COMMERCIAL LAW

SECOND ASSIGNMENT March 5, 2019

Instructions
1. The assignment must be typed as word document using Times New Roman font, size 12, with
single spacing.
2. Length: The answers to each question will be about a page in length or less. The whole
assignment should be no longer than four typed pages (cover and the bibliography page will not
be included in this page limit). Penalty will apply if length restriction is breached; 2 marks to be
deducted.
3. Submission: A hard copy is due at the beginning of class on April 2, 2019. Late assignments
may be accepted not later than 3:00pm on same day (April 2, 2019), Assignment will not be
accepted in another manner or form, or after 3:00 pm on April 2, 2019.
4. Task: The assignment deals with the materials in Chapters 16, 15, 13, 14 of the textbook.
Question 1 deal with Chapter 16, question 2 deal with chapter 15, question 3 deal with chapter 13
and question 4 deal with chapter 14.
5. Weight: This assignment is worth 15% of the final grade in this course. See the marking rubric
on page 5.
Notes
1. Plagiarism: This is an individual assignment. All sources must be included in a bibliography.
All quotations, including those from the textbook and the internet, must be set off within quotation
marks and must be referenced. Duplicate and plagiarized papers will receive a grade of zero.
2. To be sure you understand the rules with respect to academic honesty, review the library’s
Academic Honesty tutorial at
http://liad.georgebrown.ca/liad/Library/index.html
3. Proof read carefully. Serious errors of spelling/grammar will result in loss of a grade.
Question 1
(a)Serena wanted to buy a car as her new job required her to drive often. She walked into Toyota’s
new car lot, pointed to a specific car, and said, "I'll take that one." Clement, a Toyota’s agent who
managed the car lot, explained that there was a certain amount of pre - delivery preparation that
had to take place before the car could be delivered, and that it would be ready for the purchaser
two days later. It was agreed that the purchase price would be paid at that time.
Explain who bears the risk in the meantime.
(b) Assuming that Serena did not like the colour of the kind of car that she saw at the car lot. She
nevertheless paid the purchase price upon an agreement that Toyota Company would deliver to

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her house the next week, that car, with the colour (red) that she liked. It happened that as the car
was being transported for delivery to Serena’s house on back of a carrier truck, the carrier-truck
was involved in an accident, and the windshield of the new red car broke.
Explain who bears the risk of this damage.

Question 2

(a) Owen had borrowed money from a credit union to purchase a car, and the credit union had
required a security against the car, which they registered under the Personal Property Security Act.
As well, Owen's father guaranteed the loan. Some months later, Owen decided to go back to
school, and he had to sell the car to do so. He returned to the credit union and, at his request, the
credit union gave up the security they had against the vehicle, knowing that they still had the loan
guaranteed by Owen's father. Owen defaulted and, instead of repossessing the vehicle, the credit
union demanded payment from the father.

Identify, discuss and apply the principle of law involved in the case scenario. Explain the legal
position of the father under these circumstances.

(b) After graduating, a student set up a business as a systems analyst. His monthly billings are
healthy, about $10 000 a month. He rents his office, hardware, and furniture and owns few assets.
He rents his apartment, has no car, and spends most of his income on concerts. If he approaches
you, a bank manager, to borrow $50,000 for the purpose of increasing his working capital.

Identify, explain and apply the most appropriate security required to secure the above transaction.

(c) One of the suppliers of Golddust Inc., who is owed $500.000, started a court action to reclaim
that debt. Paulos also gave a personal guarantee of his debt, and has been sued in the same action.
Neither Paulos nor the company has defended. On October 7, the supplier wants to obtain a default
judgment against Golddust Inc. and Paulos.

Appling the correct principle of law, explain whether the action will succeed, and how the supplier
would have been protected.

Question 3

(a) Tom was employed as a programmer by Mohawk Oil Company about three months after
graduation. Because his friend, Harry could understand the program he was working on and
because Harry write well, he requested Harry to take on the task of writing the manual to
accompany the program.

Applying the correct principle(s) of law, discuss the issue(s) raised in the case scenario.

(b)Three students chose to work on a directed study project for Planned Parenthood Association.
The project included the creation of an app for inventory control. The students went to the library
to get a book on the topic. The book was in the reserve section, so the students made three copies

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of the four relevant pages so that they could study them. They used the ideas from the book and
created an original app and a manual. Later, when the students were preparing a report for their
presentation, they decided that the pages in the book exactly expressed the theoretical background
they needed for the introduction. They copied those four pages and used them as their own for the
beginning of their twenty page report. At the presentation, seven copies of the report were made
(with the code and manual as appendices).

Applying the correct principle(s) of law, discuss the issues raised in the case scenario.
Question 4
(a) Glenda verbally agreed with his landlord to a two-year lease for an apartment. Only five
months later, the property was sold to somebody else. The new owners gave Glenda three
months to vacate the premises.
Applying the appropriate principles of law explain Glenda's legal rights under these
circumstances.
(b) Alfred was walking in a park and found a watch. He took it to the city's lost-and-found, but it
was not claimed. Three years later, Alfred went to the lost and found, asked for the watch, and
was told that the watch was a property of the city.
Applying the appropriate principles of law explain Alfred's legal position in these circumstances.
(c) Brenna owns two adjacent lakeside lots. She sells one lot to Burt and Ernie, with the
provisions that they agree not to develop any commercial facilities on the land and to plant a row
of rose bushes between the properties. The covenants are registered in the appropriate Land
Titles Office.
Applying the appropriate principles of law, discuss the implication of the covenants, if Burt and
Ernie decides to resell the lakeside lots to James.

Marking Rubric

CATEGORY LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4

Range (0-4 marks) 0-1 mark 1-2 marks 3-3.5 marks 4 marks
Spelling, grammar
(including use of full More than 6 4-6 errors. 2-3 errors. No errors - 1 error.
sentences), punctuation errors.
Range (0 - 5 marks) 0 - 1 mark 2- 3 marks 4 marks 5 marks

Question 1(a) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
of legal of legal of legal legal concepts
and issues.

3
Knowledge/application concepts and concepts and concepts and
of legal concepts and issues. issues. issues.
issues

Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 1(b) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues.
Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 2 (a) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues
Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 2 (b) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues.

Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 2 (c) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues issues. issues.

Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 3 (a) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues.

4
Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 3 (b) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues.

Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 4 (a) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues.

Range (0 - 5 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 4 (b) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues.

Range (0 - 6 marks) 0 - 1 mark 2 - 3 marks 4 marks 5 marks

Question 4 (c) Limited/poor Some Solid Sophisticated

understanding understanding understanding understanding of
Knowledge/application of legal of legal of legal legal concepts
of legal concepts and concepts and concepts and concepts and and issues.
issues issues. issues. issues.

Total -/54 marks