Reference no: EM133230159

Part 1

1. For an agency agreement to be binding between the principal and agent, what is required and what is the effect if a required element is not met?

2. Discuss the role of the Partnership Act as it relates to people carrying on joint business activities.

3. Explain under what circumstances an agent can be liable for his conduct rather than the principal.

4. Despite its organizational simplicity, sole proprietorships must satisfy many federal, provincial, and municipal requirements to carry on business. List and describe three regulatory requirements.

5. Contrast the obligations and duties of directors and shareholders of a corporation.

6. To what does the term "due diligence" refer?

7. Discuss the role of strikes, lockouts, and picketing, and whether or not they have any place in our present society.

Part 2

Case Analysis Questions: For each of the following questions provide a brief fact sheet, legal issues and analysis.

8. a) Joe is a shareholder of XYZ Corporation, an extremely profitable corporation in the software business, and was upset when the directors of the corporation refused to declare a dividend again, ploughing the money back into research and development. Joe sued, along with several other shareholders, claiming that there was no excuse for withholding dividends under these circumstances. Explain the likely outcome.

b) Joe is an environmental activist and he acquired shares in Big Forestry Ltd. (a forestry corporation), only for the purpose of undermining Big Forestry Ltd. by speaking against their practices at annual shareholders' meetings and getting access to confidential information. Joe spoke against Big Forestry Ltd. at every opportunity. Explain his legal obligations to the corporation under these circumstances.

9.

a) Joe worked for Harry's Fine Toys for a period of six years. In September, he left Harry's Fine Toys and went to Sam's Toy Shop, a competitor, and disclosed Harry's Christmas line of toys. What could Harry do under these circumstances?

b) Joe wanted to start up a restaurant business. He did some research and found out McDonald's had not properly registered its trademark, the golden arches, in his particular area. Joe used a similar pair of arches over his restaurant and started business. Explain any danger he might face.

10.

a) Joe verbally agreed with his landlord to a two-year lease for an apartment. Only five months later, the property was sold to somebody else. The new owners gave Joe three months to vacate the premises. Explain Joe's legal rights under these circumstances.

b) Joe bought a car from Harry's Fine Car Lot and owed him $5000 on the deal, which he was paying back at $500 a month under a Security Agreement. Harry assigned that Security Agreement to Ace Finance Company, and they served notice on Joe that he was to make his payments in future to them. Joe knew, however, that his deal was with Harry, and he ignored the notification and continued to make the payments to Harry. What danger does he face in these circumstances?