Intentional Tort Issues in Business Law Questions

1 Instructions. There are 15 questions. The midterm is closed book – you are not permitted to consult any materials or people – except for reading the case in question 3 on Wikipedia. * Please create a word document and include your name and A number. You can submit your answers (just your answers; I don’t need the questions) as a Word document or PDF via a Dropbox Folder called ‘Midterm 2’on Brightspace. 1. A sign on the door of the grocery store stated: “Due to Covid 19 restrictions in order to enter this store you must wear a mask and use hand sanitizer.” When Bill walked through the door of the store without wearing a mask the person at the door told Bill to stop because he was not wearing a mask. Bill just ignored the person on the door and walked straight into the store. What is the name of the intentional tort Bill committed? What exactly did Bill do that meant he committed that tort? 2. Denny was running at full speed through the Library when he saw a yellow sign that said “Danger Wet Floor”. Two seconds later he slipped and broke his arm. An out of court settlement was reached saying: “Saint Mary’s was negligent and that Denny’s total damages amounted to $2,000 but that Denny was 25% contributory negligent.” Explain to Denny what contributory negligence means and how it will affect his damage award of $2,000. 3. Google/find the case immediately below in Wikipedia and read it in there. And then answer this question: What was the standard of care that was breached in Escola v. Coca-Cola Bottling Co? Escola v. Coca-Cola Bottling Co. – Wikipedia 4. Dr Oz hosts a weekly television show devoted to giving advice about healthy living. On one show he told his television viewers that the real secret to a good life was to eat two spiders every day for one week each year. When Kim who watched the show ate her first spider she had an allergic reaction and could not work for one week. She sued Dr Oz for giving negligent advice and not warning her of the dangers of eating spiders. The judge who heard the case dismissed it saying that there was not sufficient proximity between Dr Oz and Kim. Explain why the judge would say this. 5. What is the goal or aim of damage awards in negligence cases? 2 6. Tianci and Dongsheng talked about forming a limited partnership in order to carry on their import business with Tianci as the general partner and Dongsheng as the limited partner. Tianci and Dongsheng each invested $20,000 in the business. However, they forgot to register their business as a limited partnership. The business did not do well, and after not paying the rent for their warehouse for six months Tianci left Halifax and Dongsheng has not been able to contact her. But Dongsheng is confident he won’t have to pay the six months rent because he is a limited partner. Is he correct? Why/Why not? 7. Max, Mark, and Mary were young Chartered Professional Accountants (CPAs) who just opened their accoutning practice and thought it would be best if they formed a limited liability partnership (LLP) which was properly registered. Max and Mark had no personal assets, but Mary was known to be wealthy. Max gave bad legal advice to one of his clients and the client successfully sued Max for negligence and damages were calculated to be $20,000. The client knew Max had no personal assets but was confident that, because they were partners, Mark and Mary would have to pay for the $20,000 damages. Is the client correct? Why/Why not? 8. Ahmed and Zoe were good friends who liked to build websites together for their friends for free. After about six months other people heard about them and Ahmed and Zoe began building websites charging money for them. Soon their business developed and they divided up the work Ahmed designed the websites and Zoe looked after the business side of things. After about six months of this practice, and in his spare time, Ahmed designed a complicated website for a friend. When he was finished his grateful friend paid Ahmed $5,000 and Ahmed deposited the money in his own bank account. Somehow Zoe found out about the payment and told Ahmed he should pay her half of the $5,000. Is Zoe legally entitled to half of the $5,000? Why/why not? 9. Recycle Corporation is a private company with four shareholders who each own 25 common shares in the company. In June 2011 when they bought their shares, each shareholder paid $4,000 for their twenty-five shares. In March 2014 Recycle Corporation was unable to pay a $100,000 negligence claim against it. Does this mean that each shareholder will now have to write a cheque for $25,000 to help pay for the negligence claim? Why/Why not? 10. Ray and Dave each own 25 shares of Best Car Buys Ltd, and Ray and Dave are officers and directors of Best Car Buys Ltd. which sells second-hand cars (used cars). The company had a 3 large inventory of cars on their lot. Ray was tired of the old car he was driving so he decided to replace it with a car from the car lot. When Dave objected, Ray replied, “Look, it’s my company too. Because I own half the cars I have the legal right to take one if I want to.” Is Ray correct? Can Ray take a car? Does he own one-half of the cars? Why/why not? 11. Identify one way that “public” and “private” corporations are different. 12. Presume you just graduated from Saint Mary’s and want to start your own marketing business. Which form of business would be most suitable for your business? Why? 13. El Paso Inc hired Goldman Sachs Corp to advise it (El Paso Inc) whether to split into two companies or to sell the company (El Paso Inc) to Kinder Morgan Corp. Goldman Sachs Corp owns 20 per cent of the shares of Kinder Morgan Corp (worth about US$4 billion) and has two seats on its board. What is the problem with this situation? How would you recommend it be solved? 14. Explain how the types of shares of a cooperative support the aims, principles, and values of cooperatives? 15. What does it mean to say that a cooperative has a separate legal personality. …
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