Final Exam Chapters PDF

Final Exam Chapters Week 9 Video 1 - Real Property Property -​ Is a legal relationship between people with respect to things -​ Not just owner, other parties have rights to a property as well 2 Broad Property Categories 1. Real Property -​ Land and buildings and anything attached...

Final Exam Chapters Week 9 Video 1 - Real Property Property -​ Is a legal relationship between people with respect to things -​ Not just owner, other parties have rights to a property as well 2 Broad Property Categories 1. Real Property -​ Land and buildings and anything attached to them -​ These are fixed and not moveable 2. Personal property -​ Anything that is not real property -​ Either tangible or intangible -​ Planes, chairs, trademarks, etc Fixtures -​ Goods that are attached to real property -​ Goods can transfer types -​ Ex: Shingles transfer from personal property to real property after being placed on house How to determine if something is a fixture -​ The degree of permanence (temporary or permanent) -​ How much damage would be caused if the item was removed? Property Rights -​ Property are relative not and not absolute (Who has better claim?) -​ Ex: If i found a 20 dollar bill on the ground and someone else claimed we have the same level of ownership this is incorrect. Property right says that compared to each other I have a better claim since I found it. It doesn’t matter that none of us originally owned it unless the owner comes forward. 2 Main Questions -​ Who has rights to the property? -​ What rights do they have? Real Property Possessory Interests in Land -​ Fee Simple -​ Ownership -​ Life Estate -​ Person has right to possession in their lifetime -​ After death property will go to someone else -​ Leashold Estate -​ Right to possession through contract but not ownership (lease) Non-Possessory Interests in Land -​ Easement -​ Right to use -​ Ex: Union gas has easement for my backyard for their pipeline. They can come work on it but can’t live there -​ Rights of Way -​ Right to use piece of land for entering and exiting -​ Ex: Shared driveway (one house owns and the other has right of way) -​ Licenses -​ Contractural right to profit from land -​ Ex: License to come on my property to take apples from my trees -​ Restrictived Covenanats -​ Must be negative cannot be positive like you must build a pool -​ Similar to a contractual provision but its a property right not a contractural right -​ Ex: I sell my house to someone and I will l live in the house next door. I don’t lilke having pools nearby, so we enter a contract so you cannot build a pool. This would not be enforceable to the next owner if the person sells the house. However, if we have a restrictive covenant than it is a property right and will bind all future owners. -​ Mortgages -​ Property interest not a possessory interest but it can lead to -​ Allows bank to take possession if you default on payment. Joint Tenancy Vs Tenancy in Common Joint Tenancy (joint ownership) -​ Rights of survivorship (if one person dies the interest is transfered to the other person) -​ Equal interest -​ Common with couples Tenancy in Common (Co-ownership) -​ No rights or survivorship (interst is transferred to their beneficiaries/aires) -​ Potential unequal interests -​ Common in business Condominiums -​ Combination of Fee Simple (apartment or unit) -​ Co-ownership (common areas) Video 2 - Personal Property Personal Property Lost Tangible Personal Property -​ A person who finds personal property has a right to claim it against anyone except the true owner (Posession vs Ownership) -​ Need proof of ownership -​ If an item is found on private property that is publicly accessible than you have a good claim against anyone but the true owner. However, if it is found on private property that is not publicly accessible than you do not have a good claim. Bailment -​ When one person (the bailee) is in possession of goods that belong to another person (the bailor) -​ The bailee owes a duty of care to the bailor. -​ Standard of care depends on: -​ The value and nature of the goods -​ Who the bailment benefits -​ The terms of a contract -​ Ex of Higher Standard of Care: If the item is of high value, fragile, benefits the bailee rather than bailor, Video 2 - Personal Property Intellectual Property -​ Protects application or expression of the mind but not ideas Trademarks -​ Words, logos, sound, or symbols that distinguish goods or services. Cannot trademark colour -​ This is only for organizations that are within the same industry -​ Ex: Mustang Drive-in and Ford Mustang would not be mistaken Famous Marks -​ In the USA some companies are so well known they cannot be used by others even if they are not in the same industry. -​ Cannot use Nike swoosh for real estate -​ In Canada, this concept has been rejected.  -​ Barbie Restaurant and Barbie doll. Supreme court of Canada said the test was if there would be a reasonable level of confusion Registered and Unregistered Trademarkes Unregistered Trademerks -​ Business started selling using that name and has a right to the name. Someone in the same city cannot open with the same name Registered Trademarks. -​ Rights of use across Canada (not outside Canada, Trademarks are national) -​ Protection against a challenge based on prior use after 5 years -​ If under 5 years, someone who was using the name first has better rights than the company with the trademark -​ Registration has 15 years of protection (renewable) Passing Off -​ Passing off is a common law offense in intellectual property law that occurs when a business or person misrepresents their goods or services as those of another party Passing off requires -​ Goodwill or reputation in the mark -​ Misrepresentation of the public -​ Damages Is there a reasonable likelihood of confusion? Trademark Dilution -​ Involves using a trademark in a non-confusing manner that tarnishes another mark or diminishes value -​ Ex: uses someone's logos not to compete but rather slander the other company NOTE: Companies are allowed to use competitor logos in the advertising as long as the point of it is to point out differences. -​ Ex: -​ then it is a trademark infringement because you are using their logo to sell your burgers Remedies for Trademark Infringement -​ Damages -​ Injunctions (ordering someone not to do something) -​ Accounting of Profits (turn over money made) -​ If I don’t sell in the country where the knock-offs are being sold, I cannot claim damages but ask for the money made. -​ Delivering Up (Deliver all infringing products to company) Copyright -​ Protects original literary, artistic, musical, and dramatic works -​ Can gifted, licensed, sold, -​ Like trademarks, copyrights arise automatically (as long as they meet criteria) Criteria for Valid Copyright -​ Original (skill and judgment) -​ Fixed medium (stored: written, carved, etc) -​ Connected to Canada Lifespan of Copyright -​ Copyrights lasts for the life of the author plus 50 years -​ NOT owner. Owner and author can be different Performances -​ Copyrights also apply to performances -​ Cannot record a performance and then distribute it Fair Dealing Is an exception to copyright protection: -​ Review -​ Criticism -​ News Reporting -​ Private study -​ Parody or satire NOTE: These must be fair. Cannot intend to cause harm or be unreasonable. Also must attribute authorship (have to give credit to author) Moral Rights -​ Right for the author to be associated with the work and right to not have work disparaged(not have your work altered) -​ Ex: Eaton Center Geese example. -​ Solution to the Eaton Center example would be to have the author waive their right to moral attribution upon purchase. CANNOT BE TRANSFERED Patents -​ Protect Inventions (again not idea but the actual invention) -​ Provides exclusive rights to practice an invention -​ To practice is to make, use, or sell On inventions, inventors contribute invention to public knowledge, in exchange are given 20 years of exclusivity Criteria for a Patent -​ New -​ The requirement is the invention must have been disclosed to the public within a year of the application -​ Useful -​ Not obvious -​ Can’t be a cup to hold milk or a roof to protect from rain Inventions that can be Patented -​ Products -​ Compositions (drugs, pharmaceuticals, etc) -​ Process (assembly lines, etc) -​ Improvements on any of these -​ Ex: Amazon got approved for 1 click ordering system Ownership -​ With copyrights if an employee makes something for the company they are working for, the owner is the company. However, in patents, if an employee invents something the employee is considered the owner. (companies usually have agreements of the transfer of inventions) Remedies for Patent Infringement -​ Damages -​ Injunctions (ordering someone not to do something) -​ Accounting of Profits (turn over money made) -​ Delivering Up (Deliver all infringing products to company) Industrial Designs -​ Protects the visual appearance of a product (shape, patter, etc.) -​ Protects against manufacture, sale, rent, or importation Requirments  -​ Must be registered for protection -​ Must be registered within 1 year of initial use -​ Lasts for 10 years (cannot be renewed, if looking for longer period try for trademarks) Week 10 - Employment Law Video 1 - Employment Relationship Employment Relationship -​ Every employment relationship is contractual, whether in writing or not -​ Treated differently than regular contracts​ 3 Reasons for the Change in Labour Landscape 1.​ Development of middle class. -​ People had more disposable income which they used to help neighbors who were not as fortunate 2.​ More women in politics -​ Women tended to gravitate towards protecting vulnerable people such as children and workers 3.​ Introduction of Labour unions and Trade unions -​ Spoke on behalf of labours and were successful against employers Importance of distinguishing between EMPLOYMENT and INDEPENDENT contract 1.​ Vicarious liability -​ If it is employment, employers are held vicariously liable 2.​ Employment legislation -​ If employment, must comply with all employment laws 3.​ Income Tax Deductions -​ If employee must deduct income tax from their salary Defining Differences Most Important to Least Important 1-3 1.​ Control Test -​ Who controls the work that is done? When it will be done? How it will be done? -​ If the person who controls is the person who the work is being done than it is likely employment. -​ If it is the person doing the work it is likely to be independent 2.​ Organization Test -​ How important is the person doing the work to the organization? -​ The more important they are the more likely they are an employee. -​ The less connect they are the more likely they are independent 3.​ All Other Factors -​ Do they own the tools? Is there a written agreement? Etc. NOTE: Just because there is a written agreement doesnt mean they are an employee, there are many factors that get taken into account Obligations of Employers -​ Pay Salary or Wages -​ Honour Employment Contract -​ Provide Safe working conditions Obligations of Employees -​ Work competently -​ Be on time -​ Be loyal -​ Fiduciary duty (Maybe) -​ Agent, officer, directors, etc owe fiduciary duty -​ Hourly employee, assembly line worker, custodian, etc do not owe fiduciary duty Video 2 - Termination Of Employment Termination Of Employment -​ Termination of employment can be with or without cause Termination With Cause -​ When terminated with cause, an employee is not entitled to notice of termination or severance pay “Cause” May be based on: -​ Serious misconduct -​ Dishonesty -​ Insubordination -​ Chronic Absenteeism -​ Sexual harassment -​ Conflict of interest -​ Breach of fiduciary duty -​ Criminal behaviour To amount to “cause”, the misconduct must rise to the degree that: -​ Violates an essential condition of the employment contract -​ Breaches the trust or faith that is inherent in the working relationship -​ Is fundamentally inconsistent with the employee’s obligations to the employer Example: Employee is late 20 times, if given progressive dicipline and warnings then there is cause. However, if all they did was note it down and talk to the employee than they cannot terminate with cause.  -​ This Term is Called progressive discipline: Employers cannot go from 0 to 100 without progressive discipline in between Termination Without Cause -​ Must be in good faith (cannot be discriminatory or arbitrary) -​ Must be for business reasons Employer Obligations for Termination without Cause -​ Must provide ESA notice and possibly severance -​ Must provide “reasonable” notice (Overlaps with ESA notice) -​ Usually longer than notice under ESA If there is a give notice period of termination in the employment contract, then that will govern given that it is atleast what is required by the ESA notice If there isn’t a given notice period on the contract, then reasonable notice must be given under the common law. ESA Notice Termination without cause ESA notice: 1 week/years of employment, max 8 -​ Ex: Employee worked for 12 years and are entitled to 8 weeks notice -​ Employee can receive: 1.​ 8 weeks notice that employment is ending 2.​ Given 8 weeks of pay and employment ends immediately 3.​ Combination: in 4 weeks your employment will end and you will be given a cheque for 4 weeks of pay Termination without cause Severance: 1 week/year, max 26 -​ Must provide severance If company annual payroll is greater or equal to $2.5 million and the employee has 5+ years of employment -​ Severence must be paid in a lump sum and not over a period of time Reasonable Notice Amount of reasonable notice is based on: -​ Age -​ Seniority -​ Skills, training, education -​ Ability to find alternative employment Wrongful dismissal -​ Failure to provide reasonable notice -​ Termination on bad faith -​ Discrimination Bartle Damages from wrongful dismissal -​ Employee was awarded damages equal to the notice of termination they should have received but didnt -​ Must mitigate damages (look for work, go to interview, etc) -​ Ex: If an employee was given 8 weeks notice for ESA but infact employee has been employed for 18 years, reasonable notice may give them 2-4 weeks of notice per year of employment. If a court said the employee should have been 52 weeks of notice but only received 8, the bartle damages would be 44 weeks. Wallace vs United -​ Terminated after being humiliated and disrespected -​ Trial court added onto the amount of reasonable notice because of how they treated him when he was terminated NOTE: trial courts were told not to follow this by the supreme court but they are doing it Constructive Dismissal (Wrongful dismissal) -​ When the employer fundamentally changes the nature of the job without the consent of the employee and causes the employee to resign -​ Damages are same as if employee was terminated without cause -​ Employee has to resign Video 3 - other employment laws Employment Standards Act (ESA) -​ Minimum wage -​ Hours of work, overtime, breaks -​ Vacation -​ Pregnancy and paternal leaves -​ Equal pay -​ Termination, layoffs, severance -​ Layoffs are not permitted unless it is written in the employment contract Drugs and Alcohol -​ Must have reasonable suspicion to drug test employee. However there are some jobs that allow random drug tests (usually invovles public safety)  -​ Generally, drug users can only be dismissed after they have been offered treatment or cannot perform job due to drug/alcohol dependency Human rights legislation -​ Prohibits discrimination -​ Requires accommodation -​ Prohibits sexual harassment -​ May result in fines, re-instatement Other employment Legislation -​ Health and safety -​ Pay equity -​ Employment insurance -​ Workers compensation -​ BIA, WEPA, Etc. Video 4 - Collective Bargaining Collective Bargaining Important Concepts -​ Organization and Certification 1.​ If more than 50% of employees have joined the union, then union is now certified as the bargaining agent for all employees not just ones that join 2.​ If there is a vote, and over 50% of votes are in favour of the union, the union is certified the bargaining agnet for all employees 3.​ If the employer threatens for joining the union, then the union is automatically certified as the bargaining agent -​ Bargaining (Based on agency) -​ Once union is certified it can bargain on behalf of the employees. -​ Both parties must bargain in good faith -​ If negotiation is not successful both parties can apply for a mediator -​ Collective Bargaining Agreement Strike is settled once there is a collective bargaining agreement (CBA). -​ CBA must have a term of ateast one year -​ Prohibits additional strikes -​ Becomes the new employment contract between employer and employees -​ Labour Disruptions and Disputes -​ Stikes/lockouts during the CBA are illegal -​ As employees can strike, employers can also lockout employees -​ Unions must be democratically run and represent all employees Week 11 - Video 1 - Sale of Goods The Sale of Goods Act -​ applies to every SALE of GOODS (must be a sale and must be a good) -​ Doesn’t apply to services, intangibles, real property, gifts, leases, or licenses -​ Purchase of a car applies but not the lease of a car -​ Example: A woman hired an artist to paint her a specific painting. Over some time the painting turned yellow and started peeling. The women sued, however, the court found that the contract was primarily for the services (not goods), which were the artist's skill and expertise. Had gone to an art store and purchased a piece, then it would be for goods. -​ Protects the buyers to promote commerce and fairness Modifications to the Sale of Goods Act -​ The act allows buyers and sellers to modify or exclude the sales of goods act but not in consumer transactions -​ Sale of Goods act applies to consumer transactions for sure. -​ Sale of Goods act applies to business transactions unless the parties agree to modify or exclude it When do we have a consumer transaction? Test: Wether the buyer intends to use the goods for consumer purposes or business purposes -​ Ex: If I buy a coffee maker for the lunch room at the office then it is a business transaction and the act applies if we choose. What does the sale of goods act do? 1.​ Implies terms into sales contracts (conditions and warranties) -​ ‘Conditional’ is a essential part of the contract and a breach allows the party to terminate the contract. ‘Warranty’ is a non essential part of the contrac and a breach provides damages Implied Conditions -​ Seller has right to sell goods (ensures seller actually owns the goods) -​ Goods must match description -​ Goods must match sample -​ Merchantable quality  -​ Reasonably suitable for the intended purpose -​ Ex: You go into a surfboard store and buy a board. Then you go into the water and it sinks. Then there is a breach of condition as it is the ordinary intended purpose -​ Ex 2: If you go into the surfboard store and say you’re going to use a board as a coffee table and the salesman recommends one. If it doesnt work, there is a breach of condition. Although its no the ordinary intended purpose, they made a recommendation which means they took on the risk. -​ Ex 3: You are sold a tv with a dent on the back. It would be a breach of merchantable quality. But if there was dent it on the screen it would be a breach of merchantable quality and also reasonably suited for intended purpose Implied Warranties -​ No encumbrances (security interests) -​ Undisclosed unforseen information -​ Goods will be delivered within a reasonable time -​ Goods should be paid for in a reasonable time -​ Only one in favour of seller 2.​ Helps determine when title passes from seller to buyer -​ Risk follows whoever has title Rules to determine -​ Just have to remember that intention is the most important -​ When the parties intend for property and goods to pass to buyer then it will pass -​ Only if you cannot determine intention then you will turn to the 5 rules 3.​ Provides remedies for breaches. -​ Repudiation (breach of condition) -​ Buyer can terminate contract -​ Damages (breach of warranty) -​ Sue for damages NOTE: Innocent party can always treat breach of condition as a breach of warranty Video 2 - Consumer Protection Consumer Protection Act -​ Modifies the freedom to contract Do consumers deserve protection? Argument for -​ Consumers are weaker and more vulnerable than businesses. They have access to less legal advice, they tend to not be as aware of legal matters -​ Also we have to protect consumers to increase spending for trade and commerce Argument Against -​ Some consumers do not need it but we provide it to everyone. -​ Ex: person being coffee machine for home vs a young entrepreneur buying it for their small business -​ Increases transaction costs -​ Sometimes you dont want the government to interfere with your contracts -​ Ex: Government taking away free phone for entering a 3 year contract. Government made it max 2 years so mow you have to pay $400 for the phone What does the consumer protection actually do? -​ Allows consumer to sue in contract instead of tort (regardless of privity) -​ Ex: Ginger beer lady couldn’t sue in contract law because they didnt have a contract (she was given the beer by a friend). So she had to sue in negligence -​ Makes Sale of Goods Act mandatory -​ SGA doesn’t actually say it has to apply to all consumers. It is the consumer protection act that says this -​ Applies to services (not just goods) -​ Implied term in every contract that services wll be rendered in a reasonable matter (same protection as for goods) -​ Duty to warn of product hazards -​ Prohibits false/misleading claims Controlled Business Practices (Requires various things because many people are complaining about unfairness) -​ Direct (door-to-door) sales -​ Timeshares -​ Fitness clubs -​ Used cars -​ Multi-level marketing -​ Debt collection NOTE: Businesses such as lawyers, doctors, insurance brokers, etc all have their own statute. These are regulations for smaller scale businesses that don’t require their own statue Video 3 - Competition Law Competition Act  -​ Considered Federal Legislation -​ Primary goal is to reduce behaviour that is anti competitive -​ More competition is better for consumers and the economy as quality and value will go up for products/services What does the Competition Act do? -​ Restricts mergers and acquisitions -​ Limits big companies -​ Prohibits anti-competitive practices -​ Some of these can be crimminal/illegal -​ Lowering prices to liquidate is legal but lowering prices to engage in a price war is -​ Examples of anti-competitive pracitces -​ Price Fixing -​ Bid Rigging -​ Abuse of dominant position -​ Predatory pricing -​ Refusal to supply -​ refusal to supply because they sell a competitor -​ Tied selling -​ If you want to sell this model, you have to sell all of our other products -​ Fake “sale” prices -​ Prohibits false/misleading claims -​ This is also in the Consumer Protection Act, difference is this applies more broadly. -​ Consumer Protection Act applies to conflict between buyers and sellers and complaints made to the ministry. Competition Act allows someone to sue a company for doing something that was anti-competitve even if it doesn’t direct effect the person suing Week 12 - Video 1 - :Debitor and Creditor Law Lines of Credit -​ Up to how much someone can owe -​ No fixed repayment terms -​ If they do not have money when they write a cheque then the line of credit is used -​ Usually secured (collateral) by AR and inventory which are liquid -​ Have a floating interest rate Relationship between debtor and creditor are always contracts and can be negotiated 3 Creditor Strategies 1. Good credit granting policies -​ Effective and cheap, banks do this really well 2. Collateral/security Security Interest: An interest in personal property to secure a payment or performance of an obligation (Defined in PPSA) If security interest is determined… 1.​ Attachment (Enforceable vs debtor) -​ Debtor receives value (loan) -​ Debtor has rights in collateral (debtor actualls owns the collateral) -​ Debtor signs a security agreement If 3 conditions are satisfied then creditor can seize collateral if debtor defaults 2.​ Perfection (unforceable against 3rd parties) -​ Attachment PLUS -​ Registration, possession or control -​ Must be registered under PPSA registration system If conditions are met, creditor can have rights against 3rd parties too. -​ For example: Other lenders, someone who buys the collateral,  3.​ Priorities (Who wins a dispute) -​ USI vs PSI (or anyone) = PSI wins -​ PSI vs PSI = 1st to register wins (not 1st to perfect) -​ PSI vs Trustee = PSI wins -​ PSI vs PMSI = PMSI wins -​ PSI vs POCOB = POCOB wins LEGEND: -​ USI = Unperfected Secuity Interest (Havent registered) -​ PSI = Perfected Security Interest (Have registered) -​ Trustee = Trustee in bankruptcy (someone who takes all assets on bankruptcy) -​ PMSI = Perfected Money Security Interest (Allows debtor to increase assets with lent money) -​ General security Agreement: Gives lender (usually bank) security in all assets that the borrower has plus any assets they acquire -​ Issue with this is that it will not promote commerce as no one will want to lend to the borrower -​ PMSI bypasses this for the purchase -​ POCOB = Purchaser in the Ordinary Course Of Business -​ Ex: I lend a boat dealer $100000 and I take collateral in their boats and I am registered. Someone else comes and buys a boat from the dealer, and then the boat dealer defaults on the $100000 loan. -​ Since it is a purchase in the ordinary course of business (Requirments: normal goods purchased, paid normal value, took delivery) then the purchaser owns the boat on default Rights and Obligations of the Parties in Default -​ Must act reasonably -​ Take care of good -​ Sell for reasonable amount not just what Im owed -​ Have to give notice to the owner how it will be sold -​ Must give the debtor the possibility to pay the debt and redeem the collateral back NOTE: If item is sold for more than the debt, then the profits must go back to debtor or next creditor in line NOTE: If item is sold for less than the debt, then the remaining amount will be liable to the debtor. However, the creditor will be a unsecured creditor 3. Guarantees This is a Conditional contract -​ Contract is between the creditor and guarantor and says if the debtor defaults, the guarantor will pay -​ Conditional because cannot enforce until payment is missed Where do you find Guarentees? -​ Found in the notes under contingent liabilities in financial statement If Gurantor Has Paid -​ Gurantor gets all rights the creditor has against the debtor -​ Judment, security interest, etc. Video 2 - Bankruptcy and Insolvency Bankruptcy (Doesn’t just mean lose business) “Bankruptcy” is a legal proces by which the assets of an insolvent debtor are transferred to a Trustee in Bankruptcy for distribution to the debtor’s unsecured creditors -​ Trustee acts on behalf of the unsecured creditors (Secured would have already taken their share as they have priority over trustee) -​ Insolvency: A factual test -​ Debtor has debts which exceed assets OR debtor is unable to pay bills -​ Either one is a requirement for bankruptcy Receivership -​ A secure creditor appoints a receiver to take possession of collateral -​ Ex: Acompany defaults on a loan of $1 million and have with $800k of assets. This will result in a receivership. Bank will appoint a receiver to sieze all their assets. In this case there is no bankruptcy as everything has been seized by secured creditors and there is nothing for the Trustee to distribute to unsecured creditors Purposes of Bankruptcy Law -​ Protect creditors -​ Give debtors a second chance Bankruptcy for a Individual vs Corporation Individual -​ Have to make payments to a Trustee over a period of time. Then person is discharged which means most normal debts are forgiven (Not nomal: child support, fraud, student loans, etc) Corporations -​ Do not exist after bankruptcy is declared Escalating Strategies to Avoid Bankruptcy 1.​ Informal calls to creditors -​ Ask for more time, reduction of amount owing, etc 2.​ Formal Proposals -​ Division 1 Proposal -​ Made by business -​ Division 2 Proposal -​ Made by consumer who has less then 75k in debt excluding a mortgage Creditors then vote on proposal -​ If accepted (acceptance majority required is ⅔ of dollars owing and majority in number, then it is binding on all creditors -​ If Division 1 proposal is defeated, then debtor is automatically bankrupt Distribution on Bankruptcy Assets are transferred from debtor to Trustee (distributor), then creditors file proofs of claim, and secured creditors are unaffected unless there is a deficiency then they become unsecured (collateral sold for less than debt), then trustee distributes assets in this order: 1st - Secured Creditors 2nd - Preferred unsecured creditors -​ Unsecured creditors government feels should be paid first -​ Ex: Employees for wages owing, rent, taxes, 3rd - ordinary unsecured creditors -​ Destributed on a Pro-rata basis (Paid based on how much they are owed) -​ Ex: $1 million owing with $100000 assets, then each creditor will get 10 cents per dollar owed CCAA - Company Creditors Arrangment Act -​ If a company has more than $5 million in debt than the company can order a stay of all creditors (creditors can take no action against company for x time) -​ Allows business to keep operating and restructure Downside: -​ Very expensive Protection in Bankruptcy and insolvency act against Fraud -​ Protects against transferring assets and claiming bankruptcy -​ Undervalued transaction can be reviewed