Business and Management

(5)​Anderson runs a small health food supermarket that offers products that other major grocery retailers have not stocked in the past. Anderson has enjoyed a loyal and growing customer base. Recently, however, he has noticed that a nearby “SuperCentre” Grocery is offering several of his products, such as rice snacks, ​organic herbs, and oils at prices so low that he cannot possibly match them without losing money. Lang suspects that this large national competitor is selling these items below cost, or at unreasonably low levels, in order to drive him out of business.

a. ​What sort of anti-competitive behaviour does it appear that Superstore is doing in this case?
Predadory pricing

b.​What should Anderson do about this?

She should sue the supercentre.

15.(5) ​Bob is a builder and goes to the Big Dig Excavator Sales Ltd. (“Big Dig”) in Kamloops to purchase a new excavator. Bob explains to the salesperson (“Doug”) that he needs an excavator capable of reaching down at least 4 meters from the surface because he often has to dig deep foundation trenches as part of his building projects. This specification is crucial for Bob. Doug recommends to Bob that he purchase a “Deep Reach” model “X4” as that will be sure to do the job.

​Bob buys the excavator and takes it to his job site. The excavator only reaches 3 meters into the ground and is completely unsuitable for Bob’s construction project. One of Bob’s friends tells Bob that he observed Doug bragging to some people at a local bar how he fooled “some stupid builder” into buying a terrible excavator that had been sitting at the dealership for months. Bob’s crew is unable to start construction of a new project on time and Bob has to pay his workers because he called them out to work.

​Bob says that Bid Dig made a “misrepresentation” to him.

​a.​Is Bob Correct? Why?

14. (4) Bert is hired as a sales representative by Sesame Street Enterprises (“SSE”) which is based here in Kamloops, British Columbia. His employment contract has a clause that reads as follows:

​“In the event that Bert quits or is fired from SSE, Bert agrees that for one year he will not seek to attract business to any new employer that would reasonably be considered a competitor of SSE, from the customers he worked with through SSE. This restriction will only be within the City of Kamloops and will last for a period of six months after Bert leaves the employment of SSE.”

​a. ​What sort of Restrictive Covenant is described in this clause?

​b.​How enforceable do you think this clause will be?

<link is hidden> the same facts as the questions #11 above sanders learns that Jason Bourne has assisted Popeye in opening up a different restaurant and calls it “KFG”, the stores look similar and both have a large bucket of chicken and a very similar “KFG” logo over the door. Sanders sues both Popeye and Jason Bourne.

a) What is the legal basis that Sanders would use to sue Jason Bourne?

b) What is the legal basis that Sanders would use to sue Popeye?

c) What remedies would Sanders be seeking from Popeye?

8. (6)​You are a lawyer (congratulations). One day a director of ABC Manufacturing Ltd. (“ABC”) comes to visit you. ABC manufactures hard drives for computers. This director tells you she is new to the board of directors and has just learned that ABC is coordinating with its competitors to reduce production of hard drives so that the price will increase. She tells you that as a director she raised this issue at a recent meeting of the board of directors but that the other directors dismissed her concerns saying that this sort of thing is “done all the time”. The Director further advises you that he owns about one million dollars of shares in ABC and that the company is very profitable. However, if the company is found guilty of any crime, the fines and other costs could bankrupt the company.

a.​What is your advice to the director regarding what they should do next?

b.​What is your advice to the director regarding their shares in ABC?

4)​Bill is 64 years old and has a small gas fitting business. He goes to various locations and hooks up natural gas furnaces and appliances. He has all the necessary certifications to do this work. He only works about 20 hours per week. Bill has no employees. The business earns Bill about $50,000 per year. What is the best advice for Bill in terms of the structure he should use to run his business (Corporation, Proprietorship or some sort of Partnership)? Why would this be best?

3. (5)​Barney runs a small health food supermarket that offers products that other major grocery retailers have not stocked in the past. Barney’s business is growing and he enjoys a loyal and growing customer base. One of his key suppliers of organic products is “Whole Nature Fare”. These products are very popular with Barney’s customers and easily his bestselling line of organic products. A sales representative for Whole Nature Fare visited Barney’s store and noticed that its key competitor, “Organics R’ Us” is also prominently displayed for sale in Barney’s store. The sales rep tells Barney that if he continues to stock “Organics R’ Us” products, Whole Nature Fare will stop supplying him with product. Barney is concerned about this and comes to you for advice.

a. ​What sort of anti-competitive behaviour does it appear that Whole Nature Fare is doing in this case?

4)​Bankcorp has a mortgage over Jane’s house in the amount of $300,000. Jane goes bankrupt and the property is sold for $260,000 (net real estate commissions and expenses on the sale). Jane’s other assets like her boat, car and snowmobile are sold and (after paying the trustee in bankruptcy all of their expenses), there is an additional $40,000 available for distribution. Jane owes $40,000 in unpaid income taxes and $20,000 to various other unsecured creditors (credit cards, personal loans etc.). Bankcorp says it is entitled to all the money it is owed by Jane as a secured creditor. Is Bankcorp correct? Why or why not?