Commercial Law Questionnaire

Reading: The text being utilized in the course is The Law and Business Administration in Canada by Smyth, Soberman, Easson, 15th edition (referred to herein as “Smyth”).

Question 21 (2 points)
In a bankruptcy situation, the trustee determines that the bankrupt
debtor Bob (a sole proprietor) owes $50,000 to six different general
creditors, but after paying off all of the secured and preferred creditors
there is only $5,000 left to pay everyone out.
The trustee then learns that Bob paid back a $5,000 debt to his
brother-in-law ten months before Bob’s bankruptcy and he paid back
another $10,000 debt to his bank four months prior to his bankruptcy.
What does the trustee in bankruptcy do in this situation, and why?
Question 22 (1 point)
(a) If the offeror is in Winnipeg and the offeree is in Toronto and they
make a contract via telephone, at what point is the acceptance
complete?
(b) If the same two parties complete a contract via mail instead of by
telephone, at what point is acceptance complete?
Question 23 (0.5 points)
What is the legal effect of a request for more information?
Question 24 (1.5 points)
A consumer buys two bottles of pop and consumes one quickly due to
his thirst. He then is about to open the second bottle of pop to drink
and sees a dead fly in the bottle of pop. He is so upset that it causes
serious mental disorders and phobias.
(a) What law might allow him to sue?
(b) What party would he most likely be able to try to sue?
(c) What might the party being sued say to try to avoid being held
liable for the serious mental disorders?
Question 25 (1 point)
If a client of mine asks me to do some legal work for him, but we never
discuss how much I will charge, is the element of consideration missing
in that contract? Why have you answered that way?
Question 26 (1 point)
If I am a director in a corporation and I resign from the Board in order
to obtain a business opportunity that the corporation was trying to win
for itself, what is wrong with that? Why is it not acceptable?
Question 27 (1 point)
When I refer to “elements” of a tort, or “elements” of a contract, what
do I mean by “elements”? In other words, what are elements? Don’t
name the elements of torts and contracts – tell me what elements are.
Question 28 (1 point)
What did I mean when I explained that the law will not enforce a
“contract to enter into a contract”? Give an example if it helps.
Question 29 (1 point)
How does a judge figure out how much money to award for damages
in tort law, and how does a judge figure out how much money to
award for damages in contract law?
Question 30 (1 point)
Should an injured party be able to recover damages despite the fact
that his or her own conduct was negligent and partly contributed to
the injury, and why have you answered the way that you have?
Question 31 (0.5 points)
How valuable must consideration be in order to be sufficient from the
perspective of a Judge?
Question 32 (0.5 points)
Why is love not sufficient consideration to bind an offeror to a
contract?
Question 33 (1 point)
Give me two reasons why partners might decide it is wise to have a
written partnership agreement in place.
Question 34 (0.5 points)
Tell me about how the law of negligence operates in Manitoba with
respect to automobile accidents.
Question 35 (1 point)
You and I enter into a contract for me to sell you my home. On the
date of closing I refuse to go through with the contract. What
remedies might you sue for in this situation?
Question 36 (1 point)
(a) What is the name of the concept that says that only parties to a
contract can enforce a contract?
(b) That same concept says something about what impact contracts
can have on strangers to a contract. What does it say in this regard?
Question 37 (1.5 points)
Bill and some others see Mary steal things from a store and then Bill
tells his friends about it. Mary hears about this and she wants to take
legal action if she can. If you are giving advice to Mary in this situation
as a lawyer, what area of law would you tell Mary about? Can Mary sue
Bill successfully? Why or why not?
Question 38 (2 points)
What three documents collectively form the constitution of a
corporation, and which one(s) did I say is/are mandatory in any
properly set up corporation?
Question 39 (1 point)
Give me two reasons why the law in Manitoba requires that
partnerships should be registered in the Companies Office.
Question 40 (1 point)
“Contributory negligence is a case law concept”. Is this statement true
or false, and why do you say that?
Question 41 (1.5 points)
In class I told you what a “defence” is when referring to intentional tort
law. What did I tell you is meant by that term “defence”? If there is a
defence, does that mean that the elements of the alleged intentional
tort did not occur? Why do you answer that way?
Question 42 (1 point)
What does it mean when I say that you are jointly and severally liable
for something? Feel free to give me an example.
Question 43 (1 point)
What does it mean to say that someone has been negligent due to omission, and what is an
example of a person being negligent by way of omission?
Question 44 (1 point)
I said there were two concepts that may arise in intentional tort law
that can NEVER arise in negligence law. What are they?
Essay Questions
WRITE IN FULL SENTENCES AND PARAGRAPHS IN YOUR ESSAY
ANSWER(S). DO NOT USE POINT FORM. I WILL DEDUCT MARKS IF
YOU USE POINT FORM!
There are two questions in the Essay Questions section (questions
44 and 45). Point form is not permitted. You must write in full
sentences and use paragraphs.
Question 45 (8 points)
Murray came out of his home at 8 a.m. on a Saturday morning in
October and quickly determined that the rain that had fallen overnight
had frozen due to the low temperatures that were expected to last
through until at least Monday. As a result, his sidewalk and front steps
were extremely slippery and Murray in fact almost slipped down the
stairs when exiting his home. He decided that he had better get some
salt to spread over his sidewalk and front steps before someone
slipped on them.
Just as Murray was about to drive to the store to obtain some salt, his
friend called him to invite him out to have brunch at his indoor tennis
club and to then play tennis from noon until 2:30 pm. Murray accepted
and decided that he would get the salt later in the afternoon once he
had finished playing tennis. In the mean time he found a four inch by
four inch square post-it note (sticky note) and he wrote “Beware of
slippery sidewalk & stairs” on it and then got some scotch tape and
taped it to the front gate. He then left to meet his friend.
By noon that day virtually all of Murray’s neighbours had salted their
sidewalks to get rid of the ice, or had placed large signs warning
people about the icy condition of the sidewalks and stairs at their
homes.
After Murray left home the post-it note blew off of the gate with the
wind and so no warning remained about the slippery sidewalk &
stairs. At about 2 pm a man named Fred delivering flyers came into
Murray’s yard and slipped on the sidewalk and broke his hip. At the
time he slipped, Fred had been distracted by a call on his cell phone
and was talking to the caller when he slipped (and Murray’s next door
neighbour Mary saw the whole thing). Murray arrived home at 4 pm to
learn from his neighbours that the accident had happened.
Ultimately Fred suffered $80,000 worth of damages (pain and suffering
and loss of income). Tell Fred what area of law would likely apply to his
situation, and tell him in detail about what he would need to prove to
the Court in order to successfully compensated for what
happened. Include in your answer everything that Fred would need to
establish to a Judge in order to win his case.
Be sure to let Fred know anything that might impact whether he would
be successful in collecting damages in the Court case based upon the
facts given above.
Question 46 (8 points)
Ryan is an experienced grocery store manager who wants to open his
own grocery store in another town (at one location only) and he also
wants to be the manager of it. He knows that he needs at least
$150,000 to create and operate the business, and he knows that he can
only raise $50,000 on his own towards the $150,000 he needs. He has
no credit or way to get money from family, friends or lenders. No party
whatsoever will loan him the additional $50,000 that he needs to create
and operate the business.
Name for Ryan ALL of the types of business organizations that exist
that I told you about in class (even ones he cannot use).
Tell him which TWO of those business organizations would likely be his
best options, and explain why you feel that way and why you would not
recommend the other types of business organization. Also tell him
what the advantages and disadvantages of each of those two types of
organization you recommend are (don’t just list them – explain
them). Keep in mind his financial status.
Then tell him which one of the two you would recommend that he use
to operate the grocery store business, and include at least two reasons
as to why you would choose that type of business organization over
the other one.