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Michael is a 62-year-old salesperson at Auto Inc. and has been working at the company for 8 years on salary. About six months ago a
Michael is a 62-year-old salesperson at Auto Inc. and has been working at the company for 8 years on salary. About six months ago a new manager, Wes, was assigned to supervise Michael and the other sales representatives. Wes personally did not like Michael and had noticed that Michael had come to work on at least two occasions in what he perceived to be a drunken state. Wes was also not pleased with Michael's sales production. During a sales meeting, Wes gets annoyed when Michael is talking while Wes is trying to discuss sales strategy to all the salespeople. Wes then screams the following at Michael during the meeting, "Michael you are fired. You have always been a lousy car sales representative". Wes then takes Michael aside and privately informs him to pack up his things and leave. Wes also informs Michael that accounting will forward him a cheque for one month's salary as reasonable notice/severance. Wes also indicates to Michael that the company isn't required to provide this payment due to Michael's poor sales. Michael's annual sales had been lower than the other sales representatives, but he has never been disciplined at the company for anything or told by anyone that his sales are too low. Discuss whether Michael has any legal remedies under statute and common law. (10 marks)What is the difference between an employee and an independant contractor? Why does this matter (2 marks)Ben and Jill are both directors of Tek Inc. Since Ben was the CEO, and Tek is a small closely held corporation, Jill was added as a director, but she had no active involvement in the corporation. Jill had just signed papers when Ben told her to, but she never read them. Ben had always assured her Tek Inc. was in good financial shape and she had nothing to worry about. Ben and Jill are now both worried that they may be personally liable for some of the Tek debts if Tek is unable to pay them or it goes bankrupt. They have contacted a lawyer regarding this potential liability. Ben was so concerned over the Tek problems that he went over to his friend Peter's house and discussed his problems and drank 8 beers. Ben then walked home and as he crossed the road in the middle of the block (jaywalking), he was hit by Mary who driving her car and texting on her cell phone. Ben has suffered permanent leg injuries and Mary suffered a head injury when the air bag in her Ford car didn't go off. Mary is a famous comedian and she had to cancel her performance at Laughs, a local comedy club. Laughs is now claiming $20,000 in lost profits from Mary for her cancelled shows. Lawyers were called. (10 marks) Discuss FULLY the legal issues involved and the rights and remedies of all the parties
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