Commercial Law,George Brown College,Canada

Question 1

Part a)

Owen had borrowed money from a credit union to purchase a car, and the credit union had required a security against the car, which they registered under the Personal Property Security Act. As well, Owen's father guaranteed the loan. Some months later, Owen decided to go back to school, and he had to sell the car to do so. He returned to the credit union and, at his request, the credit union gave up the security they had against the vehicle, knowing that they still had the loan guaranteed by Owen's father.Owen defaulted and, instead of repossessing the vehicle, the credit union demanded payment from the father.

Question: Applying the relevant and correct principle(s) of law discuss the liabilities of the parties.

Part b)

After graduating, a student set up a business as a systems analyst. His monthly billings are healthy, about $10,000 a month. He rents his office, hardware, and furniture and owns few assets. He rents his apartment, has no car, and spends most of his income on concerts. If he approaches you, a bank manager, to borrow $50,000 for the purpose of increasing his working capital.

Question: Identify, explain and apply the most appropriate security method required to secure the above transaction.

Part C)

A petition for bankruptcy against Gold dust Inc., has recently been filed by the creditors on October 1 2020. One of the suppliers of Golddust Inc., who is owed $500,000, started a court action to reclaim that debt. The company has defended. On October 30^th 2020, the supplier wants to obtain a default judgment against Golddust Inc.

Question:Applying the correct principle(s) of law, explain the legal position of the supplier, whether the action will succeed, and how the supplier would have been protected.

Question 2

Part a)

Tom was employed as a programmer by Mohawk Oil Company about three months after graduation. Because his friend, Harry could understand the program he was working on and because Harry write well, he requested Harry to take on the task of writing the manual to accompany the program.

Question: Applying the relevant and correct principle(s) of law, discuss the legal issue(s) raised in the case scenario.

Part b)

Three students chose to work on a directed study project for Planned Parenthood Association. The project included the creation of an app for inventory control. The students went to the library to get a book on the topic. The book was in the reserve section, so the students made three copies of the four relevant pages so that they could study them. They used the ideas from the book and created an original app and a manual. Later, when the students were preparing a report for their presentation, they decided that the pages in the book exactly expressed the theoretical background they needed for the introduction. They copied those four pages and used them as their own for the beginning of their twenty page report. At the presentation, seven copies of the report were made (with the code and manual as appendices).

Question: Applying the relevant and correct principle(s) of law, discuss the legal issues raised in the case scenario.