Chapter 9.PROPERTY LAW

Chapter 9 Sections

FOR REVIEW

Questions

1. Is the remedy of distress available under a residential tenancy? (LO 9.4)
2. State whether the following is a fixture or a chattel: (LO 9.3)
3. A furnace
5. A built-in dishwasher
7. A dining room table
9. A storage shed
11. A circular saw stored in the storage shed
13. An antique lampshade on a hall light
15. A portable room dehumidifier
16. At what point is a lien on personal property considered to be "perfected"? (LO 9.5)
17. If a pre-existing environmental problem is uncovered following the sale of real property, is the vendor of the land responsible for the cost of cleaning up the problem? (LO 9.3)
18. What is the purpose for registering interests in land? (LO 9.3)
19. Page 190
20. What are the two forms of personal property? (LO 9.5)
21. What is the purpose of a mortgage on real property? (LO 9.3)
22. Briefly explain what the term "blended payments" means under a mortgage. (LO 9.3)
23. Briefly explain the term "bailment" and give an example. (LO 9.5)
24. Briefly explain what is protected by an industrial design application. (LO 9.6)

Activities

1. For reasons, discuss whether a renewal clause would or would not be of benefit in a commercial lease. (LO 9.4)
2. What types of issues would you want to negotiate as part of your lease in the following circumstances: (LO 9.4)
3. The premises are situated next to a river that tends to flood in the spring;
5. The premises are under construction and already running behind for completion in time for your occupation and use;
6. You have a large space and may want to rent part of the premises to another business if your business is slow to develop;
7. You plan to spend $30,000 on shelving units and special directed lighting in setting up your business and want to take these with you at the end of the lease.
8. You have drawn up a strategic marketing plan for a unique product that will be the first to be made available to consumers. What steps would you take to protect the plan and the information about the product as you discuss bringing the item to market with various suppliers and retailers? (LO 9.6)
9. Go to the Canadian Intellectual Property Office (CIPO) website and choose one of the tabs on the site (Trademarks, Patents, Copyright...). Provide a summary of the information available to you under that tab. (LO 9.6)
10. Discuss whether registration of a copyright with the government should be a requirement to have protection in that area of intellectual property law. (LO 9.6)
11. Discuss the benefits and drawbacks to the three remedies available to a mortgagee in the event a borrower defaults under a mortgage. (LO 9.3)
12. When is it more appropriate to sublet a rental property rather than assign your rights under a lease? (LO 9.4)
13. What is meant by the term "fair dealing" about copyright law? Is it still relevant for contemporary business purposes? (LO 9.6)

CASES FORDISCUSSION

Case #1

Hector was a well-known artist who specialized in sculptures of birds and animals. The town where he lived commissioned Hector to create a life-size sculpture of birds for the lobby at the town hall. The lobby was small, so Hector thought the best use of the space would be to suspend the sculptures from the ceiling. He proposed a small flock of Canada Geese because of their size and the V formation in which they fly.

The work of art was completed and installed to great acclaim by the town and the town's inhabitants. It became well known and as Hector's reputation grew, so did the crowds who came to admire his artwork. For a holiday season that was starting in December, the town council proposed that large red ribbons be tied around the necks of the Canada Geese in the lobby. It was discussed in council and approved that every year bows would be added to the sculpture to commemorate the festive season.

Unknown to Hector, bows were tied around the geese and the ribbon ceremony was completed. A few days later, a friend of Hector's mentioned that it was interesting to see how much the bows hide the necks on the geese, making them look deformed. Hector flew to the town hall to gaze dumbfounded upon his masterpiece looking like a decoration on the top of a gift parcel. "This doesn't fly with me," he muttered.

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1. Discuss the issues raised by this fact situation. (LO 9.1,9.2,9.6)
2. What, if any, legal rights or remedies does Hector have to undo this action by the town council? (LO 9.6)

[SeeSnow v. Eaton Centre Ltd.(1982), 70 C.P.R. (2nd) 105.]

Case #2

Dan and Bre, recent graduates from a graphic design program, have decided to begin a graphic design business called "You Are Our Type." They are short of funds, so purchasing several pieces of expensive equipment as well as a rental location is prohibitive. Bre suggested that they use their own computers, printers, desks, couches, and items they individually have in their own apartments to create an office. As well, they would lease some office furniture and, rather than rent an office, would purchase a house close to downtown and set up their office there.

1. What advice would you give Dan and Bre? (LO 9.1,9.2,9.3,9.4,9.5)
2. Outline the areas of potential difficulties they may encounter if they go their separate ways in the business. (LO 9.3,9.5)

Case #3

Vartoch had his eye on some land at the edge of town that he thought would be the perfect location for a restaurant with a takeout drive-through. It was close enough to the town that people could easily drive to it and it was large enough to accommodate a substantial parking lot and the driveway for takeout. Vartoch approached Wanda with his business plan and she loaned him $300,000, which was secured by a mortgage on the property when he purchased it. For over a year Vartoch struggled to get planning permission from the town for his project. The longer his application took, the harder it was becoming for him to be able to make the payments under the mortgage as funds were used up in making his application and arguing with the town council.

Unknown to Vartoch, the reason why the town's approval was delayed was because of planning discussions the town was having with the province about a new highway that would pass very close to the property Vartoch owned; the final decision and when construction would begin were still unknown. Wanda, as a member of the town council, was aware of the plans being discussed relating to the highway and that the value of Vartoch's property would go up considerably once the highway was approved. Needless to say, Wanda could not tell Vartoch anything about the highway plans because they were confidential. Eventually, Vartoch defaulted on his payments under his mortgage with Wanda.

Wanda, having heard that you took an excellent course in business law, has asked your advice on what her course of action should be. She confirms that the mortgage is two months in default and Vartoch is unable to make any payments.

1. Advise Wanda on the different remedies available to her as a result of Vartoch's default under the mortgage and the benefits and issues that each party may have. (LO 9.1,9.2,9.3)
2. Discuss whether Wanda's position on the town council should be considered an issue in these circumstances. (LO 1.4,9.6)