Question: Following questions based on Canadian Law, please answer them step-by-step: Emily was involved with a new software company in Toronto. Shares were issued to the

Following questions based on Canadian Law, please answer them step-by-step:

  1. Emily was involved with a new software company in Toronto. Shares were issued to the three founders, 15 shares each at $100 per share, 45 shares in total. Explain whether this was a legal issuance of shares pursuant to applicable securities legislation, being sure to fully explain why or why not. A few years later the same company had done well and was now a publicly traded company. Emily's sister was now working as a Senior Vice President (SVP) of Marketing for the same company. While involved in a meeting one day she discovered that the CEO, Emily, who was largely considered the driving force behind the company's success was going to step down in a couple of days due to a pending complaint over personal conduct. She ended up discussing it with her administration assistant following the meeting. The same assistant ended up telling her partner over dinner that evening. The partner ended up telling her co-worker the next day (all of this transpired in less than 24 hrs) who proceeded to 'short' the stock with a six figure investment (i.e., take a financial position that the stock price will drop). The dollar volume of the purchase alone was enough to trigger regulatory authorities of an abnormal trade. Further, when the stock declined in price 4 days later and the short position had a 300% return, it further triggered regulatory interest. Explain who you think may have violated securities legislation in this situation involving Emily's sister, the SVP of Marketing and how.
  2. A company provided lawn and gardening services to homes and businesses in Toronto. One morning while driving the company truck to a client's home, a stray piece of gardening equipment flew out of the back of the pick-up truck onto the highway. It smashed the windshield of the car behind it which caused that car to lose control which resulted in a crash involving another three vehicles. The driver of the company vehicle had done the standard 'walk around' check of the vehicle before leaving that morning. Assume that due to the unique circumstances no insurance covers the company but they nonetheless get sued by all the vehicle owners. What legal claim would the vehicle owners make and what arguments would they make in relation to it? Is there anything that the company could argue?
  3. Elly designed an entirely new way to make espresso that involved not steam, but ice, resulting in a 'cold' extraction of espresso that was quicker, cheaper, and just as delicious as traditionally made espresso. This process cannot be easily understood and repeated. Discuss the primary intellectual property considerations that Elly may consider doing in order to protect and market this idea as he attempts to develop a business case for it (i.e., a plan to make money from it).
  4. The CEO of a well-known Toronto business was dining (pre Covid) in a nice restaurant in Toronto. The server, who was new to Toronto, did not know who the CEO was. At the end of dinner the server was on break and went outside to get some fresh air. The seating host finished up the billing and took payment from the CEO and her party. This was the very last thing the host did before finishing/leaving for the day (and exiting a door different from where the server was standing). The server re-entered the restaurant from break a few minutes later only to see the CEO and the dining party had left the table and were only a couple steps from leaving the building through the front door. The server panicked (thinking they had not paid and he'd be responsible for an unpaid bill) and yelled in an intimidating way, "Get back here!!, Don't you dare try to leave without paying your bill!". Another diner, a citizen who ran multiple social media accounts, couldn't believe it and quickly took a picture of the surprised dining party and wrote a brief post titled 'fat-cat CEO runs out on restaurant bill!' Although the CEO got the situation sorted out, she is still livid with both the server and social media poster- and thinking about legal action. Other than negligence, explain in detail the possible legal claim(s) to be made by the CEO.

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