Midterm Assignment

Mid-termAssignment ELEMENTS OF LAW 2610 C COURSE DIRECTOR: PROF. R. LEBLANC How to submit assignment DUE DATE: 12 noon on Monday, October 20, 2008 INSTRUCTIONS: • There are five questions on this mid-term. Each question is worth 6 marks for a total of 30 marks. • Your answers can be single-spaced. You do NOT need to include the questions. Footnotes and Bibliography are not required; but extensive use and visible reference to course theoretical content are expected and necessary for a satisfactory grade. • You must work on this assignment ALONE and submit original work. Copying and plagiarism is very easy for the Instructor to detect and will receive a failing grade. • The assignment is due 12:00 o’clock noon on Monday, October 20, 2008. Any assignment received after this due date and time of October 20 at 12:00 o’clock noon will be subject to a penalty of 6% per day - no exceptions, therefore make sure you submit your mid-term on time. Assignments submitted more than 7 days after the due date will not be accepted. Excuses about difficulty submitting the assignment for technical reasons or due to computer breakdown at the last minute will still be subject to the 6% penalty. Kindly work on the assignment in advance and ensure you understand the submission process before the deadline. Details on the delivery of your finished assignment are posted on the course’s website. Please allow yourself ample time for completing and submitting the mid-term. • Read each question carefully and direct your answer to the question asked. You will be graded on quality, not quantity. You will only be graded on material that is directly relevant to the answer and not on extraneous material. Answers that miss the legal issue at point will necessarily lose marks. • I will not respond to questions about the assignment by e-mail or in the Discussion Group. Therefore, if there are any ambiguities in the questions, please refer to the previous instruction. GOOD LUCK! Question 1 – 6 Marks 1. Roger responded to an advertisement placed by Nadal in a local newspaper. Nadal was looking for business investments, and Roger sent him a letter on October 1st which said that he was willing to make Nadal a partner in his coffee maker business if Nadal was willing to put up $5000. Nadal received that letter on October 6th and wrote back the same day saying he would love to get involved in the business and would send Roger a certified cheque for $5000 as soon as the bank had transferred the money from his savings account and certified the cheque. This letter was received by Roger on October 9th, and the certified cheque was sent on October 8th and received on October 12th. Meanwhile, Roger mentioned the advertisement to Serena, and she said she would like to get into the business and would be willing to put up $8000. Roger sent another letter to Nadal, on October 4th, which Nadal received on October 7th, saying Roger had changed his mind and would not be willing to have Nadal as a partner. a. Discuss whether Roger and Nadal have a contract or whether Roger is free to enter into a partnership with Serena. b. Suppose Roger's letter of October 1st has said that there would be no commitment by him to any arrangement with Nadal unless and until he received Nadal's certified cheque for $5000. Explain why this would or would not change your answer to (a). Question 2 – 6 Marks (parts (a) and (b) 3 marks each) 2a) Your course kit contains readings on contingency fees. The case against Maple Leaf foods for tainted meat may proceed on this basis. What is your view on contingency fees used by lawyers? Are they a good thing? Why or why not? [3 marks] 2b) Your course kit and text contains readings on alternative dispute resolution. Is arbitration less adversarial than the court system? Why or why not? [3 marks] Question 3 – 6 Marks 3. Isa was an engineer of great repute in the field of fluid mechanics. Some years ago she took out a patent on a general theory of how fluid moves through a particular shape of valve, and a patent on a unique valve specifically adapted for use in a nuclear reactor. She had formed a company, which had produced this latter valve in the Canadian market and other countries, which used Canada's CANDU Reactor. After a number of years of successful business operations, Isa was approached by a group of investors interested in purchasing her company, and a deal was concluded. As part of the contract of purchase and sale, Isa sold the patent to the valve and agreed that she would not work in or carry on any other business manufacturing valves, nor would she engage in any other business that might compete in any way with the purchasers business for a period of ten years. The restrictions applied on a worldwide basis. Isa retired to Florida and after five restless years again became involved in the field of fluid mechanics, making designs for certain parts for nuclear reactors for submarines of the United States Navy. One particular part that she designed and built was based on the patented principles of her general theory, which she had never sold, and while it was similar to her former valve in many ways, a slight change had rendered it patentable in its own right. On learning of the multimillion-dollar sales, which Isa had effected to the U.S. Navy, the purchasers of her former business brought suit for her breach of the contract. With her new valve Isa had generated profits of $5 million before the "ten year waiting period" had expired and $10 million after the period had expired. Discuss the relevant issues of contract bearing on this case, the relevant aspects of business, which would assist the court in determining damages, if any, and render your own decision. [6 marks] Question 4 – 6 Marks 4. Manuel, a university student, owned a small automobile, which he desired to sell for $800. He placed an advertisement in the university newspaper offering the vehicle for sale, and included his telephone number for further information. A few days later, he received a telephone call from a man who identified himself as Mr. Rose. Rose asked Manuel a number of questions concerning the car, and then expressed a desire to examine the vehicle. A meeting was arranged for later that evening, and Manuel gave Rose the opportunity to test drive the automobile. Rose agreed to purchase the vehicle for $800 and offered Manuel a personalized cheque bearing the name "R. Rose" as payment. Manuel was reluctant to acc