BLAW 2911: Commercial Law 1
TRU Open Learning
Assignment 4 Scenario
The Slash Co Knives Corporation is an American corporation who is planning to
expand into the Canadian market. The corporation sells knife sets door to door with
a mobile sales force. The knife sets that they sell are of inferior quality and are prone
to
eaking, which has caused injury to their customers in the past. The company
has historically had strong sales due to its pushy sales force even though their knives
are worse than similar knives that can be bought at retail outlets. The knives are also
priced significantly higher than similar products. The Slash Co Knives Corporation
is concerned that there may be some Canadian laws that may negatively impact or
estrict their business when they move into the Canadian market.
They have hired you to advise them in this regard and have asked you to describe
any significant aspects of Canadian law that they should be aware of and outline any
options they may have to limit their liability.
Assignment 4: Sale of Goods and Consumer Protection - Spot the Issue(s)
Spot the Issue Assignments
A spot the issues question presents you with a
ief scenario and asks you to identify any legal issues as well as provide your opinion on how the legal issue may be resolved.
Use the IRAC formula to work through the scenario. The IRAC formula presents a structured way for you to organize your thinking and your answer to spot the issue(s) questions.
The IRAC Formula
The method you will use to answer spot the issue(s) questions in this course is known as the IRAC formula. The IRAC formula presents a structured way for you to organize your thinking and your answer. The formula contains the following steps:
Set out your assignments under the following headings:
Facts
Bullet points are all we are looking for here. Do not include any conclusions in your facts. This section simply requires you to pick out the main facts from the question and re-state them.
Issues
With respect to issues, I recommend that you frame these as questions. For example if the assignment was a case about a potential
each of fiduciary duty (I'm not saying any of the assignments are, this is just an example to illustrate) you would say something like:
1. Did the defendant owe the plaintiff a fiduciary duty?
a. Was the defendant uniquely vulnerable to the plaintiff's unilateral exercise of discretion?
2. Did the defendant
each his/her fiduciary duty?
a. Did the defendant exercise his/her discretion in such a way as to cause loss to the plaintiff?
3. What remedy, if any, is the plaintiff entitled to?
a. Is the plaintiff entitled to an injunction?
. Is the plaintiff entitled to damages?
i. If "yes", how are the damages calculated?
Then repeat each one of these questions, and answer each one, in the analysis section.
Rule
For the rule section - you should not write full sentences, and you should not explain or apply the rule here. Write this section out in bullet points, or a numbered list - not full sentences.
Start with the
oadest legal rule that applies (1) and then na
ow down to all the su
ules that apply (a, b, c) to that
oad rule (1) that you will have to consider. Repeat for additional legal rules, if necessary.
Here's the kicker: if you don't identify all the right issues or the right rules, you cannot possibly get full marks on the analysis section.
Analysis
In this section you should use headings that match your numbered issues. Apply the rules you have identified in the rules section (don't
ing up new ones here!) to the relevant facts stated in your facts section to answer the questions you have set out as issues in your issues section.
This section requires full sentences and should form the majority of your assignment. This is where you explain how the rule (or law) works in this particular situation.
Conclusion
Write a
ief recap that summarizes your answers in the analysis section. Don't raise or answer new issues here! This section should also be written in full sentences.
The IRAC formula is used in the grading ru
ic for all of the “spot the issue(s)” assignments.
Instructions
1. Read the attached case scenario carefully.
2. Once you have read the scenario, advise the Slash Co Knives Corporation on Canadian laws that may negatively impact or restrict their business. Describe any significant aspects of Canadian law that they should be aware of, and outline any options they may have to limit their liability.
3. Your answer should be approximately 1,500 words in length. Use 12-point, Times New Roman font.
4. Thoroughly address all of the steps in the IRAC formula providing complete explanations for each issue.
Writing Guidelines
Use legal referencing when citing any material from the course readings (this includes both paraphrasing and direct quotes). Use the following online guides to format your citations to the McGill Guide: The Canadian Guide to Uniform Legal Citation style:
· University of Toronto (Bora Laskin Law Li
ary) Legal Citation
· Queen’s University Legal Citation
Thompson Rivers University
Te
ance P Power
BLAW 2911_SW4 - Commercial Law (Winter 2019)Jessica Giancola
T XXXXXXXXXX
Assignment 4: Sale of Goods and Consumer Protection
05-FEB-2020
Facts:
1. The Slash Co Knives Corporation is an American corporation.
2. Slash Co is planning on expanding into the Canadian Market.
3. The corporation sells knife sets door-to-door with a mobile sales force.
4. The knife sets they sell are of inferior quality,
5. are prone to
eaking and,
6. have caused injury to their customers in the past.
7. The company has historically had strong sales due to its pushy sales force,
8. even though their knives are worse than similar knives that can be bought at retail outlets.
9. The knives are also prices significantly higher than similar products.
10. The Slash Co Knives Corporation is concerned that there may be some Canadian laws that may negatively impact or restrict their business when they move to the Canadian market.
Issues:
1. What constitutes a contract regarding the sale of goods in Canada?
12. Is Slash Co required to obtain registration to directly market their products in the Canadian market?
13. What is the implied and expressed conditions of direct sales contracts?
14. Is Slash Co exhibiting unfair practices?
15. How can Slash Co protect themselves by ensuring safety standards of their product?
Rules:
· Contract Law
· Sale of Goods Act
· Consumer Protection Law
· Canada Consumer Product Safety Act
· Consumer Packaging and Labelling Act
Analysis:
[1] The fundamentals of the common law regarding the formation of a contract do affect consumer, business relationships. Whether or not a contract has formed is an important legal position to be aware of. According to Dorothy DuPlessis, Shannon O’Byrne, Philip King, Lo
ie Adams, Steven Enman, Canadian Business and The Law, 6th ed., Loose Leaf Edition: ISBN-13: XXXXXXXXXX, ISBN-10: XXXXXXXXXX, (Nelson Education, 2017), at p 97-98:
An Agreement. An agreement is composed of an offer to enter into. a contract and an acceptance of that offer… The informing idea behind a contract is that there has been a “meeting of the minds” - that the parties have agreed on what their essential obligations are to each other.
Complete. The agreement must be complete, that is, certain.
Deliberate. The agreement must be deliberate, that is, both parties must want to enter into a contractual relationship.
Voluntary. The agreement must be freely chosen and not involve coercion or other forms of serious unfairness…
Between two or more competent persons. Those who enter a contract are known as parties to the contract. There must be at least two parties to any contract, who must have legal capacity…As a general rule, only parties to a contract can sue and be sued on it…
Supported by mutual consideration. A contract involves a bargain or exchange between the parties. This means that each party must give something of value in exchange for receiving something of value from the other party. Expressed in legal terminology, a contract must be supported by mutual consideration…
Not necessarily in writing. As a general rule, even oral contracts are enforceable, though negotiators should get the contract in writing. That said, most Canadian jurisdictions there are certain kinds of contracts-such as those involving an interest in land-that must be in writing to be enforceable.
Moreover, the Sale of Goods Act, RSBC 1996, c. 410, s XXXXXXXXXXindicates:
Part 2 — Formation of the Contract
Sale and agreement to sell
6 (1) A contract of sale of goods is a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price.
(2) There may be a contract of sale between one part-owner and another.
(3) A contract of sale may be absolute or conditional.
(4) If under a contract of sale the property in the goods is transfe
ed from the seller to the buyer, the contract is called a sale.
(5) If the transfer of the property in the goods is to take place at a future time or is subject to some condition to be fulfilled later, the contract is called an agreement to sell.
(6) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transfe
ed.
Contract of sale
8 (1) Subject to this or any other Act, a contract of sale may be made in writing, either with or without seal, or by word of mouth, or partly in writing and partly by word of mouth, or maybe implied from the conduct of the parties.
(2) Nothing in this section affects the law relating to corporations.
Noted specifically under the Business Practices and Consumer Protection Act, SBC 2004, c. 2, Part 4, s. 17:
"direct sales contract" means a contract between a supplier and a consumer for the supply of goods or services that is entered into in person at a place other than the supplier's permanent place of business, but does not include any of the following:
(a) a funeral contract, interment right contract or preneed cemetery or funeral services contract;
(b) a contract for which the total price payable by the consumer, not including the total cost of credit, is less than a prescribed amount;
(c) a prepaid purchase card;
[2] According to Dorothy DuPlessis, Shannon O’Byrne, Philip King, Lo
ie Adams, Steven Enman, Canadian Business and The Law, 6th ed., Loose Leaf Edition: ISBN-13: XXXXXXXXXX, ISBN-10: XXXXXXXXXX, (Nelson Education, 2017), at p 608, “In many provinces, door-to-door salespeople must be registered and must post a performance bond which may