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

2. Whitehorse Furniture Ltd. took out a fire insurance policy on its premises with Kansafe Insurance Co., with the coverage being arranged through an insurance broker, J&H Ltd. Whitehorse did not inform J&H that it had made a previous substantial claim against another insurance company (for a fire
1. Ashley’s parents, Jim and Shelley, want to assist her in building the business, so in 2009 they signed limited guarantees for the principal sum of $128 000, with interest, at bank prime rate plus 1.5 percent in favour of the Monarch Bank. The guarantees were given to secure a line of credit
5. 4D Enterprises Ltd. hired Jung to design and develop a website for its business. According to the agreement, Jung was to install the servers and all necessary software and to test the system fully.To enable him to do so, 4D delivered to him the two computers that would be used.During the
4. Nerdley is a skilled interior designer who decided to go freelance after years of being employed by a large construction company.Although accustomed to using a computer in her work, she understands very little about their characteristics and specifications, having always relied in the past on
3. Firth contracted with Dave the Mover Inc. to have her furniture and household effects moved from her house, stored for a week(until she moved into her new home), and then delivered to the new home. Firth told Dave’s manager that she was particularly concerned about security, since the effects
2. Intrepid Exploration Inc. is a comparatively small corporation engaged in exploring and drilling for oil in shallow coastal waters, usually as a subcontractor for major companies. Intrepid’s owners recently entered into a contract with Globres Inc., one of those major companies, to provide
1. At Ashley’s restaurant, there is an open coat room with hooks on the wall. There is a posted sign that says “For the use and convenience of our customers only—not responsible for loss or damage.” Joan and Gloria arrive for lunch, and Joan hangs her coat in the coat room; Gloria wears her
8. Ebrahim bought a used car from Cival Autos Inc. for $8000. The car was described by Cival as follows: “one careful owner only, low mileage, excellent condition.” In fact, Cival’s manager was aware that the car had had three previous owners, the most recent of whom had been convicted of
7. In December, Winnipeg Seafoods Ltd. orally agreed to purchase from Lakehead Fish Wholesale Co. 1000 five-kilogram boxes of frozen Lake Superior herring at $1.40 per kilogram. The fish were being stored in the cold storage warehouse of a third party, the Bailey Co. of Thunder Bay. The Bailey Co.
6. The Granite County School Board placed an order with Borough Furniture Ltd, a furniture manufacturer, for 2500 folding chairs.Before placing the order, an officer of the board examined a number of chairs produced by Borough (as well as chairs of other manufacturers). Eventually, they settled on
5. Benner’s Sawmill Inc. entered into a contract with Chen to purchase a quantity of timber growing on land leased by Chen. A price of $150 per cubic metre was agreed, and the quantity set at approximately 600 cubic metres. Chen was to cut and trim the timber ready for collection by Benner’s,
4. Gabrieli bought a truck from a dealer, Transit Inc. Gabrieli signed a “purchase order” on May 12, at which time Transit ordered the truck from the manufacturer. It was agreed that the sale was subject to Gabrieli’s being able to arrange suitable financing.Three weeks later, Gabrieli
3. Dorothy receives a phone call during the dinner hour from a company selling magazine subscriptions; at first, she tries to get off the phone and tells the caller she is not interested. However, she recalls that her son’s birthday is coming up so she asks the caller if they have Golf Magazine;
2. On a Friday afternoon, Harris went into a store owned by Kabul Karpets Inc. and saw a large Uzbek carpet, which she immediately decided would be perfect on the wall of her sitting room. She promptly bought the carpet for $2000, paying by credit card.Because of the large size of the carpet—and
1. Ashley wants to put fresh flowers on the tables in her restaurant.She wants the flowers to last longer than seven days without losing petals or wilting, and she wants them to match her decor—white, blue, and yellow. Finally, they must have a very mild scent so as not to interfere with the
5. Brown, a painting contractor, made an oral contract with Hilton to paint the interior of Hilton’s house for $1600, to be paid on completion of the work. Brown ran into difficulty when he painted the walls of the living room because the paint was pulled into the wall by the porous plaster. He
4. Complicated Machinery Co. Ltd. manufactures and assembles heavy equipment for industry. It accepted an order from Northern Paper Co. for a large machine that would automate certain processes; one of the terms of the order was that the machine was to be completed by October 31. The contract
3. In December, Carvel Estates Ltd., a real estate developer, contracted to buy 24 large suburban lots from Dalquith Enterprises Inc., with the transaction to close May 15. Carvel had hired an architect and intended to build expensive “up-market”homes. The plans for each house were at an
2. Stellar Construction Inc. agreed to build a new Olympic swimming pool for the Thomson Aquatic Centre for $450 000.The completion date was May 1. Thomson visited the pool on April 23 and was very disappointed with the quality of the tiles and caulking on the edges of the pool. She complained at
1. In the coat room at Ashley’s restaurant, a posted sign says “Not responsible for loss or damage.” Joan arrives for lunch, hangs her coat in the coat room, and is seated in the dining area. After lunch, Joan begins feeling ill and goes to the hospital, where it is determined that Joan got
8. M Inc. chartered a vessel from Q Corp. under a five-year agreement that gave M an option to purchase the vessel at the end of the five-year term, subject to “full performance of all its obligations under the agreement, including delivery of prompt payments in accordance with the schedule in
7. Diehl owned some land on which she planned to have a house built that would be suitable for her retirement the following year.She made a contract with Summers, a building contractor, to build a house for $80 000, the price to be paid in full on completion. The contract contained an unqualified
6. Parker’s Automatic Laundry Services Inc. installed coin-operated washing machines and dryers in an apartment building owned by Mountbatten Estates Ltd. under a five-year contract. The contract gave Parker’s the exclusive right to install and maintain any laundry machines in the building. No
5. Gilman Steel Ltd. is a large fabricator of reinforcing steel. It makes its product from steel bars purchased from steel mills in accordance with engineers’ specifications for particular projects.Universal Construction Corp. is an apartment construction company.In September 2014, Gilman and
4. The Dryden Construction Co. contracted with the Ontario Hydro Electric Power Commission to build an access road seven miles long from its Manitou Falls generating station to provincial Highway No. 105. The contract contained the following clause:The contractor agrees that he is fully informed
3. Twilight Properties agreed to purchase land on the Vancouver waterfront from the Harbour Commission, conditional upon no changes being made to the zoning bylaw that permitted high-density development for building condominium units. Twilight then began negotiations with the city for a site plan
2. Urban Construction Co. contracted with Mandel to build a small two-storey office building for $240 000. The contract contained a clause stating that the agreed price would be reduced by $500 for every business day the building was not completed after April 1.The price was to be paid on
1. In addition to serving customers in the restaurant, Ashley’s restaurant does catering for weddings and corporate events. Jill books Ashley’s restaurant to do part of the catering for her wedding—the hors d’oeuvres for the pre-dinner cocktail party and the wedding cake for the dessert
8. Norton responded to a campaign for funds by the National Association for the Preservation of Wildlife (NAPW) by signing the following statement, which she gave to a canvasser for NAPW:$1250.00 Charlottetown, Nov. 2, 2015 To assist in the purchase of conservation area sites and in consideration
7. Glashov purchased on credit from Brown a building for business purposes. In their agreement, Glashov covenanted that he would insure the property and assign the insurance to Brown, the vendor, as security for the amount that remained owing on the purchase price.Glashov insured the property with
6. B. Flatt and F. Major made a $250 wager about the outcome of the 2014 Olympic hockey final game. Flatt lost, and he gave Major a cheque for $250 drawn on his TD Canada Trust bank account. Major immediately took the cheque to Money Mart, presented it for payment, signed the back, and received the
5. Keirson sold his taxi business to Martens, covenanting neither directly nor indirectly to carry on or be engaged in another taxi business within five kilometres of the place of business for five years from the date of sale. The agreement contained the usual clause extending the benefit of the
4. Garbutt was dismissed by her employer, Carter Computers Inc., for allegedly dishonest conduct. She hired Harkin to be her lawyer and represent her in grievance arbitration for wrongful dismissal. Harkin was successful; the arbitrator found that Garbutt had been wrongfully dismissed and that she
3. The University of Ashcroft Business School offers one-week executive courses. For its October program on marketing strategies, Ashcroft’s dean managed to make a deal with Professor Bertoff, a famous specialist in the field, to give the opening lecture and remain at the business school for two
2. King, a building contractor, completed the construction of a house for Harris. At completion, Harris owed King a balance of $15 000.King then borrowed $10 000 from the Brandon Bank. In consideration for this loan, King assigned to the bank as much of his account receivable from Harris as should
2. In addition to payment by cash and debit cards, the restaurant customers surveyed asked for credit cards and cheques. Describe how the law treats these types of transactions.
1. Ashley has arranged to supply several hotels close by with muffins and pastries she bakes for her own customers. The hotels have asked to be billed at the end of each month and be given 30 days to pay. This will mean large outstanding debts for 60 days. How should she respond, and why?
1. Ashley asks her accountant for advice about which form or forms of payment she should allow her restaurant customers to use and how she should protect herself from the risks involved:
9. Chénier sold the surface and minerals in her land in Alberta for$104 000 to Werner under an agreement for sale (an installment sale that reserved Chénier’s ownership in the property until a specified amount of the price was paid). Werner defaulted payment, giving Chénier the right to
8. Provinco Grain Inc. was in the business of selling seeds and buying and reselling the crops grown from the seeds sold. Its sales manager approached Quinlan, a farmer in the Lower Fraser Valley in British Columbia, to grow an early crop of buckwheat for the Japanese market. Quinlan, an
7. John Brown, a retired widower, said to Mrs. Adele Barber that if he could find a suitable house and if she would move into it as a housekeeper, help operate it as a rooming house, and take care of him, he would give her the house on his death. Mrs. Barber agreed. Mr. Brown purchased a house that
6. In February, Baldwin Co. Ltd., a woollens manufacturer, contracted to sell 500 pieces of blue serge to Martin Bros. tailors, at a price of $40 000, as stated in a written memorandum signed by both parties. After 220 pieces of the cloth had been delivered, a dispute arose between the parties:
5. Carter left a position where he was earning $48 000 a year to accept a position as general manager of Buildwell Limited at the same annual salary. All negotiations leading up to his appointment were carried on orally between Carter and Webster, the president of Buildwell Limited. Both parties
4. The manager of Jiffy Discount Stores ordered a carload of refrigerators from Colonel Electric Company by telephone. When the refrigerators arrived at the warehouse, the transport employees and Jiffy’s employees began unloading them. When about half of them were unloaded, the manager arrived
3. M, N, O, and P each owned 25 percent of the shares in Resort Hotel Inc. As a result of a bad season, the hotel had a cash-flow problem. M arranged to borrow $25 000 from a friend, Q, and to lend it to the hotel on condition that if the hotel did not repay the funds, his three co-owners, N, O,
2. On January 15, Tonino and Logan signed a lease in which Logan agreed to rent her commercial office space to Tonino at $2000 per month for three years, commencing February 1. Tonino took possession as agreed. In March of the same year, Tonino and Logan agreed orally that Tonino would pay an
1. Before opening her restaurant, Ashley contacted O’Brien’s Food Service Ltd. to be her frozen poultry supplier. Because she was new to the business and her volume would be low, O’Brien’s quoted her a price of $25 per case of frozen chicken breasts.Adam, O’Brien’s salesman, told her in
6. Robelus Communications Inc. launched a new advertising campaign proclaiming that it was “Canada’s Fastest” wireless network. It placed the statement in TV commercials, internet ads, and store signage. Mary was shopping in the mall and saw the sign. She decided to switch her plan to
5. H. Golightly is a professional football player who has played for the Toronto Mercenaries (“Mercs”) for the past three football seasons. The Toronto Mercs are a member of the Eastern Conference of the Trans-Canada Football League. Golightly lives in the southern United States during the
4. On arriving at Vancouver airport, Mr. Clemson, a frequent traveller, rented a car from Tilford Car Rentals Ltd., as he had done many times before. The clerk asked him whether he wanted additional collision insurance coverage, and as usual Mr. Clemson said, “Yes.” The clerk added a fee of $10
3. Smart was Hull’s lawyer for many years and not only handled legal matters for Hull but gave him important advice on business matters as well. At one stage, Hull owed Smart about $8500 for professional services. Smart suggested to Hull that the account could be conveniently settled in full if
2. Paul, a third-year university student, was in the habit of selling his used textbooks at the conclusion of each term. He usually recouped about 50 percent of their original cost. Unfortunately, when he posted his accounting textbook for sale online, he quickly discovered that a new edition of
1. Ashley saw the perfect French “bistro-” style chair for her restaurant when she attended a furniture expo and contacted Ben, the sales representative for the chair’s Canadian distributor, Just Like Home Inc. Ben tells Ashley the price of the chosen chair, product #7733, is $150 if 15 or
7. John Gifford and his friend Karl Holtz were enthusiastic followers of the commodities market, the market in which such products as wheat, cotton, tobacco, and coffee are bought and sold for future delivery. However, they did not have sufficient capital to engage in the market themselves, and so
6. Flanders & Co., a Montreal firm of wine importers, chartered the ship Bacchus from its owners, Swan Ltd., to transport a cargo of wine from Madeira to Montreal. The contract of charter party included a term to the effect that the charterer, Flanders & Co., should be liable for an additional
5. Marbett noticed that the ceiling on the upper floor of her house had become damp from water seepage. She mentioned the problem to her neighbour, who remarked that Marbett’s house was 25 years old and probably needed new roofing; he recommended that she contact Riley, who had recently repaired
4. Assume the facts of Problem 3, with the exception that the Broncos Club did sign the agreement proposed by Tilson in March 2008; that Tilson had played with the team during the 1998 playoffs; and that the Broncos Club had then brought its action against Tilson. What line of reasoning might the
5. The Player acknowledges that, if in breach of his obligations under section 4, the Player plays for any other hockey club, the Club will lose his services as a skilled hockey player and will suffer a loss of income from reduced paid attendance at hockey games and broadcasting rights and that a
4. The Player agrees that during the term of this contract he will loyally discharge his obligations to the Club and that he will not play for or be directly or indirectly employed by or interested in any other amateur or professional hockey club. The Player agrees that the Club shall have the
3. The Player acknowledges that if his hockey skills and abilities develop to the degree that he is tendered and accepts a contract of employment with a professional hockey club, then the Club shall be entitled to compensation for its contribution to his development, and in consideration for such
2. The Club employs the Player as an apprentice hockey player for the term of three years commencing 2008 and agrees, subject to the terms of this contract, to pay the Player a salary of $750.00 per week plus an allowance for room and board of $400.00 per week, with these payments to terminate at
1. This contract supersedes all previous contracts between the Club [Medicine Hat Broncos Hockey Club] and the Player[Harvey J. Tilson].
3. During the 2007–08 season, Harvey (“Ace”) Tilson played hockey for the Medicine Hat Broncos of the Western Junior Hockey League, scoring 30 goals and assisting on another 35 goals. In recent years, many players in this league had been offered contracts to play professional hockey upon
2. For most of a year, Harrison acted as agent for the purpose of obtaining options on property on an island in British Columbia on behalf of the Western Development Company, which planned to develop the island industrially. These plans became known to the property owners on the island, and some of
1. The most important hiring decisions Ashley will make are for the chef and hostess positions. The hostess will be the face of the restaurant; regular customers will build a relationship with the hostess. The chef’s food will keep customers coming back, and the chef’s reputation will spread
6. Waymart Ltd., a full service department store, introduced a customer rewards program to encourage loyalty among shoppers and increase sales of low volume products. The program allowed customers to accumulate “W dollars” with each purchase at the store; these dollars could be redeemed toward
5. Harris N. Dealer was sole proprietor of a profitable computer data centre, which he sold as a going concern to Alice B. Wheeler for the price of $180 000. The price was paid—$30 000 in cash and the balance in the form of a contract under Wheeler’s seal, which read in part as follows:For
2. Suppose instead that the parties had discussed $50 000 as the appropriate fee before the services were rendered and then when Matsui learned of Roberts’s success in obtaining the option, he was so elated as to promise him $10 000 more. What issue would arise if Roberts found it necessary to
What is the main issue? Should Roberts succeed? Why or why not?
4.1. Matsui’s bank manager recommended Roberts, a business consultant, to help Matsui appraise a suitable business investment. Matsui wished to buy control of a business and was prepared to pay $200 000 or so if Roberts could find a satisfactory business.At Matsui’s request, Roberts devoted
3. The town of Broomville, along with local arts and athletic groups, decided to erect a new community centre for sports, music, and theatre. The total estimated cost was $18 000 000. In April, Jane Borkus, president and CEO of the largest local industry, Autotech, promised to match every dollar
2. Burowski ran an office supplies business and donated one evening a week of her time helping run a bingo for charity. There, she met another donor, Adams, an investment broker. They worked well together for a few months. One evening, Burowski said to Adams that she was rather confused about her
1. Ashley’s restaurant business is off to a slow start. Her cash flow is low, and she cannot afford to pay all of her regular bills—she must pay her food suppliers, so she meets with her landlord and asks if she can pay only 50 percent of her rent for the next six months. She expects business
8. The City of Cameron was growing and needed to expand its water purification plant. It wanted to buy two hectares of land adjacent to the current purification plant from Margot Nurseries, a thriving fruit and vegetable business owning 40 hectares of prime land. As the two hectares were
7. Daly, a U.S. citizen, began negotiations with Stevens of Vancouver to investigate and stake mineral claims at the head of the Leduc River in British Columbia. Daly had discovered evidence of deposits there some 20 years earlier.On January 13, Daly wrote, “A large mining company in Boise is
6. Purcell was in failing health and advertised to sell his retail computing equipment business. Quentin was familiar with Purcell’s business operations; he sent Purcell a detailed offer to buy for $450 000, paying $75 000 as a cash down payment, with the balance payable in instalments over two
5. A province and its largest university created a program by which the province would give funding to disadvantaged students.Students were told by the university that they would receive funding over four years, and on that basis, they enrolled in the program. The students dealt only with the
4. Last year, Lambert bought a car on August 15 and insured it with the Reliable Insurance Company, for whom Drake was the local agent. On the following July 29, Drake telephoned Lambert about renewing her policy and learned she was on vacation at her summer cottage. Acting on behalf of Reliable
3. Garrett is the manager of Aristo Condos Inc. and is in charge of selling vacant units in the Aristo Towers. On October 4, Heilman examined several of the units with Garrett and said he thought the prices a bit high but would think about it. Several days later, on October 7, Garrett sent Heilman
2. Friday evening after closing, Sackett’s Appliances placed an ad in its window: “This weekend only, five Whirlwind dishwashers, reduced from $1199 to $599! Shop early!” Martens saw the ad later that evening. She appeared the next morning at 9:00 a.m.when Sackett’s opened its doors and
1. Very few customers came to the grand opening of Ashley’s restaurant on Monday morning, so she placed an ad in the following Thursday’s local newspaper saying “Grand Opening Saturday Morning—Join Ashley for coffee and let her satisfy your sweet tooth.” Bill and Marlene saw the ad and
6. Hansen practised for a number of years as an investment counsellor, advising clients on how to invest their savings. He was as a Member of the Association of General Investment Counsellors, which entitled him to use the letters “M.A.G.I.C.”after his name.Over the years, the association
5. Prince, a chartered accountant employed as a controller and living in Calgary, was bored with his job. He applied to an Ottawa-based software company that was advertising for a chartered accountant to help in the development of new accounting software. At the job interview, Paulson, the manager
4. Hopkins Steel Ltd. was a long-established corporation operating in Ontario. A few years ago it decided to change its bank and moved its account to the Canadian Business Bank. Before accepting the account, the bank made various inquiries and, in particular, examined the audited accounts of
3. Hedgeways Construction Inc. is a company specializing in highway construction. In response to a public invitation from the Government of British Columbia to tender for an important road construction project, it submitted what turned out to be the winning bid.The detailed description of the
2. Mitchell was the owner of a landscaping business. He came to know “Simpson,” an apparently successful businessman who engaged in various speculative investments. In reality, “Simpson”was a former lawyer whose real name was Anderson and who had been disbarred and convicted of a number of
1. One of the most important pieces of equipment for a restaurant business is the stove. Ashley wanted to make sure she installed the right one in her new restaurant, so she did lots of research on the internet to identify the possible selections. After visiting several manufacturers’ websites,
7. Brown is a farmer who raises chickens on a large scale. The baby chicks require a continuous supply of oxygen to survive, and the necessary equipment for that purpose is connected to the electric power supplied to the farm. Brown installed an auxiliary battery-operated power generator in the
6. Taylor had a student loan that was in arrears. Collection of the loan had been transferred from the original lender to Kneecap Collections Inc., a collection agency. When Kneecap demanded payment, Taylor questioned the amount that was being claimed, which was substantially larger than the amount
5. Princess Properties Inc. is the owner of a large office building constructed in the 1930s. Renovations were carried out by Fundamental Construction Ltd. in 1975, during which fireproofing material, containing asbestos, was installed. Princess did not know that the material contained asbestos and
4. Prentice, an encyclopedia salesman, telephoned Hall and arranged to visit her at her apartment to show her his firm’s latest volumes. When he entered the apartment building, owned by Newman, Prentice found the staircase lighting was out of order.He attempted to climb the stairs in the dark and
3. Smiley, a buyer for Carrefour Fashions, entered the store of a rival firm, Boulevard Boutique, in order to find out what were the latest lines they were carrying. He was recognized by Maldini, the manager of Boulevard. Maldini called the store detective, Rocco, and ordered him to “keep an
2. Sullivan and his friend Williams were having a quiet drink together one evening in the Tennessee Tavern when they got into an argument with four men at the next table, who had obviously had a fair amount to drink and were looking for a fight. There was a brief scuffle when one of the four men
1. Ashley is preparing to open her restaurant and interviewing potential staff at her rented restaurant location. Ashley’s landlord, ABC Ltd., has allowed her into the premises before the start of the lease so that she can complete some improvements. Gerald is a tiling contractor whom Ashley has
4. Truenorth Press Inc. owned both of the daily newspapers in Bayville. The papers were relatively unsuccessful compared to Truenorth’s other dailies throughout Canada and faced stiff competition for advertising revenue from a large number of small community newspapers that circulated in the same
3. Red Square Records Inc. is a Canadian corporation holding the sole rights to import and distribute in Canada discs and tapes produced by a Russian company, Krasnayadisk. For some years, Red Square has been importing two labels that have proven very popular, partly because of their low price. It
2. Dr. Carpenter relocated her dental practice to premises in a new shopping mall and placed an advertisement to that effect in the local newspapers. The notice conformed with the advertising standards of the dental profession in the province, but one of the newspapers decided to print a “human
1. Before opening her restaurant, Ashley contacted O’Brien’s Food Service Ltd. to be her frozen poultry supplier. Because she was new to the business, and her volume would be low, O’Brien’s quoted her a price of $25 per case of frozen chicken breasts.Adam, O’Brien’s salesman, told her
1. The topics covered in this text have been chosen because they raise common legal issues that regularly confront businesses.Businesses face legal challenges every day. In order to highlight the ongoing interaction between law and business, we will follow one business throughout this text as it
11. What protection is available for employee personal information?

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

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