Canadian Business Law Case Study

BUSINESS LAW QUESTIONS.
Instructions:
1. Put your name and student number at the top of the page;
2. Answer all questions;
3. APA referencing IS REQUIRED;
Long Answer Questions:
Question 1: (10 marks)
Mindy has been making custom furniture out of her garage and selling them online. She has never
planned a business structure. Over the last 6 years her revenue has gone from $15,000.00 to
$150,000.00 and is still growing. She now employs 6 staff to build the furniture for her. She is purchasing
many more assets, both personal, for her family and assets for the business.
1. What are some possible legal issues that you can spot?
2. What are the rules governing those issues?
3. How could Mindy protect her family and assets?
4. Review the last scenario with Cindy, Cindy tells you that she has a plan to protect her family
assets, if she is sued or anything happens, she will quickly transfer title in the assets to her
husband’s name. Advise Mindy about the viability of that plan.
Question 2: (20 marks)
Howard lends John $150,000.00 to buy 10 used fleet trucks (highway tractors) for his trucking company.
John uses $350,000.00 of his own money. John buys the fleet from the local dealer, Fleet’s R Us. John
specifically asks for the trucks to be painted in his company’s colors (silver and white) with the logo
decal on the door. The trucks are delivered in 2 batches. The first 5 delivered do not have the company
logo on them. The second 5 trucks delivered are not silver and white, but instead are all silver. John is
not happy.
1. Advise John
2. What methods could Howard secure his loan?
3. Should Howard insist on a contract? If so, what should he ensure is in the contract?
Question 3: (20 marks)
Donald works security at a retail store, The Retail Store (“TRS”). Another customer comes and tells him
that he thinks he saw a woman steal from TRS. Donald watches the woman carefully but does not see
her take anything. He notices what appears to odd lumps under her clothing. As the woman is leaving
TRS Donald yells at her to “stop in the name of the law”. The woman stops and looks, Donald says if she
leaves, he will have no choice but to chase and tackle her in front of all these people, and he does not
want to have to do that. Further, Donald tells her she is under for shoplifting. As it turns out, she did not
have anything on her person. There is no evidence on the cameras that she stole.
1.
2.
3.
4.
What could the woman sue for? Would she be successful? (MIRAC)
Advice TRS about what they should tell their staff/security for future reference?
What should TRS do in the future?
Multiple choice question: Torts are a:
a. Remedy;
b. Statute;
c. Derived from Common Law;
d. Contract.
5. True or False: Stores may be held vicariously liable for employees and security firms they hire.
True
False
Question 4: (10 marks)
1. Discuss the pros and cons of electronic commerce. What other areas of law that we covered
may be impacted or changed by electronic commerce? How do the laws governing electronic
commerce differ from other countries you have lived in? Do you think strict regulation will help
address the current/future issues? Explain.
BUSINESS LAW QUESTIONS
.
Instructions:
1. Put your name and student number at the top of the page;
2. Answer all questions;
3. APA referencing IS REQUIRED;
Long Answer Questions:
Question 1: (10 marks)
Mindy has been making custom furniture out of her garage and selling them online. She has never
planned a business structure. Over the last 6 years her revenue has gone from $15,000.00 to
$150,000.00 and is still growing. She now employs 6 staff to build the furniture for her. She is purchasing
many more assets, both personal, for her family and assets for the business.
1. What are some possible legal issues that you can spot?
2. What are the rules governing those issues?
3. How could Mindy protect her family and assets?
4. Review the last scenario with Cindy, Cindy tells you that she has a plan to protect her family
assets, if she is sued or anything happens, she will quickly transfer title in the assets to her
husband’s name. Advise Mindy about the viability of that plan.
Question 2: (20 marks)
Howard lends John $150,000.00 to buy 10 used fleet trucks (highway tractors) for his trucking company.
John uses $350,000.00 of his own money. John buys the fleet from the local dealer, Fleet’s R Us. John
specifically asks for the trucks to be painted in his company’s colors (silver and white) with the logo
decal on the door. The trucks are delivered in 2 batches. The first 5 delivered do not have the company
logo on them. The second 5 trucks delivered are not silver and white, but instead are all silver. John is
not happy.
1. Advise John
2. What methods could Howard secure his loan?
3. Should Howard insist on a contract? If so, what should he ensure is in the contract?
Question 3: (20 marks)
Donald works security at a retail store, The Retail Store (“TRS”). Another customer comes and tells him
that he thinks he saw a woman steal from TRS. Donald watches the woman carefully but does not see
her take anything. He notices what appears to odd lumps under her clothing. As the woman is leaving
TRS Donald yells at her to “stop in the name of the law”. The woman stops and looks, Donald says if she
leaves, he will have no choice but to chase and tackle her in front of all these people, and he does not
want to have to do that. Further, Donald tells her she is under for shoplifting. As it turns out, she did not
have anything on her person. There is no evidence on the cameras that she stole.
1.
2.
3.
4.
What could the woman sue for? Would she be successful? (MIRAC)
Advice TRS about what they should tell their staff/security for future reference?
What should TRS do in the future?
Multiple choice question: Torts are a:
a. Remedy;
b. Statute;
c. Derived from Common Law;
d. Contract.
5. True or False: Stores may be held vicariously liable for employees and security firms they hire.
True
False
Question 4: (10 marks)
1. Discuss the pros and cons of electronic commerce. What other areas of law that we covered
may be impacted or changed by electronic commerce? How do the laws governing electronic
commerce differ from other countries you have lived in? Do you think strict regulation will help
address the current/future issues? Explain.