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February 2014 Midterm.docx

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University of Alberta
Business Law
B LAW402
Elaine Geddes

BUSINESS LAW 402 MIDTERM EXAMINATION FEBRUARY, 2014 This is your midterm examination. It is worth 20% of your final mark. There is only one question with multiple parts. Your answer to one part should not necessarily dictate your answer to another. You are to answer in the examination booklet. You may use any form of answer you choose, i.e. essay style, point form etc. You may use any writing implement of your choice. The important thing in answering the questions is that you provide me with as much as you can in the way of the legal principles that apply to the cases. The “right” answer is not the important thing. The legal arguments to support your answer are what I give marks for. Cynthia and Patty were tenants in small house near the University. The landlord they have always dealt with is called Brian, who says he represents the owners. They originally had a written lease agreement, but the agreement expired in May, 2013. Brian keeps saying that he will sign a new one with them but he never gets around to it. Cynthia and Patty have been paying rent of the same amount as the old contract required ($1,200.00 per month) and regularly request the written lease renewal. They have also been asking for some repair work to be done as Brian had said he would months previously. Brian never gets back to them although he does cash their cheques. The appliances do not work well and various other things needed to be repaired or fixed up. Cynthia and Patty have in the past often not waited for the landlord to fix things, but have had minor repairs done themselves. They deduct the amount of the bill from the rent. They have fought with their landlord over this, but they have still done it multiple times. They have also done a number of home handyman type projects such as installing new light fixtures, re-facing kitchen cabinets and adding new hardware throughout the kitchen and bathroom. nd Suddenly on December 2 , st,3, Brian tells them that their rent is increased to $2,000.00 a month starting January 1 2014 and that if they don't like it, they can get out. When they object and refuse to pay, he serves them with a
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