Sample Case Analysis Questions #3 & Key Question #2, Total Marks: 28 Palina and A.J. had a great idea to work together to renovate an abandoned gas station and turn the building into a restaurant –...

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Sample Case Analysis Questions #3 & Key
Question #2, Total Marks: 28
Palina and A.J. had a great idea to work together to renovate an abandoned gas station and turn the building into a restaurant – they could pool their expertise and money and make a sizeable return on their investment. The vendor, Timothy, indicated that the property would work very well for a restaurant. Palina had just read an article in the paper dealing with environmental hazards and was concerned about any such potential contamination from the underground gas tanks used by the previous property owner. When the men raised this matter with Timothy, he indicated that there was no problem at all and that the storage tanks had been removed under close scrutiny of the city. Palina clearly remembered the conversation as Timothy was extremely animated in the conversation and emphatically guaranteed that there was no environmental contamination.
Acting on emotion, the friends used all of their savings (and a substantial amount of the bank’s money) and purchased the property.
When Palina and A.J. applied for a development permit, they were told that they needed an environmental assessment proving that there was no pollution on the property. They hired an environmental audit company who advised them that the ground under where the gas storage tanks were located was polluted and that the contamination was spreading to the neighbouring property. Palina and A.J. were told that the cleanup costs would be almost double that which they had paid for the property.
a. Identify and discuss the nature of the relationship between Palina and A.J. and the rights and obligations that they have and owe to each other as a result of their relationship. Include any applicable legislation in your response, tie the law to the facts and draw a conclusion. (10 Marks)
Shortly after they purchased the property their neighbour, Mackenzie, contacted them and asked when they would be cleaning her property. She pulled out a written agreement executed by Timothy that stated that the new owner(s) would be responsible for all clean up costs associated with removing the contaminated soil from the property. Mackenzie said that if they did not start to clean the property immediately, she would see them in court.
b. Discuss whether Palina and A.J. are compelled to clean up the property based on the contract produced by Mackenzie. Include any applicable legislation in your response, tie the law to the facts and draw a conclusion. (5 Marks) MGMT 3230 Sample Case Study Questions April 12, 2021
c. Discuss whether Palina and A.J. may be compelled to clean up the property based on a source of
law
other than the contract. Include any applicable legislation in your response, tie the law to
the facts and draw a conclusion. (7 Marks)
d. Discuss what Palina and A.J. could have done to limit their potential liability in the venture, both with regard to how they chose to set up their business and due diligence that they could have conducted before deciding to purchase Timothy’s property. Include any applicable legislation in your response, tie the law to the facts and draw a conclusion. (6 Marks)
Answered Same DayApr 11, 2022

Answer To: Sample Case Analysis Questions #3 & Key Question #2, Total Marks: 28 Palina and A.J. had a great...

Jose answered on Apr 11 2022
89 Votes
ADMN 1230-006 Final Exam, Part B Short Answer Questions
MGMT 3230-004, Final Examination
April 11, 2022
​​​
Business Law
MGMT 3230-004
Winter 202​2
FINAL EXAMINATION
Instructor:
Jim Silovs
Total Time:
120 minutes
Total Marks:
90
Student Name:
______________________
Student ID#:
_______________________
Examination Version C
Part A: Short Answer Questions
READ the questions carefully and answer ALL questions clearly and concisely.
Answer any FOUR (4) of the following five (5) questions. If more than four (4) questions are answered, only the first four (4) will be marked unless otherwise specified. (10 marks each = 40 marks)
2. Identify the defect in each o
f the following agreements and identify its status. (1 mark each)
    
    FACTS
    DEFECT
What is the problem with the contract?
(e.g. misrepresentation; mistake; etc.)
    STATUS
Is the contract
void or voidable?
    1.
    When purchasing an engagement ring for his girlfriend Blake assumes that due to the ring’s high price that the stone is a diamond when in fact it is a cubic zirconia. He purchases the ring on this basis.
    Mistake
    Void
    2.
    Carter purchased an engagement ring for his girlfriend from a jewelry store. However, the contract required the store to order the specific ring from his wholesaler. Unbeknownst to both Carter and the Jeweler, the night before, the warehouse was struck by a hurricane and its entire inventory was washed into the ocean.
    Force majeure
    Voidable
    3.
    Adrian wants to purchase an engagement ring for his girlfriend that is one-of-a-kind. The jewelry salesman looks on the computerized inventory which has recorded one ring as being in stock. The salesman erroneously but reasonably assumes that the ring is unique, but the chain of stores has previously sold 999 units of this ring. Adrian’s fiancée discovers the error when a co-worker of hers has the same ring. She breaks off the engagement and Adrian’s life is ruined.
    Misrepresentation
    Voidable
    4.
    Ryder purchased an engagement ring for his girlfriend from an individual selling it through the newspaper. The seller knowingly tells Ryder that the stone is a diamond (Ryder will only purchase the ring if it is a diamond) when in fact it is a cubic zirconia.
    Non-disclosure
    Voidable
    5.
    One day while golfing with a friend and his family doctor, Joseph discloses that he is looking to purchase an engagement ring for his girlfriend. The doctor indicates that his son’s engagement has just fallen through and that he would be more than willing to sell the ring at a great price. Not wanting to compromise his relationship with the doctor, Joseph purchases the ring (a ring well outside of the price ring that he was prepared to pay).
    Misrepresentation
    Void
3.
The case analysis process used in class requires that a critical analysis include the scrutiny of the source of law used by the plaintiff to achieve their objective. Describe the considerations that must be included/referred to when,
(a)
The plaintiff is relying on an oral agreement as the source of the legal obligation. (5 marks)
All types of contracts, including oral contracts, handshake agreements, and verbal agreements, are legally binding. Contrary to common belief, even if a contract isn't written on paper, it can be legally binding. Although there are specific circumstances in which a written contract is necessary by law, most contracts do not have this requirement.
(b)
The plaintiff is relying on Provincial legislation as the source of the legal obligation. (3 marks)
Legislation is the process of producing laws in which a responsible authority is tasked with developing and implementing laws in a specific state. It is also stated to be a rigorous notion of lawmaking since there is only one body charged with the task of lawmaking, and there is little space for any changes because the laws are codified and airtight, leaving a very small range of adjustment.
(c)
The plaintiff is relying on extra-provincial case law as the source of the legal obligation. (2 marks)
Plaintiff can also relay on extra-provincial case law as source of the legal obligation, because it helps for taking actions against the other parties.
4.
In class, we discussed the following different methods of doing business in Alberta. Complete the following chart (either in the space provided or in your examination booklet) illustrating the hallmarks of each of these different types of business associations. (1/2 mark each)
     
    Incorporation
    General/Ordinary Partnership
    Limited Partnership
    Sole Proprietorship
    Personal Liability – to what extent are the owners personally liable?
    Owners are not liable
    Personally liable for all the debts based on the fund invested
    Personal assets typically cannot be used to satisfy business debts and liabilities
    Owners are personally liable
    Registration requirement – is registration required for setup? (yes or no)
    Yes
     Yes
    Yes
     No
    Sources of start-up Capital – where does start-up capital come from?
     Venture capitalists, angel investors, and traditional banks
     Partners or Investors
    Partners or Investors
     Owner itself
    Separate legal identity?
(yes or no)
     Yes
     No
    No
     No
    Dissolution – how is the business dissolved?
     Voluntarily by the will of shareholders in the General Meeting or shareholders meeting.
     Death, admission, insolvency, admission or retirement of partner
    Settling the outstanding debts or by distributing the assets
     Has to submit Statement of Intent to Dissolve and owner has to submit to corporation of Canada
5.
Ratika was really excited; she had just been offered, and accepted, her dream job. She would be in charge of the human resources department of Therese’s company. Things progressed fine for a couple of months and Ratika started to notice a difference in the atmosphere at work. Two more months went by and Ratika couldn’t shake her feeling that something was just not right. Sure enough Ratika came into work a short time later to find that she was being moved from her external office (with a picturesque mountain view) to an internal office beside the elevator bank, her parking space in the building parkade was moved to a more distant outside surface lot several blocks away and the human resources department oversight was assigned to a new employee, Isabella, and Ratika was reassigned as a just another member of the department.
(a) Identify any cause(s) of action that Ratika might have against her employer and the elements required to establish such cause(s) of action? (3 marks)
A demotion in Canada would be considered 'essential' to the terms and conditions of employment and, as such, would need notification. If an employee is demoted rather than fired for cause, the person should be warned...
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