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business law question. SAMPLE FINAL EXAM PROBLEM (RE Criminal/Regulatory Liability of Corporations) April 13, 2022 John Payback is the Nova Scotia Division Manager of Greenback
business law question.
SAMPLE FINAL EXAM PROBLEM (RE Criminal/Regulatory Liability of Corporations) April 13, 2022 John Payback is the Nova Scotia Division Manager of Greenback Fibre Company ("Greenback"), which is a national company with factories in all ten Provinces. Greenback manufacturers fibre sheets used in the production of newsprint. John is responsible for the operations of Greenback's plant in the Wilful Industrial Park which is located next to the Cornwallis River. As of May 5, 2020, the plant has been operating for only six months. It has, in addition to John, fifteen newly hired workers. For the first two weeks of operations John provides on-the-job training to the employees, and a total of five days' training on the use and handling of two chemicals used in the plant, Zenox and Parmar3, which are not toxic but (1) can become toxic if mixed with certain other chemicals and (2) can cause serious bums if exposed to human skin (3) are used in large quantities by the plant. On May 5, 2020, the brakes fail on a truck operated by one of Greenback's suppliers, Ever On Time Incorporated, and the truck runs into the side of the Greenback factory. The brakes fail because of inadequate maintenance by Ever On Time employees. In the process a pipe in the plant is severed and massive quantities of Zenox start escaping into the plant parking lot and down an embankment into the Comwallis River. The Cornwallis River has high quantities of faecal bacteria, and when the Zenox is mixed with this bacterium it creates a toxic chemical which kills large quantities of fish in the river. The accident occurs at the time of a shift change, and the Zenox running into the plant parking lot seriously burns five of the Greenback employees. Four other Greenback employees are so outraged at what happens that they immediately attack and assault the two Ever On Time employees in the truck (the driver and his helper). John sees everything, including the attack on the Ever On Time employees, from his office window. He opens the door and screams, "Stop!" No one listens and in all the chaos no one hears his voice, and John then closes the window and calls his boss in Toronto for advice as to what to do. Greenback is charged under the Nova Scotia Environmental Act for a violation of section 35 of the legislation which provides as follows: "No one shall discharge toxic or potentially toxic chemicals into the environment." After the above charge is laid John also learns that Greenback is about to be charged under the Criminal Code. Greenback comes to you, their in-house lawyer, and wants to know their chances of success in defending the Environmental Act offence. They also want to know what criminal offences they could be charged with and their chances of successfully defending these charges. In answering the question, please discuss all possible issues and arguments (DO NOT DISCUSS THE REGULATORY OR CRIMINAL LIABILITY, OR CIVIL LIABILITY, OF EVER ON TIME INCORPORATED). SAMPLE FINAL EXAM PROBLEM (RE Criminal/Regulatory Liability of Corporations) April 13, 2022 John Payback is the Nova Scotia Division Manager of Greenback Fibre Company ("Greenback"), which is a national company with factories in all ten Provinces. Greenback manufacturers fibre sheets used in the production of newsprint. John is responsible for the operations of Greenback's plant in the Wilful Industrial Park which is located next to the Cornwallis River. As of May 5, 2020, the plant has been operating for only six months. It has, in addition to John, fifteen newly hired workers. For the first two weeks of operations John provides on-the-job training to the employees, and a total of five days' training on the use and handling of two chemicals used in the plant, Zenox and Parmar3, which are not toxic but (1) can become toxic if mixed with certain other chemicals and (2) can cause serious bums if exposed to human skin (3) are used in large quantities by the plant. On May 5, 2020, the brakes fail on a truck operated by one of Greenback's suppliers, Ever On Time Incorporated, and the truck runs into the side of the Greenback factory. The brakes fail because of inadequate maintenance by Ever On Time employees. In the process a pipe in the plant is severed and massive quantities of Zenox start escaping into the plant parking lot and down an embankment into the Comwallis River. The Cornwallis River has high quantities of faecal bacteria, and when the Zenox is mixed with this bacterium it creates a toxic chemical which kills large quantities of fish in the river. The accident occurs at the time of a shift change, and the Zenox running into the plant parking lot seriously burns five of the Greenback employees. Four other Greenback employees are so outraged at what happens that they immediately attack and assault the two Ever On Time employees in the truck (the driver and his helper). John sees everything, including the attack on the Ever On Time employees, from his office window. He opens the door and screams, "Stop!" No one listens and in all the chaos no one hears his voice, and John then closes the window and calls his boss in Toronto for advice as to what to do. Greenback is charged under the Nova Scotia Environmental Act for a violation of section 35 of the legislation which provides as follows: "No one shall discharge toxic or potentially toxic chemicals into the environment." After the above charge is laid John also learns that Greenback is about to be charged under the Criminal Code. Greenback comes to you, their in-house lawyer, and wants to know their chances of success in defending the Environmental Act offence. They also want to know what criminal offences they could be charged with and their chances of successfully defending these charges. In answering the question, please discuss all possible issues and arguments (DO NOT DISCUSS THE REGULATORY OR CRIMINAL LIABILITY, OR CIVIL LIABILITY, OF EVER ON TIME INCORPORATED) Step by Step Solution
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