Gabriel Champlain checks-in at the hotel Luxor in Toronto. He is worried about the safety of a valuable piece of art he has just bought - a small painting of a famous artist - that he needs to leave in his room. The receptionist at the front desk reassures Mr. Champlain that the hotel and the rooms are safe and there is no reason to worry.

The day after, Mr. Champlain reports the loss of his object (value of $ 7,000) which disappeared from his room.

Based on the facts as outlined above:

1) What rule is applicable: Common Law liability rule or the Ontario Statutory Limitation?

2) (Based on your previous choice, provide an answer to one of the two following questions):

- If you choose Common Law liability rule, why is the hotel fully responsible if the mistake was made by the receptionist?

- If you choose to apply Statutory Limitations, how much would you pay the guest for his loss?