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LAW 525 (115)
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Lecture 3

Law 525 Lecture 3.docx

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Law and Business
LAW 525
Gil Lan

Law 525 Lecture 3 • Tort liability- prove the seller was negligent in making the product (donahugh vs stevenston , snail in a ginger beer ) • Contract liability- extended warranty Ontario Sale of goods act • Valid provincial legislation Under section 92 (13) property and civil rights of constitution 1867 • Only deals with goods, does not cover services • And only cover sales not leases • A buyer- person who buys or agrees to buy goods • Definition, warranty – an agreement with reference to goods that are the subject of a contract of sale but collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated • Under section 15(2) of the charter there is an implied warranty from a seller of the good • Under section 15(4) there can be both an express and implied warranty • Under s (53) you sign off your right to use any warranty except express warranty • Adjusts contract law with implied warranty Resch et al v. Canadian tire case • Minor and stepdad Went to store to buy bike, bike had malfunction and severely injured minor • Lawsuit brought by rescch family to Canadian tire family (franchisee and bike manufacturer) • Stepfather bought the bike , not the son (actual sale of good was on stepfathers card) • Privity of contract tells us that son cannot bring a lawsuit under contract law • Under tort of negligence the donahugh vs Stevenson tells us that the manufacturer has to take care of the implied users (in this case the son) Regulatory law • Extra layer of protection where gov plays a critical role in protecting consumers, without consumers having to do a lot • Governments will inspect business and bring enforcement to those who are not complying to the legislation and regulation • Can lead to fines, jail, provide compensation, court order to stop • In contract and tort law it is up to them to bring action (considered reactive) • In regulatory approach gov is proactively making sure there is compliance with law, if not they are able to act on our behalf • Consumers are at a disadvantage compared to businesses so we need this extra layer • Very common for there to be offences in regulation, there are penalties if one is in violation of an offence • When there is a prosecution, the gov must prove the elements of the defense beyond a reasonable doubt, criminal law standard threshold of proof • Threshold of proof for contract law,tort law and private law on a balance of probabilities • 4 page document on regulatory law starting on 3-11 to 3-14 (make sure to understand these 4 pages) Criminal Law • The criminal code deals with intentional offences of wrong doings (assault fraud) • Federal law • Section 91 (27) of the constitution act 1867 • Criminal code is 1 example of a federal law under section 91 (27) • Was used in labatts beer case, those sets of regulations could not be upheld • Has to deal with safety • Cosmos furniture case (in chapter 2 notes)- the legislation was the hazardous product safety act , was upheld as valid legislation under criminal law power 91 (27) • Criminal law is more than criminal code • Whenever you see a provincial law with jail it does not mean federal criminal law • Province can impose jail as a punishment • Criminal courts - can hear cases where provincial legislation (Ontario consumer protection act) is being enforced • Under the OCPA there can be jail available as a penalty , offences in the criminal track are included in the OCPA and are enforced in a criminal court Criminal track has 3 type of offences • (1) True criminal intentional offence (requires proof of intent) – located in OCPA, offence to knowingly mislead an officer, proof of fact and intent without a reasonable doubt , • (2) Strict liability offence - when the government proves an act of offence has taken place, there will be a conviction, unless the accused can proves
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