LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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LEGL 210 BUSINESS LAW I
Group Projects (20% of your final grade)
Work in groups of 3 to 6 students. Peer assessment of the in-class presentation will
count for ½ of the marks
A selection of projects is listed below. Your group may select any ONE
set of project facts. Your selection is subject to confirmation by the
instructor. Generally speaking, each group must not choose a project
already chosen by another group in the class. The sooner you advise the
instructor in writing using the form provided of your selection and the
tasks to be completed by each group member, the more likely you will
be permitted to use the project you wish.
All group members must abide to the given facts.
Any departures or additions from the given facts must be made by
stating those additions or departures at the beginning of the brief you
hand in and ALL group members must agree.
Consult the grading form associated with Assignment 2 on Blackboard
to maximize the marks you receive from the instructor for the legal
brief.
GROUP PROJECT 1
“THE RED BARON” .......................................................................................... 2
GROUP PROJECT 2
BAD HOUSE DEAL ........................................................................................... 6
GROUP PROJECT 3 TAKING OUT A CONTRACT ON CRIME ....................................................... 8
GROUP PROJECT 4 THE “MISSING PIECE”.................................................................................... 11
GROUP PROJECT 5 PLUGGED PLUMBING ..................................................................................... 13
GROUP PROJECT 6 HARDLUCK STUDENT .................................................................................. 15
GROUP PROJECT 7 WORKING HARD OR HARDLY WORKING ................................................ 17
GROUP PROJECT 8 TROUBLES IN THE FAMILY ........................................................................... 20
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
Group Project 1
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“The Red Baron”
The following was drawn from an article in The Globe and Mail, Saturday, October 21,
2000.
Royal rumble rocks Victoria Society's leading ladies square off in court
against a big-talking baron from California
By Kim Lunman
VICTORIA -- Two years ago, a red-haired aristocrat swept into Victoria introducing
himself around town as a baron with regal ties to Germany and enough costly heirlooms
to fill a castle.
But Georg von Bothmer zu Schwegerhoff hasn't exactly received a royal welcome since
signing a $1-a-year, 99-year lease for a mansion owned by the Anglican Church Women
of the Diocese of B.C. in the city's most prestigious neighbourhood.
Herr Baron von Bothmer zu Schwegerhoff, who grew up George Davis in California and
worked as a teacher's aide in Oregon, is being sued by the group, who want to evict the
47-year-old Freiherr from his new palace.
But the baron isn't budging from the three-storey Tudor, a former seniors' home assessed
at $1.5 million, which he has renamed the Rockland Royal Manor.
He and his wife, the Baroness Julie von Bothmer zu Schwegerhoff, 36, and their two
young daughters moved to the mansion in February with grandiose plans of opening a
museum there to showcase their heirlooms.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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The case is raising eyebrows in Rockland, an area known for stately mansions, sprawling
gardens and the Lieutenant-Governor's house.
"He walks around like he thinks he's royalty," Rockland Avenue resident Gordon
McAllister said. "There's no love lost in the neighbourhood. Nobody has anything to do
with him."
The estate once belonged to philanthropist Kathleen Agnew, who left the 26-room
mansion in 1950 to the church group as a seniors home for disadvantaged women and
widows of clergymen. The home received provincial funds for a time, but it became too
costly to run after government assistance stopped in 1996. It closed last year.
A lawsuit filed by the Anglican Church Women of the Diocese of B.C. this week accuses
the baron of brokering "an unconscionable bargain."
A statement of claim filed in B.C. Supreme Court alleges that Mr. von Bothmer zu
Schwegerhoff "harassed and hounded" the women into signing a sweetheart deal on
Valentine's Day after months of "shrewd and aggressive" negotiations.
A statement of claim contains allegations that have not been proven in court.
"The officers controlling the plaintiff were all elderly, several were sick and none had any
expertise in matters of managing, selling or dealing with real estate," the documents state.
The lawsuit accuses the baron and baroness of trying to sell the lease to developers "so as
to make a large and obscene profit."
It alleges Mr. von Bothmer zu Schwegerhoff took out a $600,000 mortgage against the
lease in July.
The baron declined to be interviewed. But his lawyer, Robert Maguire, said the lawsuit is
unfounded.
"The von Bothmers entered into this with the best of intentions," he said. The group's
president, Muriel Rae Seale, "dictated the terms of the lease," said Mr. Maguire. "Any
suggestion that they hounded the ACW is categorically denied. It was the ACW that
hounded them."
The $1-a-year lease is no bargain, he said, noting the manor's monthly upkeep is $7,000
and annual property taxes exceed $10,000.
"They really pushed it on us," Mr. von Bothmer zu Schwegerhoff told the Portland
Oregonian.
Ms. Seale could not be reached for comment. Church officials contend the lease is void
because it was approved without a special resolution by the dwindling group of 100
women that make up the society from Anglican parishes across Vancouver Island.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Mr. von Bothmer zu Schwegerhoff denounces questions about his aristocracy, issuing
copies of his birth certificate as proof.
"The title is entirely legitimate," Mr. Maguire said. "He is properly and legally a baron."
His regal roots read like a soap-opera script.
Mr. von Bothmer zu Schwegerhoff was born George Criser Davis in Santa Monica,
Calif., on Oct. 29, 1952. An original birth certificate lists his parents as Wilda Hall Davis
and Charles Davis, an aircraft engineer who has since died.
He was adopted six years ago at 41 by Baroness Helene von Bothmer zu Schwegerhoff, a
former model who was born in the United States and married into German nobility in
1936.
Three years after her husband, Baron Heinrich von Bothmer zu Schwegerhoff, died in
1950 she married his cousin, Karl von Bothmer, a career diplomat in Europe.
In a court affidavit signed a year before she died in 1996 at the age of 87, the baroness
said George was Karl's son and the couple's heir.
The baron successfully filed a court petition to be declared Karl's biological son in
Oregon. A birth certificate issued in 1996 lists Karl as his father and Helene von
Bothmer zu Schwegerhoff as his mother.
At the time, he was a community worker in the Portland public school system and the
baroness was in a nearby retirement home.
Her memoir, A Kindred Spirit, says Wilda Davis was the baroness's niece and raised the
boy. The baron says Karl told him he was his real father in 1967 on a trip to Disneyland's
Magic Kingdom.
Questions about his biological parents remain unclear. The baron has said in the past that
it's nobody's business. "My mother in Germany was my mother. My mother in America
is my mother. And my father most certainly was Karl," he told the Oregonian.
Betty Benton, 85, has gathered signatures from 25 of the women in the ACW group who
say they would have opposed the lease had they known about it.
"Poor Ms. Agnew would turn over in her grave," 91-year-old member Nancy Johnson
said. She says the baron should relinquish the mansion so it can be sold and the proceeds
donated to charity.
"This whole thing has been mishandled," said Ms. Agnew's great-niece, Heather Moore,
of Whidbey Island, Wash. "They just gave our family home away. . . . "
The baron and his family moved to B.C. in 1998 after he tried without success to claim an
ancestral castle in Klutz, Germany.
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Why the baron chose to make his kingdom in Victoria is a mystery. But he shows no sign
of leaving. The German flag is flying proudly over Rockland Royal Manor, which has a
sign at the bottom of the winding driveway sporting the baron's royal coat of arms.
A few months ago, David Robinson found the sign behind his downtown antique shop,
apparently tossed there by vandals.
Mr. Robinson took the sign back to find the baron relieved at its safe return but dejected
by his chilly reception in B.C.'s capital city.
"He said people in Victoria hated him and he just didn't know why."
Some details of the case are reported in the following: 2001 CarswellBC 579
Other Cases to consider:
Alford v. Canada (Attorney General) (1997), 31 B.C.L.R. (3d) 228 (B.C. S.C.) -- applied
Hunt v. T & N plc, 4 C.C.L.T. (2d) 1, 43 C.P.C. (2d) 105, 117 N.R. 321, 4 C.O.H.S.C. 173
(headnote only), (sub nom. Hunt v. Carey Canada Inc.) [1990] 6 W.W.R. 385, 49 B.C.L.R. (2d)
273, (sub nom. Hunt v. Carey Canada Inc.) 74 D.L.R. (4th) 321, [1990] 2 S.C.R. 959 (S.C.C.) -applied
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
Group Project 2
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Bad House Deal
Don sold his revenue house to George. The house is a bungalow with a basement suite.
At the time of the sale, both rental units in the house were rented and had been for two
years with the same tenants.
The entire sale was handled through Realtors and Don never met with George. George
took two hours to inspect the property before making the offer to purchase.
Don and George both signed a standard real estate board house sale contract that said that
the house was sold as is. The contract also contained a clause stating that any actions on
the contract had to be commenced within one year of the possession date.
Fourteen months after George took possession, he noticed that the floorboards covering
the basement concrete floor were loose. He tore up those boards and discovered
extensive rot in the underlying boards. He also discovered substantial cracks in the
concrete foundation. The basement tenant advised that while Don owned the house, Don
completed extensive repairs to the basement ceiling and some of the drywall covering the
basement walls.
George sued Don asking for rescission of the contract or, in the alternative, damages and
alleges misrepresentation innocent, negligent or fraudulent in the quality of the house.
George in effect alleges that he was not sold a house at all, but rather a pile of building
rubble.
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.
The following pages give some possible legal case precedents that may help the Plaintiff.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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The following are comments of Professor Bora Laskin, later Chief Justice of Canada, in
his lecture, "Defects of Title and Quality: Caveat Emptor and the Vendor's Duty of
Disclosure" (1960), Law Society of Upper Canada, Special Lectures, p. 389 at pp. 403-4,
as follows:
Does the vendor have any duty of disclosure in matters of quality and fitness that
do not constitute defects of title? Here we deal with the classical notion of caveat
emptor as applied to the physical amenities and condition of the property
unrelated to any outstanding claims of third parties or public authorities such as
would impinge on the title. Absent fraud, mistake or misrepresentation, a
purchaser takes existing property as he finds it, whether it be dilapidated, buginfested or otherwise uninhabitable or deficient in expected amenities, unless he
protects himself by contract terms. In contracts for the sale of goods, a purchaser
is today protected not only by such express terms as may be stipulated therein but
also by implied terms - for example, there is an implied condition of
merchantability in case of a sale of goods by description and an implied condition
of reasonable fitness for a particular purpose made known to the seller. Does this
is any way hold true in the case of sale of land? To the extent to which implied
obligations of the vendor are involved in contracts for the sale of land, to that
extent is caveat emptor in its full rigour abated.
And
1996 CarswellNB 405
Domokos v. Phillips
Imre Domokos and Kelly Anne Domokos (plaintiffs) and Robert Charles Phillips
and Diane Raiche-Phillips (defendants)
New Brunswick Court of Queen's Bench
McLellan J.
Heard: July 23, 24, and 29, 1996
Judgment: August 8, 1996
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Group Project 3 Taking Out a Contract on Crime
The following is an article from the Edmonton Journal for October 23, 2000
Tenants sign leases agreeing to leave if convicted of crime under new program
Chris Purdy, Journal Staff Writer
The Edmonton Journal
In a first for Edmonton, a police-related program will try to reduce crime in
apartment buildings by evicting criminal tenants.
More than 40 managers and landlords from across the city have shelled out an
average $200 fee to enter the Crime-Free Multi-Housing Program.
As part of the program, new tenants and old tenants renewing their leases must
sign a civil contract in which they agree to move if there is any illegal activity in
their apartments -- drugs, prostitution, or domestic abuse.
The eviction notice is usually drawn up once there is a criminal charge. But not
always. A boy under 12 can't be charged with selling crack cocaine in his
mother's suite, but the family still can be evicted if there's evidence of the crime.
The contract rules are the same as those in the city's tenant bylaw. The contract
just puts the rules in bold print as a reminder for tenants.
The program has been shown to decrease the number of police calls to
membership properties in the more than 1,000 American communities and a halfdozen Canadian cities where it is now operating.
"I've got a lot of families and seniors who will be happy," said David Birkholz,
who manages six apartment buildings for his father's family-run business,
Birchwood Equities.
Landlord Shawn Green doesn't expect his tenants to object to the contract. If they
don't sign, he doesn't want them as tenants anyway.
The Capital Region Housing Corporation plans to put 16 buildings -- some in
Mill Woods, Beverly, Londonderry and Dickinsfield -- into the program.
Edmonton police, Const. Merle Doherty, said he expects some tenants in the
public housing projects will leave rather than sign the contract.
Tim Zehring, a police officer in Mesa, Ariz., conducted a program seminar for
Edmonton landlords on Tuesday.
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Zehring said when the program starts in any city, the criminal "refuse" moves to
the same areas. But this eventually spurs more landlords to enter the program. It
also spurs criminals, who want roofs over their heads, to clean up their act.
“It's been an evolution, not a revolution," Zehring said.
He said program statistics in the United States show an 80-per-cent drop in
police calls in poor crime areas and a 20-per-cent decline in better
neighbourhoods. "I think it will do wonders for Edmonton," Edmonton deputy
police chief, Gerry Shimko said.
During part of the seminar, landlords learned how to screen tenant applications
and look for warning signs of criminal activity. Landlords must next comply with
several safety features in their buildings and hold a "safety social" for tenants
before they are certified.
The program is sponsored by several agencies, including the Alberta Motor
Association. The AMA plans to offer insurance discounts for tenants and
commercial rebates for owners of program buildings.
After introduction of this program, Homer Blimpson, his wife Mabel and their two
children Lucy (aged 10) and Brat (aged 8) move into Tumble Towers, owned by the
Capitalist Housing Authority. Homer signed a contract that included the following term:
If at any time during the tenancy, the tenant or members of his or her family,
should be convicted, indicted, charged or suspected of any criminal act or moral
wrongdoing, then such act or wrongdoing constitutes sufficient grounds for
immediate eviction from the premises. The tenant hereby agrees that any such act
or wrongdoing constitutes his or her immediate notice to vacate the premises
within 14 days. The tenant also forfeits any and all remaining security deposits
made with the landlord as liquidated damages and not as a penalty. The tenant
has acknowledged reading this clause and has initialed his or her name beside it
herewith.
Homer signed at the end of the 23-page lease document which included the above term on
page 17. Homer did not initial the document anywhere.
Six months after moving in to Tumble Towers, Brat Simpson brought his friend Garth
Vader over to the Blimpson residence. Unknown to Brat, Garth had in his knapsack
some stolen property, some non-prescription “medications” and a copy of the “Racing
Form.” Bart and Garth went on the Internet using the Blimpson computer and ordered
computers from “Macrohard Computers.” Unfortunately the Macrohard Computer web
site crashed causing $22,000,000.00 in lost revenues. Police traced the email messages
sent to Macrohard Computers back to the Blimpson home.
Capitalist Housing Authorities has started a court action to evict the Blimpsons.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Hint: Is the term on page 17 a legal term of the contract?
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.
Here is a case precedent that may help. When reading this case ask the question whether
relief from forfeiture under s. 10 of the Judicature Act of Alberta may help the
Blimpsons.
1994 Carswell, Alta 128 FERN INVESTMENTS LTD. and ROYAL GARDEN RESTAURANT
(CALGARY) LTD. (Appellants/Applicants) v. GOLDEN NUGGET RESTAURANT (1987) LTD. and
BUTLIN, BIGGS & COULTRY (Not parties to this Appeal/Respondents) and ROYAL BANK OF
CANADA (Respondent/Intervener)
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Group Project 4 The “Missing Piece”
Rugs “R” Us Ltd. manufactures and sells hairpieces for men.
On October 10 Melton Johns, an “entertainer” of a certain age (he is over 18 years) went
to the “Rugs” Shop at East Redmonton Mall where he inspected the “pieces” on display.
Melton did not find anything he wanted and asked the salesman, Max Headset, whether it
was possible to order a customized piece. Melton explained that he was attending an
Elvis impersonation convention in Las Vegas on November 1 and it was “very important
to have the piece before Melton left for ‘Vegas on Halloween.”
Max thought to himself that, normally, custom jobs took a minimum of three weeks to
complete. Max was low on his quota for hairpieces that month so he told Melton that he
could supply the piece that Melton wanted by the time specified for $700 even though
Max thought to himself privately that he wasn’t sure he could.
Max had Melton sign a standard “Rugs ‘R’ Us” contract which included a term that stated
as follows:
Rugs “R” Us Ltd. specifically makes no representations as to quality, features,
suitability or time of delivery of any and all of its products. Any such oral
representations made by Rugs “R” Us Ltd., its agents, employees, sales staff or
any other person is of no force or effect and by signing this document, the
customer specifically acknowledges this term.
Melton signed the contact above the line that said “Customer.” Melton did not bother to
read the contract before he signed it.
On October 30 Melton called Max at “Rugs,” and asked whether the piece was ready.
Max said “No problem,” so Melton said he would be in to “Rugs” the next day on his
way to the airport.
On Halloween, Melton arrived at the “Rugs” shop where he found that the piece was not
ready. Max was cowering in the back room and refused to see Melton.
Melton left for ‘Vegas where he faced embarrassment when other Elvis impersonators
laughed at his lack of a proper duck-tail ‘do.
Halfway through the Elvis convention, Melton called Max to give him a “piece” of his
mind. By a happy coincidence, Max had received Melton’s piece and offered it to
Melton. Melton said if Max could courier it to him in ‘Vegas, all would be forgiven.
Max said it would cost $200 to courier the piece to ‘Vegas. Melton refused saying it was
too much. Melton gave Max another bit of his mind. Max told him to “put a lid on it.”
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Melton, feeling insulted, slammed the phone down. Melton also felt crushed because he
missed entering the “Blue Hawaii” component of the Elvis convention.
Melton then went down the “strip” to “Speedy toupees” where there was a special on
Elvis wigs. Melton purchased a new piece for U.S.$1200 (C$500 more than the contract
with “Rugs”).
When Melton returned to Canada, “Rugs” sued him for non-paymentasking for the
original purchase price of $700. Melton counter-claimed “Rugs” for breach of contract,
for $5000 for damages to his reputation and for the cost of the piece purchased in ‘Vegas.
Issue: Is the store in breach of contract? Is Melton liable for payment of the original
purchase price of $700? If the store is in breach, what damages will it have to pay? If
Melton has to pay the purcahse price, does he still have a right to his losses?
Hint: For your legal research, please check out the case of Queen v. Cognos Inc., [1993] 1
S.C.R. 87, 99 D.L.R. (4th) 626.
Also available at:
http://www.lexum.umontreal.ca/csc-scc/en/pub/1993/vol1/html/1993scr1_0087.html
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Group Project 5 Plugged Plumbing
Mervin Plugg wishes to sell his plumbing business called Plugged Plumbing Ltd. Mervin
owns 100% of the shares in “Plugged.”
Nikki Airbrush is looking to buy a established plumbing business (she has recently retired
from a “personal services horizontal consulting business”) and has $2Million to invest.
Mervin is willing to continue working in the plumbing business after he sold the assets to
allow a smooth transition for the new ownership.
Mervin sold the business to Nikki by a share transfer agreement dated October 1 . He also
signed a employment contract dated the same day that paid him a minimum $500 per
month retainer plus 50% of the net receipts from all service calls that Mervin performs.
Mervin was required to promote the business during his retainer.
On October 1, Nikki paid the first installment of purchase price of $1Million for
“Plugged”. She made a downpayment of $100,000 with the balance payable monthly until
the full price was paid.
One month later two cheques payable from “Plugged” to Mervin were returned NSF. One
was for the $500 retainer payment for the past month and another was for $345 in
expenses. Mervin met with Nikki and Nikki agreed to transfer her 1998 VW “Bug” to
Mervin in satisfaction of the debts.
She later alleged but Mervin disputes this fact that Mervin also agreed to take back the
business.
One day after the sale of “Plugged”, Mervin set up a new corporation called “Unplugged
Plumbing Ltd.” Nikki alleges that Mervin called up all the customers of “Plugged” and
invited them to take their business to “Unplugged” Several customers took up the
invitation and Mervin billed them for plumbing services collecting 100% of the proceeds.
He did not report this actvity to “Plugged” or to Nikki.
Meanwhile Plugged was running into trouble. Its former customers were moving to
“Unplugged” and it could not meet its obligations.
Nikki claims she has no obligations under the contract and sues for damages for Mervin
breaching his employment contract.
Mervin claims for the balance of the share purchase price.
What can each side claim and defend?
Hint: For your legal research, please check out the case of Kirkland v. Taylor, 2001
ABQB 388
Also available at:
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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http://www.canlii.org
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Group Project 6 Hardluck Student
Mabel Hardluck, a student at the College of Northern South Alberta (CNSA), has
enrolled in a 2 year University transfer program. She hopes to complete her degree (B.A.
with a major in sociological entomology and a minor in bingo hall management) at the
University of Southern North Alberta (USNA) located in Rosebud Alberta.
Mabel met with Ima Busy, a kind-hearted student advisor at CNSA. Ima had Mabel fill
out a ‘student worksheet’ form. At the top of the form it said in large bold red letters:
You are responsible to complete this form accurately. Check the
Transfer Guide (available on our web-site
(www.alltheanswersatCNSA.org/obscurepages ) and make sure the
receiving institution knows about you.
Mabel read the red letters on the form and asked Ima what they meant. Ima said; ‘Don’t
worry, be happy; I’ll help you every step of the way.‘
Ima then said that Mabel should take 5 courses in entomolgy starting with BUGS 101
(Arachnids through the ages) and ending with BUGS 402 (Spider empathy counselling).
For her minor Mabel was told to take CARD 101 (Introductory Bonanza cards)
progressing to BING 399 (Sociology of Hockey moms and other Bingo Hall volunteers).
Mabel then filled in the ‘student worksheet’ form with the suggestions made by Ima.
Mabel pursued her studies diligently for 2 years. She would check in with Ima after each
mid-term and at the end of the term final exam periods. Ima had heard from other
students that transfers to other institutions were tricky, so she wanted to make sure that
her course of study was correct. She knew that she had to transfer after 2 years and did
not have sufficent savings for another term of UT study. She was promised a job (it was
in writing) after she graduated with her B.A. at the New Arachnid Spider Ranch and
Bingo Resort. Her promised salary was $80,000.00 per year (her skill set was a rare
combination) plus car (an Alfa Romeo Spyder) plus health benefits.
Mabel completed her 2 years with a GPA of 3.5. She then applied to the University of
Southern North Alberta (USNA) located in Rosebud Alberta and provided a copy of her
transcript. USNA wrote back advising that unfortunatley she was missing 5 important
courses. Further, she should not have taken CARD 101 (Introductory Bonanza cards)
because the professional association (International Brotherhood of Bingo Callers) had decertified that course 3 years ago. Instead she should have taken CARD 111 (Bingo cards
in the Digital Age) which had been offered at CNSA for the last 3 years. Ima never told
Mabel about CARD 111. USNA advised that if she took a qualifying year to complete the
missed courses they would admit her but she would graduate 1 year later than expected.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
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Mabel was very upset and ran to Ima screaming, ‘You lied to me! I took courses you said
to take and now they won’t transfer. I’ve wasted a year of my life!’ Ima was taken aback
and said ‘I tried my best! No one can understand the Transfer Guide! You’ll have to
appeal to the Appeals Committee of CNSA.’
Mabel appealed to the Appeals Committee. The committee allowed her to make oral
submissions. Mabel said she relied completely on Ima and trusted her. Mabel said she
wanted all her tuition back from CNSA so she could pay for the qualifying year at USNA.
She was also upset that she would be delayed in starting her $80,000 per year job because
she would need at least one more year to complete her degree. The Committee heard
from Ima and accepted written submissions from College officials but did not allow
Mabel to question Ima or any of the other College officials present. The Committee then
adjourned to a private room and returned saying that they did not have juridiction to
return tuition or to give damages for the added qualifying year. Unfortunately therfore
Mabel Hardluck was now out of luck.
Mabel wants to sue.
Is CNSA in breach of contract with Mabel? What is the effect of the text in red letters
quoted above? Are there other remedies available such as remedies in tort law? Are there
any administrative law remedies available here?
Hint: Look for cases:
Crerar v. Grande Prairie Regional College
and
Mohl v. University of British Columbia found at
http://www.courts.gov.bc.ca/jdb-txt/CA/09/02/2009BCCA0249.htm
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
Page 17
Group Project 7 Working Hard or Hardly Working
Myrtle and her husband Howard want to sell their present house (located at 23 Dead-end
Alley) and use the sale proceeds to buy a bigger house. They also wish to sell their lake
cottage (located at Lake Puce). Their neighbors at the lake have loud parties every
Saturday night during the summer and Myrtle and Howard are fed up.
The house is owned by Myrtle and the Cottage is owned by Howard.
Myrtle and Howard meet with Frank, a real estate agent. Frank goes by the trade name
‘Fabulous Frank’ because he is the most successful real estate agent in the area. He tells
Myrtle and Howard that he can get $250,000 for the house at 23 Dead-end Alley and
$100,000 for the cottage at Lake Puce. Once his commission is deducted (‘standard’ 6%
on the first $100,000 and 3% on the balance) they can apply the balance to buy the house
of their dreams.
Myrtle and Howard had previously found ‘the house of their dreams’ at 99 Gretzky Way.
Its price is $450,000. They therefore explained to ‘Fabulous Frank’ that it was very
important to mazimize the sale proceeds from the sales of their existing house and
cottage.
‘Fabulous Frank’ said ‘No problems; Be Happy! I’ll get you top dollar. He also said he
could ‘introduce’ them to a ‘cut-rate mortgage broker’ if it was likely that Myrtle and
Frank would need to borrow some money to buy ‘the house of their dreams.’
Myrtle and Howard nodded and quickly calculated that after payment of the commissions
they would need to borrow more money to buy the house at 99 Gretzky Way.
Howard therefore signed a 90 day ‘Listing agreement’ for the house and a 180 day listing
agreement for the cottage with ‘Fabulous Frank’ but without reading the listing
agreements. ‘Fabulous Frank’ told Howard not to worry too much about the listing
agreements because they were ‘standard wording and other boilerplate text.’
Unknown to Myrtle and Howard the Listing agreement for the house said that if Myrtle
and Howard sold the house within 1 year after the listing agreement expired they would
still have to pay Frank’s commission. The listing agreement for the cottage did not have
this clause.
Howard and Myrtle asked Frank to introduce them to the mortgage broker, ‘In the event
we need to borrow a little money.’ ‘No problemo,’ said Frank, ‘His name is Guido and
he’ll give you a great deal.’
Howard and Myrtle contacted Guido who agreed to lend up to $150,000. Myrtle and
Howard signed a ‘Loan agreement’ in which they promised to borrow the money no later
than 3 months from today. In the event that the money was not borrowed Howard and
Myrtle would pay Guido a 10% ‘forfeiture’ fee. Unknown to Myrtle and Howard
however, Guido and Frank had a secret agreement whereby Guido paid a 10% ‘finder’s
fee’ to Frank for each ‘Introduction.’ Accordingly, Guido paid Frank the 10% fee the next
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
Page 18
day. Guido always received back from Frank $200 from each deal as a ‘bonus’ and
because Guido was Frank’s brother-in-law.
The day after signing the listing agreements, Warran, a fabulously wealthy barber started
chatting with Howard at a barbershop. Warran had never met Frank. Howard said in
passing that ‘They had just listed their house and cottage with Frank and that they hoped
to get a good price.’ When Howard mentioned the prices for the properties, Warran said
‘I’ll pay you that price, that’s a fair price because I’ve seen both properties.’ (Howard did
not mention the noisy neighbors at the lake property, preferring to keep that detail under
his hat in case Warran changed his mind.) Howard said ‘You got a deal, brother!’
Later Myrtle said’What about the listing agreements? Don’t we have to pay Frank’s
commission if the house is sold during the listing period?’ Howard glanced quickly
through the listing agreement for the cottage and said to Myrtle, ‘No problem, I’ll see if
Warran will agree to delay the purchases of the house and cottage until 3 months from
tomorrow. That way we won’t have to pay the commisisons.’
The next day Howard went to see Warran and explained that Myrtle was feeling ‘poorly’
and did not want to move right away. ‘Would he mind,’ Howard asked, ‘if we could delay
the sale for 3 months?’
(This was a lie because unknown to Warran, Myrtle was training for an ultra-marathon
(100 km barefoot run in the Arctic this coming January).)
All the same, unknown to Howard, Warran learned that day that he was having a few
financial problems (his stock portfolio tanked after the recent market problems). Warran
said, ‘No problem. You make sure the missus gets well! I can wait!’
Howard had Warran sign a piece of paper [undated] that said ‘Agreed, I will buy the
house at 23 Dead-end Alley and cottage at Lake Puce owned by Myrtle and Howard 3
months from today. [Signed] Warran Buffet.’
During the next 3 months Fabulous Frank was away on a holiday. During that time, there
was no advertising for the house at 23 Dead-end Alley and cottage at Lake Puce. Of
course, Myrtle and Howard did not complain because they wanted the listing agreements
to expire so they could get the maximum sale proceeds from Warran for the house at 23
Dead-end Alley and cottage at Lake Puce.
When Frank got back from his 3 month holiday, he heard that Warran’s wife Mabel had
left Warran. The rumour was that Mabel was upset at Warran for agreeing to buy the
house at 23 Dead-end Alley and cottage at Lake Puce.
The next day, Howard went to Warran and said he was ready to complete the sale.
Warran said, ‘I’m mighty sorry but my missus has got the law after me, I can’t get at my
money. I won’t go through with the deal.’
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
Page 19
(This was not exactly true. It’s true that Mabel was upset but she had only seen her
lawyer. She was secretly hoping for a reconcilation with Warran who was still ‘the love
of my life.’)
Frank now wants his commission.
Is there a breach of contract? Can Frank sue for the full commissions? Is there anything
that Myrtle and Howard can complain about? Is there an agency problem (Howard to
Frank and Frank to Myrtle and Howard)? Does an agent owe a higher standard of care
because of agency?
Was the contract with Warran frustrated?
What effect does the failure of Warran to complete the purchases have on Frank’s claim
for commissions?
Can Myrtle and Howard sue Warran for breach of contract? Are there any problems with
the requirement of writing?
Hint: Begin your research by reviewing the law on agency (use LawSource and look for
Encylopedic Digests) and the textbook discussion on Statute of Frauds.
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.
LEGL 210 BUSINESS LAW I - GROUP PROJECTS
Page 20
Group Project 8 Troubles in the Family
Ambrose and Betty were married in 1970 and divorced in 1978. During and after the
marriage, Betty transferred various properties into and out of Ambrose's name, receiving
tax advantages because of the transfers. Due in part to Ambrose’s limited English
language skills, he was unaware of the transfers and received none of the proceeds of sale
of rental from the properties in his name. In 1999, he obtained a copy of the divorce file
from the courthouse, and realized that a lawyer Betty had taken him to see in filing the
petition for divorce was supposed to have represented his interests. Ambrose brought an
action against Betty seeking a declaration of constructive trust in his favour over property
owned by Betty or her company, Voodoo Investments Ltd., damages for physical and
emotional abuse, and punitive damages. He also sued two lawyers (Pat and Mike) for
damages for breaches of contract and breach of professional duty. Ambrose also claimed
compensation for bookkeeping and cleaning services he rendered to Betty's business
under an oral contract. The oral contract did not mention any price for the services
rendered.
Hint: look at
Dimitri Burcevski et al. v. Monyca Ambrozic (Alta. C.A., May 22, 2008)
The group must prepare and hand in a legal brief (essay) for assessment by the
instructor. The essay will consist of an introduction of relevant facts, a synopsis of
the relevant law that will include 3-5 relevant cases (quote all cases using APA or
MLA legal citation style) and a concluding section. The relevant cases should each
illustrate a different legal principle that helps one or all sides of the case. The brief
should be written so as to elucidate both (or all) sides of the case. The concluding
section should try to convince the reader how the relevant law is to be applied to the
particular facts of your case.
In addition, you must present a 10 to 15 minute summary of the facts or hearing of the
case for presentation in class for assessment by your classmates.