, developed a new technique for designing webpages for clients. He tried
2. On Saturday at 10:00 p.m., Jane (a resident of Manitoba) ordered a computer online from SMART Computers for $49 plus tax and delivery charges. Jane entered her credit card information and her email address, and clicked “BUY NOW.” At 10:04 p.m., she received an email confirmation of her
1. Jack was disappointed with his dining experience at Ashley’s restaurant. He was in town for a conference and made a reservation at Ashley’s. When he arrived, he was advised that the guest dress code prohibited jeans; Jack protested that he had not been told this at the time of booking, so he
4. Maxrevs Ltd. is a Manitoba corporation; it manufactures small gasoline-powered motors for use in a variety of power tools. It sells its motors directly to tool manufacturers throughout North America and also sells in substantial quantities to wholesale dealers in motor parts and components. One
3. Canadian production of widgets is almost entirely in the hands of three corporations—Altawidge Ltd., Ontwidge Ltd., and Scotiawidge Ltd. All three corporations export a substantial volume of their products to the United States.Two years ago, as a result of increased competition from Malaysian
2. XYZ Ltd., a large Canadian mining corporation, entered into an agreement three years ago with the government of the Republic of Utopia to develop the mining and processing of the rich zinc deposits in that country. A joint venture corporation, Cantopia Ltd., was established (under the law of
1. Steven is a regular customer at Ashley’s Toronto restaurant and loves Ashley’s chocolate truffle cake so much that he wants it served at his company’s sales convention being held at the Chateau Frontenac (CF) in Quebec City. He instructs the CF’s caterer to buy enough cake for the 1000
6. Yorkville Construction Inc. was the main contractor on a large construction project on land owned by Mayfair Properties Ltd.Yorkville engaged Rodwell Ltd. to provide piping insulation services for the project. Yorkville received a series of payments from Mayfair under the contract and used all
5. The N.S.F. Manufacturing Co. Ltd. was adjudged bankrupt on a petition of its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets:Cash in bank$ 1 000 Accounts receivable 52 000 Inventories 25 000 Land and buildings 74 000$152 000 The
4. Buckhouse Inc. is the owner of a large office building in the downtown area of a major Canadian city. It entered into a 10-year lease, at a monthly rental of $8000, with Justitia Ltd. As an inducement to enter into the lease, Buckhouse granted Justitia an 18-month rent-free period, a leasehold
3. On April 1, Greenfingers Garden Centre Ltd. was declared bankrupt as a result of a petition entered by the Agricultural Bank Ltd. The Bank was owed $250 000 by Greenfingers and had registered a security interest pursuant to a general security agreement that covered all of Greenfingers’s
2. Leung was in serious financial difficulties. She owed $150 000 to Desert Rose Inc., in respect of a business venture. She also owed$100 000 to Kwan. She entered into an agreement with Kwan whereby she sold her house to Kwan for $500 000, which was approximately its fair market value. The debt of
1. Most of Ashley’s customers pay their accounts on a per visit basis.Credit is extended to only a few regular customers and some food services businesses that carry her bakery line. Bunch-A-Lunch is a lunch-truck sole proprietorship that carries Ashley’s baked goods and is billed monthly. Its
8. Oliver purchased a used car from Hardy Motors Ltd. for $5500 and paid $3800 in cash as a down payment on the understanding that he would have 30 days to pay the balance. The manager of Hardy Motors Ltd. stated that 30-day credit was unusual for this type of purchase and that he would still have
7. Holmes purchased a refrigerator and stove from Watts Electric Ltd. under a conditional sale agreement. Watts Electric Ltd.discounted the contract with Domestic Finance Co. Neither Watts Electric nor Domestic Finance registered the agreement.Several months later, Holmes sold the appliances to
6. Avila purchased a secondhand Cadillac from Better Buy Motors Ltd. under a conditional sale agreement. She used the car for several months in her work as a sales representative and paid her installments regularly. When she had only two installments left to pay, the car was towed out of her
5. Clarkson purchased an automobile from Easyprice Autos for $17 000, under a conditional sale agreement. Easyprice assigned the conditional sale contract to CVF Inc., which advanced Clarkson the bulk of the purchase price. CVF immediately registered its security interest under the (Ontario)
4. In May 1994, SIS Ltd. leased two large, portable, tent-like structures to Cansaw Services Inc. for a term of 24 months, at a monthly rental of $11 000. In December of the same year, Cansaw negotiated a loan from the Regal Bank and executed a general security agreement, which gave the Bank a
1. Ashley renovated the “Ashley’s Too” kitchen, including a new built-in refrigeration system. She financed the improvements as follows:• The restaurant entered into a conditional sales contract with the manufacturer of the refrigerator.• Ashley paid for the remaining renovation out of
7. Gigantic Forestry Inc. has multiple pulp and paper mills in various locations across the country, including one in Grizzly River in British Columbia. It has a government permit to discharge up to 18 200 kg of suspended solids per day into the river. The main suspended solids consist of a lime
6. Queensville Quality Cars Ltd. is a large automobile dealership specializing in the sale of both new and used cars and light trucks. Until recently its used-car division was managed by Murphy, who was in charge of a dozen salespersons and mechanics. Murphy was not a director of the
3. Rainbow Sails Ltd. is a corporation incorporated under the CBCA.It has three shareholders, Brown, Green, and White, who are also the directors of the corporation. White acts as CEO, though he has never been formally appointed to that position.The company’s articles and bylaws include the
2. About a year ago, MacIntosh, a qualified accountant with substantial business experience, met Kellerman, the owner of a number of business ventures. Kellerman persuaded MacIntosh to invest a substantial proportion of her savings in his ventures, in return for which it was agreed that she would
1. Adam is the new chef at Ashley’s restaurant, and his specialty is mozza sticks, deep fried in vats of peanut oil. At the end of each week, Adam dumps the vats of old oil in the back parking lot and fills the pots again. Erin, the dishwasher, has watched Adam dump the oil for months and is sure
6. Aldeburgh Inc. is a corporation incorporated under the CBCA. It has never issued shares to the public. It owns a large piece of land and a number of vacation cottages fronting on a lake some distance north of Queensville, Ontario. The property has produced relatively little income in the
5. For many years Sergei (a widower) owned and ran a large farm, initially by himself and later with the help of his four children.Eight years ago, on the advice of his accountant and his lawyer, he decided to transfer the farm to a corporation and, with a view to keeping the farm in the family
4. Normin Inc. is a large mining corporation, incorporated under the CBCA, the shares of which are publicly traded and are listed on the Toronto Stock Exchange. It has recently been conducting extensive exploration on land acquired in the Canadian Arctic.Late in the afternoon of March 31,
3. Until three years ago, Slater was the sole shareholder and director of Lockley Quarries Ltd., a small corporation that owned a quarry and produced trimmed limestone blocks. Then an opportunity arose to purchase a second quarry at a very good price. Slater did not have sufficient funds and
2. Ten years ago, Davidson and Farmer formed a corporation to develop a fishing lodge that they bought (in the name of the corporation). They each owned 50 shares in the corporation.There were no other shareholders, and Davidson and Farmer were the only directors.They worked hard to develop the
1. Ashley incorporated her restaurant business under the Canada Business Corporations Act, and the articles of incorporation named three directors to the board. Ashley is one, her father, Jim, is another, and her accountant, Kristen, is the third. During the last directors’ meeting, Ashley
5. Pliable Plastics Inc. issued 50 000 common shares at $100 each.Some years later, in order to raise additional capital, it issued 20 000 Class “A” preferred shares, also at $100 each. The preferred shares were stated to have a redemption price of $100 and were entitled to receive a first
4. Stick and Twist are lawyers who have practised in partnership for a number of years. With the introduction of legislation permitting the formation of professional corporations in their province, they decided to convert their partnership into a PC.The new corporation, “Stick and Twist Lawyers
3. Macbeth, the owner of 20 hectares located on the outskirts of Niagara Falls, decided to sell, and on January 2 signed an exclusive listing agreement with Ross, a real estate broker.Macbeth agreed to pay Ross a commission of 5 percent on the sale of the property, which he listed at $350 000.On
2. Oakdale Motors Inc. is a corporation, incorporated under the Canada Business Corporations Act, engaged in the selling, repairing, and servicing of automobiles. All of its shares are owned by Faulkner, who is also the sole director. Faulkner acts as the general manager of the corporation and
1. Ashley decided to incorporate her restaurant business. Her lawyer, Brendan, is advising her about the steps involved and the structure of her corporation. So far, Ashley has two restaurants located within 25 kilometres of each other—the first was called“Ashley’s Restaurant” and the
5. Albinoni, Bonporti, and Corelli were partners. According to the partnership agreement, the following provisions applied:1. Capital:Albinoni and Bonporti each contributed $20 000; Corelli contributed no capital.2. Advances:Albinoni advanced $10 000 to the firm by way of a loan, repayable on six
4. Adders LLP is a limited liability partnership, registered in Ontario, practising as chartered accountants. It has 15 partners and over 200 employees. One of its major clients, Norne Inc., is a small but dynamic resource company, incorporated in Ontario.Until about two years ago, the Norne
3. Crawford and McDougall were sisters of relatively advanced years. For some years they had entrusted their financial affairs to Watson, a lawyer, who was a partner in the firm of Heather & Co.Due to some disastrous investments they made on Watson’s advice, they lost almost $250 000.The loss was
2. Giovanni and Leporello were in partnership together under the registered name “Adventures Unlimited.” The partnership was formed for the purpose of providing guided adventure vacations for rich clients. Under a clause in the partnership agreement, it was provided that neither partner may
1. At the end of the first year in business, it appears that Ashley’s restaurant has made a profit. She won’t know the exact amount until her accountant finishes the financial statements, but he is asking questions about what “type” of business entity she is operating. She knows it is not a
8. Victor Contractors Ltd. financed the construction of a high-rise apartment tower in Hamilton by receiving “draws” on first mortgage financing as work progressed. Rail Canada Pension Fund held the first mortgage for $10 700 000. The mortgage contained the following clause:The Mortgagor
7. Three years ago, the Lister Co. Ltd. borrowed $200 000 from the Hi-Rise Bank. Lister Co. was in the textile business and gave a real estate mortgage on one of its buildings as collateral security for the bank loan: The mortgage provided security in the land, building, and fixtures in the
6. Lawlor purchased a small house from Cloutier at a price of $80 000. She paid $15 000 in cash and gave Cloutier a first mortgage for the balance. A year later, when Lawlor had reduced the principal amount of the mortgage to $52 000, she suffered financial reverses that made it impossible for her
5. Keller owned and operated the Serene Bed & Breakfast near Sarnia for many years. It was a small business, and her health was not good. She decided to sell but found the market very limited.Jepson agreed to purchase Serene Bed & Breakfast from her for$195 000 if she agreed to take back a second
4. Expecting to make a quick profit, Pender purchased two hectares of land in a suburban community outside Fredericton for $85 000. He paid $20 000 in cash and obtained a loan for $65 000 by mortgaging the property to Quincy for two years with interest at 11 percent. Under the terms of the
3. Fedorkow purchased a 100-hectare farm on the St. John River in New Brunswick for $90 000. He paid $12 000 cash and gave back a mortgage of $78 000 to the vendor, Bowes. The mortgage was payable over a 15-year period, with interest at 8.5 percent in installments of about $630 per month. Within a
2. Four years ago, Azoic Wholesalers Ltd. purchased a warehouse building for $550 000. To finance the purchase, the company paid $75 000 in cash and gave a 7.5 percent first mortgage to the Reliable Insurance Company for $315 000 and an 11 percent second mortgage of $160 000 to the vendor. The
1. Ashley needs an increase in the credit line for the restaurant business. The existing outstanding balance of the business’s unsecured credit line is $23 450, and she wants it raised to $50 000. The bank will not agree to the increased limit without getting security in the form of a mortgage on
12. Tagom rented a service station from Oil Can Limited for a term of 12 months, commencing July 1, at a rent of $975 per month payable on the first day of each month. The lease contained the following clause:If the lessee shall hold over after the term . . . the resulting tenancy shall be a
11. Frost Investments Limited owned three adjoining buildings downtown that it rented to various tenants as office space. All three buildings were heated centrally from a single heating plant in Building No. 1. The Generous Loan Company occupied offices in Building No. 3 under a lease in which the
10. Ivan Drugs Inc., a drugstore chain, leased premises from Hay Investments Ltd. in its shopping mall. The lease was for 10 years, at a “base” rent of $46 200 per year in monthly installments of$3850, plus Ivan’s share of the taxes, insurance, and common expenses of the mall. Ivan also
7. Kruger leased a warehouse to Pool Corp. for a fixed term of eight months at a rent of $3000 per month, commencing January 1 and expiring August 31. Pool did not move out on August 31 and tendered its cheque for $3000 to pay the rent for September. It was accepted by Kruger. On October 1,
6. Ms. Bone, the owner of a downtown block of stores, rented one of them to Mr. Bull, who opened a retail china shop on the premises.Bull’s tenancy was from year to year. He had a number of display cases built with glass doors to keep their fragile contents out of the reach of curious customers.
1. Ashley is approached by a land developer about opening a third location in the new strip mall being constructed in a subdivision on the edge of Ottawa. The developer is offering her a great deal on reduced rent for two years and customized premises because he is having trouble attracting tenants
Three years ago, Montgomery sold Wildwood to Radoja. Radoja made relatively little use of the road over the Cavendish property(going across twice yearly to visit Montgomery with mortgage payments) until last year, when she also bought Green Gables.The old road then became valuable to Radoja as the
6. For over 30 years Montgomery owned two farms—Green Gables, on which he lived, and Wildwood. The two were separated by a farm owned by Cavendish. Montgomery continually used a road across the Cavendish farm to go to and from Green Gables and Wildwood. The access to the road was through a gate
5. Three owners of three abutting lakefront apartments buildings agreed to share use of their beach frontage, allowing all tenants to walk along the collective 200 meters of beach. They also agreed to share expenses of maintaining the fences and decks on one another’s property. The agreement
19. All instruments may be registered in the registry office for the county where the lands lie, and if not so registered, shall . . . be deemed fraudulent and void against subsequent purchasers for valuable consideration whose conveyances are previously registered.Will Simpson succeed in her
4. Ferrand owned a summer cottage near Fredericton, New Brunswick. He sold it and delivered a grant to Simpson in exchange for $35 000 cash on June 10. On June 11, Simpson received a telephone call to return home to Newfoundland, where her mother was seriously ill. She left without registering her
3. Peter Green owned and operated Green’s General Hardware as well as the lands and buildings where he carried on business. His younger brother, John, worked for him as manager, as did his daughter, Susan. Peter died, leaving a will in which he gave the business and real property to John for
2. Rumford College was established in the centre of the city in the late 19th century when the city was still small. It was granted 20 acres at the time—about nine hectares—and occupied two hectares with its buildings and lawns, expanding to about four hectares over the years. As the city grew,
1. Ashley’s Restaurant has been in leased premises since it opened, and there are things she wants to change the next time she renegotiates her leasehold interest with the landlord. Her issues are as follows:1. The lease prohibits any lit or neon sign that shows in the dark. Ashley would like
6. Richards, a freelance writer, wrote a long article on the devastating effects of a tsunami in Asia and submitted it to the Global Post, a leading newspaper that had published other articles by her. The newspaper agreed to publish her article in its December 2015 print edition.In early 2016, the
5. Dolphin Marine Ltd. is a well-established firm with an excellent reputation for building racing sailboats. It has recently produced a new 12-metre model, the DM35X, with a fibreglass hull of novel design, which has been highly successful in a number of important races.Kopikat Inc. is a small
4. Shamrock Homes Inc. is a major construction company that specializes in the construction of large residential developments.Brendan, its chief engineer, has worked out an entirely new method of planning a development, requiring the construction of a factory in which prefabricated components for
3. A small Canadian corporation, Lexus Foods Inc., applied to register the name Lexus as a trademark for its range of canned fruit products.The application was opposed by the Japanese manufacturer of the well-known Lexus model of automobiles. It argued that the application by the Canadian
2. In 1955, a successful novel entitled Lolita, authored by Vladimir Nabokov, was published. The novel recounts the story of a middle-aged man, Humbert Humbert, who becomes infatuated with his 12-year-old stepdaughter, Lolita, eventually descending to rape, murder, and madness.In 1995, the Italian
1. Ashley hired Jordan, a co-op culinary student from her alma mater, George Brown College, to work as a sous chef in her restaurant for the summer. Although Jordan’s passion was food, he also had superior computer skills and, after examining the restaurant’s website, volunteered to make some
8. Originals Inc. held an auction of antique furniture and received a winning bid of $18 000 from Parker. Parker gave his cheque, drawn on the Regal Bank, to Originals Inc. and asked that the furniture be delivered to his warehouse the next day. Originals’s clerk deposited the cheque at its bank
7. VanWyck drew a cheque payable to Lockhart but decided not to send it until he had examined the goods purchased from Lockhart to see whether they were satisfactory. VanWyck’s clerk, Anderson, inadvertently gave the cheque to Lockhart without first getting permission from VanWyck. (Anderson
6. As accountant at a branch of the Crown Bank, Cole misappropriated rent of $3000 due to the bank. When the bank inspector discovered these facts, the bank notified the Flin Flon Fidelity and Guarantee Co., which had previously bonded Cole for the bank, and claimed the $3000. The bonding company
5. 5. Allison opened a chequing account with the Picton Bank and signed an “Operation of Account” agreement; she agreed to notify the bank of any discrepancies and errors in her bank balance within 30 days of receiving her monthly statement and to notify the bank of any forgeries or frauds
4. Elston owned all the issued common shares of Ham Ltd. He lent Ham Ltd. $160 000 of his personal funds and obtained in return a promissory note from the company payable to his order.For personal reasons, Elston subsequently had to borrow money on his own account from the Atlas Bank. To secure
3. On the afternoon of October 27, Connor supplied office furniture valued at $48 000 to Osmond. When the furniture was delivered, Connor received a certified cheque for $48 000 from Osmond.The cheque, drawn on Osmond’s account at the Kelsey Bank, had been certified earlier that afternoon by the
2. On April 28, the University of Penticton made a note payable to the Baroque Construction Co. Ltd., three months after date. The amount of the note was expressed simply as “the balance due to you for construction of our Arts Building.” On May 2 following, the Baroque Construction Co. Ltd.
1. Ashley arranged a credit line at her bank; only Ashley or her father, Jim, were authorized to sign the credit line cheques. The cheques were kept in her office at the restaurant. Miranda was Ashley’s assistant manager responsible for making the daily bank deposit and had regular access to
9. In September, Knowles, the owner of a professional hockey club, began negotiations with Meyer, a professional hockey player, for Meyer’s services for the following two years. The two agreed orally to a salary of $3000 a week for Meyer during the training and playing seasons. At the time, Meyer
8. In May 1986, the directors of Universal Printing Co., publishers of a newspaper with a large circulation, approached Bell to persuade him to become their assistant advertising manager. They suggested that, if he accepted, he would probably succeed the present advertising manager upon that
7. Lucy Anang was hired as a chemist by the Plastic Toy Co. Her employment contract stated that, following termination of her employment with the company, she would not work for any competitor in the province for five years or at any time in the future disclose to anyone any information about
6. Devellano operated a retail food supermarket that bought 60 percent of its merchandise from Prairie Wholesale Grocers Limited. Because of a wage dispute, the employees of Prairie Wholesale Grocers, who were members of the Office and Shop Clerks Union, went on strike. An official of that union
5. C. W. Jonas was a conductor employed by the East-West Railway Company. While the passenger train on which he was working was standing in a railway station, it was struck by another train.Because of the negligent operation of the train, Jonas was severely injured. He sued the East-West Railway
2. Taxi drivers owned their own taxis and worked for Welcome Taxis Ltd. The taxi company called them “independent contractors” and distinguished them from employees in that they were not covered by the Employment Insurance Act. Although the company neither owned nor leased the vehicles, the
1. Benson was hired as a waiter at Ashley’s restaurant; he had 15 years of table service experience even though he was just 30 years old. Six months after he began work, Ashley learned that Benson had behaved inappropriately at the restaurant, insulting several customers after he had too much to
10. Strauss, an experienced business administrator, became unemployed six years ago when his firm “downsized.” He decided to set up his own business. He was interested in the lawn care business and thought that a franchised operation provided the best chance for quick success.After examining a
9. On a number of occasions over the past two years, Longhaul Transport Ltd. had carried goods belonging to Factorplus Products Inc. The shipments were arranged by a broker, Transshipments Inc. Longhaul invoiced Transshipments, which in turn invoiced Factorplus. The normal procedure was for
3. Da Silva entered into a franchising agreement with Snacks Unlimited Ltd. to operate a fast-food outlet in Regina. Under the contract, the store was to make and sell hot dogs and hamburgers, the ingredients were to be of a specified quality, and the products were to be made to uniform standards.
2. Halloran entered into a contract with Scallop Petroleum Ltd. to manage one of Scallop’s gas stations. The contract set out detailed arrangements for the operation of the station. It provided that all inventory should be the property of Scallop until sold and that all proceeds of sale belonged
1. Gail and Kevin are frequent guests at Ashley’s restaurant. Karen is their favourite server because she allows them to substitute different menu items without charge and sometimes even arranges custom take-out menus. Therefore, when they became engaged, they went to talk to Karen about catering
6. Maria owned a policy that insured the life of her husband, Paul, and named her as the beneficiary. Paul also owned two policies, each of which insured his life and named Maria the beneficiary.The couple subsequently separated.About a year after the separation, Paul died while on a trip to
5. Blackgold Investments Limited required additional financing. Its directors decided to assist the company by raising the sum of$500 000 on their own credit. The corporation then applied for a loan with Merchant Bank, on the terms that a guarantee would be signed jointly by all the directors. The
4. Two years before her death, Desai placed a term life insurance policy for $400 000 on her own life. Her friend Trumble was named beneficiary.In her application for insurance, Desai described her occupation as “business administrator,” Trumble was described as her“business associate,” and
3. Perennial Manufacturing Inc. carried on a foundry business in premises leased from Sharbo Investments Ltd. Perennial arranged a contract of fire insurance with the Commonwealth Insurance Co. The insurance covered equipment, business interruption, and the value of the building. At the time when

Showing 200 - 300 of 1155

The Law And Business Administration In Canada 15th Edition J.E. Smyth, Dan Soberman, Alex Easson, Shelley McGill - Solutions

Step by Step Answers