Professional Documents
Culture Documents
ADM3360 N
April 27, Sports Complex: Gym 3
Material
Corporation Lecture 6 (Ch. 15&16)
Contracts Lecture ### (Ch. 5-9)
Torts Lecture #### (Ch. 10-12)
Property Lecture ##### (Ch.17&19)
How to Use the Notes (please read)
Unlike for the midterm, I did not try to personally decide what is and isn't important, rather, you have the most
detailed version of the notes the 20 students could create. I strongly recommend that as you read through it, you
pick erase all example but one for each topic. I also recommend that you erase anything in italics after reading it
once. Good luck and thanks for the contributions!
In-Class Example: Means it's a story or event given in class that actually happened, either in the media or Gilles
personal life. A few are explained in more detail at the end of the document.
Example/Ex: Means it was given in class but was off the top of his head to illustrate a specific point, or fairly
irrelevant to the class. (stick to in-class examples where you can)
Anything in Italics: Things that were said that probably won't help you during the test.
Corporations
Definitions
Floating Charge: Line of credit.
Debenture: A letter of exchange without any securities (no collateral).
Shareholders: The owners and voting rights of a corporation.
Gilles Recommendations: Do not do a partnership unless obliged in law. Ex: Your partnered with the
mayor of Ottawa who breaks his pelvis, you are now liable for his contribution. He's out for 3 months,
what do you do?
5 Perks of a Corporation
1. Separate Legal Entity: A corporation is its own person; this means it has the same rights and
obligations under Canadian law as a natural person.
This means it can acquire assets, go into debt, enter into contracts, sue or be sued, and even be found
guilty of committing a crime.
In-Class Example: Salomon Vs Salomon (1897): The original case that laid the foundation that a
corporation is its own legal entity: Soloman owned a company which he sold to a corporation at an
inflated price. He made It so that he owned 20001/200007 shares of the company. Furthermore, he lent
money to the company and was receiving interest payments for it. The company goes under, and he
chooses to pay the money the company owes him rather than distributing to it to his creditors.
In-Class Example: SNC - Lavalin: Accused of giving away 46 million to the Kadathy families over a few
years. That's 46 millions in false claim hidden in the books.
Aside: Canada has the strongest anti-corruption in the world. (SNC- Lavalin hurt our reputation: "Canada
now dominates World Bank corruption list").
2. Limited Liability: As a general rule, the corporation is responsible for the debts, not the shareholders.
Example: Tim Horton's makes the Franchisee owner sign a waiver that makes them
personally liable for all the business's debts - This means if the business is risky, they have to be able to
handle the break.
Aside: Know how to get divorced before you get married. Marriage needs two witnesses because it's a
public element, and because there needs to be proof of consent.
3. Lower Corporate Tax Rates: Despite double-taxation effects, taxation laws are actually written to
benefit corporations: A corporation's profits are taxed at roughly 21% (lower than an individual's tax
rate), but if they reinvest the money they can avoid declaring the profit at all.
4. Greater Access to Capital: Corporations can issue shares for quick cash making it easier for them to
raise money than it is for a private business asking for a loan.
5. Continuous Existence: Unlike a proprietorship or partnership, a corporation does not cease to exist
upon the death of its owners. Instead, a corporation's existence is dependent on its margins and shares,
which theoretically, can be eternal.
Aside: Trust Funds - It's no longer yours, BUT you still have control over it.
Example: You hate you sister's husband. If your grandfather dies, do you want him to get a piece of the
wealth? A trust fund would allow your grandfather to include conditions that your sister's portion of his
estate can only be used to her benefit.
Aside: When someone writes a cheque for your business, you cash it right away.
Example: SunBelt: Businesses for sale. 1000s of businesses in Ottawa for sale for cheap .
Gilles Recommendation: You pay a max 3x the profit when buying a business.
Gilles Recommendation: Plex field: Gilles recommends the real estate business: Why?
1. When a tenant leaves, you're not required to keep the lease.
2. Inflation is going to go up (Gilles Estimates 5-10%) while your mortgage rate stays the same
Implications of Incorporating
1. Higher start-up costs
2. Increased Formalities
Federal Corporation requires registration.
Trust: An expected behavior based on past conduct.
3. More complex structure
i) Shareholders - The voting rights (unless specified otherwise) and owners of a company
Who will be your shareholders? Who will you share/give power to?
Example: Shareholder/Ownership Competition: Suppose there are 4 shareholders. John owns 1/4 but is
having a divorce: he needs money but you're currently not paying dividends. The shares are worth $100,
but you'll give him $20. He sells (its part of business), you cancel the shares, then you're up to 1/3 each.
"3s a crowd", and so you bully out the third (all you need is to know more about the terms and
agreements then he does). Then you're down to 2 shareholders.
Shotgun Clause: You offer a given price, you have X days to make a better offer, otherwise you have to
take the deal.
Restrictions on Share Transfers
The corporation can restrict the transfer of shares: if they don't pay a dividend, what do you do?
- The majority of the company's directors must agree to it
- The majority of the company's shareholders must agree to it
In-Class Example: Bed bugs killed two girls in Pakistan (air conditioning was recycling the pesticide into
the room). There used minerals to kill the bugs that in Canada would require a full jumpsuit and mask to
be safely handle the mineral. The result is that it was also deadly to humans.
In-Class Example: In Toronto, Gilles asked a cleaning lady what she was putting on the carpets of the
hotel, the cleaning lady said she didn't know and continued to spray it around. What is she spraying?
3. Other Provisions
Have securities: Non-convertible debt securities: Transfer a bond into shares rather than diluting actual
shareholder equity.
The corporation's securities, other than non-convertible debt securities, shall not be transferred without
either:
The sanction of a majority of the corporation's directors
The sanction of a majority of the corporation's shareholders
If applicable, the restriction contained in security holders' agreements
By-Laws
The rules that govern the acts of the corporation.
Gilles Words of Wisdom: Those who know the rules win the game.
Example: You're starting a business with your wife, she says she trusts you, do you grant your spouse
who signs anything those voting rights.
1.############
2. There's always someone smarter than you
3. If you've been transparent (honest), they will take care of you. When people have doubts of you,
you're on your own.
Example: A student plans on marrying someone for money and business - that's the seeking criteria.
Example: Another student said they'd sucker their grandparents into shares with no voting rights.
Liabilities
Liability in Tort: A wrongdoing that is caused by your actions.
When dealing with senior management, it's called "identification theory"
When the executives are making a decision because they are the directing mind, then the
organization is liable for the fault that has been committed.
*This is why we also ask who made the call
Liability in contracts: Liabilities pertaining to a contract's clauses.
You sign a contract, you're required to meet the written obligations
Liability in criminal law
Regulatory crimes: The law specifically tells you that you cannot do something.
In-Class Example: Mayonnaise - Mayonnaise is made with male chicks (half a million
slaughtered) because they can't reproduce and take longer to grow. Heitzman's now needs to
defend their stance in court. Regulation will be passed to prevent the animal cruelty demanding
that gender be determined earlier to avoid animal cruelty.
Example: Big chicken wings - raising chickens and caging them in inhumane manners.
In-Class Example: Molson Blue - In Canada, all the major companies have a flagship beer that's
a color. Molson = Golden. Labatt = their color was blue. Molson registered a beer in 1930s called
Molson blue.
And so, there's a battle between Molson and Labatt - they're infringing on their trademark.
Labatt lost. Labatt could not advertise "Blue". They had to add Labatt to the title. And they had
to register the new name Labatt Blue.
In-Class Example: Apple - Infringement of patents 560 million dollars (they'll pay it off by writing
shares).
In-Class Example: Paul Desmerais - died last year, has to pay half a billion in taxes to transfer his
fortunes. They'll issue shares.
In-Class Example: Bluebear: Pedophile detecting software.
In-Class Eample: Holt Renfrew Boutique - There was a coat made of lamb wool - the wool was a
coat made for Madonna. That coat was the result of aborted fetus of the lamb, which were
shaved.
Gilles Rambling: Life Expectancy ramble: Life expectancy increases by 2 weeks for woman.
Insurance Companies are the money makers of the world.
When paying life insurance premium, your money isn't needed immediately, and so it's invested. Because
their assets are tied up in investment, they will offer you a cash settlement of 1/4 the price or will litigate
pulling out all the clauses that are arguable (taking a lot of time).
Gilles uses the 6 sushi > 1 bigmac and fries, calorie wise, again.
Statutory Liabilities
Liabilities, provided in the legislation, dealing with specific circumstances.
1. Taxes: Directors are always liable for all taxes (including contributions to employee benefits)
Government taxes are always the first to be paid.
Ex: When filing for bankruptcy, gov't taxes are priority.
2.Compulsory Payments: When people are fired, they receive a severance paycheck so that corporation
is no longer liable.
3. Environmental Spills: You are liable for all environmental spills: Tank Cars in Northern Ontario (train
crash).
In-Class Example: Locomotives carrying 46,000 tanks of oil are travelling into the states at extremely
high speeds.
4. Hazardous Materials: Liabilities for all the related consequences.
In-Class Example: Bed Bugs: Minerals from Pakistan were used to kill bedbugs (in north America you
wear a full suit to handle the material). Kids died from these minerals in the hotel rooms. Is this criminal
negligence?
5. Dangerous Goods: Any range of products that may affect the environment to military products.
Example: Nuclear Reactors in deep river and we must dump the waste somewhere. Where does it go?
In-Class Example: Documentary: Under the Dome - about how China has become the wasteland of the
world and the insane amount of propaganda that is covering it up.
6. Health and Safety: Criminal provision that allows employers to be prosecuted employers when they
are not taking appropriate steps.
Ex: The fire alarm in the class is suppose to sound, blink and flicker when there's a fire. If management
knew this was a problem, and a teacher died because of it, that's criminal negligence.
Ex: Not enforcing safety boots on a construction site.
Ex: Bluesfest: Cheap Trick stage was blown apart and killed someone. Management was liable.
7. Insider Trading: A benefit based on information that others do not have.
8. Issuing Illegal Financial Documents Prospectus: To sell something in public with proper consent.
Example: United States lawsuit, there was a company selling 2 for 1 "snuggies". It would cost 10.99 to
get the first blanket and one free. BUT shipping and handling was $22.
Example: D-Ram -The Money is Mine: When you were buying between 1999-2002 ALL electronic
companies FIXED the price of DRAM. $79 million class action. The claim offers a $20 no receipt
settlement.
Example: During the maple leaf recall, you could get $875 cash without proof of purchase. (The
settlement cost less than $20,000,000 in legal settlement to close the file)
In-Class Example: Thalidomide: Mothers were taking thalidomide, a drug recommended by doctors,
which was meant to alleviate morning sickness, but the side effects were that kids were born with
disfigurations. The government only recently offered a settlement for those born between 1958-1961
due to the effects of Thalidomide but due to their short life expectancy (45 years), no one is around to
claim it.
Example: WW II vets settlement of $1 billion over ten years. 20-25 vets die a month. How many are
going to be left? Is there anyone who can even use it?
Torts
Definitions
Torts: The notion of wrongdoing; to do something that is not appropriate causing harm and damages to
others.
4 Types of Damages
1. Non-pecuniary damages: general damages that meets one of the follow:
i) Pain and suffering
Ex: if you're missing 2 arms, how hard is it to get dressed? Distress.
ii) Loss of enjoyment of life
iii)Loss of life expectancy
2. Pecuniary Damages - out of pocket expense:
i) Loss of future income
ii) Cost of future care.
Example: You're in an old plane and the engine dies, you survive the crash. Who pays for your
damage.
3. Punitive Damage - exemplary damages: malicious oppressive conduct.
Example: Susan Nelles for malicious prosecution.
Example: Chinese embassy has huge walls. It used to be a reform Catholic school for girls under
18. The girls couldn't leave. Gilles says: "In reform school, they BREAK you".
In-Class Example: In the byward market a firefighter was killed. They found a young boy to be guilty of
the crime. The investigation showed later that the prosecutor KNEW the accused was 30 km away from
the crime scene. (the guys was homosexual, and in the 70s that made you scum, and so he pled guilty).
In-Class Example: Supreme Court of Canada: A young girl is killed in 1984, and with DNA they arrest a
man in 2007 who is found guilty in 2011. The man never admits to the murder. While he's imprisoned, 9
months later a second person is killed having the same DNA.
Aside: There a millions of cases, and just too many to go to court.
4. Aggravated Damages - intangible injuries: humiliation.
In-Class Example: Sex Tape Gilles teaches a class called Internet Law, a mid-30s female student says to
the class that it's hard to find a decent guy as you age. She thought she found "the one". They decided
to have a sex on a motorcycle and they filmed it. They broke up, the guy still has the video.
In-Class Example: Child Birth Tape A nice 19 year old student was telling her ethics story to Gilles. She
becomes pregnant at 19. They wanted to film the delivery. They broke up, the guy kept the video and
actually plays video during his house parties.
*Gilles wants us to understand how people are assholes.*
Notion of Negligence
The notion of reasonable care: What will be the conduct of a person in that given situation.
Steps to follow when dealing with a negligence case
1. Does the plaintiff owe a duty of care: An obligation to avoid carelessness that will cause harm to
others.
The neighbor principle: a person should take reasonable care to avoid acts or omissions that
s/he can reasonably foresee as likely to cause injury to the neighbor.
Example: Gilles was throwing snowballs with his children. What about people who slide in a
stone or ice that is carelessness. We have a duty of care. Duty of care is based on the notion of
neighbor principle.
In-Class Example: Donghue v. Stevenson - Tort case regarding duty of care. Drinking a soft drink she
finds a dead snail and becomes very sick. And so shed sued the gingerbrew manufacturer.
In-Class Example: Starbucks Lactose. A student actually chose a coffee that is lactose free. He drank the
lactose coffee, ended up having cramps from his drink. He wrote a letter to the business saying please
make sure there's no milk in the coffee, I am unable to drink it. They responded: Do you have a medical
certificate (proof)? Did you go to the hospital? Have you since recovered? They then sent him a gift card
for $100. He had used it, meaning that he has accepted the settlement.
Gilles Recommendation: With small claims, you don't sue, you take the settlement, but you negotiate
first. They offer $100, you ask for $250.
Gilles Recommendation: In business, get into social circles, get guidance, get advice, get a network.
Specific Torts
1. Product Liability: The design of a product needs to meet reasonable care, and we have to foresee a
reasonable outcome.
Example: In class chairs - the spring used (to support the back of the chair) as well as the seat
must be reasonable. However, you cannot make a chair that foresees ALL possibilities,
otherwise nobody would make new things.
Example: In Canada, roller chairs need to have 5 legs. Due to many lawsuits of people leaning
back and falling over. Gilles shows us a rocky chair, is it foreseeably reasonable? Is it the
consumers fault if they fall?
Example: Snail drink lady got sick - and that should not be permissible when we have a
consumption product.
Example: Cash and Carry (Loblaws bulk sales), Gilles goes in the Fridge (the broccoli comes in
cases) and he grabs a case, and by the time he grabbed the case it was half empty. Gilles doesn't
trust the store, furthermore, people are stuffing multiple items in these cases to steal them out
for free.
Example: McDonald's may advertise 565 calories, however, it depends on who is on staff. Was it
made with extra grease, extra pickles, extra mustard ect. It's an approximation when dealing
with manual.
In-Class Example: Someone in Ottawa is claiming that they found already been chewed gum in their pop
bottle. If you opened a SEALED wrapper to find chewing gum, that is UNNACCEPTABLE.
In order for their to be a lawsuit, you have to demonstrate that the processing plant made a mistake.
In-Class Example: 5 year ago a student used to dropped chewing gum in beer bottles and RECAP them.
Gilles chews him out: he says he's hurting the store, the company image, individual's confidence Now
they've actually installed cameras to try and prevent things like this from happening
Aside: The cleaning system of recycled beer bottles is phenomenal. They are recycled, and the company's
made the bottles durable enough to endure heavy cleansing done by machines.
The issue arises is if the work was done manually; the high standard can still exist although may not be
consistently met - you aim for the standard but perhaps they are not perfectly met.
2. Misrepresentation: Explicitly creates a situation where the third party will be induced on a material
consideration to engage into the relationship, and that will cause harm or damages.
Example: Gilles sells us a BigMac claiming that it's only 400 calories (130 calories difference
What's the damage to us?
Aside: Mcdonald's use to put certain chemicals (to prevent vomiting) in their sauce. People were
unable to swallow it.
Aside: Apparently Big Mac's are smaller than they used to be, arguably to reduce calories.
3. Occupiers Liability: The duty not to create harm to a trespasser.
Ex: Someone's trying to break into your house tonight, you can't booby trap it.
Ex: Someone was robbing a house, and the lawyer caught and tied up the thief. He was charged
with kidnapping.
Ex: The university must take every reasonable step to insure a student's safety: Safety while
note taking, having a safe desk to sit at
Ex: The university has a duty to make sure that teacher/professors do not cause foreseeable
harm to students - You shouldn't get shocked from plugging in a laptop.
In-Class Example: Shopping malls are private ventures open to the public. Since there is an economic
benefit, there is foreseeability of every possible circumstance. St-Laurent is doing renovations; it is the
mall's duty to ensure that the construction is not causing harm to customers. Warnings are not
sufficient; they need to take further steps.
Aside: St-Laurent has actually changed their food court to make sure it wasn't comfortable to make sure
people get up and shop. They've taken out the fireplace scenery and so on.
Aside: Gilles goes into a feeding room with his toddler. He's approached by a woman who says men are
not allowed.
Aside: Old lady uses the men's toilet, saying she couldn't hold it. She is legally liable.
If you barge in its sexual harassment, if you announce yourself you're good to go.
IF YOU DON'T ANNOUNCE IT'S AN ABUSE OF YOUR OCCUPIERS RIGHTS.
4. Nuisance: Lack of enjoyment of a property due to another party.
Ex: Someone blasting music from their car, that only lasts seconds. Let's say Gilles is blasting
country music every day. As long as you're within the bilaws: 9am-11pm. 90 decibels.
Other Ex: Snow blower, lawnmower ect.. You can start construction at 7am.
Contracts
Definitions
.
Aside: You need to protect yourself. Government requires credit rating checks
3. Consideration
If the value is not sufficient, it is an issue that deals with having a product that is a gift.
Ex: You decide that you will make a donation to the university, but you change your mind. Are
you able to do that? Yes, only if the university had not committed to your promise as specified
(Gratuitous Promise:
Ex: Gilles decides to give $1 million to a hospital, they've already bought 1 million worth of
equipment because of your promise, you are then liable. If they hadn't already spent your
money, you're good!
Ex: She had tape recorded her best friend saying how she was going to cheat in the exam.
2. Void Capacity: A contract that is so defective it cannot be enforced. And leads to the contract being
brought to a rational position.
Ex: You cannot sell your kids.
In-Class Example: Ipads being sold in the corridor, $200 cash. You bought in bad faith, you won't do jail,
but you will get a criminal record - that basically stops your life for 10 years.
Aside: Government of Canada checks credit rating before hiring.
3. Economic Duress: The threat of economic harm that will coerce one party into entering a contract.
Ex: Bloodline - a wealthy family coerced others for generations to get where they are, and their
heir plans on releasing these secrets to the public.
4. Undue Influence: Unfair manipulation that compromises your free will.
i) Actual Pressure: Direct manipulation and forced into a contract.
Ex: I'm a doctor, if you don't buy this product, don't come see me.
ii) Presumed Pressure: You expect an outcome from the fact of not committing to that
agreement.
Ex: If Gilles saw a current student in the bar, he would wave say hi, and leave them be because
he has authority over the outcome.
Ex: Coworker needs to take care of kids and asks Gilles to cover for her. Gilles says no problem,
then goes to tell their boss that she won't be in because she couldn't organize herself and get a
babysitter.
5. Misrepresentation: A false statement of fact that causes someone to enter into an agreement.
The statement must be of material nature (it has to be something substantially important).
Ex: T.V show The Bachelor - they need to stay together 24 months. Only top 4 contestants get
paid.
6. Notion of Mistake: An error made by one or both of the parties regarding the purpose of the
contract.
A serious element that involves the relationship.
Ex: instead of buying a car for 11,000 they fuck up and miss a zero 1,100 - that's an extreme
mistake.
If it's so remote from unreasonableness, you don't have a contract - it's voidable. You can bring
the contract to rescission.
Rescission: Back to its original (intended) terms.
Ex: Windows is releasing Windows 10, they skipped windows 9 because they were worried that
the programs from the 90s, they were worried search mistakes may happen. What happens if
someone somehow buys win
7. Illegal Contract: A contract that is not permitted under legislation because it's contrary to the law or
public policy.
Ex: To serve an individual with the loan with more than 60% is criminal.
Aside: Getting a criminal charge is the death of your business life.
In-Class Example: Constable Mondune hit a car and scratched while driving under the influence.
8. Public Policy: Defines what is immoral and violates our fundamental moral.
Ex: People who are abused because of gender or age - child labor.
9. Non-solicitation clause: When a clause is forbidding contract with the business customers.
This means you're not entitled as a an employee to use customers to serve yourself.
If you're working, you can't ask customers to help your charity that's separate from the
business.
Non-Compete Clause: A business that directly conflicts with a business you are a part of.
Ex: Stating that you can't open a pizza parlour within 3km is reasonable. Within 30km is not
reasonable.
10. A guarantee: A promise to pay a specific sum when the debt is not paid by the debtor.
You accept to pay for someone who defaults.
Example: Man in the basement, ex wife upstairs pregnant with new partner, he has four kids,
for a year he stays there. She evicts him. He sues
Property
Real property
Old English law concepts
Land or real estate
Includes anything that is fixed and associated with the premise. Ex: Buildings, fixtures.
Fixtures: Ducts, Lights Plumbing
Real Property: Tangible personal property that is attached to land or buildings.
Ex: If Mon Petit building was sold, the chairs would likely not be included.
Three types of Interests in Property
1. Fee simple: the legal interest in real property that is the closest to full ownership
2. Tenancy in common: Co ownership where by each owner of an undivided interest can dispose of
that interest. Also called Joint Tenancy.
Ex: I own land with my sister. She may sell her portion without my consent at any time.
3. Joint tenancy: co ownership where the survivor inherits the undivided portion
Terms of contracts
Terms can be expressed or implied and spelled out verbally or in writing.
If verbal, send an email to confirm the conversation.
Ex: Spray VS Brush paint. Gilles says he'll paint this room in 3 hours. But he spray paints as
opposed to brush paint. Unless specified the contract cannot be amended.
3. Quantum Meruit: Pay based on merit:The reasonable price we pay for the goods and services we
receive.
Aside: Gilles points out that Job quality in Canada is at a 25 year low.
4. Condition Precedent: An event or circumstance needs to occur before we can perform obligations.
5. Condition Subsequent: An event occurs after or during the execution.
6. Limitation of Liability Clause: Where liability is limited when there is a breach of obligations
Ex: Kettle Purchase: Only liable for the value of the purchase (unless you can demonstrate gross
negligence on their behalf).
Ex: Skiing, Bungee Jumping: Sign a waiver that limits the liability.
7. Exemption Clause: Identify events for which there is no liability.
International business terms where obligation is transferred.
EXW: Ex works
FCA: Free Carrier
FOB: Free on Board
Rules of Construction:
The intention of the parties
If unclear, we must use common sense
Interest in Land
An Easement: A right that is acquired or granted for a specific use or nature.
A right of way
A Restrictive Covenant: A restriction in the use of land and how it is supposed to be used.
Ex: In downtown Ottawa, you are not allowed to have a clothes line because it affects the
corporate image of Ottawa.
Ex: Numerous locations you are not permitted to have a bbq or satellite dish in your front hard.
Ex: Only permitted to have brown fences (not white)
Right of First Refusal: When there is a deal or transaction, you will grant a right of first refusal to
the actual purchaser. The purchaser has a right to a single piece but may be extended to
additional pieces.
Ex: This is how Uottawa bought all the houses on King Edward: When people sell, Ottawa U has
the first right to buy the property.
Mortgage: A credit arrangement where the title to land is the security for the actual loan.
The security to the intangible title of the land creates the right, not the land itself.
Redemption in Equity: When an institution will gain the legal title on land upon repayment of the debt.
When you don't pay, they seize the title of the land.
The consequence of forfeiture/foreclosure: Losing your assets.
Ex: A guy reverse mortgaged his house to execute a half a billion dollar business plan of opening
up a branch of banks in Europe. It didn't work out and he lost his house.
Deficiency: The difference between foreclosure value and the value of the house.
Value of the house may be less than the mortgage value if the property has become run down.
Ex: Catholic School on Murray/Cumberland: The city says the school had historical value but the
owner wants to tear it down. The property is going to waste because he will not maintaining it
and due to acts of vandalism. The city filed an injunction demanding that he takes care of the
buildings walls.
Exclusive Possession: Either in ownership or tenancy
Ownership: There are not limitations (apart from city bylaws) meaning you can do whatever you
want.
Ex: So long as your grass is shorter than 3 ft, you don't have to cut it.
Tenancy: Entitled to whatever you want within the limits of the agreement contract.
Distress: The landlord will pay himself from the personal properties of the tenant when there is nonpayment of rent.
A situation where there is no payments, and so the owner helps himself to private assets to
cover the difference.
The rent can always be replaced by another business, but must have ownership of building.
Ex: Rent for Pier 21 is $20,000/mth. He is helping with the lefal docs for the July 1 festival on
York Street. They rent the parking lot for 2 days for $25,000. Despite the high parking costs, Molson sells
$110,000.
In-Class Examples
Salomon Vs Salomon (1897): The original case that laid the foundation that a corporation is its own
legal entity.
The Case: Mr. Salomon was a successful leather shoe salesman who decided to sell his business at an
excessive 39,000 euros to a corporation he had just founded, and of which he owned 20,001/20,007
shares (the other 6 shares were owned by his wife and five children). Solomon then loans the company
$10,000 (the other shareholders have also pitched in at this point) on which the company pays interest.
The company end ups folding, and rather than reimbursing the other shareholders (his family) for what
they had invested in the company, the company decides to prioritize reimbursing Saloman's loan leaving
the other creditors/shareholders with nothing.
The Argument: Salomon had total control of the company, overpaid for his own small business, and
then received payment for his loan while the creditors (those who had invested IN the company, as
opposed to lend) received nothing. He was committing fraud and the creditors (his family) wanted to
sue.
The Verdict by the House of Lords (United Kingdom Supreme Court Equivalent): Creditors of an
insolvent company could not sue the company's shareholders to pay up outstanding debts
Caillou: 2 years ago there was an art case lawsuit at the Supreme Court level concerning Caillou by the
guy who actually propsed the idea to the original company. They took the idea, keeping the main
elements and making minor subtle changes. The show becomes a huge success and makes a fortune.
The original creator had to fight his way through the court system until he reached the Supreme Court
who granted him his creativity rights.
Gill Says: 99% will not win this battle, the process is too tough and too costly.
NHL Enforcers Globe and Mail had a story about NHL enforcers (those who are paid to fight). Enforcers
became an issue when the Canadians were winning the cups back to back. Blackhawks had players who
would be on the ice for 5 minutes tearing people down. Gilles had a goon in his class, when Gilles asked
why he's studying law, he explained that he's only called in only 15-20 games a year. He says he's
worried about his physical limits - breaking his knuckles on an opponent's helmet.
Implied NHL Rules: i) you don't take hits to the back of the head ii) if someone falls the fights over iii) if
the ref taps you the fight's over
A lot of enforcers were still being paid, but wouldn't be playing. When your contract's up and you need to
negotiate your contract, how do you prove your worth without any stats.
The goon explains that he actually likes the people he fights, it's just what they have to do.
Mayonnaise - Mayonnaise is made with male chicks (half a million slaughtered) because they can't
reproduce and take longer to grow. Heitzman's now needs to defend their stance in court. Regulation
will be passed to prevent the animal cruelty demanding that gender be determined earlier to avoid
animal cruelty.
BMO had their annual meeting at Laurier. Gilles bought 1 share to be able to go. Gilles got free shrimp,
but went to meet the 3 biggest players in the corporation - they run roughly 25% of BMO, in the room
%.001. They go to make their annual report, but the report is already pre-determined. They need to
make it a public official ordeal, but the decisions are already made.
Molson Blue - In Canada, all the major companies have a flagship beer that's a color. Molson = Golden.
Labatt = their color was blue. Molson registered a beer in 1930s called Molson blue.
And so, there's a battle between Molson and Labatt - they're infringing on their trademark. Labatt lost.
Labatt could not advertise "Blue". They had to add Labatt to the title. And they had to register the new
name Labatt Blue
Locomotive: Trains carrying oil, 150 tank car per train, travelling a distance of 4000km at ridiculous
speeds. We have more than 46,000 oil drums crossing the border. Gilles just wants us to understand the
environmental risk we're taking.
Bed Bugs: Minerals from Pakistan were used to kill bedbugs (in north America you wear a full suit to
handle the material). Kids died from these mineral in the hotel rooms. Is this not criminal neglicence?
In-Class Example: Documentary: Under the Dome - about how China has become the wasteland of the
world and the insane amount of propaganda that is covering it up.
D-Ram -The Money is Mine: When you were buying between 1999-2002 ALL electronic companies
FIXED the price of D-RAM.
Thalidomide: A drug recommended for woman health, however, that caused malformation (no legs or
arms) to their kids. Mothers were taking pills that were supposed to be good for them and the side
effects were the kids born with disfigurations.
Those born with disfigurations have very short Life expectancies; usually around 45 years.
The government only recently offered a settlement for those born between 1958-1961 due to the
effects of Thalidomide but who is around to take the settlement ($125,000)?
In-Class Example continued a)Gilles went to lawschool with a student who had no functional arms and
had to write for their toes. This medication caused the individuals to lose ALL dependency.
In-Class Example continued b) In University Gilles heard yelling from a shower and opened the curtain
to fine someone with one leg, no tongue, and no arms. He was yelling for help.
How do these individuals socialize? Have relationships?
OC Transpo accident at Fallowfield; bus was T-Boned by a train.
The lawsuit: Imagine sitting on the back of the bus, surviving and watching the front half ceasing to exist.
Everyone is filing against OC Transpo, The bus driver, and the government (including VIA rail). This may
be settled outside of court.
Hagen Hall: At Ottawa U, one of Hagen hall's Exit door is locked - no way in or out from the inside or
outside. Unfortunately, you have to go through a one-way door to get to this exit door, which means
you will literally be trapped between two doors. This is even more terrifying when you consider the
circumstances that people might actually end up using an EXIT they have never used before (fire
emergency).
Doctor and Consent: A doctor operates on you without consent.
If a doctor is exploring all your organs and finds a lump, unless it's a necessity that's relevant to the
purpose of the operation, he will not act as he would be liable: only if you will die immediately can he
intervene.
Water contamination (Walkerton Ontario). There were heavy rains and it ended up picking up manure
from massive farmlands. The brother's in charge of monitoring the levels didn't know what was going
on, and let people drink it. 7 deaths and 30 hospitalized from drinking E. Coli. , and half the population
was sick.
Toronto hospital baby deaths: children were poisoned at Toronto and a nurse was prosecuted. 43
babies were killed in one year (23 of which died while the nurse was on shift - further investigation
noted that the nurse had traded many of these shifts). The nurse (Susan Nelles) was wrongfully accused
and sued the province for malicious practice. We never found out who was killing the babies.
Gay Murderer In the byward market a firefighter was killed. They found a young boy to be guilty of the
crime. The investigation showed later that the prosecutor KNEW the accused was 30 km away from the
crime scene. (the guys was homosexual, and in the 70s that made you scum, and so he pled guilty).
Identical DNA murder case: Supreme Court of Canada: A young girl is killed in 1984, and with DNA they
arrest a man in 2007 who is found guilty in 2011. The man never admits to the murder. While he's
imprisoned, 9 months later a second person is killed having the same DNA.
Sex Tape: Gilles teaches a class called Internet Law, a mid-30s female student says to the class that it's
hard to find a decent guy as you age. She thought she found "the one". They decided to have a sex on a
motorcycle and they filmed it. They broke up, the guy still has the video.
Child Birth Tape: A nice 19 year old student was telling her ethics story to Gilles. She becomes pregnant
at 19. They wanted to film the delivery. They broke up, the guy kept the video and actually plays video
during his house parties.
Donghue v. Stevenson - Tort case regarding duty of care. Drinking a soft drink she finds a dead snail and
becomes very sick. And so shed sued the gingerbrew manufacturer.
Starbucks Lactose: A student actually chose a coffee that is lactose free. He drank the lactose coffee,
ended up having cramps from his drink. He wrote a letter to the business saying please make sure
there's no milk in the coffee, I am unable to drink it. They responded: Do you have a medical certificate
(proof)? Did you go to the hospital? Have you since recovered? They then sent him a gift card for $100.
He had used it, meaning that he has accepted the settlement.
Beer Gum: 5 year ago a student used to dropped chewing gum in beer bottles and RECAP them. Gilles
chews him out: he says he's hurting the store, the company image, individual's confidence Now
they've actually installed cameras to try and prevent things like this from happening
Aside: The cleaning system of recycled beer bottles is phenomenal. They are recycled, and the company's
made the bottles durable enough to endure heavy cleansing done by machines.
The issue arises is if the work was done manually; the high standard can still exist although may not be
consistently met - you aim for the standard but perhaps they are not perfectly met.
Pop Gum Someone in Ottawa is claiming that they found already been chewed gum in their pop bottle.
If you opened a SEALED wrapper to find chewing gum, that is UNNACCEPTABLE.
In order for their to be a lawsuit, you have to demonstrate that the processing plant made a mistake.
. St-Laurent is doing renovations Shopping malls are private ventures open to the public. Since there is
an economic benefit, there is foreseeability of every possible circumstance; it is the mall's duty to
ensure that the construction is not causing harm to customers. Warnings are not sufficient; they need to
take further steps.
Aside: St-Laurent has actually changed their food court to make sure it wasn't comfortable to make sure
people get up and shop. They've taken out the fireplace scenery and so on.