Class Notes (810,913)
Canada (494,374)
B LAW402 (43)

Law Decision Topics Winter 2014.docx

6 Pages
Unlock Document

University of Alberta
Business Law
B LAW402
Elaine Geddes

BUSINESS LAW 402 LEGALDECISION TOPICS 2013-14 Term II Winter 1. Ruth and Ron were friends and business partners who successfully managed the takeover of a company that Ron had been working for. Ron provided the majority of the money required for the takeover, holding 99% of the shares. He brought Ruth in to take over one of the senior management positions, hoping that between the two of them they could restore the company’s competitive position. Ruth was to receive a base salary of $70,000.00 plus 10% of the net profits, and 1% share in the company with the promise that she could buy additional shares to 10%. None of the arrangements were put into writing. There were no employment contracts, non-competition agreements or restrictive covenants. Things apparently were going well for a year and profits increased dramatically, although Ruth had some issues with payments being made to Ron’s wife for very little work and with the management fee that Ron received. She did not demand any changes or express dissatisfaction. But behind Ron’s back she contacted existing employees and began discussing setting up a competing company.As soon as she finalized arrangements for the new company, she quit Ron’s company with no notice, taking with her two of the other employees who likewise gave no notice. In the two years that followed sales plummeted 40%. Ruth solicited business from almost all the customers that Ron’s company had previously had. Ron sues. 2. Jack and Jill were joint tenants of their homestead property. Jack obtained a bank loan from the Really Big Bank and agreed as a condition of that loan to mortgage his homestead property to them. He further agreed that he would not sell, mortgage or further encumber the property without the bank's written consent. Jill did not sign this agreement. When the bank asked, a year later, for a formal registerable mortgage, Jack was willing but Jill refused. The bank then called in Jack's loan. This, along with other financial setbacks, caused Jack to go bankrupt. The assignment into bankruptcy was made in September. The bank filed a proof of claim in October. But no caveat was filed against Jack and Jill's property until November. Jack was discharged from bankruptcy without having paid the Really Big Bank. Jack and Jill then sold their property toAnn and Andy. The Really Big Bank is now suing Ann and Andy to recover the cost of the original loan made to Jack. 3. Patrick worked for a bicycle retail and repair shop but got into a fight with them about amounts of money he claimed were due to him. The result of the dispute was that he quit, with a severe grudge against his former employer. He started a new job at a new bicycle shop a short time afterwards. He used his spare time while there dreaming up ways to harm his former employer. First, he registered their business name as his own internet domain name and redirected all their traffic to his new employer’s site. Then, bored with that, he redirected traffic to a pornographic web site.All of this was done through his new employer’s computers, using the user name assigned to him at work. He then decided to leave the working world and travel to CentralAmerica. His old employer discovered 1 what he had done, and with Patrick out of reach, they sued the new employer for damage done to their business by Patrick’s actions, and breach trade mark. 4. Eric is the CEO of Highland Holdings and also the principal of Eric’s Realty. Eric contacted Conrad to see if he needed any new property for an industrial expansion. Eric had previously acted for Conrad on a land purchase which had fallen through only a few months ago. Eric identified for Conrad a possible suitable property and some negotiations took place regarding its purchase. The property consisted of three blocks of which Conrad wanted and need only two. On February 2, Eric made an offer on the property he had identified for Conrad, but he made the offer to purchase an option on the property on behalf of Highland Holdings for $18,000.00 per acre. This offer was accepted. On February 14, he assisted Conrad in preparing an offer on the property for $25,000.00 per acre. This offer was rejected. Conrad thought it was the original owner who had rejected it but the rejection came from Eric as optionee.An offer to Conrad of $30,000.00 was rejected but a counteroffer of $27,000.00 was finally agreed to by all parties. On May 1 ,st the property changed hands, first all three blocks passing to Eric and then two blocks later the same day to Conrad. Eric claims that Conrad knew all along he was purchasing the property first for himself and then reselling to Conrad. Conrad claims he thought that Eric was acting as his agent in the transaction and sues him now for $9,000.00 per acre that Conrad feels he overpaid on the property. 5. Eddie was a mid-level employee at a beverage company and had responsibility for working with franchise owners who used the products. He provided training and advice for franchise holders and their employees. He had been employed for 19 years and was paid $59,000.00 per year. He worked out of his own home and drove his own vehicle on his frequent visits to franchisees. The beverage company found itself in a difficult financial situation and was proposing to reduce its staffing level. They told Eddie that he would be laid off, but proposed a settlement to him. They would give him 6 weeks’ notice, and if he continued to work every day to the end of that 6 week period, they would give him a settlement of $25,000.00 and his earned bonus for the year. In return, he would work until the last day and give up any rights to sue for wrongful dismissal. Eddie did work up until the last day, but on that last day sent a farewell e-mail to the franchise owners he had been working with saying goodbye and expressing regret that the company no longer cared about its franchise owners and didn’t care about providing them with good service. The next day, the company found out about the e-mails and they are now refusing to pay him any amount of the settlement or the bonus claiming he is now fired. 6. Wayne was the owner of Neoservices Ltd. and had employed Clarence for 17 years as his VP Operations. Clarence was the second-in-command and contributed significantly to Neoservices’very healthy growth in those years. In 2012, Wayne became ill and was away from the company for 6 months. Clarence ran it in his absence. When Wayne returned, their relationship deteriorated rapidly. Clarence was fired without notice in October 2013 for insubordination, making negative and insulting comments to Wayne, and to suppliers, customers and other employees, and making unauthorized expenditures and hiring decisions.After he was fired, Wayne discovered that Clarence was using 2 company clients as references to obtain other employment. This included a client who had specifically required a guarantee from Neoservices that his name never be used in order to obtain other work. Wayne then discovered that two years earlier, Clarence had made a false claim and proof of loss to Neoservices’insurance company. There had been an office break-in and Clarence had inflated the value of the goods that had been stolen and made an additional claim for a laptop computer that had not even been in the office at the time of the break-in. Clarence is suing for wrongful dismissal. 7. Herman was a 58 year old with a long history of casual and seasonal employment. He was interviewed for a position with a large food manufacturing company, Giant Foods, as a supervisor of a clean-up crew. He was eager for the job as he wanted to settle down in one job for the remainder of his working years. Giant Foods hired him and told him that the job was his until 65 “as long as you don’t screw up”. Herman had the job for two years when he was fired allegedly for incompetence. Herman alleges that he was fired for making complaints about a supervisor that he claimed had sexually harassed him. The supervisor denies utterly any sexual contact or behaviour with Herman. Herman also made complaints to a Provincial MLA about what he thought were unsafe practices at the company. No unsafe practices were ever proven. In fact, the Health and Safety Manager at the company made numerous complaints about Herman and the work that his crew did in cleaning up. Herman had a managerial position supervising an eight man unionized clean-up crew and they made frequent complaints about him. He encouraged them to make complaints and to file grievances against him. He disclosed confidential management information to the crew which resulted in even more grievances being filed. Herman has a high school education and is a single man with no dependants. He was paid $40,000.00 per year with no benefits. Herman sues for wrongful dismissal. 8. Richard submitted an application for life and disability insurance (along with others in his office) under a group insurance policy. He submitted his application on December 18 , th 2002, and applied for basic life insurance plus $200,000.00 of excess life insurance. The basic policy amount of $100,000.00 was available without any medical examination. The excess amounts required the insured to fill out an more detailed app
More Less

Related notes for B LAW402

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.