Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

ABC Ontario Inc. is a former franchisee of Mr. Submarine Limited (Mr. Sub) and a class representative of 424 Mr. Sub franchisees. At the time

ABC Ontario Inc. is a former franchisee of Mr. Submarine Limited ("Mr. Sub") and a class representative of 424 Mr. Sub franchisees. At the time when ABC was a Mr. Sub franchisee, Mr. Sub and Maple Leaf's relationship was governed by an agreement in which Maple Leaf was an exclusive supplier of ready-to-eat ("RTE") meats for 14 core Mr. Sub menu item. There was no direct contract between Mr. Sub franchisees and Maple Leaf, and orders were placed through a distributor; however, there was a dedicated phone hotline for franchisees to contact Maple Leaf should any issues arise. Though Mr. Sub franchisees were contractually bound to purchase from suppliers approved by Mr. Sub, they could rely on other suppliers if Mr. Sub approved of their request to do so.

On November 16, 2022, the Canadian Food Inspection Agency ("CFIA") informed Maple Leaf of a finding of listeria (bacteria) in one of its products and in the subsequent weeks, Maple Leaf voluntarily recalled its meat products, including the RTE meat products used by Mr. Sub franchisees. Mr. Sub was publicly associated with Maple Leaf during the recall and a settlement was reached by the two parties to cover the inconvenience caused by the voluntary recall. The Mr. Sub franchisees, however, felt the direct consequence of Maple Leaf's recall, experiencing a significant decrease in sales and profits following the listeria outbreak. ABC Ontario Inc. has filed a lawsuit, accusing Maple Leaf and requesting damages.

  1. What kind of tort claims are possible in the given scenario and why?
  2. Can ABC Ontario Inc. be treated as an agency of Mr. Sub? Explain with reasons

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organizations Behavior, Structure, Processes

Authors: Gibson, Ivancevich, Donnelly, Konopaske

14th Edition

978-0078112669

Students also viewed these Law questions