SCENARIO A:

Delano and Tamar are launching a new startup business together called "Rotten Apple Technologies". They know each other very well and trust each other. They each plan to invest about $50,000 of their own money and will work together to share management duties. Delanois an engineer and has created lots of electronic sketches prior to They have a great technology idea and are looking to find some initial investment to start their business. They plan to hire dozens of employees to work at multiple retail locations where customers will buy their new flagship product, the "Super eyePhone 7000" smartphone.

Delano owns a house, and Tamar owns three classic sports cars that appreciate in value over time. The business owns nothing at this point as it hasn't yet been officially organized.

Navneet is a private investor who is interested in providing financing to Delano and Tamar.

Question 1:

Part 1)

What three type of business organizations could they decide to use for their business (describe an advantage and disadvantage of each)? Give your opinion as to what would be the best option given their startup business and why it would be the best option.

(*hint* Make sure you mention about the risks involved, and any contracts that would be necessary)

Question 2)

Part 1)

In respect to financing, from Navneet's perspective, what type of financing should she offer, and what type of security should she require from the new business, Delano, or Tamar?

Part 2)

Apple hears about the "Super eyePhone 7000" and takes issue with it. Apple threatens to sue Rotten Apple Technologies. Explain at least two reasons Apple would threaten to sue Delano and Tamar?

SCENARIO B:

Delano and Tamar decide it would be best to hire contractors to develop the software for the "Super eyePhone 7000". One of the contractors, Jimmy, works for Rotten Apple Technologies for 10 years as a contractor. He performs his work on his own computer, from a remote location, but has to log into Rotten Apple Technologies network and work during its business hours. He has to follow the strict instruction of a manager that works for Rotten Apple Technologies and has to appear at the office for meetings on a weekly basis. He performs 100% of his contracting work for Rotten Apple Technologies.

Delano and Tamar really liked Jimmy, until Jimmy was hit by a car and broke his back. Jimmy had to use a wheelchair afterwards and needed a wheelchair ramp so that he could attend the office for meetings. Delano and Tamar didn't want to spend $10,000 to build a wheelchair ramp to accommodate Jimmy, so they terminated Jimmy's contract. They said that Jimmy was not an employee so they didn't owe him any severance. They paid him to the end of the week and told him to "get lost".

Question 3):

Part 1) (3 points)

Jimmy decides to sue Rotten Apple Technologies. What does he sue them for? Did Delano and Tamar break any laws or standards in Canadian law? Cite a case that was studied this year about employment law and explain why its relevant to Jimmy's lawsuit.

Part 2) (2 point)

What essential elements of a contract should be included in the contract between an employee (or a contractor) and the business that is hiring them to do work?

SCENARIO C:

A hacker breaks into the Rotten Apple Technologies database and steals the entire customer database. The Privacy Commissioner of Canada investigates and discovers the breach finds out that Rotten Apple Technologies had no cyber security whatsoever. They publish this information to the public. However, in all of Rotten Apple Technologies advertisements, they represented that they had "the best cyber-security ever in the history of the world" and that they "built a wall" that would stop all the hackers.

Question 4):

Part 1)

Your personal information is breached. Can you sue Rotten Apple Technologies? What would you sue them for and under what theory of law? Cite a case relevant to your lawsuit.

Part 2)

What are the remedies you can seek? Can you seek punitive damages?

Part 3)

What is a difference you learned in this course between the laws in your home country and the laws of Canada?