Law Final Exam Notes: Agency, Partnerships, Property

Cases to know: 1. Dodge v. Ford Motor Company (1919) Issue: Can a corporation prioritize social good over shareholder profit?​ Facts: ​ Ford wanted to reinvest profits and raise worker wages instead of paying dividends. ​ Dodge brothers (10% shareholders) objected. Ruling: ​ Court sided...

Cases to know: 1. Dodge v. Ford Motor Company (1919) Issue: Can a corporation prioritize social good over shareholder profit?​ Facts: ​ Ford wanted to reinvest profits and raise worker wages instead of paying dividends. ​ Dodge brothers (10% shareholders) objected. Ruling: ​ Court sided with Dodge. ​ Said directors must prioritize shareholder interests, not social goals. Key Takeaway:​ Corporations exist to maximize shareholder value. “Social good” can't override this unless it's aligned with shareholder interests. 2. Health Services & Support – Facilities Subsector Bargaining Assocation. v. British Columbia (2007) Issue: Is collective bargaining protected under the Canadian Charter?​ Facts: ​ BC government passed legislation undermining public-sector collective agreements. ​ Health unions challenged it. Ruling: ​ Supreme Court ruled in favour of unions. ​ Section 2(d) of the Charter (freedom of association) includes a constitutional right to collective bargaining. Key Takeaway:​ Since 2007, unions have constitutional right for collective bargaining in Canada. The government can’t just ignore union deals — it’s illegal under the Charter now 3. Richard v. Time Inc. (2012) Issue: Are misleading ads illegal even if the fine print tells the truth?​ Facts: ​ Richard got a letter from Time Magazine suggesting he won a prize — he hadn’t. ​ Fine print clarified conditions, but it was misleading overall. Ruling: ​ Supreme Court used the “general impression” test and ruled in Richard’s favour. Key Takeaway:​ If an ad is misleading to an ordinary, rushed consumer, it violates consumer protection laws—even if technically accurate in fine print. 4. Salomon v. Salomon & Co. Ltd. (1897) Issue: Are corporations separate legal entities from their owners?​ Facts: ​ Salomon incorporated his boot business. ​ Creditors tried to go after his personal assets after the company failed. Ruling: ​ House of Lords ruled that the corporation was a separate legal entity. ​ Salomon wasn’t personally liable.​ Key Takeaway: Established the corporate veil — shareholders are not personally liable for corporate debts Chapter 10: Agency AI is not credible and often hallucinates -​ A lawyer was caught out in course using fake cases cited by chat GPT Air Canada case: AI chatbot gave incorrect info and AC got sued. AC said their chatbot is a separate legal entity -​ AC lost the case Agency: service performed by agent on behalf of principal (person who hires agent) -​ Agents have significant authority to make decisions on your behalf without the principal’s approval -​ Can sign contracts on your behalf -​ Actions of agent are binding on principal -​ Exception: Real estate agent doesnt have authority to make decisions without your permission (Not an agency relationship) -​ Customer service rep is an agent and what they offer is binding (ex: $20 off next month) -​ have to grant authority for it to be an agency relationship Power of attorney: type of agency relationship -​ appointing someone to make certain decisions for you (health/financial) Agency Relationship can be created by: 1.​ Agency Agreement -​ Most common way to create agency relationship 2.​ Actual Authority: the principal actually does have an agent -​ Expressed or implied -​ Express contract: explicitly creates agency relationship -​ Implied contract: common in spousal relationships -​ If implied, it still has to be crystal clear that they have authority 3.​ Apparent Authority (Estoppel): when a principal implies to a third party that they have an agent but they actually didnt have one. Then the “agent” performs a certain action and you aren’t happy with it. -​ Courts use reasonable person test -​ Estopel: A legal principle that prevents someone from going back on a previous representation if someone else relied on it to their detriment -​ Courts estop (stop) you from saying that you dont have an agent -​ Means principal is bound by the contract Ratification: ‘agent’ acted without authority on behalf of principal. Then the principal approves (ratifies) the action after its happened. -​ Have to ratify within a reasonable time limit -​ Principal has to have capacity WHEN that action happens  -​ Ex: if you’re very drunk when your sister bought a car for you, you dont have capacity to approve it Agency by Necessity: someone is given power to make executive decisions on behalf of owner in a time of absolute necessity -​ When owner can’t be contacted -​ More common before you could text/call -​ Very rare, doesnt really happen anymore Agent’s Duties: 1.​ Contractual 2.​ Duty of care 3.​ Discretion / specific instructions: if they don’t have specific instructions, they can use their discretion 4.​ Delegation: cant delegate responsibilities to someone else 5.​ Accounting 6.​ Fiduciary duty 7.​ Utmost good faith Principal’s Duties: -​ To honour terms of contract by which agent was hired -​ Payment -​ Principal must reimburse agent’s expenses -​ Ambiguous authority: if amount of power is ambiguous, the agent is assumed to have full authority Third Party: may be able to sue for -​ Breach of Warranty of Authority: -​ Tort of deceit / fraudulent misrepresentation: hard to prove -​ More damages if you can prove this -​ negligence Employers are vicariously liable for employee’s actions during course of employment -​ Employers have much more money so they will likely get sued Termination of Agency: occurs on withdrawal of consent of principal -​ Other ways to terminate: death, insanity, bankruptcy, dissolution of principal corporation, mutual agreement between parties -​ Exception: enduring power of attorney -​ Has to be explicit Chapter 10: Partnerships Sole Proprietorship: individual owns business alone -​ Business and person is the same legal entity -​ Unlimited liability: owner is responsible for all costs, losses, obligations, and liability -​ However, you can get insurance to limit liabiilty for almost anything  -​ Advantages: easy to start, you have all the decision making power Partnership: when 2 or more people carry on business in common with a view towards profit -​ Have to know exact definition for exam -​ 2+ owners own business -​ Share ownership and income -​ Can be created through a contract or inadvertently -​ If no written agreement/agreement doesn't cover certain topics, its governed by Partnership Act -​ Every partner is assumed to be an agent of another partner -​ Vicarious liability -​ Unlimited liability for partners, and they are responsible for conduct of employees and other partners -​ If there is debt, and partnership can’t pay it, you can go after the partners personal assets -​ All property brought into the partnership from personal property automatically becomes shared property and partners are entitled to their share -​ When sharing of income doesn’t establish a partnership: a.​ Owning shared property b.​ Paying employees based on commission or shared profits c.​ If youre a beneficiary of previous partner who has passed away d.​ Loan where interest payments vary based on profit -​ When partnership will be presumed: a.​ When they invest capital b.​ Joint participation in managing business c.​ Ongoing sharing of profit and losses -​ Joint venture: one time sharing of P&L. not a partnership -​ Fiduciary duty is owed -​ Advantages: partners have different strengths and can work together -​ Disadvantage: unlimited liability, have to share profit and decision making power -​ Dissolving partnership: Agreement should have dissolution clause a.​ Some partnerships have fixed terms b.​ If a partner goes bankrupt, partnership automatically dissolves c.​ If they both agree to dissolve -​ Everything above is general partnership -​ There always has to be at least 1 general partner (with unlimited liability) -​ Limited Partnership: seeking investors who are partners in the sense that they are investing in the business -​ Their only liability is what they invested in the business -​ They dont have a say in the management of the business -​ If you do one thing to manage the business in any way, you are now a general partner -​ Can’t give advice to partners or get involved -​ Limited Liability Partnerships (LLPs): General debts are unlimited but liability to your partner is limited -​ Means that you are not liable for the actions of your partner  -​ Ex: if they get sued, you have limited liability -​ For general partners, you have unlimited liability if your partner gets sued Law firms / doctor offices / accounting firms cannot be corporations -​ This is because we want them to be responsible for their actions Chapter 11: Corporations Corporations: separate legal entity, limited personal liability -​ Considered persons under the law -​ Can enter into a contract with a corporation, can sue, are protected under certain section of charter (when it refers to persons) -​ Concept of corporations wasnt created for the purpose of shielding owners from liability -​ Salomon vs Salomon & Co: main case that established the corporate veil (protecting owners from liability) Process of Incorporation: -​ Different provinces have different ways of incorporating (3 ways). Slightly different and all lead to same result 1.​ Articles of incorporation (Ontario et al) 2.​ Registration (nova scotia) 3.​ Letters patent (Quebec and PEI) Funding of Corporations: -​ Director’s only duty is to corporation (and by extension, shareholders)  -​ Shareholders dont have a duty to the corporation -​ Shares: give holders interest to the company Common shares: rights to vote, can attend shareholder meetings, right to receive dividends Preferred shares: first in line for dividend and liquidation, no voting rights Borrowing: debts to company -​ Can issue bonds: interest-bearing loans secured by corporation’s assets -​ Can issue Debentures: unsecured loans, higher return usually Shares can be closely held (family owns most/all shares) or largely held (many shareholders) -​ Ikea: example of closely held Shareholders elect directors -​ Directors: must be of age, of sound mind, no criminal record involving fraud, can’t be bankrupt -​ Directors can have non-fraud criminal records (ex: drugs) -​ This is a question on the midterm -​ Directors have fiduciary duty to corporation (have to act in best interest of corp), and have the duty to exercise care, diligence, and skill of a reasonably prudent person -​ Directors are personally liable to shareholders if they act illegally (insider trading) -​ Directors are personally liable to employees for unpaid wages -​ Can get directors insurance to protect against this -​ Directors can sue other directors in the same company -​ Have to prove other directors dont have companies best interests at heart -​ Can be personally liable for environmental damages unless they can show they were diligent in their actions -​ Took reasonable care to ensure they didn’t do environmental damage -​ Officers and senior management also owe fiduciary duty to corporation -​ However, they aren’t personally liable Shareholder have few obligations, but one is they can’t insider trade -​ rights: 1.​ To see certain contracts (list of shareholders, lists of officers and directors, articles of incorporation, etc) 2.​ Access to auditor and report 3.​ Annual general meeting 4.​ Proxies 5.​ To not have dilution of shares -​ Derivative actions: -​ Against directors (leave/lead?): -​ Need permission from courts -​ Name of the plaintiff is the corporation, not shareholders -​ Saying directors are doing a bad job -​ Oppression action: -​ also against directors -​ Dont need permission -​ In shareholders own name  -​ Saying that you as a shareholder are being oppressed and that directors are abusing their power -​ Dissent and appraisal remedy: gets shares appraised and company buys them -​ Dividends: corporation has no legal requirement to issue dividends -​ However, most directors issue dividends to keep shareholders happy and so they can keep their job -​ Should have a written shareholder agreement -​ Especially if theres an even split of shares held (2 people own 50% of shares each) -​ Most have arbitration clauses Pros of Incorpoaration: -​ Limited liability -​ Tax advantages -​ Succession: corporation carries on even if shareholder die -​ No duty owed by shareholders to corporation Cons: -​ Minority shareholders have little power -​ Transferability of shares might be restricted -​ Lots of expenses and regulations for the corporation -​ If youre a small company, incorporating may not be worth it Termination of Corporations: -​ Voluntarily or involuntarily -​ Wind up: -​ bankruptcy: -​ Internally or externally -​ Internally: directors decision -​ Externally: courts order -​ If you fail to file legal documents, by law, you have to dissolve after 1 year Dodge vs Ford: -​ Dodge brothers owned 10% of company -​ Ford had lots of cash and shareholders (dodge) wanted dividends -​ Henry ford (ceo) wanted to ‘give back to community’ by raising salaries and reinvesting in company -​ Courts said that corporations duty is to shareholders, so dodge brothers won case Grimshaw vs Ford: -​ Gas caps on ford cars were broken and cars exploded -​ Ford knew about this but it costed $11/car to fix and it would be cheaper to pay off lawsuits of dead people (cheaper for shareholders) BCE vs 1976 Debentureholders -​ Allowed directors to care about not only shareholders and corporation, but also employees, the environment, creditors, government, etc -​ Good corporate citizen Chapter 12: Employment Law Employment: one person doing work for another -​ Doesnt include contractors Control test: to what extent does the person receiving performance have control over employee? -​ Control of working hours, -​ More control employee has, more likely they are a contractor Organization test: where a person falls in an organization’s matters -​ Supplement to control test -​ If someone only works at an organization, they are probably an employee -​ If the org cant function without the person, they are probably an employee -​ Person cant be independent contractor and employee at same time -​ Independent contractor: regular contract law applies -​ Ruling: uber drivers are employees, not contractors Law of Master and Servant (Employer Law): combination of general contract law and additional statutes -​ Responsibility of employer: 1.​ Payment of wages 2.​ Provide safe workplace and good working conditions 3.​ Minimize danger 4.​ Hire competent people -​ Written contracts usually dont benefit employees -​ As an employee, often better to not have written contracts Responsibility of employees: 1.​ Follow reasonable orders 2.​ Honesty, *loyalty*, courteous -​ Means loyal when at work 3.​ Punctual, treat property carefully 4.​ Act in employer’s best interest 5.​ Fiduciary duty (sometimes) 6.​ Restrictive covenants (sometimes) -​ Ex: competition clauses (can’t compete with org) -​ Usually 6 months - 1 year and geographically -​ If its too restrictive, courts wont restrict Termination: -​ Employee or employer can terminate -​ Employer has some restrictions based on human rights and Charter of R&F -​ Employee is entitled to reasonable notice if fired without cause -​ And termination payments sometimes -​ If there is no termination clause in contract/unenforceable contract, you are under common law which is much better for employees  -​ Thats why its good for employees to not have a contract -​ Thats why employers should want employees to have a contract and be under Employment Standards Act -​ Common law benefits depend on age, position, and length of time at company -​ Very common for courts to go out of their way to say employment clause is unenforceable -​ If you get employment contract even an hour after you start work for the first time, the contract is invalid -​ If employer wants to change your contract after you started, they have to give you notice or a signing bonus -​ Hard for employer to prove in court that they had cause to fire someone (just cause) -​ If courts disagree with proof of cause, org has to pay extra damages -​ Proportionality: -​ If employer acts in bad faith in the way they terminate you (add extra humiliation), you can sue and courts will make employer pay more damages -​ Layoffs: if there is a shortage of work, employers may be able to lay off employees -​ Layoffs are temporary, and employees are expected to come back later after 13 weeks. If they dont come back after 13 weeks, they are terminated -​ If you are laid off and there is nothing in your contract about it, you legally cannot be laid off -​ The remedy is that you get terminated, so not really worth it to fight layoff -​ Disobedience and incompetence: this means you’re fired for cause, and hard to prove -​ Constructive dismissal: You have been forced to quit because of change in job descriptions, actions of bosses, etc -​ Remedies for wrongful dismissal: money -​ Disability: employer must accommodate your disability -​ Includes other accommodations, including religion, being a parent, etc -​ If you are permanently disabled, employers can frustrate your contract -​ If you get terminated, you have an obligation to mitigate (look for other work) -​ If you dont mitigate, and a court finds that you are wrongfully dismissed, you may get reduced damages Legislation: -​ Sets minimum wage, overtime, work hours, rest periods, vacation, maternity and paternal leave, termination, and severance pay -​ Provincial minimum: Employment Standards Act -​ But If you work under federal oversight (radio, aviation, some banking), you are covered under Canada Labour Code -​ Job protection is better than ESA but __ is not good -​ Issue estoppel: ESA vs common law -​ have to either bring a complaint or file privately -​ You are covered under human rights code, meaning employers have to accommodate employees -​ Ex: employees are allowed to leave early to pick up their kids -​ Ex: employers have to allow employees to take days off for religious holidays -​ Ex: RCMP required employees to wear hats but you cant -​ BFOR (Bonafide Occupational Requirement): required to do the job -​ Ex: you should be fit to be a police officer, but you dont have to be 6 feet tall  -​ Harrasment → discrimination? -​ Constructive discrimination: -​ Pay equity: Worker’s Compensation: -​ Some workplaces are covered under WSIB -​ Physical labour jobs have to be covered under WSIB -​ If covered by WSIB, you cannot sue employer if injured -​ Lots of issues with WSIB claims Health and Safety: -​ in Ontario, Occupational Health and Safety Act -​ Safety issues have to be investigated and addressed -​ If there is bullying/harrasment, it triggers OHSA and there has to be an investigation Employment Insurance: applies only to thse who lost job through no fault of their own -​ You dont get it if you quit or go on strike -​ Also includes sick benefits (up to 4 months) -​ Includes parental leave (18 months max) -​ But its 12 months' pay, spread over 18 months Collective Bargaining (Unions): -​ Union is going to have collective agreement with ___ -​ Jurisdictional dispute: who should be covered under what union? -​ Recognition dispute: before union is in place, __ -​ Interest dispute: union is in place, but debating what should be in the agreement -​ Rights dispute: how to interpret the agreement? -​ Labour relations board: -​ Supreme Court of Canada: made the constitutional right to bargain collectively in 2007 -​ Before 2007, freedom of assembly didnt include unions -​ This changed because of Assn v. British Columbia Organization of employees: -​ Certification: certifies the union (says who the members are) -​ If more than 50% of workers vote in favour of union, union becomes formalized -​ Employer has to be careful about what they say about union -​ Once union if formalized, union becomes the bargaining agent -​ Union has exclusive authority to bargain on behalf of the employees -​ Both sides must bargain in good faith -​ You cant negotiate with or sue employer on your own -​ You can sue union if they dont act in your best interest -​ Management is usually not covered under union -​ You cant opt out of union Bargaining: -​ Ratifications: members of union voting on what union has tentatively agreed to on your behalf -​ Majority of employees have to approve the agreement -​ Grievance process: you can grieve discipline, harrasment, termination, not being promoted, etc  -​ Belongs to union, not griever -​ Grieving means ___ -​ Union shop clause: you have to join the union a certain amount of time after joining company -​ Strike: when employees walk off -​ You can only strike in the middle of negotiating a collective agreement and you are at an impasse -​ After agreement expired and before next one is in place -​ Membership has to vote to strike -​ Last resort leverage -​ Lockout: when employer locks out employees from working -​ Have to provide notice -​ Ex: canada post december 2024 -​ Picketing: can only be done at place you work -​ Ex: western strike last year -​ Has to be peaceful -​ Allowed to be used to dissuade people from entering workplace -​ Aka disrupting traffic -​ Leafleting: handing out information -​ Cant disrupt traffic or dissuade people from entering workplace -​ Can happen anywhere -​ Public Sector: -​ Essential services can’t strike but its replaced by mandatory arbitration clause -​ Ex: police, doctors, firefighters Chapter 13: Intellectual Property Intellectual Property: intangible -​ Anything to do with intellectual property is governed federally 1.​ Copyright: gives owner a monopoly over the use of their created work -​ Prohibits others from copying or reproducing without permission -​ Doesnt matter if its used for profit or not -​ Cant be too restrictive, where it stops free flow of ideas -​ All forms of artistic work is covered under copyright -​ Original work: has to be a result of your individual skill, knowledge, judgement, etc -​ Copyright Act: you can only copyright an expression of an idea -​ You can copyright a love song, but not love itself -​ You can have copyright of different parts of songs (choreography, lyrics, sound, production, etc), with different owners -​ Record deals are historically really bad for the artist -​ You cant copyright a recipe, but you can keep it confidential through NDA’s -​ Creation of the work generates copyright protection automatically -​ You dont need to have a copyright to have the right to your work -​ You can assign (sell) your copyright to someone else if you want -​ Even if you sell your work, the original artists retains moral rights of the work -​ Moral rights: allows you to ensure your work isnt destroyed, distorted, misused, or anything that harms your work -​ Very hard to control copyright violations with the internet -​ Copyright extends for 70 years after the death of the author -​ After that, it becomes part of the public domain -​ Also applies to moral rights -​ Tahts why disney constantly updates mickey mouse to retain the copyright -​ Things covered under copyright: 1.​ All forms of artistic work (sculpture, paintings, maps, drawings, photos, videos) 2.​ Written work, literary work, dramatic work 3.​ Musical compositions 4.​ Dance coreograpohy 5.​ Sound recordings 6.​ Computer software -​ Infringement of Copyright: 1.​ Person tries to obtain benefit from sale, reproduction, distribution, performance, broadcast, or other commercial use of work 2.​ Plagiarism 3.​ Moral rights -​ Exceptions to copyright laws: 1.​ Laws and decisions by courts and tribunals are part of public domain 2.​ Brief quotes credttod to author are okay 3.​ Non-profit educational institutions 4.​ Libraries, archives, museums 5.​ Making private copies of commercially recorded music/films for your own private use -​ Fair Dealing Exception - use of copyright material for purpose of: 1.​ Research or private study 2.​ Criticism or review 3.​ News reporting 4.​ Education 5.​ Parody 6.​ Satire -​ Music Copyright: since there are only a certain # of pleasing notes, just because songs sounds similar, doesnt mean theres automatically a copyright violation -​ Huge grey area because a judge has to decide whether its close enough to be infringement -​ If someone breached your copyright, you want to sue for money and get injunction (stopping person from using your work) -​ Interlocutory Injunction:  -​ Permanent Injunction: -​ Accounting: how much did you profit off my work? -​ Damages: beyond how much they made -​ Delivery up Order: they give you copies of the infringing items -​ Anton Piller Order: raid infringer's house without them knowing -​ Go to court in secret and you get a warrant to raid their house to find copyright violations -​ This is because you are worried copyright violations will be hidden/desroyed -​ If you post something on social media, you give up a substantial portion of your work to the social media app (tiktok, instagram, etc) -​ They have royalty free license to use your work 2. Patents: government granted monopoly -​ Patents must be registered to have the rights to your work -​ For inventions/designs -​ Computer/tech hardware is covered under patents, but software is copyright -​ Has to be of some utility -​ Has to work -​ Cannot patent higher life forms (genetic mutations such as super-mice) -​ Cant patent scientific principles, abstract theory, improvements to already patented items, illegal items -​ ‘Patent pending’ has no legal protection -​ Just discourages other people from patenting the same thing since youre already in the process of getting a patent 3. Trademarks: Term, symbol, logo, design that identifies a business, service or product and distinguishes from a competitor -​ must be registered to get rights -​ Competitors can steal your design/logo if its not registered -​ Goodwill value: -​ Cannot be a word that does not distinguish your product (ex: bed) -​ Can lose your trademark through common use -​ Escalator and trampoline used to be a trademarked term, Memes: exception to copyright because: 1.​ theyre made just for fun 2.​ Arent used for commercial gain 3.​ Dont have substantial adverse affect on original material AI: US judge found that AI committed a copyright infringement -​ Canadas major news organizations are banding together to sue chat gpt Chapter 14: Real/Personal Property Property: relationship existing between the item and the individual who owns it -​ the state-enforced legal right to exclude others from access or use of something you have ownership of Property Law: law of Exclusion -​ Excludes other people from using things that you own without your permission Real property: actual land and anything attached to it (ex: your house) -​ Where does property begin and end? -​ Do you own the air space above your land? -​ Answer: any space that you can actually use/occupy -​ Around 30-50 feet above your land is what you own -​ Mineral, oil, and gas rights are by default owned by the crown  -​ But you can buy the rights off the crown Estates in Land: historic artifact from feudal system 1.​ Estate in Fee Simple: people in canada technically dont own their land -​ It means we have the right to use the land above anywhelse else, except for the crown -​ The crown is the ultimate owner of all land -​ However, they never really take away land 2.​ Life Estate and Reversionary Interest: when you pass away, you grant your spouse the right to own the land for as long as theyre alive, but ownership gets past on to children when the spouse dies -​ This is stated in a will 3.​ Leasehold estate: 99 years lease -​ Not common in canada but is a common law concept Easements: -​ Right of way: dominant and servant tenement -​ Ex: shared driveway for 2 houses -​ Statutory: you have to give access to authorities to maintenance people -​ Ex: hydro lines -​ Licenses Adverse Possession: if you squatted on land publicly for 10 years, you would be allowed to stay there -​ If open and notorious squatting, and owner is aware you are there -​ Squatter technically has landlords permission to stay on property -​ Doesnt exist in ontario any more Restrictive covenants: interest is tied to the land -​ If youre a tenant, your tenancy agreements runs with the property -​ If your landlord sells your house, your lease doesnt automatically end -​ You can register a restrictive covenant of anything -​ Ex: you can say that future owner’s cant build more than 2 stories high -​ Most people dont do this because it lowers property value -​ Before human rights codes, these were used to make all white neighbourhoods -​ Ex: beach of pines neighbourhood -​ Supreme of court said it was uneforcable because it was too vague, not because it violated human rights -​ Too hard to determine who wasnt christian Landlord-tenant: -​ In most scenarios, you are governed under Residential Tenancies Act (unless you share kitchen or bathroom with landlord) -​ Lease gives exclusive right to tenant to occupy property (including landlords) -​ Periodic tenancy vs term tenancy Residential tenancies: -​ Landlords can only evict if you go through landlord tenant board  -​ Only a sheriff can evict you (police have zero jurisdiction) -​ You have right to a hearing -​ There is no ‘as-is’ for residential tenancies -​ House has to be in a good state of repair -​ Landlords legally cant ask for security or key deposit, only last months rent -​ Tenants get interest on last months rent at rate (=CPI) -​ 24 hour notice for entry by landlord -​ You dont have to renew your lease at the end of the term -​ You dont have to leave because house is being sold. Tenancy runs with the land -​ You should ask landlord for cash to leave *memorize these right and obligations for exam*: Tenant’s Rights: -​ Security of tenure: -​ Unit is in a good state of repair and fit for habitation -​ Quiet enjoyment -​ Free from harassment -​ Unless you live in a condo, you are allowed to have a pet -​ Minimum of 21 degrees -​ Provision of vital services, such as water and electricity Tenant’s Obligatoins: -​ Pay rent on/before 1st of month -​ Maintain ordinary cleanliness -​ Not interfere with other tenants or landlord -​ Not commit illegal acts or run illegal businesses on the premises -​ If on month-to-month lease, must give 60 days notice -​ If on fixed-term lease, you can sublet or sublet -​ Landlord cant unreasonably deny permission to sublet/assign Landlord Tentant Board (LTB): -​ If you have issues with tenancy, you can make an application to LTB -​ If LL wants to evict you, they must have an order from the LTB. police have no jurisdiction -​ Only a sheriff can physically change the locks after eviction, not landlord -​ At LTB, you have access to duty counsel -​ Almost all applications to LTB start with a notice Eviction: even after a hearing and LTB issues an Order to evict a tenant, the tenant will have an ultimate move out date before the Order can be enforced by the Sheriff -​ If tenant doesnt move out, then LL must file Order with Sheriff. The sheriff will serve Notice to Vacate -​ Tenant has 72 hours to claim possessions after eviction by sheriff Personal property: not fixed to land -​ Chattels: something that can be separated from land -​ Chose in action: items that dont fall in other categories  -​ non tangible items such as shares, bonds, IOU’s, etc -​ There is a grey area Joint Tenancy: fully own property with someone else -​ Tenant doesnt just mean residential tenant, it can be commercial or joint tenant -​ You cant sell your portion of hte property -​ If you pass away, your portion automatically transfers to the remaining joint tenant -​ Overrides will -​ You can switch from joint tenancy to tenancy in common. You just need to go to a lawyer. You dont need consent from other tenant. Tenancy in common: more separate than joint tenancy -​ You can sell your portion of the property -​ You can put your portion of property into a will -​ You cant go from this to joint tenancy without the other persons permission Land titles system: 98% of properties are under this system -​ Government guaranteed info was accurate and legal Condomoniums: you purchase your unit of the condo and you share the common areas with all other condo owners (hallways, gardens, parking lots, roof, etc) -​ You have exclusive access to your unit and shared access to common area Co-operatives: everyone owns shares of entire co-op -​ Co-op as a whole makes decisions about the units -​ If there are renovatations, every unit has to get a renovation -​ You dont have exclusive ownership of your unit Commercial Leases: -​ Landlord has obligation to: -​ Ensure vacant possession -​ Give tenant quiet enjoyment -​ Repair (to extent needed for quiet enjoyment) -​ Notice of termination -​ Tenant has obligation to: -​ Pay rent -​ Normal wear and tear only -​ Law isnt designed to protect commercial tenants because there is less of a power imbalance between landlords and tenants -​ Very minimal legislation, not updated very often -​ All terms are inside the tenancy agreement -​ Forfeiture: if you dont pay your rent, the landlord can change the locks and sue for damages (tenancy agreement ends) -​ distress/distrain: Landlord can also seize assets of tenant and tenancy agreement continues -​ Landlord has the choice to either seize assets or do forfeiture, but not both Chattels: moveable property -​ When you sell property, the presumption is that it doesnt come with chattels (unless started otherwise)  -​ If you install something on your property (ex: water heater, shed), it is now part of the property and isn’t chattel anymore -​ Commercial: if something is installed, it is still chattel and doesnt become part of the property Finders keepers: -​ Generally, if you are on public proeprty and you cant find the prior owner (or secured creditor), then finder keeper applies -​ If youre on private land, the owner of the land gets it -​ If you see someone looking for the lost item, and you dont return it, then its theft -​ finder has the right to item against Chapter 16: Sale of Goods: Sale of Goods Act: -​ Has implied terms for every transaction of tangible goods without a contract -​ Doesnt include: -​ Services -​ real estate -​ when no money is exchanged (trades) -​ when goods are used to secure a loan as collateral -​ You can contract out of this (overriding the implied terms under sale of goods act) -​ Ex: selling as is -​ Term: whoever has the title bears the risk of damage or destruction to the goods -​ Title changes when payment is recieved -​ If purchasing online, legally, you bear the risk of damage/theft/lost during shipping -​ Company’s policy can be different (ex: amazon will replace damaged package) -​ Cash on delivery: seller has title until it arrives on your doorstep when you pay -​ Not very common anymore -​ Bill of lating: seller has risk ___ -​ Cost of Insurance and Freight (CIF): neither seller or buyer has risk when shipping across country because it is covered by insurance Remedies on Default of Payment under SGA (when buyer doesnt pay for goods): -​ Sellers remedies: 1.​ Seller’s lien: seller keeps goods that havent been delivered 2.​ Stoppage in transit: seller intercepts package while on the way to customer 3.​ Bankruptcy: if buyer goes bankrupt within 30 days of purchasing product, seller is a priority creditor for that good -​ If after 30 days, you become a normal creditor 4.​ Deposit: seller can keep a deposit -​ Buyer’s Remedies: -​ Same as general contract law Rights and Obligations of Parties under SGA:  1.​ Right to clear title and quiet possession 2.​ Goods must match description: -​ ‘As-is’ means it may not match description 3.​ Goods must be of good quality and fit for purpose -​ You can opt out by saying as is -​ companies can also opt out this through contracts signed when purchasing product 4.​ Goods must match sample 5.​ Other Implied Terms: 6.​ Sales Made Online: International Transactions: International Sale of Goods Act -​ Corresponding provisions about delivery, fitness, etc. -​ Only applies to international transactions, not online purchases Chapter 16: Consumer Protection Competition act: not just about competition/monopolies. Prohibits: -​ 2 sections: Civil and criminal -​ Civil: private lawsuits -​ Price fixing, bait and switch, pyramid schemes, misleading ads, selling above advertised price, advertising ‘sale’ thats actuall just the regular price -​ Bait and switch: luring people in with sales, but there isnt really anything on sales -​ Not having enough inventory for products on heavy sale is a violation too -​ Anything that involves selling -​ Things we should discourage, but not quite illegal -​ Criminal: -​ pyramid schemes -​ predatory pricing (undercut competition with intention to create monopoly) -​ discriminatory pricing (charging same product for different prices) -​ price fixing (colluding with competition to inflate prices) -​ Misleading ads made recklessly or knowingly Consumer Protection - Provincial -​ Only deals with civil breaches -​ Follows Consumer Protection Act -​ Unnaceptable business practices: -​ False or exaggerated claims (similiar to misleading ads) -​ Unconscionable transactions (taking advantage of people who dont understand the language) -​ Gift cards: -​ You cant charge tax on buying a gift card -​ Cannot have an expiry date -​ Controlled business practices: -​ Door to door sales -​ Cooling off periods: you have 10 days to change your mind after signing a contract  -​ Payday loans act: payday lends you money/give an advance on your pay cheque with very high interest -​ people who take out these loans are very vulnerable -​ Debt collections Processes: harassment limit, can only contact you a certain # of times and at certain times -​ You can only sue/collect within 2 years -​ If you pay a little bit of the whole amount, it resets the limitation period for another 2 years Advertising Legislatoin: 1.​ Food and drugs act 2.​ Competition act 3.​ Consumer packaging and labelling act 4.​ Advertising standards canada Richard vs time: deals with misleading advertisements -​ Should consumers have to read the fine print? -​ General impression test: what is the general impression of this advertisement? -​ From the perspective of "ordinary hurried purchasers," "relatively unsophisticated" and "not particularly experienced at detecting the falsehoods or subtleties found in commercial representations -​ someone who isnt well educated and rushed -​ If general impression is not true, it is prohibited under almost every act -​ Ads are allowed to be silly or very obviously false, such that no one would believe it to be true Civil: unknowingly misleads Criminal: knowingly or recklessly misleads Food and drugs act: packaging/ads cant mislead customers about your product, be false, deceptive or create erroneous impression of product -​ 1/3 of supplements didnt contain plant advertised on bottle -​ Product of Canada: processing and labour are Canadian and a significant amount of the ingredients are Canadian. -​ Made in Canada: last substantial transformation of the product occurred in Canada. -​ 100% Canadian: all of the ingredients, processing and labour used to make the food is Canadian. Consumer Packaging and Labelling Act: for non-food products Influencers: still governed by ad standards and competition bureau. Golden rules: 1.​ Have to disclose material connections (if its sponsored) -​ If you are provided with free products or are getting paid by brand -​ Disclosures are as visibel as possible (consumers don’t have to dig around to see if its a sponsored ad) -​ #ambassador or #collab is not clear enough -​ You have to say #ad or #paidpartnership or something else very clear -​ You cant hide these tags amongst lots of text or other hashtags 2.​ No misleading marketing -​ Base all reviews and opinions on actual experience  -​ Use clear and contextually appropriate words and images -​ Shouldnt use industry specific jargon, everyone should understand meaning Violations: -​ When theres a material connection, both advertiser and influencer are responsible for ensuring that parternship is clearly disclosed