Paul's job with Kits Cannabis Inc (KCI) was as a salesperson, providing medical marijuana to students who were patients at the Student Health Clinics operated by UBC. After working there for 3 years he recognized a personal opportunity for expansion - he could have his own business which would assist university students to obtain the necessary medical requirements and prescriptions for medical marijuana (seeing as marijuana was not yet legalized) and then run a delivery service for these students. His target market would be exchange students living in Gage Towers and other university run residences, and to be a financial success he planned on delivering flyers to the residences, outlining the ease with which marijuana could be obtained to help with sore back, trouble sleeping, headaches, etc. Paul was not concerned about the term in his employment contract with KCI which said "for a period of five years after the termination of his employment, he would not engage in the brokerage or selling of cannabis either alone or in association with or as an employee of any persons within UBC or within two hundred miles thereof " Paul was certain his business was different, a niche market, and he was not stealing medical patients from the UBC run clinics. Paul's troubles started about 3 months after he started delivering flyers and marijuana. a) 8 marks 12 minutes KCI has started a court action against Paul based on the restrictive covenant in his employment contract. Advise Paul as to the legal effects and ability of KCI to enforce the covenant. Explain fully. b) 3 marks 4.5 minutes Would the result in (a) be any different if the covenant said that Paul, for a period of 1 year, must not directly or indirectly solicit, divert or hire or attempt to solicit or hire to a competitive entity, any individual or entity which was an actual or actively sought prospective client or customer of KCI? Explain fully. c) 3 marks 4.5 minutes KCI has asked for an interim injunction prior to the trial regarding the covenant. Explain the reason for and effect of this, with reference to the applicable case discussed in class. d) 3 marks 4.5 minutes Paul needs to hire a lawyer. Set out briefly the 3 main ways lawyers are hired in British Columbia. e) 3 marks 4.5 minutes Paul is upset with his lawyer's fees. He doesn't see why his lawyer has charged him for researching cases as he had assumed all law was in a code. Is this true in Canada? Explain the role of stare decisis in the Common Law system. 2 Downloaded by Jenny Kaur (..4@gmail.com) lOMoARcPSD|5713840 QUESTION 2: 8 MARKS 12 MINUTES Karan Bhatia was a lab instructor in a private Christian College in Vancouver. He had received positive performance evaluations, salary increases and was promoted to a full- time position. After being questioned by the college president, Karan disclosed that he was gay. Soon after, the president requested Karan's resignation, claiming Karan had violated the college's position on homosexuality. Karan refused to resign and so the college terminated his employment. a) 3 marks 4.5 minutes Karan filed a complaint in the BC Supreme Court saying that his rights were violated under Section 15 of the Charter of Rights and Freedoms. Will this action be successful? Explain fully. b) 5 marks 7.5 minutes What if Karan filed a complaint with the BC Human Rights Commission under BC's provincial human rights legislation (BC Human Rights Code) however this action was unsuccessful because the BC legislation included "sex" as a protected ground but did not include "sexual orientation". Karan later filed a motion in the BC Supreme Court and then was given permission to argue that the BC Human Rights Code violated Section 15 of the Charter due to its failure to include this ground. Would Karan's action under the Charter be successful? Explain fully. QUESTION 3: 20 MARKS 30 MINUTES Darlene Adams, a recent graduate of the Sauder School of Business at UBC, has become a manager with Crazy Coasters Plus Ltd. (Coasters), a company that designs and manufactures roller coasters for amusement parks in Canada. Darlene has been appointed one of the project managers for the design and delivery of a special roller coaster for Ultimate Park Ltd. in Vancouver. A major component of the project is steel tracking and Trackers Canada Inc. (Trackers) is the only supplier. Susan, a representative from Trackers, met with Darlene at Coasters' head office on February 1, 2018. The conversation went like this: Darlene: Susan, I need a reliable supplier that can deliver high- quality tracking at a good price by March 1 st . Susan: Trackers will sell you 1000 meters of our highest quality tracking for $10 million. We will be able to deliver on March 1st . Darlene: That price sounds high to me. Is that your best price? Coasters will pay $8 million. Susan: I have to check with my supervisor about that price. I will email you a response later today ok? Darlene: Sure, but it has to be today because we need to start on construction of our new coaster immediately. 3 Downloaded by Jenny Kaur (..4@gmail.com) lOMoARcPSD|5713840 Later that same day, Susan e-mailed Darlene and said that Trackers could deliver 1000 meters of tracking on March 1st but that Trackers could not reduce its price of $10 million. The e-mail also stated that if Coasters wanted to accept it should do so by mail. On February 2nd at 10:00am Darlene mailed a letter to Trackers stating that it would pay $10 million for 1000 meters of tracking to be delivered March 1st. This letter was received by Trackers on February 6th at 1:00pm. On February 6th at 10:00 am Trackers realized that its steel prices had gone up and that it would no longer be able to sell 1000 meters of tracking to Coasters for $10 million. Susan called Darlene and said that she had to withdraw her offer. Darlene said that it was too late as Coasters had accepted on February 2nd. Susan says there is no contract because she had not received the acceptance letter. a) 8 marks 12 minutes Do Trackers and Coasters have a contract? Explain fully. b) 4 marks 6 minutes Assume that Trackers and Coasters have a contract and that it contains a term that says that Trackers must pay $5000 to Coasters for every day that it is late delivering the tracking. On February 15, two weeks before the March 1 delivery date, Susan contacted Darlene to say that Trackers was having serious production difficulties because some of its manufacturing equipment needed unexpected repairs. As a result, Susan explained that the tracking would be delivered 3 days late. Susan asked Darlene if Coasters would insist on enforcing the late delivery clause. Darlene replied, "Susan, don't worry. Coasters has no problem if you are only 3 days late in delivering the tracking - and no, we won't come after you for the late delivery fees." Susan was relieved and Trackers made immediate repairs to the equipment and other changes to its production schedule to meet the new deadline. The tracking was delivered 3 days late and Coasters now takes the position that it is owed $15,000. Would the Common Law allow Coaster's to go back on its promise? Explain fully. c) 8 marks 12 minutes Assume the same facts as in part b) however Trackers thinks there is an excellent chance that the doctrine of equitable estoppel would be applied by a judge to prevent Coasters from going back on its promise. Is Trackers correct? Explain fully. QUESTION 4: 12 MARKS 18 MINUTES Franklin had a lump- sum snow removal contract (of $50,000) with Snowbegone Inc. (Snowbegone) for the parking lot and driveway areas of the hotel he owned in Prince George. The short, written contract was drafted by Snowbegone. It required Snowbegone to remove snow from the specified areas "until the end of the winter season". 4 Downloaded by Jenny Kaur (..4@gmail.com) lOMoARcPSD|5713840 April that year was cooler than usual and there were two unexpected snowfalls at the end of that month. Snowbegone gave an invoice to Franklin for $5000 for the extra snow removal for April. Franklin objects, claiming that winter means until the last snowfall of the year. Snowbegone says that it's obvious that winter ends on March 22nd of each year. Snowbegone has brought a legal action against Franklin for $5000. a) 3 marks 4.5 minutes Assume the dictionary definition of winter says that "Winter is from Dec 22 to March 22". How will the court interpret the contract? Explain fully. b) 3 marks 4.5 minutes Assume the dictionary definition of winter says that "it is the coldest season of the year". How will the court interpret the contract? Explain fully. c) 2 marks 3 minutes In the situation where neither the dictionary definition of the terms nor surrounding context is helpful to a court in interpreting a contract, which approach would the court resort to? How would the rule apply in the contract between Franklin and Snowbegone? Explain fully. d) 4 marks 6 minutes Before Franklin hired Snowbegone he was assured that snow removal trucks would be able to clear his narrow driveway with no difficulty and leave no snowbanks on the sides of the driveway which would further narrow it. This turned out not to be possible. Franklin's guests began to leave and stay elsewhere because they couldn't drive into his hotel. After a few weeks of this, Franklin told Snowbegone that he wanted to terminate the contract and was claiming damages for his lost profit. Advise Franklin as to whether he has a cause of action against Snowbegone and what remedies he may claim. Explain fully.