Question One (75 marks) Robert Clossenheimer is a recent graduate of the UT Faculty of Engineering. Robert's friend, Lewis Stroos, is a graduate of the commerce programme at UTM. The two of them have noted a major increase in the demand for drones for recreational and commercial purposes. Upon graduation, Robert and Lewis decide to start up a business designing and selling self-propelled toy spaceships. They incorporate a company, Fun-Fast Propulsion Systems Inc. (\"FFPS\"), to operate this new business, with Robert and Lewis becoming directors and 50:50 common shareholders. FFPS engages Jean Tabblock, a partner of the engineering firm Hatchet Engineering (HE) to help design the prototype for the new model spaceship. The HE engineers work tirelessly to design the prototype. Finally, they achieve success, designing a prototype with an ingenious new propulsion system that is so advanced the spaceship is capable of reaching speeds of 500 km/hr (a truly remarkable achievement for a toy spaceship)! Sensing that they are onto something great, FFPS decides to buy some property where they can build a factory to manufacture, assemble and distribute the toy spaceships. Robert goes to see Lee Maxx, a real estate broker in Robert's neighbourhood, and tells Lee what they are looking for. One Sunday afternoon, Lee shows Robert a 2-acre vacant parcel of land just west of Burlington. Robert really likes the property and can see how it would make a great location for their new factory. He sees a dirt track across the front section of the property but assumes that it must be a driveway of sorts. There is a rather pungent odour wafting over from the farm just past the end of this track, but Robert assumes these are just ordinary country farm smells. Lee has not made any sales for over a month, so he urges Robert to put in an offer. Although the property is zoned only for agricultural use, he does not mention this to Robert. So FFPS puts in an offer, which is accepted. Shortly after closing the purchase, Robert applies to the local municipal council for a building permit. Much to his surprise, he is told that such a permit cannot be issued because the zoning for the FFPS property is agricultural, which does not allow for industrial/commercial use of the property. So FFPS incurs significant professional costs to prepare an application for a zoning change. The application is reviewed by Boris Pasher, the director of the zoning department and the sole member of the municipal Committee of Adjustments. Boris's sister Lilli Norrning and her husband Kenneth own a farm adjoining the property FFPS bought, and Boris thinks a factory next to a farm, makes no sense. He also knows that his sister would not want a factory right next door, so he turns down the application without even reading it all the way through. Meanwhile, Robert goes out to the property and sees a large herd of cows grazing on the back section (the property is fenced into two roughly equal sections). So, he goes to the neighbouring farm (coincidentally enough the one owned by the Norrnings) to ask if the cows belong to them. When Lilli confirms that they are their cows, Robert asks her to remove them from the FFPS' property. \"l ain't sure what yer talkin' 'bout mister,\" Lilli replies, \"but we's bin turnin' out our cows there for nigh on seven or eight years now, just like our pa always did fer as long as | can remember, and his pa afore that. So, no fancy city feller's gonna come 'round now 'n tell us what we can and can''t do!\" Robert is furious. \"Listen here you arrogant low life,\" Robert snarls, \"you get those ugly smelly cows off our land this instant, or I'm going to go buy a shotgun and turn your precious cows into instant beef steaks and who knows what else!!!\" At this point Lilli turns to Kenneth and says \"Kenneth, this feller here's threatenin' to shoot our cows. You better call Klaus Fuchh 'n get him over here right away.\" Within a few minutes, a police car comes roaring up the Norrning's driveway and a large police officer (who looks a lot like Kenneth, and in fact happens to be his second cousin) comes bursting out with gun drawn. \"Whoa there!\" exclaims a dazed Robert, hastily sticking his hands up in the air, \"I think there has been a misunderstanding here.\" \"The only misunderstanding we got here,\" shouts back Klaus (the police officer) as he spins Robert around, slams him against the police car and then handcuffs his wrists behind his back, \"is the one where you think you can come barging onto this here law-abiding farmer's land 'n start threatening to shoot everyone!\" \"But | never said | was going to shoot anyone ..." Robert protests as he is shoved into the back of the police car and driven away to the local county jail. At the jail, Robert is kept locked up in a cell for several days (\"to cool yer jets!\" Klaus snapped as he foisted Robert into the jail cell). Finally, he is released with no charges laid, and warned by Klaus never to set foot within a mile of the Norrning''s farm. Needless to say, Robert is very shaken up by this experience. When he recounts to Lewis what happened, Lewis becomes very agitated. \"| think we've got a problem here\" Lewis says. \"| was out to the property myself the other day. Remember that well-worn dirt track that you told me about the one that looked like a driveway of sorts except that it ran all the way across the front section of our property and over to that big silo on the Norrning's property? Well, it looks like the silo is filled with cow and sheep manure, and the Norrnings have been using that dirt track to haul away that manure for fertilizer! When | made some discreet inquiries at the local general store, they told me that this has been going on for years!\" \"What's worse\" Lewis continues, \"is that | think all that manure has fouled the water table under our property!\" Just then, the FFPS receptionist brings Robert a registered letter from HE. Puzzled, Robert opens the letter right away. In the letter, HE says that it has come to their attention that FFPS has (i) made and circulated copies of the toy spaceship drawings to several of its employees; (i) made several working models of the toy spaceship ; and (iii) even designed a second toy spaceship that has the same contours as the original. HE's letter goes on to say, \"You asked us to create a toy spaceship and we did. But since we did all the work, it belongs to us. Our lawyers have done all kinds of stuff to protect our ownership. Now if you want to copy or use our drawings and designs, you are going to have to buy a license from us. And that includes a license for the second toy spaceship that you designed as well ... according to our lawyers, it doesn't matter that it uses a totally different propulsion system than the one we designed ... you still cannot do anything with it without our permission.\" This is the last straw (no pun intended) for Robert and Lewis. Desperate to know their legal rights and liabilities, they go see their lawyer, Saul Goodperson. REQUIRED: You, Bea Calm, are a summer student in Saul's office and you have been asked to carefully go through the above facts, and prepare a memorandum that: (i) identifies all of the legal issues arising out of those facts, (ii) for each legal issue, describes the relevant legal principles and applies those principles to the facts, and (iii) briefly concludes as to the likely outcome of each of those legal issues