Business Law Assignment: Law 1000, Chalmers University, Spring 2020

This document presents a solution to a Business Law assignment, addressing two specific scenarios. The first scenario examines the enforceability of a non-competition provision in an employment contract under Canadian law, focusing on the fairness and ethical considerations surrounding such clauses. It analyzes the potential limitations imposed on an employee's ability to seek alternative employment after termination. The second scenario explores the formation of a partnership between two business graduates aiming to start a gaming business. The solution outlines the key aspects of establishing a partnership, including the importance of a contractual agreement, the liabilities of partners (joint and several liability, tortious liability, and debt liability), and the fiduciary duties involved, such as disclosing important business information. References to legal and business literature are included to support the analysis. The assignment demonstrates an understanding of key legal principles related to employment and business partnerships.

Running head: BUSINESS LAW ASSIGNMENT
LAW 1000
Name of the Student
Name of the University
Authors Note

1BUSINESS LAW ASSIGNMENT
Answer- 2.
As per the given scenario, Sally Jones joined as a sales trainee at ABC Distributors 9
years ago and promoted as a sales manager 3 years ago. Approximately, six months ago the
agreement signed by her had some conditions regarding termination. However, the conditions
were not ethical and against the Canadian employment law.
In the case of Sally, she has agreed that she may be fired at any point in time as long as
her employer provides the required notice, which is lawfully appropriate and enforceable. The
key problem is the non-competition provision, which allows her not to work for a duration of a
three-year as a rival in the Province of Ontario. The problem arises regarding the enforceability
of the non-competition provision. It appears to be entirely unfair and difficult for Sally as a
worker because it prevents her from finding another employment in case of termination
(Estreicher & Hirsch, 2013). The employer does not offer any salary for the time the
arrangement is in place, thus limiting her to discover another job. Therefore, for this reason, the
non-competitive agreement signed by Sally might not be enforceable, under any just situations.
The reason behind it is that the conditions were not principled and against the Canadian
employment law (Pothier, 2011).
Answer- 3.
In this given scenario two business graduates want to start a gaming business by taking
rent in a large abandoned warehouse with various gaming areas. As their common intention is to
start a business and making a profit out of it thus they can form a partnership business. Forming
a partnership firm is comparatively easy than any other form of business organization because it
involves fewer formalities. However, it is better to enter into a contractual agreement that

2BUSINESS LAW ASSIGNMENT
generally covers the subjects of decision making, division of assets, distribution of profit and
their positions (Beatty & Queen’s, 2019).
If they want to start a partnership business then for the risk of partnership business both
of them will be held jointly and individually liable. For tortious liability, one partner will be held
responsible for the mistake of another partner. For instance, if one of the students performs any
wrongful activity to one of its customers as a partner and issued by that customer for the tort of
misconduct then that graduate along with his partner will be held responsible for paying
compensation. Most importantly, every partner will be held liable for the debts of the business.
Finally, the partners of a partnership business have a fiduciary duty of disclosing important
information of the business (Åstebro & Serrano, 2015).

3BUSINESS LAW ASSIGNMENT
Reference
Åstebro, T., & Serrano, C. J. (2015). Business partners: Complementary assets, financing, and
invention commercialization. Journal of Economics & Management Strategy, 24(2), 228-
252.
Beatty, C. A., & Queen’s, I. R. C. (2019). Business Partner.
Estreicher, S., & Hirsch, J. M. (2013). Comparative Wrongful Dismissal Law: Reassessing
American Exceptionalism. NCL Rev., 92, 343.
Pothier, D. (2011). Wrongful Termination Claims in the Supreme Court of Canada: Coming Up
Short. Dalhousie LJ, 34, 51.