Business Law Assignment: Analysis of Compact's Legal Issues, BUS2010

This business law assignment analyzes a case study involving a company, Compact, and its various contractual and legal issues. The assignment assesses the validity of contracts, identifies breaches, and explores potential legal actions, including those related to breach of contract, passing off, defamation, and bankruptcy. The analysis includes evaluating damages, considering remedies such as compensation and injunctive relief, and examining the application of consumer law. The assignment also addresses issues of trespass and the consequences of actions by third parties, such as a leasing company. The student's submission provides detailed responses to specific questions, citing relevant legal principles and case law to support the arguments and conclusions. The assignment covers diverse areas of business law to provide a comprehensive overview of the legal challenges faced by the company in question.

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Running Head: BUSINESS LAW ASSIGNMENT
BUSINESS LAW ASSIGNMENT
Course Number
Section Number
Name of Student
Date
Names of members in this group

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BUSINESS LAW ASSIGNMENT
Table of Contents
Part 1................................................................................................................................................3
Part two............................................................................................................................................5
Reference List..................................................................................................................................8

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Part 1
1. From the above case study, a valid contract between Compact and International Tire Inc. has
been found by focusing on the following key elements:
Legality: The contract is legal as the president of the International Tire Inc. has signed the
contract by addressing that Compact would repair the computers of this organization.
Agreement: While making this contract, a valid agreement between Compact and International
Tire Inc. has been addressed, which illustrated a three year deal with Compact.
Capacity: Both parties were fully aware of the importance of such contract as Sydney and
Nancy were capable of understanding the business process.
Although, another critical element is found missing from this contract is a consideration as the
president of International Tire Inc. has not sanctioned any amount of money to initiate this
contract legally.
2. It is found that violation or breach of any contract can be evidenced, if:
 One of the parties does something irrelevant to the agreement, which impaired the entire
workflow
 One of the parties fails to achieve something necessary written in the contract
Interpreting the case study, it can be said that Compact has been unable to repair and deliver
computers within four business days. Due to some issues with payment the stated company has
failed to fulfill the liabilities mentioned in this contract. As a result, the deal is explicitly
breached. Hence, International Tire Inc. might take legal action after identifying that Compact is

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continuously failed to requirements of this company. On another hand, Compact can claim
compensation for other issues that have restrained its timely delivery. However, it might not be
feasible for Compact for claiming such compensation.
3. The court will take a significant approach to solve the question of damages that have been
found during this agreement. Hence, the following factors would be considered:
 The actual loss that has been seen due to the cause of the breach
 Identifying the severity of an injury
4. Assessing the agreement between Compact and American Tire Corporation, it can be said the
contract is invalid. It can be noted that Compact will not be able to bill American Tie
Corporation $100,000 annually. The primary reason behind such issue is the notion of the
contract. It can be said that Compact and American Tie Corporation have initiated a fixed deal
which cannot be changed further. It is the mistake of Sid and Nancy that they did not notice the
change in the amount mentioned in the contract. On another hand, Compact can propose the
breach in a verbal agreement that has been conducted by the American Tie Corporation. Drawing
evidence from the current literature, it can be said that compact will not be successful in this
case.
5. Shawna can take this action against the Compact. She can file a complaint against the
Compact. As found in the case of Drew Brown Ltd. v. The ‘Orient Trader,' [1974] S.C.R 1286,
the plaintiff received significant compensation after filing the lawsuit against the defendant.
Hence, the same can be applied to Shawna as upon examining the appropriate repairing charge.
In that case, Compact will be the defendant and Shawna will be the plaintiff.

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6. Shady can successfully sue Compact for returning his money. The original statement that can
support Shady is the breach of contract and consumer law of this country. After purchasing
service from the Compact, Shady did not get the anticipated benefits, which can help Shady to
sue Compact for getting his money back successfully.
Part two
1. Passing off in legal terms can be defined as a false representation of a good or service (Hart,
Clark & Fazzani, 2013). Focusing on the current issue, it can be said that Shady is the plaintiff as
he did not receive appropriate service from the Compact. On another hand, Compact is the
defendant in this case as this startup has failed to provide adequate assistance to its consumer
while charging money. Hence, the following remedies are available in this context:
 The defendant might give compensation to the plaintiff
 Financial punishment can be issued by the court (LaFrance, 2014)
Although, following losses would be addressed while considering this case:
 The economic failure of plaintiff
 Breach in the contract of a service
 A breach in consumer law
2. The phenomenon with contractual relations can be interpreted as a tri-partite situation, where
business organizations or individuals face financial losses due to such agreement (Ng, 2016). In
this context, National Business services will be the plaintiff, and the Compact will be the
defendant. However, the following facts can be addressed for supporting such a claim:
 The existence of a valid contract

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 Defendant knew about the deal
 Plaintiff received injuries due to the defendant's actions
Remedies will be:
 Injunctive relief
3. Defamation can be identified as a false statement that can impair the reputation of any
individual or company (Nagra, 2013). In this defamation can be evidenced by the incident of a
leasing company which has created problems for the Compact. In this case, the plaintiff is the
Compact, and the defendant will be the leasing company. Nancy and Sydney might apply for
compensation due to collateral damages.
4. Yes, that would be enforced by the Court because in the contract it was mentioned that no
employees could agree with other companies.
5. Trespass has become a significant issue from the perspective of Compact as the act of leasing
company has created significant problems for this organization. This includes financial loss due
to fire ignition. Hence, the Compact would be the plaintiff, and the agent of the leasing company
would be considered as a defendant.
6. In this context, the leasing company can claim its car that is going to be sold after the
declaration of bankruptcy. Hence, the plaintiff will be the leasing company, and the defendant
would be Compact.

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7. It is observed that Nancy and Sidney have sold their materials for generating money. Besides,
the profit amount was returned towards the suppliers. Hence, the Bankruptcy and Insolvency
Act has been breached significantly.
8. Yes, Lucky Accounting can claim its HQ computers from the Compact. The primary reason
behind such claim is Compact has not used the proper security system to ensure the safety of
products. Hence, if Lucky Accounting becomes successful, then the Compact might have been
penalized.

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Reference List
Drew Brown Ltd. v. The ‘Orient Trader,' [1974] S.C.R. Retrieved from 1286https://scc-
csc.lexum.com/scc-csc/scc-csc/en/item/5258/index.do
Hart, T., Clark, S., & Fazzani, L. (2013). Intellectual property law. Macmillan International
Higher Education.
LaFrance, M. (2014). A Material World: Using Trademark Law to Override Copyright's First
Sale Rule for Imported Copies. Mich. Telecomm. & Tech. L. Rev., 21, 43.
Nagra, A. K. (2013). A Higher Protection for Scholars Faced with Defamation Suits. Hastings
Const. LQ, 41, 175.
Ng, C. W. (2016). The law of passing off–goodwill beyond goods. IIC-International Review of
Intellectual Property and Competition Law, 47(7), 817-842.