Business Law - Assignment 3: Discovering the Laws Around You Project

This assignment, titled 'Discovering the Laws Around You,' presents a comprehensive exploration of various aspects of Canadian business law. It utilizes real-world illustrations to explain legal concepts such as trespass, voluntary assumption of risk, battery, invitation to treat, exclusion clauses, breach of contract, sale by description, business structures (specifically partnerships), breach of director's duty, and workplace discrimination. Each illustration is accompanied by a detailed explanation of the relevant legal principles and, where applicable, references to pertinent case law and legislation, including the Trespass to Property Act, the Sale of Goods Act, and the Business Corporations Act. The assignment also touches upon consumer protection laws related to gift cards and the importance of business structures. This assignment is designed to help students understand how legal principles apply to everyday situations and to foster an understanding of the Canadian legal system.

Running head: BUSINESS LAW
BUSINESS LAW
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
Illustration 1: Trespass
“No trespassing” sign on a Building site
The tort of trespass to land takes place when a person enters upon the land of another
without the consent of its owner or possessor. Such consent could be express or even implied.
The Trespass to Property Act [RSBC] 2018 (British Colombia) governs the tort of trespass in
British Columbia, Canada. In this regard property owners often put warning signs in their
property in order to refraining people from trespassing. In the case of Corlis v Blue Grass Sod
Farms Ltd, 2016 ABPC 55 (CanLII) the plaintiff was awarded with compensation for the
damage done to his land by the trespasser. In many instances, the owners and possessors put
up warning signs at construction sites in order to stop people from entering for it might be
risky for such person to visit a damaged or under-construction site,
It is an illustration of a warning that aims to bar trespassers from entering into a
building site for it could not only cause damage to the owner of the property but also certain
unwarranted injury to the trespasser.

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Illustration 2: Voluntary Assumption of Risk
“Spectators shall be responsible for their own safety” written behind the ticket of a baseball
match
In law of torts, a person cannot be held responsible for the injury of another to which
he consented. In Hall v. Hebert, [1993] 2 SCR 159 it was held that when a person gets into a
vehicle knowing that the driver was drunk, he is consenting impliedly as to any probable
danger that might be caused. In Deyo v Kingston Speedway Ltd, [1954] 2 CLR 41 it was held
that the plaintiff had consented to the risk that was involved with the risky sport which he
consented to be a spectator of, for it involved an imminent risk for injury. This signifies the
principle of volenti non fit injuria or the voluntary assumption of risk.
This is an illustration of a voluntary assumption of risk where the aggrieved party had
the knowledge of a risk involved in the particular activity he was part of and therefore shall
not be liable to ask for compensation for such injury.

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Illustration 3: Battery
“Barry hits Larry with an iron rod”
The tort of assault and battery refers to the intentional tort where a person threatens
another in the former case while makes physical contact on the latter. Assault under criminal
law refers to physical attack, while in case of tort law it signifies a threat of physical harm
without an actual bodily contact. While Battery is considered to be a physical contact that
involves an assault along with it, for there can rarely be a battery without an assault. However
in the case of Fisher v Carrousel Motor Hotel, Inc., 424 S.W.2d 627 (1967) it was held that a
battery may not signify a direct bodily contact between the two person involved. It may also
involve a physical harm done with an object held by the tortfeasor.
This is an illustration of a tort of Battery where Barry has intentionally hit Larry with
an iron rod, causing physical injury to him.

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Illustration 4: Invitation to treat
“Resellers are welcomed”, an advertisement by a wine wholesaler”
Sellers often publish advertisements for buyers and resellers to approach them with an
offer to buy their products in lieu of an adequate consideration. An offer must be
differentiated from an invitation to treat. An invitation to treat is simply an expression which
suggests that the inviter is willing to negotiate regarding a deal, however such willingness to
negotiate does not necessarily mean that he or the invitee shall be bound to accept the
negotiation that has not been turned into an agreement so far. Invitation to treat is usually
recognised as the pre-contractual representation.
This is an instance of an invitation to treat which arises when a person puts up an
invitation or advertisement as a negotiation that tends to signify his interest to initiate a deal
with another. In this situation, the wine wholesaler published an advertisement that called for
resellers to approach him with an offer to purchase wine from him, for that is where the offer
and the acceptance shall start. Therefore, an invitation to treat should not be treated as an
offer as held by Fisher v Bell [1961] 1 QB 394.

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Illustration 5: Exclusion Clause
“The supplier shall not be held responsible for the quality of the goods”
An exclusion clause excludes a party to the contract from his contractual obligation
under certain situations. Exclusion clause differs from disclaimer clause for it has a direct
effect on the enforceability of the contract in case of breach or otherwise. It is mainly used in
insurance contracts, extended warranty contract. It saves the seller or supplier from the
obligation to amend or rectify the situation in case the goods or services provided turns out
faulty. It acts as a good risk management policy for businesses to save itself from further
from after sale services.
This is an illustration of exclusion clause that lets the supplier escape from being held
liable for the goods that he only supplied and did not manufactured. This seems justified in
this case, for a supplier cannot be held liable for the quality or quantity of the goods which he
was only responsible for the supply.

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Illustration 6: Breach of contract
“Sam promised to sell his car to Max on a fixed date under a fixed consideration, but later
refused”
An agreement between two parties which could be enforceable makes a valid
contract. Contract law is significant is all forms of transaction that involves at least two
parties who promise to do something for each other in exchange of a consideration. This
promise could be enforced in a court of law, provided that the contract was created satisfying
all the essential requisites like a valid offer and acceptance, common intention, exchange of
adequate consideration, between parties who are competent to enter into a contract. A party
that does not fulfill his side of the promise gives rise to a breach of contract.
This is an illustration of a breach of contract between parties one of whom had
promised to sell his car to the other in lieu of consideration, yet did not execute his part. Here,
Sam has breached the contract and shall be liable to face a litigation effected by Max who is
the aggrieved party. In this case, the court may give an order of ‘specific performance’ by
which Sam shall be bound to fulfill his promise of selling his car to Max.

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Illustration 7: Sale by description
“Keren bought a dress online, but on receiving she noticed that the dress does not match
with the product shown in the online site”
The Sale of Goods Act [RSBC 1996] (British Colombia) is applicable to sales that
involve a buyer and a seller or seller to seller transactions. Ordinarily such transactions are
also guided by the law of contract along with the application of Sale of Goods Act in order to
protect the rights of the consumer as well as the seller (Canada, 2019). In a transaction of
sale, the goods may exist at present like merchandise readily available at a store or it may be
expected to exist in future like merchandise that are showcased in an online site that are
delivered to the buyer after they are purchased. In any case, it is a mandate for the seller not
to exhibit false description of the goods, for that will amount to deception. Section 17 of the
Sale of Goods Act [RSBC 1996] states that the goods sold by a seller must match the
description, which was shown to the buyer before he purchased it. This strives to protect the
interest of the consumer.
This scenario talks about the usage of consumer protection law. In this scenario, the
dress bought by Keren from an online store does not match with the display picture that she
had seen before she paid for it online. This is an instance of deception by the seller that
affects Keren who is a consumer.

8BUSINESS LAW
Illustration 8: Business structure
“Mario approached a legal counsel for an advice on the pros and cons of Partnership form
of business for he intended to start a business with his friend”
A definite business structure must be maintained in order to maintain a proper
governance system for it. Different business structures require different procedural set up and
different governance system. Therefore, it is significant to decide a definite business structure
before one starts making business transactions. A partnership involves at least two people
carrying out a business with a common intention to make profit, but by not following a
structure of a corporation. A partnership is governed by the Partnership Act [RSBC 1996]
(British Colombia). A partnership is simple and involves lesser amount of capital investment,
along with hassle-free set up. In regard to tax implications, the partners pay taxes from their
share of profit that they earn from the firm. It is easier for partnerships to fetch resources due
to their smaller sizes and also due to the facts that the partners work in a close-knit
environment, which becomes easier for them to help each other in case of any inconvenience.
The only disadvantage of this business structure is that each of the partners owes limitless
liability towards the debts and obligation of the firm, which signifies that each partners shall
be held liable to pay off the debt of the firm if the business fund fails to make the payment.

9BUSINESS LAW
Illustration 9: Breach of director’s duty
“The directors of the XYZ & Co Ltd had been drawing personal gains from the company
transaction”
The fiduciary duties laid down under the Common Law along with the legislations
like Business Corporations Act [SBC 2002] (British Coloumbia) and clearly defines the
duties and responsibility of the directors of a company. The directors of a company are asked
to take reasonable care along with due diligence while carrying out a duty in the capacity of
director. They are supposed to maintain data security along with a transparency as to the
payments received on behalf of the company. They must not make profits from the company
transactions, for it would amount to a breach of director’s duty.
This situation arose since the directors of the XYZ & Co Ltd were not being honest
with marinating the company fund. This is an instance of breach of director’s duty. The
common law as well as the Canada Business Corporations Act prohibits directors from
breaching their duty of care, not only towards the employees but also towards the company.
The directors have an absolute liability in terms of fulfilling the provisions of these legislative
framework, as they are otherwise it would be held as a breach of duty.

10BUSINESS LAW
Illustration 10: Workplace discrimination
“Susan had not been paid the same as her male colleagues even though she was more
tenured and experienced than them, carrying out the same responsibility”
The Canadian Business Law lays down the principle that an equity must be
maintained in the workplace in terms of fairness of payment as well as the terms of
employment opportunities. Before looking into the specific employment law to deal with
such cases, it must be remembered that the British Colombia Human Rights Code restricts
workplace discrimination and require the employers to keep a parity between the employees
holding the same designation with the same job role. In addition, the employment or
workplace law addresses the issues of under-payment and under-representation of a certain
class of people. The Code strives to resolve the issues of equal pay for equal work for both
men and women while the BC Human Rights Code addresses issues related to equal pay for
work of equal value, thereby maintain a fair pay system within an organisation.
Therefore, citing these two legislations, Susan can approach her employer in terms of
her lesser pay package in comparison to the men who does the same job as her, in the same
designation. In addition, she could cite the Human Rights Code to warn her employer from
discrimination between the male and female employees.

11BUSINESS LAW
References
BC, Human Rights Code
Business Corporations Act [SBC 2002]
Canada, C. (2019). Misleading advertising and labelling - Competition Bureau Canada.
Retrieved 24 August 2019, from https://www.competitionbureau.gc.ca/eic/site/cb-
bc.nsf/eng/02776.html
Corlis v Blue Grass Sod Farms Ltd, 2016 ABPC 55 (CanLII)
Deyo v Kingston Speedway Ltd, [1954] 2 CLR 41
Employment Standards Act 2000
Fisher v Bell [1961] 1 QB 394
Fisher v Carrousel Motor Hotel, Inc., 424 S.W.2d 627 (1967)
Hall v. Hebert, [1993] 2 SCR 159
Partnership Act [RSBC 1996]
Sale of Goods Act (Ontario) R.S.O. 1990
The Trespass Act [RSBC 2018]. British Columbia