Case Analysis and Business Formation Questions

Question 1.

Using the web site www.canlii.org Find the following case Ellerforth Investments Limited V. Typhon Group Ltd., 2010 ONCA 275 (CanLII) and answer the questions from the case and the textbook.

a. What was the judge’s conclusion?

b. The court referred to section 35 f of the Partnerships Act ,RSO 1990,

c.P.5,what were the 2 grounds for dissolving the partnership on the justand equitable grounds ?

c. Explain 2 other grounds there are in the Partnerships Act (not includingthose under section 35) to dissolve a partnership Do not cutand paste your answers.

d. The judge referred to fiduciary duty, explain in your own words what thismeans and give 2 examples of how partners can breach their fiduciaryduties.

e. Explain the conflicting views held by the appellant and the respondent asto the future of the partnership.

f. According to the Partnerships Act, explain what would happen to a
partnership of 10 partners if one of the partners dies and if there isanything that can be done to avoid those consequences in Ontario

Question 2

As a hobby, Sabreena has been making homemade cupcakes for her friendsand family for some time. Recently she has been asked if she would supply hercupcakes to farmers markets.She has been told by a friend to consider forming a business before she doesthis. Sabreena is seriously considering forming a sole proprietorship as shebelieves she could make a reasonable amount of money from this. She doehowever have a number of questions.Advise Sabreena on the following

a. Explain to her, the type and extent of the liability she could face if thebusiness fails.

b. Besides the liability aspect, explain (not just name) 2 advantages and 2disadvantages of forming a sole proprietorship.

c. If after a few years Sabreena’s business thrives and she wishes to form aLimited Partnership, what advice would you give her mother if shewants to invest in her daughter’s business but avoid liability and why.
Question 3

a. Under both the common law and statute law, both the employer andthe employee are under certain duties. From the following scenarios,identify AND explain who has breached what duty.
i. Ahmed has started his new job at a language school. On his Resume hestated he was fluent in French, German and Italian. His first class ofteaching French went well but he is dreading the afternoon class, whichis a very high level of Italian. The truth is he only took Italian to Grade 10and is by no means fluent.
ii. Sonja is a secretary in a large architect firm. The firm has now acquired the very latest computer system. It is very different to what Sonja is used

to. She has been given a very urgent task to do that requires her to usethis new equipment .She is unsure about certain aspects of theequipment but her boss had told her to just get on with the task inhand.

iii. Manjeet is a nurse and as such has to work shifts. He is not a morningperson and finds it very hard to get to the hospital on time for his earlyshifts. As a result he is frequently 20 minutes late and this is causingproblems.

b.There is a statutory duty on employers to provide a safe workplace.Explain, giving 2 reasons, why it is in the employers interests to set andenforce health and safety standards in the workplace.

c.There are many statutes regarding employment law. Using the website

Find the Occupational Health and Safety Act, RSO 1990, c 0.1 and undersection 32.0.1 what are the 2 types of policies that an employer has toprepare.  Do not cut and paste your answers.