Questions and Answers of Canadian Business And The Law

What is a joint tort-feasor?
What does burden of proof mean?
What is the difference in the way tort and criminal actions are initiated?
What is the purpose of damages in tort?
Under what circumstances might an injunction be awarded in tort?
Vicarious liability is an essential feature of modern tort law. What is it?
What might be a defence to a claim for vicarious liability?
How does contributory negligence affect the amount of damages a plaintiff may receive?
What are punitive damages? How are they different from aggravated damages?
When is overlapping liability in tort law and contract law common?
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
What are the five elements in a negligence action?
What is the role of reasonable foreseeability in defining whether a duty of care is owed?
What is the standard of care in negligence?
How is causation usually determined in negligence?
The court in Mustapha had no doubt that the plaintiff suffered extreme mental distress caused by seeing a fly in the sealed bottle of water and that he was not exaggerating his response. As long as
Does the normal or ordinary standard of care vary in any specific circumstances? Explain.
Give an example of when the defence of volentinon fitinjuria might be applied.
Why was a duty of care owed in Livent?
What area of law other than tort law do product liability actions often involve? Why are actions in that area often more straightforward than in tort law?
Is the commercial host liable if one of its patrons is injured because of the patron’s own impaired driving? Explain.
What is the thin skull rule? Give an example of when it would apply. How does the thin skull rule protect the plaintiff?
Why is strict liability rare in Canada’s tort regime?
Name two areas where strict liability is common.
The law defines “occupier” very broadly such that it extends beyond just the person who owns the property to anyone who has some degree of control over the land or building in question. Is this
Jason owns and operates a company, ABC Ltd, which he wanted to position to successfully bid on a contract to supply security in federal prisons. In its call for tenders, the Department of Supply and
How does the law define the occupier of property?
What can businesses do to manage the risk of slip-and-fall incidents?
Who is an occupier?
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
What are the four different classes of visitors in the law of occupiers’ liability?
The tort of interference with contractual relations means that a prospective employer is liable if he induces an employee to breach her employment contract with a third party and start working for
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?
What is nuisance in tort law?
What are the limitations to the ability of a store detective to detain a customer who is suspected of shoplifting?
What is injurious falsehood?
What is the tort of intrusion upon seclusion?
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?
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
What is agency? Give an example.
Is a “real estate agent” an agent in law? Explain.
Greg and Erin Downey sold their home and invested the net proceeds of $100 000 with Wayne Davis. They contacted him as he had previously placed their life insurance and RRSPs with Manulife Financial
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
Do professionals such as financial advisors, stockbrokers, bankers, and investment counsellors owe a fiduciary duty to their clients? Explain.
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
How is an agency by ratification created?
Is a principal permitted to ratify any contract entered into by an “agent?” Explain.
What are the duties of the agent?
What are the duties of the principal?
How can a principal manage the risk of using an agent?
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
What is an undisclosed principal?
Kennedy, Logan, and Morgan were avid hockey fans. They decided to put together an expression of interest for the purchase of a 50% interest in an NHL hockey team. They discussed some of the terms
Many high profile franchise operations—Dunkin’ Donuts, Tim Hortons, Pet Valu, General Motors, Quiznos, and Midas, for example—have been involved in class action lawsuits in Canada. What is it
Regan, Riley, Madison, and Mackenzie were partners in a law firm.Regan gave the other partners written notice that he was leaving the partnership on March 31. The other partners purchased Regan’s
Zowie was interested in starting a magazine catering to alternative lifestyles. Wanting to avoid the double taxation inherent in the corporate form of carrying on a business but still having the
What are the advantages and disadvantages of a partnership?
How can a partnership come into existence?
In the limited partnership form of carrying on business, the limited partner’s liability is limited to her actual or agreed upon contribution to the partnership. To preserve this status, the
Ragini and Rajiv were co-owners of a number of properties located in the suburbs of Surrey, BC. They had acquired the properties for resale and planned to subdivide and sell them for a profit over
What is the difference between the duty of good faith and fair dealing and a fiduciary duty? How does the standard of good faith and fair dealing apply to the franchise relationship?
How can a partnership come to an end?
Amir Sammi entered into a franchise agreement with Timothy’s (a coffee business) to operate a store in the Lakebeach Shopping Centre in Montreal. Timothy’s had a lease with four years remaining
Explain the difference between a limited partnership and limited liability partnership.
How is a corporation created?
What is the difference between a business form and a business arrangement?
Is a joint venture a partnership? Explain.
What does limited liability mean?
Family controlled businesses are a dominant feature of the Canadian economy. It is estimated that 90% of all Canadian companies, large and small, are family-owned. Some of the very large
To take advantage of the growing market for organic foods, Charles Knight, a retired agro-food specialist, has decided to open a retail store in Vancouver, BC. With a large health conscious
Paws Pet Food & Accessories Ltd (Paws Pet Food) was incorporated under the Alberta Business Corporations Act. Three years later, Paws & Shop Inc. (Paws & Shop) was created under the same
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
In 1995, Bre-X Minerals burst from the ranks of Canada’s junior mining companies to become the toast of markets across North America. It was considered a “can’t miss” by gold analysts at many
One of the strongest arguments for the establishment of a single national securities regulatory body is the need for effective enforcement of securities market conduct. How does a single national
In 2010, Frank Stronach relinquished control of auto parts giant Magna International. Since 1978, Magna has had a dual-class, multiple-vote share structure. Through this structure, Stronach was able
What is the difference between a widely held and a closely held corporation?
In an effort to counter illegal insider trading, market manipulation and accounting fraud, the Ontario Securities Commission (OSC) has introduced a whistleblower program. Individuals who voluntarily
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
What is a dual-class structure?
Are shares freely transferable? Explain.
What is crowdfunding? Is equity crowdfunding permissible in Canada?
What is a prospectus? What is its purpose?
How does a corporation enter a contract? Explain.
A dual purpose or public benefit corporation is a corporation that has both a profit motive and a mandated social purpose. In Canada, British Columbia and Nova Scotia have legislation that enables
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,
In Canadian Aero Service Ltd v O’Malley , the court set out factors in determining whether the appropriation of an opportunity is a breach of a fiduciary duty. Do you see any problems with applying
What is a self-dealing contract?
In Rea v Wildeboer, the plaintiffs alleged misappropriation of funds from a widelyheld public company by its officers and directors. They sought to recover the funds on behalf of the company. Are the
What are the duties of directors and officers?
Do directors owe duties to the corporation’s creditors? Explain.
Is a director liable for a corporation’s contracts? Explain.
What three main rights do shareholders have?
When is a shareholders’ agreement appropriate? What issues should a shareholders’ agreement address?
How is a corporation terminated?
Are all things capable of being privately owned?
At law, a finder who takes possession of lost personal property can assert ownership rights against everyone except its true owner. Should the rights of the true owner expire after a period of time
Abucan Resource Development Inc., a new resource development company based in British Columbia, is aware of a rich deposit of copper located in a remote area of British Columbia. The land in question
What are some examples of real property?
Our legal system counts as property such non-physical assets as recipes, manufacturing processes, and methods of extracting minerals, and allows owners of such property to exclude others from using
Two years ago, Nancy and Marta had a child using therapeutic insemination with sperm provided from a single sperm donor and Marta’s egg. The clinic that assisted with the insemination was left in

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