Legal Aspects of Business

Questions – Each worth 1 pt. (25% of final grade)
1. Identify the types of torts that arise from business operations in relation to its customers. Provide a brief explanation of the assurances the law seeks to provide through the application of these types of torts.

2. What must a plaintiff prove in order to successfully establish a negligence action? How will a finding of contributory negligence or voluntary assumption of risk impact the plaintiff’s case?

3. Provide a legal analysis of a typical retail transaction, discussing offer, acceptance, consideration, and intention.

4. Briefly describe the system of courts in Canada, including the application of precedent and paramountcy.

5. Identify and briefly describe what element is recognized as forming the basis of a contract in common law. What four things must generally be shown on the balance of probabilities in order for a party to succeed in an action for breach of contract?
a. Include a certainty of offer, circumstances under which a court would endeavour to resolve ambiguities, how courts can get around the basic rule that a gratuitous promise is not enforceable and Sattva Capital v Creston Molly Corp.

6. Briefly describe how an organization’s legal risk management plan could manage environmental risks and the risk of market price fluctuations associated with the business enterprise. Why is it important to evaluate both the probability and likely severity of loss when evaluating risk, with and explain the defence of volenti non fit injuria.

7. Briefly discuss the advantages of selecting a corporation as one’s form of business. Include the consequences that flow from a corporation’s ability to exist as a legal entity that is separate and distinct from its shareholders, ithe typical rights and privileges that may attach to a class of shares, distribution of profits, the documents that must be submitted for federal corporations, and the actions required of first directors.

8. It is important that negotiators evaluate risks, speculate on possible changes in the business environment, and be wary of making inflexible commitments or obligations that make performance much more expensive than anticipated. How might a business that is contracting to supply goods in the future protect itself from potential increases in costs?

9. What factors should businesses train their employees to consider when negotiating contracts in order to ensure they are enforceable?
a. Include a description of the necessary elements that must be present in order for a court to recognize a legally binding contract, the circumstances in which a court will imply terms and the burden of proof.

10. While monetary compensation or damages are the usual award in an action for breach of contract, what other possible remedies are available to a plaintiff who successfully establishes an action for breach of contract? Identify and provide two examples of the rules that are applicable in these particular circumstances and identify where specific performance may not be available.

11. Briefly describe the obligations that are typically associated with the ownership of real property, and include the general test and related guidelines on nuisance.

12. Carmen was seriously injured when she was struck by a car (driven by Becky) while crossing the street at a marked crosswalk. In addition to a broken leg and hip, Carmen was unable to work for six months and it is expected she will never be able to work as a yoga instructor again. Carmen incurred an ambulance bill and physiotherapy expenses as well as costs for purchasing medication.
a. How would the various losses suffered by Carmen be categorized by the courts? Explain what must be valued by a judge with respect to determining the amount of an award for loss of future income. Include a brief discussion of how legislation assists an innocent victim to recover amounts awarded where there is joint liability for the tort.
b. Becky’s carelessness also resulted in serious injuries to an elderly individual in another car. The elderly plaintiff’s pre-existing osteoporosis resulted in severe injuries. Explain how the thin skull rule will apply in this case

13. Briefly describe the role of administrative bodies in the Canadian legal system and provide examples of particular bodies that impact businesses and their functions, including being aware of government policy.

14. Briefly outline the ways in which a contract can be brought to an end. Identify and briefly describe ways that an offer can be terminated.

15. Outline the ways in which a principal can be legally bound to a contract by application of the law of agency. Identify under what circumstances an agent may be personally liable on the contract entered into on behalf of the principal.

16. Briefly describe the circumstances under which the guarantee of Canadians’ rights and freedoms provided under the Canadian Charter of Rights and Freedoms is permitted to be limited.

17. Buildco Ltd. entered into a contract that contains a clause limiting Buildco’s liability for any breach of the contract. Buildco’s employees performed its obligations negligently and have caused harm to the other party as a result. Are the employees protected by the clause that limits Buildco’s liability? Explain.

18. Draco is a bouncer employed by Diggers Nightclub. Contrary to the employer’s instructions that rowdy patrons were to be removed with as little force as possible, Draco lost his composure and seriously injured a very intoxicated patron while removing him from the premises. Diggers is now being sued by the patron. Explain why Diggers might be found vicariously liable for Draco’s conduct.

19. Identify each type of agency authority, including fiduciary duties, and describe what is required of the principal in each instance. What steps should a principal take when concluding an agency relationship?

20. Arwyn is a highly successful artist. She has recently become aware of a gallery that is selling replicas of some of her smaller sculptures. Identify the tort claim available to Arwyn in these circumstances and explain what a court will require to be proven to its satisfaction. Briefly discuss the effect satisfying this requirement will have, with respect to providing a remedy for Arwyn.

21. The use of electronic communications creates difficulties in the application of contract law. Some jurisdictions have implemented legislation based on the recommendations of the Uniform Law Conference of Canada. Discuss. Is an “electronic signature,” legally valid in Canada?

22. Identify the factors a court would rely upon to determine whether or not a relationship is a partnership.
(Include the basic issues that should be expressly addressed in a partnership agreement, and discuss how the law restricts the actions of a partner in relation to the partnership and its business activities.)

23. The #MeToo movement has exposed a widespread prevalence of sexual assault and harassment, especially in the workplace. What are some examples of risk management strategies that a business might utilize to manage the risk of sexual harassment in the workplace?

24. With respect to a contractual relationship, identify the types of remedies for misrepresentation available to the affected parties and how they are applied. What must be proven in order to have a contract set aside for misrepresentation?

25. In what ways does the tort of negligence differ from strict liability? What explanations have been suggested for the fact that, generally, damages are not available to compensate for pure economic loss sustained as a result of negligence?

Bonus

1. Why is the issue of privatizing fresh water supplies controversial?