Magic A Tutoring Comm 315 Midterm

COMM315
MIDTERMNOTES
ThisnotesarenotforsaleandshouldntbedistributedwithoutthepermissionofMagicATUTORING
MAGICATUTORING5145735044
WEEKS2,3&4
EQUALRIGHTSINTHEBUSINESSENVIRONMENT
IntroductiontotheCCQ
Exerciseofcivilrights
Goodfaith(CCQs.6):
Everyonehastheobligation(isbound)toactingoodfaith,i.e.
withgoodintentions.
s.6.
Everypersonisboundtoexercisehiscivilrightsin
goodfaith
.
Reasonablemanner(CCQs.7):
Therearethreetypesofinjuries1)bodily2)moral3)
material.Thejudgewillsubjectivelydeterminewhetherarighthasbeenexercisedina
reasonablemanner.Thisdecisionisnotdeterminedbasedonabsolutefactors.
s.7.
Norightmaybeexercisedwiththeintentofinjuringanotherorinanexcessiveand
unreasonablemanner
whichiscontrarytotherequirementsofgoodfaith.
Renounce(CCQs.8):
Ifthelawaimstoprotectarightthatissubjecttopublicorder,
thisrightcannotberenounced.(e.g.ConsumerProtectionActRgieduLogement).
s.8.
Nopersonmayrenouncetheexerciseofhiscivilrights,excepttotheextent
consistentwithpublicorder.
Publicorder(CCQs.9):
Aimstoprotectweakerpartiesfromstrongerpartiestryingto
takeawaytheirrights(e.g.employers,landlords).
s.9.
Intheexerciseofcivilrights,derogationsmaybemadefromthoserulesofthis
Codewhichsupplementintention,butnotfromthoseof
publicorder
.
QuebecCharterofHumanRightsANDFREEDOMS(Charter)
Juridicalpersonality(s.1):
RecognizedbytheStateasapersonhavingfullrights
underthelaw.
s.1.
Everyhumanbeinghasarighttolife,andtopersonalsecurity,inviolabilityandfreedom.
Healsopossesses
juridicalpersonality
.
Assistance(s.2):
Goodsamaritan.
s.2.
Everyhumanbeingwhoselifeisinperilhasarightto
assistance
.
Everypersonmustcometotheaidofanyonewhoselifeisinperil,eitherpersonallyor
callingforaid,bygivinghimthenecessaryandimmediatephysicalassistance,unlessit
involvesdangertohimselforathirdperson,orhehasanothervalidreason.
Fundamentalfreedoms(s.3):
Everyonepossessesthesefundamentalfreedoms
theycannotbegivenup.
s.3.
Everypersonisthepossessorofthe
fundamentalfreedoms
,includingfreedomof
conscience,freedomofreligion,freedomofopinion,freedomofexpression,freedomof
peacefulassemblyandfreedomofassociation.
Dignity,honour,reputation(s.4)
s.4.
Everypersonhasarighttothesafeguardofhis
dignity,honourandreputation
.
Privatelife(s.5):
Ex
.Someonetakesapictureofyouinyourhomeorinapublicplace
ifyouareidentifiable.
s.5.
Everypersonhasarighttorespectforhis
privatelife
.
Property(s.6)
Anyonemayuseanddisposeofhisownpropertyashewishes.
However,certainrestrictionsexist,e.g.zonage.
s.6.
Everypersonhasarighttothepeacefulenjoymentandfreedispositionof
his
property
,excepttotheextentprovidedbylaw.
Home(s.7)
s.7.
Aperson's
home
isinviolable
.
Confidentialinfo/professionalsecrecy(s.9):
Confidentialinformationisanything
thatindividualizesyou(e.g.age,religion,grades,financialinfo,medicalinfo,name).
Professionalsecrecyaimstoprotecttheclientandhavehimbehonest.Ifany
confidentialinformationisleakedduringatrial,thejudgewillstepin.Youhavetheright
nottodiscloseanyconfidentialinformation,butincertaincases,youwillbeaskedto
provideit(e.g.bankschool).
s.9.
Everypersonhasarighttonondisclosureof
confidentialinformation
.
Nopersonboundto
professionalsecrecy
bylawandnopriestorotherministerof
religionmay,eveninjudicialproceedings,discloseconfidentialinformationrevealedto
himbyreasonofhispositionorprofession,unlessheisauthorizedtodosobythe
personwhoconfidedsuchinformationtohimorbyanexpress
provisionoflaw.
Thetribunalmust,exofficio,ensurethatprofessionalsecrecyisrespected.
Reasonablelimits(s.9.1):
Yourfundamentalfreedomandrightsmaynotbeabsolute.
(e.g.Reasonableaccommodations.RE:CommissionScolaireMargueriteBourgeoys.)
s.9.1.
Inexercisinghisfundamentalfreedomsandrights,apersonshallmaintaina
properregardfordemocraticvalues,publicorderandthegeneralwellbeingofthe
citizensofQubec.
Inthisrespect,thescopeofthefreedomsandrights,and
limitstotheirexercise
,maybe
fixedbylaw.
Discrimination(s.10):
DefinitionofdiscriminationfortheCharter
.
Discriminationisthe
processofmakingchoices.Youareallowedtodiscriminate.Youcandecidewhatto
wear,whattoeat,andwhototalkto.Thegeneralruleisthatyouareallowedtomake
choices.However,incertainsituations,thelawsaysthatyoucannotmake
decisions/choicesbasedoncertainfactors.Thesefactorsareexhaustive(i.e.to
discriminateundertheCharter,ithastobepartofthelist).
s.10.
Everypersonhasarighttofullandequalrecognitionandexerciseofhishuman
rightsandfreedoms,withoutdistinction,exclusionorpreferencebasedon
race
,
colour
,
sex
,
pregnancy
,
sexualorientation
,
civilstatus
,
age
exceptasprovidedbylaw,
religion
,
politicalconvictions
,
language
,
ethnicornationalorigin
,
socialcondition
,a
handicap
or
theuseofany
meanstopalliateahandicap
.
Discrimination
existswheresuchadistinction,exclusionorpreferencehastheeffectof
nullifyingorimpairingsuchright.
Harassment(s.10.1)
s.10.1.
Noonemay
harass
apersononthebasisofanygroundmentionedinsection
10.
Signs/symbols/notice(s.11):
Ex
.Hateliterature.
s.11.
Noonemaydistribute,publishorpubliclyexhibita
notice
,
symbol
or
sign
involvingdiscrimination,orauthorizeanyonetodoso.
Goodsandservices(s.12):
Youcannotrefusetocontractwithsomeoneon
discriminatorygrounds.
Ex.
YouwalkintoastoreandsayIwouldliketobuyasweater.Whenyourcreditcard,
debitcardbouncesandyoudecidetopaybycheque,theclerkrefuses.Isthis
discrimination?No.
Ex.
Youreinarestauranthavinglunchandahomelessmancomesin.Hegoesupto
thefrontdeskandpullsoutapocketfullofcoinstogetpizza.Theownersaysno.This
couldbediscriminationbasedonsocialcondition.
s.12.
Noonemay,throughdiscrimination,refusetomakeajuridicalactconcerning
goodsorservices
ordinarilyofferedtothepublic.
Contractualclauses(s.13):
Ex
.Yourerentinganapartmentandoneoftheclausesin
theleasereads:Nobabies.ThisisdiscriminationundertheCharter.However,aNo
dogsclauseisenforceablebecausethedogisconsideredproperty.Youmightaswell
signtheleasebecausethenobabiesclauseisnotenforceable(againstpublicorder).
s.13.
Noonemayinajuridicalactstipulatea
clause
involvingdiscrimination.
Publicplace(s.15):
Apublicplaceincludesprivatelyownedestablishments.Itincludes
restaurantsandshoppingcenters.
Ex
.Ifyouretryingtogetinthemetrowithyourguidedogandtheytellyoutogetout,
thatsdiscrimination.
E.g.
Denyingaccesstochildreninafancyrestaurantisdiscriminatory.However,if
theyrebeinganuisance,youcantellthemtoleave.Samewithbringinganinfantintoa
movietheatre.

s.15.
Noonemay,throughdiscrimination,inhibittheaccessofanothertopublic
transportationora
publicplace
,suchasacommercialestablishment,hotel,restaurant,
theatre,cinema,park,campinggroundortrailerpark,orhisobtainingthegoodsand
servicesavailablethere.
Employment(s.16,18.1,20):
Youcannotpracticediscriminationinthehiring,firing,
promotinganddemotingofpeople.Youcannotask,duringanintervieworinan
applicationform,anyinformationmentionedinsection10unlessitfallsundersection20
(qualificationsandaptitudesnecessaryfortheemployment)orispartofanaffirmative
actionprogram(promotingminoritygroupswithinorganizations).
Ex.
Youcanaskabout
languageskillsinanapplicationbecauseitsanaptituderequiredfortheemployment.
s.16.
Noonemaypractisediscriminationinrespectofthehiring,apprenticeship,
durationoftheprobationaryperiod,vocationaltraining,promotion,transfer,
displacement,layingoff,suspension,dismissalorconditionsofemploymentofaperson
orintheestablishmentofcategoriesorclassesofemployment.
s.18.1
.Noonemay,inanemploymentapplicationformoremployment
interview,requireapersontogiveinformationregardinganygroundmentioned
insection10unlesstheinformationisusefulfortheapplicationofsection20or
theimplementationofanaffirmativeactionprograminexistenceatthetimeof
theapplication.
s.20
.Adistinction,exclusionorpreferencebasedontheaptitudesor
qualificationsrequiredforanemployment,orjustifiedbythecharitable,
philanthropic,religious,politicaloreducationalnatureofanonprofitinstitutionor
ofaninstitutiondevotedexclusivelytothewellbeingofanethnicgroup,is
deemednondiscriminatory.
Criminalrecord(s.18.2):
Youcannotbepenalizedbasedonthemerefactthatyou
havecommittedanoffenseifa)youroffenseisunrelatedtotheemploymentorb)you
haveobtainedapardon.
s.18.2.
Noonemaydismiss,refusetohireorotherwisepenalizeapersoninhis
employmentowingtothemerefactthathewas
convictedofapenalorcriminal
offence
,iftheoffencewasinnowayconnectedwiththeemploymentorifthe
personhasobtainedapardonfortheoffence.
Equalsalary(s.19):
Thetermequivalentworkisusedbecausethereisnosuchthing
asequalworktherewillalwaysbesomethingabitdifferent.
Ex.
(equivalentwork):ProcessingcallsatacallcenterprocessingmailforCanada
Post.
IfIhaveapolicy(e.g.loyaltyovertime,salenumbers)thatprovidesincentivestoall
members,thepersonwhomakesgreatsalesorputsinovertimecangetagreaterwage
withoutitbeingdiscriminatory.But,ifIonly
selectively
gaveittosomepeople,that
couldbediscriminatory.
s.19.
Everyemployermust,withoutdiscrimination,grant
equalsalary
orwagestothe
membersofhispersonnelwhoperform
equivalentwork
atthe
sameplace
.
Adifferenceinsalaryorwagesbasedonexperience,seniority,yearsofservice,merit,
productivityorovertimeisnotconsidereddiscriminatoryifsuchcriteriaarecommonto
allmembersofthepersonnel.
Adjustmentsincompensationandapayequityplanaredeemednottodiscriminateon
thebasisofgenderiftheyareestablishedinaccordancewiththePayEquityAct
(chapterE12.001).
Riskdeterminationfactors(s.20.1):
Makingadistinctionbasedonage,sexorcivil
statusisnondiscriminatoryifthatinformationisusedforriskdeterminationfactorsthat
arejustifiedbyquantifiablefactors(i.e.actualactuarialdata).Youcanalsoaskhealth
relatedquestionsandusethatinformation.
Ex
.Smokerspayhigherinsurancethannon
smokers.
Inaninsuranceorpensioncontract,asocialbenefitsplan,aretirement,pensionor
insuranceplan,orapublicpensionorpublicinsuranceplan,adistinction,exclusionor
preferencebasedonage,sexorcivilstatusisdeemednondiscriminatorywherethe
usethereofiswarrantedandthebasisthereforeisa
riskdetermination
factorbasedon
actuarialdata.
Insuchcontractsorplans,theuseofhealthasa
riskdeterminationfactor
doesnot
constitutediscriminationwithinthemeaningofsection10.
Damages
st
o
Compensation(s.491
paragraph):
Whathappenswhenyouarea
victimofdiscrimination?Civillawcompensatesvictimsofmoral,material,
andbodilyprejudice.

Anyunlawfulinterferencewithanyrightorfreedomrecognizedbythis
Charterentitlesthevictimtoobtainthecessationofsuchinterferenceand
compensation
forthe
moral
or
material
prejudiceresultingtherefrom.
nd
o
Punitive(s.492
paragraph):
Oneoftheveryfewexampleswherea
civillawhasapunitivefunction.Thepunishmentistheretosetan
examplesootherswillnotdoit.Punitivedamageswillbeallocatedifthe
personkneworoughttohaveknown(badfaith).Ifitwasanhonest
mistake,thennopunitivedamageswillbeallocated.
Incaseofunlawfulandintentionalinterference,thetribunalmay,in
addition,condemnthepersonguiltyofitto
punitivedamages
.
Otherlaws(s.52):
Ex.
NotwithstandingtheCharter,everypersonmuststudyin
French.Ifitswithintheirconstitutionalpower,theycandoit.Quebechasthepowerto
changethat.Everyprovincialgovernmenthasthepowertotakeitback.The
governmentpassesalaw,andhasthepowertotakeitback.Thegovernmentcanpass
lawsthatarecontrarytotheCharter.
s.52.
Noprovisionof
anyAct,evensubsequenttotheCharter
,mayderogate
fromsections1to38,exceptsofarasprovidedbythosesections,unlesssuch
ActexpresslystatesthatitappliesdespitetheCharter.
IntentofCharter(s.53):
IfthereisaquestionofinterpretationwithintheCharter,the
courtswillkeepinmindtheintentoftheCharterwhichistoprotecttherightsand
freedomsofpeople.
s.53.
IfanydoubtarisesintheinterpretationofaprovisionoftheAct,itshallbe
resolvedinkeepingwiththe
intentoftheCharter
.
BindstheState(s.54):
ThegovernmentisboundbytheCharter.Whenthe
Governmentisactingasyouremployer,heisalsoapartytoitheisnotactinginits
legislativecapacityofpassinglaws.Sothegovernmentwillactasapublicentityora
privateentity.
s.54.
TheCharter
bindstheState
.
JurisdictionofQuebec(s.55):
ItsaQuebeclawthathasnoextrajuridicalapplication.
ItonlyappliesinQuebec.
Ex.
theycantsayUniversitieswillonlyspeakinFrench
becauseitisafederalmatter.

s.55.
TheCharteraffectsthosemattersthatcomeunderthe
legislativeauthorityof
Qubec
.
LegalPrinciples
a)
Discrimination
:Powertomakeachoice.Whileyouarefreetomake
choicesinmostsituations,whenitcomestocertainrelationshipswithotherpeople,the
Charterhasputsomerestrictionsduetoissuesofpublicorder(s.10,18.2,etc.).
b)
EqualOpportunity:
Givingeveryoneafairchancetohaveajob.In
reality,itishardtoapplybecausenoteveryoneiscomingtoyouwiththesamesetof
workexperienceandcredentials.
c)
AffirmativeAction:
Modifiedhiringpolicy.ApolicywheretheGovernment
hasrecognizedthatcertaingroupshavebeensystematicallydeniedaccesstocertain
rights.Thosegroupswillbegivenpreferencetohelp.Employerswillprovideonthesite
training.Youdontlookforthebestskilledworkeryougiveapreferencetotheminority
group.
d)
ReverseDiscrimination:
Flipsideofaffirmativeaction.Discrimination
againstamajoritygroupinfavorofaminorityorhistoricallydisadvantagedgroup.
CASES
1.
Grutterv.Bollingeretal.
Legalissues
:
DiscriminationReversediscriminationAffirmativeaction
s.10s.20
Parties
:
Grutter(Appellant)
Bollinger(Respondent)
Facts/Decision
:

Awhitewoman, Grutter, witha3.8GPAanda161LSATscoredidnotgetadmittedinto
Michigan Law School.Herclaimwasreversediscrimination:Ididnotgetacceptedand
studentswithlowercredentialsgotinbecausetheyaremembersofminoritygroups.

The university hasanofficialaffirmativeactionpolicy.Theyhavetoprovethatthispolicy
isnotfaulty. The universitylooks at 3 traditionalfactorswhenadmittingstudents:GPA,
LSAT, and letters of recommendations. It also looks at other soft variables such as
assessment of the students talents, difficulty of course, etc. Grutter claims she was
discriminated based on race i.e. the Law School used race as a
predominant factor
whenselectingcandidates.

The court looked atthe
Bakke opinionanddeterminedthat the LawSchoolconsidered
race/ethnicity onlyas a plus inaparticularapplicants file. Theminimumcriteriawere
always GPA, LSAT and letters of recommendations. Ethnicity does not become the
definingfactoronwhetheryougetinornot.

The program doesnotundulyharmnonminorityapplicants.Whetheryouare minority or
not,youhavetomeetminimumrequirements.
2.
B.C.GovernmentandServiceEmployeesUnionv.TheProvinceofB.C.:SCC
Legalissues
:
DiscriminationReversediscriminationBFOR
s.20
Parties
:
TheB.C.GovernmentandServiceEmployeesUnion(Appellant)
TheGovernmentoftheProvinceofB.C.(Respondent)
Facts/Decision
:

Tawney Meiorin, a female firefighter could not run fast enough according to her
employer. All firefightershad todemonstratetheiraerobic ability,butMeiorin fellshort.
Theemployer allowedherto tryfour times. Eachtimeshefailedsoshewasfired.At
this point, she went to arbitration. The arbitrator sided with Tawney, saying that there
seemedtobeadverseeffectdiscriminationandthatsheshouldnotbefired.
T
he Courtof Appealdisagreed. They saiditwouldbediscriminatoryifwomenwereheld
toalowerstandardthanmen.
SCC:WastheBCgovernmentjustifiedinfiringMeiorin?
o
The SCC looks ataBFOR (bonafideoccupationalrequirement).Inorder
forthegovernmenttofireTawney,theyhavetoshowthatitisaBFORa
minimumqualification that isabsolutelynecessarytomeet thestandardof
thejob.Andifanyonecannotmeetthisstandard,theycanbefired.
o
Meiorin Test: An employer can justify the impugned standard by
establishingonthebalanceofprobabilities:
1. thattheemployeradoptedthestandardforapurpose
rationallyconnected
totheperformanceofthejob(OK)
2.
that the employer adopted the particular standard in an
honest and
good faith belief that it was necessary to thefulfillmentofthatlegitimate
workrelatedpurpose(OK)
3.
thatthestandardis
reasonablynecessarytotheaccomplishmentofthat
legitimate workrelated purpose. To show that the standard is reasonably
necessary, it must be demonstrated that it is impossible to
accommodate
individual employees sharing the characteristics of the claimant without
imposing
undue hardship upon the employer. (NO.Compensateunders.
49)
Here, the Government was not able to demonstrate step 3 that it would experience undue
hardship if a different standardwereused.Individualdifferences canbeaccommodatedbyusing
a different standard. It was proven with satisfaction to the court that men and women have a
different aerobic capacity where men improve much faster than women. Therefore, you cannot
take anaverage scoreofasampleandapplyittomenandwomenasawhole.Thereshouldbean
average score for men and an average score for women.
Thetestisflawed.Tawneyshouldbe
restored to her position because noBFORwasestablished.WhenapplyingaBFOR,itshouldbe
differentformenandwomen.
3. CommissionScolaireMargueriteBourgeoisv.Singh:QuebecCA
Legalissues
:
Fundamentalfreedoms(religion)Reasonableaccomodations
s.3,s.9.1
Parties
:
Singh(Appellant)
CommissionScolaireMargueriteBourgeoys(Respondent)
Facts/Decisions
:

A 12 year old boy went to school, carrying with him his kirpan. One day the knife cut
through hisclothes and felltothe ground. The school boardtoldhimhecouldnotcarry
his kirpan with him because it is a knife. However, they told him he could wear a
symbolickirpan(i.e.apendant).Obviously,thatwasunacceptabletotheboysfamily.

The Superior Court said: You can bring it to school but it has to be worn under your
clothesfollowingcertainconditions.

Court of Appeal:The school wasnot happywith thatdecision.And theboysfamilywas
nothappywiththerestrictionsplacedwiththewearingofthekirpan.Thequestioniss.3
of the Charter (freedom to practice religion) vs. s. 9.1 of the Charter (balancing your
rights againstthe rights of society andthe safetyof those around you).Theexerciseof
freedoms, even fundamental ones, does not enjoy absolute protection. However,
anything can be a weapon in a school setting even a pencil. Nevertheless, a
reasonable line must be drawn and an inherently dangerous objects fallsbeyond that
line 9.1 overrides s. 3 of the Charter =No kirpanin school. TheCAagreeswith the
schoolboardscommission.
4. CommissionScolaireMargueriteBourgeoysv.Singh:SCC
Legalissues:
DiscriminationFreedomofreligion
s.3s.9.1
Parties:
CommissionScolaireMargueriteBourgeoys(Respondent)
Singh(Appellant)
Facts/Decision:

The interference with theboys freedomof religionis neithertrivialnorinsignificant,as it
hasdeprived him of hisrightto attendapublic school. Bynot allowinghimto wearthe
kirpan, you are sending amessagethat somereligious values arenotasimportant as
others. Also, the risk of the boy using the kirpan as a weapon for violent purposesis
very low. Basically, the danger to society is not high enough to endangersocietyand
preventhimfromwearingthekirpanSection3overridess.9.1.
5. Therrienv.Min.ofJustice
Legalissues:
Discriminationunder18.2EffectofpardonCriminalrecord
Parties:
JudgeRichardTherrien(Appellant)
Min.ofJustice(Respondent)
Facts/Decisions:

Therrien was convicted and sentenced to jail for a year for supporting the FLQ
movement. After serving his sentencehecontinued hislegal studies andwas a lawyer
for20 years. In 1987,heappliedand gotapardon.In1991,hewasinvitedtobecomea
judge forthe provincialcourt ofQuebec. In theinterviewprocess,theyaskedhimofhis
criminal past. He explained his offence and did not get the job. Two years later, he
appliedagainand thesamething happened.Athirdtime,in1996,heapplied againand
did not disclose this information withthe committee: he wasappointedjudge. As soon
as heis appointedjudge, he is almostimmediately fired.Therrierclaimsdiscrimination
undersection18.2oftheCharter.

The Charter does not apply here because the
judiciary is not employment
. It is
considered an office. Employment requires a position of subordination. The employee
has to work under the supervision and control of the employer. Therrien was never
penalized because he had a criminal record: he was dismissed because he was not
truthful by omitting this information. This would undermine public confidence in the
justicesystemandmakehimunfittoperformhisjob.Thecourtrevokedhiscommission.
6.
SyndicatNorthcrestv.Anselem:SCC

Legalissues
:
FreedomofreligionReasonnableaccomodation
s.3s.9.1
Parties
:
SyndicatNorthcrest(Respondent)
Amselem(Appellant)
Facts/Decisions
:

Orthodox Jews living in a luxury condominium wanted to set up succahs on their
balconies. The Syndicat refused, stating that the Jews had waived their rights when
signingthecoownershipagreement.
SCC:Verydivideddecision5saidyestothesuccah,4saidnosuccah.

Majorityjudgment: s.3 oftheQuebecChartertalksaboutreligiousfreedoms.Thecondo
associationhadsuggestedtheybuildacommunalsuccahbutthemensaidno.
o
ArgumentofSyndicat:s.6enjoymentofpropertyissue
A succah would decrease the value ofthe condobuilding, becauseitist
esthetic.Thiswouldviolatetherightsoftheothercondoowners.Evidence
fellshort..
o
Succah isallowed. Itsuptothecoownerstoshowthattheburdenwillbe
toosevere.Theyhavenotprovedit,hencethesuccahsareallowed.
o
s.3overridess.9.1.
Minorityjudgment:Yousignedtheagreement,solivewithit.
Weeks5&6
MANDATESANDCORPORATIONS
IMANDATES
WhatisaMandate
?
Mandate(CCQ.S.2130)
s. 2130: Mandate is a contract by which a person, the mandator, empowers another person, the
mandatary, to represent him in the performance of a juridical act with a third person, and the
mandatary,byhisacceptance,bindshimselftoexercisethepower.
Thepowerand,whereapplicable,thewritingevidencingitarecalledthepowerofattorney.
Representation
Principle(mandator)
Agent(mandatary)
Powerofattorney
A mandate is where a principle hiresandagenttodoacertainact anagreementwheretheagent
is engaged to represent the principle. When the mandate is signed, the principle isboundbythe
agentssignature,whoissigningonhisbehalf.
Ex.
Lawyers,notaries.Realestateagentsarebrokerstheyarenotagents.
Ex. I am leaving the country and Iwanttosellmydog.ItellmyneighborIwillgiveher10%of
the sale price of at least $100 if she sells the dog. She will be representing me. In other words,
she is making decisions on my behalf I am bound by her decision. She sells the dog. As my
agent (mandatary), her signature binds me. I dont care how she sells the dog I dont care to
whom she sells the dogto.AllIcareaboutistheminimumprice.Thepowerthattheagentholds
iscalledapowerofattorney.
Acceptance(CCQs.2132)
s. 2132:Acceptanceofamandatemaybeexpressortacit.Tacitacceptancemaybeinferredfrom
theactsandevenfromthesilenceofthemandatary.
Expressacceptance:verbalorwritten=acceptance.
Tacitacceptance:Inferredfromactions=acceptance.

Ex. My friend takes my car, picks up the keys and leaves when I ask her to sell the car.Shehas
tacitlyacceptedtosellitandactasmyagent.
Silenceonitsown=noacceptance.
Ex. A homeless man walks up to you and tells you I love you I wanttomarryyou.Youwalk
awaywithoutsayinganything.Obviously,youhavenotaccepted.
Gratuitousoronerous(CCQ.S.2133):
s. 2133: Mandate is either bygratuitoustitleorbyoneroustitle. Amandateenteredintobetween
two natural persons is presumed to be by gratuitoustitlebutaprofessionalmandateispresumed
tobegivenbyoneroustitle.
Gratuitous:free.Presumedbetweentwonaturalpersons.
Onerous:youpaymoney.Presumedwhenmandateisprofessional.
Remuneration(CCQs.2134)
s. 2134: Remuneration, if any, is determined by the contract, usage or law oronthebasisofthe
valueoftheservicesrendered.
Dutyofagent
Fiduciaryduty(CCQ.S.2138)
s. 2138: A mandatary is bound to fulfill the mandate he has accepted, and he shall act
withprudenceanddiligenceinperformingit.
Theagentmustactinthebestinterestofthemandator(principle)orthecorporation.
He shall also act honestly and faithfully in the best interests of the mandator, and avoid
placing himself in a position that puts his own interest in conflict with that of his
mandator.
Informprinciple(CCQ.S.2139)
s. 2139:
During the mandate, the mandatary is bound to inform the mandator, at his
request or where circumstances warrant it, of thestagereachedintheperformanceofthe
mandate.
Themandataryshallinformthemandatorwithoutdelaythathehasfulfilledhismandate.
The agent must keep the principle informed as to the status and fulfillment of the
mandate.
Ex. You have sold the principles house. You should inform him as soon as possible
becauseinrealityhewouldwanthismoneyassoonaspossible.
Delegation
(CCQs.2142)
s. 2142: In the performance of themandate,themandatary,unlessprohibitedbythemandatoror
usage,mayrequiretheassistanceofanotherpersonanddelegatepowerstohimforthatpurpose.
Themandataryremainsliabletowardsthemandatorfortheactsofthepersonassistinghim.
Asanagent,youareallowedtoemployasubagent,unlessthemandateindicatesotherwise.
Ex. I employ youtosellmydog.Yougetverysick andaskyourfriendtosellitforyouandgive
him half of your commission in return. However, if the subagent does something wrong, the
agentisliabletotheprinciple.
Doubleagent(CCQ.S.2143)
s. 2143: A mandatary who agrees to represent, in the same act, persons whose interests conflict
or could conflict shall so inform each of the mandators, unless he is exempted by usage or the
fact that each of the mandators is aware of the double mandate he shall actimpartiallytowards
eachofthem.
Where a mandator was not in a position to know of the double mandate, hemayhavetheactof
themandatarydeclarednullifhesuffersinjuryasaresult.
Asituationwhereyou,theagent,arebeingpaidbybothsides.
Ex. I have a dog that I want to sell foratleast$100andwillgivemyagent10%.Afriendofthe
agent comes uptoherand saysshewantshelpfindingadogandwouldgiveyou$5.Inthiscase,
the agent would need the consent of both parties. The problem is that the agent has a fiduciary
duty towards both principles, where she must act in each persons best interest: sell for highest
priceversussellforlowestprice.
PrinciplesofNullityvs.Cancellation
st
rd
Cancellation: If you sign a contract on Jan. 1
2012 and canceled itonJuly23
2012,it isvalid
untilitiscanceledi.e.foraperiodof7months.Itstopsonthedayofthecancellation.
Nullity: If a contract is annulled, it is deemed void and unwritten: to never have existed. It is
retroactivelyannulledtothedayitwasenteredinto.
Confidentialinformation(CCQs.2146)
s.2146:Themandatarymaynotuseforhisbenefitanyinformationheobtainsoranypropertyhe
is charged with receiving or administering in carrying out his mandate, unless the mandator
consentstosuchuseorsuchusearisesfromthelaworthemandate.
If the mandatary uses the property or information without authorization, he shall, in addition to
the compensation for which he may be liable for injury suffered, compensate the mandator by
paying, in the case of information, an amount equal to the enrichment he obtains or, in thecase
ofproperty,anappropriaterentortheinterestonthesumsused.
The agent may not use any confidential information received by the principle without his
consent.
Ex. I askyou(agent)togototheEasternTownshipstobuy200acresforme.Myplanistobuild
a factory, which would eventually increase the value of the land around it. You cannot use this
information to buy land around it unless you get the principles consent. If you use this
information for your benefit, you are liable for any profits that came from your investment and
compensationfordamagessuffered.
Partytotheact(CCQs.2147)
s. 2147: The mandatary may not, even through an intermediary, become a party toanactwhich
he has agreed to perform for his mandator, unless the mandator authorizes it or is aware of his
qualityasacontractingparty.
Onlythemandatormayavailhimselfofthenullityresultingfromtheviolationofthisrule.
Thisiswheretheagenttriestobuytheitemhimself.
Ex. I hire someone to sell a houseforme.Iwouldliketogetapproximately$500,000forit.The
agent calls his brother in law and tells him to buy the house so they can resell it and split the
profit. As an agent, you cannot buy it yourself or trough an intermediary without theconsentof
the principle. You find out that the house is full of problems. If you do this, the principle can
nullify the transaction but the agent cannot.Theagentwhoscammedtheprinciplewouldloveto
getridoftheitembutcant.Onlytheprinciplecannullifythetransaction.
Cooperation(CCQs.2149)
s. 2149: Themandatorisboundtocooperatewiththemandatarytofacilitatethefulfilmentofthe
mandate.
Theprinciplehasanobligationtoreasonablycooperatewiththeagent.
Ex. The agent calls the principle and asks a few questions about the dog he is trying toselle.g.
didthedoggethisrabiesshots.
Exceedingmandate
(CCQs.2152)
s. 2152: The mandator is bound to discharge the mandatary from the obligations he has
contractedtowardsthirdpersonswithinthelimitsofthemandate.
The mandator is not liable to the mandataryforanyactwhichexceedsthelimitsofthe mandate.
He is fully liable, however, if he ratifies such act or if the mandatary, at the time he acted, was
unawarethatthemandatehadterminated.
Theagenthastwoobligations:
1)Actwithinthescopeofthemandatei.e.donotexceedyourmandate
Proof:mandate(signedbetweenagentandprinciple)
2) Disclose the mandate to the buyer i.e. be able to prove the buyer knewyouwere anagent.In
thiscase,theagentisnotresponsibleforanyresultingproblem.
Proof:signacontractofsalewiththethirdparty(signedbetweenagentandbuyer)
Ratification(CCQs.2152,2153)
s. 2153: The mandator is presumed to have ratified an act which exceeds the limits of the
mandatewheretheacthasbeenperformedmoreadvantageouslyforhimthanhehadindicated.
When the principle lets the agent offthehookafterthefactforhavingactedoutsidethescopeof
hermandate.
Ex. I cant find someone who wants to buy the dog for $100. I find a buyer or $85. I call the
principle and inform him. He says: go ahead, sellitfor$85andyoullget$5commission.Here,
ratificationdoesnotcomeintoplay.Instead,theoriginalmandatewasmodified.
Ex. (Ratification). Principle hires agent to buy bricks within a certain price range$0.96$1.00.
Agent finds bricks for$0.93.Thisisanexampleofgoingoutsidethescopeofthemandatetothe
advantage of the principle. In this case, the agent does not need the consentof theprincipleand
cangoaheadandbuythebricks.Ratificationispresumed.
LiabilityofPrinciple(CCQ.S.2152,2157,2160)
Theprincipleisliableunderthecontractiftheagenthasactedwithinthescopeofthemandate.
s. 2157: Where a mandatary binds himself, within the limits of his mandate,inthenameandon
behalfofthemandator,heisnotpersonallyliabletothethirdpersonwithwhomhecontracts.
The mandatary is liable to the third person if he acts in his own name, subject to any rights the
thirdpersonmayhaveagainstthemandator.
When the agent acts within the scope of the mandate and discloses his mandatetothebuyer,he
is not personally liable to the buyer. The agent is liable to the buyer if he acts in his own name
(doesntdisclosethemandate).Thebuyercansuetheagentandanalsosuetheprinciple.
s. 2160: A mandator is liable to third persons for the acts performed by the mandatary in the
performance and within the limits of his mandate unless, under the agreement or by virtue of
usage,themandataryaloneisliable.
The mandator is also liable foranyactswhichexceedthelimitsofthemandate, ifhehasratified
them.
The principle is liable to the buyer for the acts oftheagentwhentheagentactswithinthescope
ofthemandate
unless
,undertheagreementorbyusage,onlytheagentisliable.
Ex. Im leaving the countryand wanttosellmycar.Ileavethecartotheusedcarsalesman.The
buyer wants a warranty. Since the agent is the only person in Canada, he agrees to give the
warrantyifhereceivesahighercommission.
The principle is also liable for any acts he has ratified when the agent acts beyond the scope of
themandate.
LiabilityofAgent(CCQs.2157,2158)
s. 2157: Where a mandatary binds himself, within the limits of his mandate,inthenameandon
behalfofthemandator,heisnotpersonallyliabletothethirdpersonwithwhomhecontracts.
The mandatary is liable to the third person if he acts in his own name, subject to any rights the
thirdpersonmayhaveagainstthemandator.
s. 2158: Where a mandatary exceeds his powers, he is personallyliabletothethirdpersonwith
whom he contracts, unless the third person was sufficiently aware of the mandate, or unlessthe
mandatorhasratifiedtheactsperformedbythemandatary.
When the agent exceeds the scope of the mandate, he is liable to the buyer. If the buyer knows
that the agent is exceeding the mandate, the buyer loses his recourse against the agent and the
principle(becauseheactedinbadfaith).
Apparentmandate(CCQs.2163)
s. 2163: A person who has allowed it tobebelievedthatapersonwashismandataryisliable,as
if he were his mandatary, to the third person who has contracted in good faith with the latter,
unless, incircumstancesin whichtheerrorwasforeseeable,hehastakenappropriatemeasuresto
preventit.
Ex. You go to the Bay, pick up a pair of socks and go to a cash counter. Thepersonbehindthe
cash counter and buy them. As you walk out of thestore,youarejumpedonbysecurityguards.
He happened to be the janitor not a cashier.Thisisanapparentmandate:youareingoodfaith

because you believed the janitor. Therefore, The Bay is liable to mewho,ingoodfaith,cameto
thecashcounter.Butifhelookedlikeheajanitor,thebuyerwasnotingoodfaith.
Vicariousliability
(CCQs.2164)(see.s.1463)
s. 2164: A mandator is liable for any injury caused by the fault of the mandatary in the
performance of his mandate unless he proves, where the mandatary was not his servant, that he
couldnothavepreventedtheinjury.
In general, the principle is not liable for damage caused bytheagentunlessit canbeshownthat
the principle could have prevented it. To proveyoucouldhavepreventedit,therewouldneedto
beaphysicalproximity.
Ex.
Employersareliablefordamagecausedbytheemployeeintheperformanceinhiswork.
Ex.
Parentsareliablefordamagecausedbytheirchildren.
Terminationofmandate(CCQs.2184,2185)
s. 2184: Upon termination of the mandate, the mandatary is bound to render an account and
return to the mandator everything he has received in the performance of hisduties,evenifwhat
hehasreceivedwasnotduetothemandator.
The mandatary owes interest, computed from the time he is in default, on any balance in the
accountconsistingofsumshehasreceived.
The agent has to return everything he has received to the principle even if it implies a
commissionorkickback.
Ex. A supplier tells the agent: Buy from me and I will give you a brand new bicycle. This
belongstotheprinciple.
s. 2185: Amandataryisentitledtodeduct whatthemandatoroweshimbyreasonofthemandate
fromthesumsheisrequiredtoremit.
The mandatary may also retain what was entrusted to him by the mandator for theperformance
ofthemandateuntilpaymentofthesumsduetohim.
If the principle owes the agent some money, the agent can deduct thisfromwhatheowestothe
principle. Furthermore, if the agent has any other property of the principle, the agent isallowed
toretainituntilheispaidbytheprinciple.
II
CORPORATIONS
LegalFormsofBusiness
Sole Proprietorship: One person carrying out business in his or her own name. There is no
incorporation. Implies unlimited personal liability for the debts of the business. Advantage:
simplicity.
Ex. If you rent a commercial lease and thebusinessfails,thelandlordcansueyourbusinessand
ceaseallyourpersonalassetstopayoffthedebts.
Partnership: Two or more persons carrying out a business under a commonnameforacommon
profit. All partners are personally liable for the debts of the business. It is managed by a
unanimousshareholdersagreement.Thereisnoseparatelegalperson.
Corporation/Company: The most common form of business. It is a separate legal person. It has
the same rights as a person has andisliableforitsowndebts.Theowners(shareholders)arenot
liable for the debts of the corporation. A corporation cannot act by itself it acts through its
agentsbytheintermediaryofmandates.
CivilCodeofQuebec
Separatelegalentity(CCQ.s.301)
s.301:Legalpersonshavefullenjoymentofcivilrights.
Eventhoughcorporationscannotactontheirown,theyactthroughtheiragents.
Name(CCQ.s.305)
s. 305: Every legal person has a name which is assigned to it when it is constituted, and under
whichitexercisesitsrightsandperformsitsobligations.
It shall be assigned a name which conforms to law and which includes, where required by law,
anexpressionthatclearlyindicatesthejuridicalformassumedbythelegalperson.
A company name will end with a certain word e.g., inc., ltd., corp. If you see a name that does
not have this e.g., Happy Bakery, it is considered a trade name, not a corporation per se. It
might be a corporation, partnership, or sole proprietorship carrying on business under a trade
name.
Numberedcompany
Thegovernmentswayoffindingacompany.Itisanamebydefault.
Representation
Companies cannot act on their own thereforetheydosothroughtheirdirectorsandofficers.The
ownersarecalledshareholders.Directors,whoareelectedbytheshareholders,havethepowerto
manage the company. Directors then delegate the ordinary daytoday decisions to people they
have appointed, i.e.officers.Shareholdersareonlyliableforthemoney theyhaveinvestedinthe
company. They are not liable for any debts of the company per se i.e. the creditors of the
company cannot go aftertheshareholdersonapersonalbasis.Theshareholdercanhaveallthree
functions:shareholder/director/officer.Thereisnoprohibition.
Directors(CCQs.321)
s. 321: A director is considered to be the mandatary of the legal person (company). He
shall, in the performance of his duties, conform to the obligations imposed on him by
law, the constituting act or the bylaws and he shall act within the limits of the powers
conferredonhim.
Adirectorisanagent.
Ex.
BODwheredecisionsaremadebymajorityvote.
Officers(CCQ.s.312)
s. 312: A legalpersonisrepresentedbyits seniorofficers,whobindittotheextentofthe
powersvestedinthembylaw,theconstitutingactorthebylaws.
The officer is an agent. The officers, acting within a mandate, have the powers awarded
tothembylaw.
Ex. President, VicePresident, Treasurer, Secretary: CEO, CIO, COO, CEO, inhouse
counsel.
Ownership
Shareholders,limitedliability(CCQ.s.309)
s. 309: Legal persons are distinct from their members. Their acts bind none but
themselves,exceptasprovidedbylaw.
Legal persons are distinct from their shareholders. In general, the shareholder, director,
officerisnotliableforthedebtsofthecompany.Butthereareexceptions.
Fraud(CCQs.316)
s. 316: In case of fraud with regard to the legal person, the court may, on the application of an
interested person, hold the founders, directors, other senior officers or members of the legal
person who have participated in theallegedactorderivedpersonalprofittherefromliable,tothe
extentitindicates,foranydamagesufferedbythelegalperson.
In the case of fraud with regards to the company, the court may, on the application of someone
who has an interest in resolving this issue (e.g.creditors,union,suppliers,community),holdthe
founders, directors, officers, members (shareholders) liable. Anyone participating in fraud may
beliable.
Corporateveil(CCQs.317)
RE:146400CanadaInc.v.NetworkTransportLtd.
s. 317: In no case may a legalpersonsetupjuridicalpersonalityagainstapersoningoodfaithif
itissetuptodissemblefraud,abuseofrightorcontraventionofaruleofpublicorder.
Youcannothidebehindacompanytoperpetrateafraud.
Ex. I send scratch and win cards outsideofQuebecandmakeeachcardawinner.Onthecard,it
says: If you win, call 1900. The telemarketers are trained to keep them on the line for as
long as possible. The owner of that company cannot hide behind the company to say it wasnt
him. He cant say Dont sue me, sue the company. The courts have the ability, where in bad
faith,liftthecorporateveil.
Preincorporationcontract(CCQs.319,320)Anexceptiontotheruleofmandate.
s. 319: A legal person may ratify an act performed for it before it was constituted it is then
substitutedforthepersonwhoactedforit.
The ratification does not effect novation the person who acted has thenceforth the same rights
andissubjecttothesameobligationsasamandataryinrespectofthelegalperson.
s.320:Apersonwhoactsforalegalpersonbeforeitisconstitutedisboundbytheobligationsso
contracted, unless the contract stipulates otherwise andincludesastatementtotheeffectthatthe
legal person might not be constituted or might not assume the obligations subscribed in the
contract.
You have not yet incorporated your company. The legal person does not exist so therefore you
cannot act for the principle. When you sign for a nonexisting principle, you are personally
liable. There is an exception to this rule: You can sign on behalf of a company that has not yet
beenincorporated
Whenthecompanyratifiesthecontract,youaredeemedtobeanagent.
Ex. I sign a commercial lease on behalf of a company that has not yet been incorporating. Iam
givingnoticetothelessorthatIamsigningonbehalfofthecompanytobeincorporated.
Fiduciaryduty(CCQs.322)
s.322:Adirectorshallactwithprudenceanddiligence.
Heshallalsoactwithhonestyandloyaltyintheinterestofthelegalperson.
Thedirectorandofficerhaveadutytoactinthebestinterestoftheprinciple(legalperson).
cc.s.2138CCQ.
Confidentialinformation(CCQs.323)
s. 323: No director may mingle the property of the legal person with his own property nor may
he use for his own profit or that of a third person any property of the legal person or any
information he obtains by reason of his duties, unless he is authorized to do so by the members
ofthelegalperson.
The director cannot use the property and information belonging to the corporation to generatea
personalprofit.
cc.s.2146
Conflictofinterest(CCQs.324)
s. 324: A director shall avoid placing himself in any situation where his personalinterestwould
bein
conflictwithhisobligationsasadirector.
A director shall declare to the legalpersonanyinteresthehasin anenterpriseorassociationthat
may place him in a situation of conflict of interest and of any right he may set up against it,
indicating their nature and value, where applicable. The declaration ofinterestisrecordedinthe
minutesoftheproceedingsoftheboardofdirectorsortheequivalent.
Any conflict of interest the direct may have should be declared to the company and you should
abstainfromengaginginsuchactivities.
Directorship(CCQs.327)
s.327:Minors,personsoffullageundertutorshiporcuratorship,bankruptsandpersons
prohibitedbythecourtfromholdingsuchofficearedisqualifiedforofficeasdirectors.
However,minorsandpersonsoffullageundertutorshipmaybedirectorsofassociations
constitutedaslegalpersonsthatdonotaimtomakepecuniaryprofitsandwhoseobjectsconcern
them.
Minors (under 18), adults who do not understand what they are doing, bankrupts, legally
prohibited persons (e.g. someone who has been convicted of securities legislation fraud). A
director maybeanyoneoffullagewithaheadonhisshoulders.However,minorsandpersonsof
fullageundertutorshipmaybedirectorsofnonprofitorganizations.
Indoormanagementrule(CCQ.s.328)
s. 328:Theactsofadirectororseniorofficermaynotbeannulledonthesoleground that hewas
disqualifiedorthathisdesignationwasirregular.
Ex. I am dealing with the VP of financeofalargefirm.Igotomeethiminhisofficetodiscuss.
Everything leads me to assume that he is a director/senior officer. We sign a contract. I can
assume that that person had theauthoritytosignacontract.Thecontractmaynotbeannulled on
thebasisthattheofficerwasdisqualifiedorhisdesignationwasirregular.
Incorporation:Federalvs.Provincial
AnycompanyoperatinginQuebeccanbeincorporatedprovinciallyorfederallybecausethere
existsaparalleljurisdiction.Neitheroneismorevaluableovertheother.Inprinciple,thereisno
hugeadvantageeitherway.
Federal:CanadaBusinessCorporationsAct
Provincial:BusinessCorporationsActofQuebec
BusinessCorporationsAct(Quebec)
DutiesofDirectorsandOfficers(s.119)
s. 119. Subject to this division, the directors are bound by the same obligations as are
imposedbytheCivilCodeonanydirectorofalegalperson.
Consequently, in the exercise of their functions, the directors are dutybound toward the
corporation to act with prudence and diligence, honesty and loyaltyandintheinterestof
thecorporation.
In their capacity as mandataries of the corporation, the officers are bound, among other
things, by the same obligations as are imposed on the directors under the second
paragraph.
Directors and officers are agents of the company and have a fiduciary duty. As so, the
rulesofmandateapplytothem.
Liabilityforwages(s.154)
s. 154. Directors of a corporation are

solidarily liable
to the employees of a corporation
for all debts not exceedingsixmonths'wagespayabletoeachsuchemployeeforservices
performedforthecorporation
whiletheyaredirectors
ofthecorporationrespectively.
Whileyouareadirector,makesuretopaytheemployee.
Thedirectorisonlyliableif
a) Employee gets a judgment and sues the company within one year or afterdebtisdue,
or
b)Ifwithinoneyearoftheemployeeleaving,thecompanybecomesinsolvent
However, a director is not liable unless the corporation is sued for the debt within one
year after it becomes due and the writ of execution is returned unsatisfiedin wholeorin
part or unless, during that period, aliquidationorderismadeagainstthecorporationorit
becomes bankrupt within the meaning of that expression in the Bankruptcy and
Insolvency Act (R.S.C. 1985, c. B3) and a claim for the debt is filedwiththeliquidator
orthesyndic.
Ex. If there are 5 directors, and there is a debt of $100,000, you can collect the full
amountfromoneofthem.
Liabilityfordividends(s.156)
s. 156. Directors of a corporation who vote fororconsenttoaresolutionauthorizingany
of the following are solidarily liable to restore to the corporation any amounts involved
andnototherwiserecoveredbythecorporation:
(4)apaymentofadividendcontrarytosection104
Declarationandpaymentofdividends
s. 104. A corporation may not declare and pay a dividend, except by issuing shares or
options or rights to acquire shares, if there are reasonable grounds for believing that the
corporation is, or would after the payment be,unabletopayitsliabilitiesastheybecome
due.
Directors who authorize the payment of a dividend contrary to section 104 (where the
payment of the dividend would make the company insolvent), the director is liable for
this amount. This is to prevent the shareholders from coercing the directors to paying
dividends.Youcannotstripassetsoutofthecompanytomakethecompanyinsolvent.
Liabilityofshareholders(s.224)
s.224.Shareholdersarenot,asshareholders,liableforanyactofthecorporation.
However, they are debtors to the corporation for any unpaid amount on sharestheyhold
initssharecapital.
General rule: shareholders havenoliabilityfortheactsofthecorporation. However,they

areliableforanymoneytheyhaveputintothecompany(tobuyshares).
CanadaBusinessCorporationsAct
Dutyofcare(s.122)
1) Every director and officer of a corporation in exercising their powersanddischarging
theirdutiesshall
(
a
)acthonestlyandingoodfaithwithaviewtothebestinterestsofthecorporationand
(
b
) exercise the care, diligence and skill that a reasonablyprudentpersonwouldexercise
incomparablecircumstances.
Fiduciarydutyofdirectorsandofficers.
Dutytocomply
(2) EverydirectorandofficerofacorporationshallcomplywiththisAct,theregulations,
articles,bylawsandanyunanimousshareholderagreement.
Theshareholdershavethepowertolimitthepowerofthedirectors.
Noexculpation
(3) Subject to subsection 146(5), no provision in a contract, thearticles,thebylawsora
resolution relieves adirectororofficerfromthedutytoactinaccordancewiththisActor
theregulationsorrelievesthemfromliabilityforabreachthereof.
Directors and officers cannot, through private agreement, limit their liability by private
contract.
EXCEPTION
: The only situation where they can limit their liability as
director/officer is under a unanimous shareholder agreement (s. 146 par. 5). If a
shareholder takes on the authority of the director (e.g. paying dividends), they will be
heldliable.
Liabilityofshareholders(s.146par.5)
146. (5) To the extent thataunanimous shareholderagreement restricts the
powers of the directors to manage, or supervise the management of, the
business and affairs of the corporation, parties to the unanimous shareholder
agreement whoaregiventhatpowertomanageorsupervisethemanagementof
the business and affairsofthecorporationhavealltherights,powers,dutiesand
liabilities of a director of the corporation, whether they arise under this Act or
otherwise,including anydefencesavailabletothedirectors,andthedirectorsare
relieved of their rights, powers, duties and liabilities, including their liabilities
undersection119
(Liabilityofdirectorsforwages)
,tothesameextent.
IIICASES
CASE1PiecEstatev.Caissedeconomiepolonaise:CSQ
Legalissues
:
Fiduciaryduty(s.2138CCQ):Amandatary(bank)isboundtofulfillthemandatehehas
acceptedandshallactwithprudenceanddiligencewhenperformingit.
Facts/Conclusion
:
3separatemandates:
1. Theniecewastheliquidatoroftheauntsestateupondeath
2. Thenephewwasinchargeofmanagingtheauntsmoneyanddealingwiththebank
3. Thebankwasinchargeofprotectingtheauntsmoney.
TheauntwentforatriptohernativePoland.Duringhertrip,shepassedaway.
Whentheniecelearnedaboutthedeathofheraunt,shebeganliquidatingherestate.Ather
surprise,sherealizedthatherauntstermdepositcertificatesof$27,000hadalreadybeen
withdrawn.
Thenephew,wholearnedabouthisauntsdeathbeforeeveryoneelse,createdaforgedletter
fromhisaunt,instructingthe
CaissedconomiepolonaiseduQubec
topayhernephewthe
sumof$27,000.
TheCaisseaccessedtheauntstermdepositcertificates,turnedthemintocash,andgavethem
tothenephew.
Theplaintiff(niece),isexcessivelyupsetandwishestoproperlyliquidateherauntsestate
thewayshewasaskedtobyheraunt.
Thebankshouldhaveaskeditselfquestionsbecausetheredemptionofthetermdeposit
certificatesinvolvedtherenunciationofanimportantamountofaccruedinterest.Further
investigationshouldhavebeenconducted.
Thecourtisoftheopinionthatanumberoffactorsshouldhavealertedthebanktothe
possibilitythatthenephewwasexceedingthemandatethattheaunthadgivenhim
(Authorizationforthenephewtoclosetheaccountandgive$26,000tothenephew).
Thebank
breacheditsfiduciarydutytotheclient.Sincethebankdidnotactwithreasonablecare,itis
liablefordamagessufferedbytheniece.
Forthisreason,thecourtcondemnsthatbanktopaytheniecethesumof$27,000,with
interestsfromthedateofservice.
CASE2DR.ANTHONYDOWELLV.NOTARYHAYELLIS:CSQ
Parties
:
Dr.AnthonyDowell,Plaintiff
Me.EdgarHayEllis,Defendant
Legalissues
:
Fiduciaryduty:s.2138CCQ:Amandataryisboundtofulfillthemandatehehasaccepted,
andheshallactwith
prudenceanddiligence
inperformingit.Heshallalsoactinthebest
interestsofthemandator.
Facts/Conclusion
:
Joseph decides to purchase an apartment building under the name Dr. Anthony Dowell, a
personwithwhomhehadpreviouslyundertakentransactionssuchasthisone.
Afterthepapersweresigned,Dr.Dowellbecametheownerofthe propertyincurred,andhad
substantially large obligations towards innumerable third parties, such as the mortgage creditor,
tenants,andmunicipal/schoolauthorities.
Dr. Dowell (principle/mandator) hired Notary Edgar HayEllis (agent) to take care of the
propertys trust account, where Joseph could issue cheques strictly for the daytoday
maintenanceoftheproperty.
Inpermittinghimselftoissuechequeswithoutmakingeventheslightestattempttoverifyin
what manner these requested payments related to the property the notary fell far short of the
standard of conduct which thelawimposesuponhim.Heneverevenrequiredinvoices().The
defendant neither realized nor recognized the need forcaution.Onthecontrary,hechose()to
actblindly,puttingfaithinJoseph.
HayEllis did not act, in the exercise of his profession, with prudence and diligence. Dr.
Dowellwonthecase.
CASE3146400CanadaInc.v.NetworkTransportLTD.:CSQ
Parties
:
146400CanadaInc.,Plaintiff
NetworkTransport,Defendant
Legalissues
:
fraud(s.317CCQ):Innocasemayalegalpersonsetupjuridicalpersonalityagainstaperson
in good faith if it is set up to dissemble
fraud
, abuse of rightorcontraventionofaruleofpublic
order.
Facts/Conclusion
:
146400 Canada Inc. took over the lease that Network Transport had for acertainindustrial
propertyownedbyClaridgePropertiesLtd.
The Offer to Lease was signed by the president of Network Transport, not on behalf of
NetworkTransport,butratheronbehalfofitswhollyownedsubsidiaryinQuebec.
Prior to the expiry of the lease term, Network Transport abandoned the leased properties
withoutleavingtheremainingamountdueinrent.
When 146500 Canada Inc. moved in, there was a substantial amount still due in rent. The
owner of Claridge Properties Ltd. was now asking 146400 Canada Inc. to cover for the unpaid
rent.
NetworkTransportrefusestopayclaimedby146400CanadaInc.
NetworkTransport claimsnotbeingresponsiblefortheunpaidrentbecausetheplaintiff was

actuallydealingwiththewhollyownedsubsidiarythatisnowclosed.
However,the plaintiffclaimstohavebelievedthat,atalltimes,itwasdealingwithNetwork
Transportasalessee.Therewasnoevidenceofthecontrary.
ThepresidentofNetworkTransportinducedthelessortobelievethatitwasdealingwiththe
parent company and not the subsidiary: Mr. Bates () provoked a situation which, due tohis
fault, induced the lessor to believe that it was dealing with the parent shareholder, Network
Transport Limited, rather tan its wholly owned subsidiary Network Transport (Qubec). By
doingso,hecommittedafraud.
Although Network Transport Ltd. and its subsidiary are twolegalentities,theCourtretains

thefactthattheiractivitiesareunited.
Weeks7,8&9
THEETHICALANDLEGALISSUESARISINGOUTOFTHE
EMPLOYEREMPLOYEERELATIONSHIP
ICIVILCODEOFQUEBEC
A)EMPLOYMENTLAWISSUES
Contractofemployment
1)Subordination(CCQ2085)
2085.
A contract of employment is a contract by which a person, the employee,
undertakes for a limitedperiodtodoworkforremuneration,accordingtotheinstructions
andunderthedirectionorcontrolofanotherperson,theemployer.
Anemploymentcontractiswheretheemployeeagreestodobepaid todoworkfor
alimitedperiod.
As en employee, he also agrees to be a subordinate to his employer (i.e.tofollow
instructionsandbeunderthedirectionoftheemployer).
2)Fixedorindeterminateterm(CCQ2086):
2086.
Acontractofemploymentisforafixedtermoranindeterminateterm.
Anemploymentcontractmaybeoffixedorindeterminateterm.
o Fixed term: An employee is hired toreplacesomeonewhoisonmaternity
leave.
o Indeterminate term: An employee is hired for a permanent, fulltime
position.
Healthsafetydignity(CCQ2087)
2087.
The employer is bound not only to allow the performanceoftheworkagreeduponandto
pay the remuneration fixed, but also to take any measuresconsistentwiththenatureofthework
toprotectthehealth,safetyanddignityoftheemployee.
Theemployerisboundtopaytheremunerationmentionedinthecontractofemployment.
Hemustalsotakenecessarymeasurestoprotectthehealth,safetyanddignityoftheemployee.
Fiduciaryduty(CCQ2088)***
2088.
Theemployeeisboundnotonlytocarryonhisworkwithprudenceanddiligence,butalso
toactfaithfullyandhonestlyandnottouseanyconfidentialinformationhemayobtainin
carryingonorinthecourseofhiswork.
Theseobligationscontinueforareasonabletimeaftercessationofthecontract,andpermanently
wheretheinformationconcernsthereputationandprivatelifeofanotherperson.
The employee has a fiduciary duty and cannot use any confidential informationhemayobtainin
the course of his employment. These obligations continue i) for a reasonable time after the
cessation of the contract and ii) permanently when the information concerns the reputation and
privatelifeofanotherperson.
Whistleblowing
Whistle blowing occurs when an employee brings to light a problem that is going on in the
company. The first step is internal whistle blowing, where the employee brings the issue to the
boss. If the boss does not take the required measures to solve the issue, the nextstepisexternal
whistle blowing, where the employee brings the problem to the attention of the outside world
(e.g. government or media). Whistle blowing is when the employee goes against his fiduciary
dutytofollowethicstohelpsolveaproblem.
Noncompetition(CCQ2089,2095)***
2089.
The partiesmaystipulateinwritingandin expresstermsthat,evenaftertheterminationof
the contract, the employee may neither compete with his employer nor participate in any
capacitywhatsoeverinanenterprisewhichwouldthencompetewithhim.
Such a stipulation shall be limited, however, as to time, place and type of employment, to
whateverisnecessaryfortheprotectionofthelegitimateinterestsoftheemployer.
Theburdenofproofthatthestipulationisvalidisontheemployer.
Inthecontractofemployment,theemployermayincludeanoncompetitionclause(theclausehas
to be written there is no presumption). Such a clause forbids an employee from working for a
competitor for a certain period of time after leaving. However, the clause must be limited as to
thetime,placeandjobdescriptioninordertoprotectthelegitimateinterestsoftheemployer.
2095
An employer may not avail himself of a stipulation of noncompetition if hehasresiliated
the contract without a serious reason or if he has himself given the employee such a reason for
resiliatingthecontract.

A noncompetition clause is rarely enforceable. The only case where the court will listen to the
reasonfora noncompetitionclauseisiftheemployerterminatestheemployeeforseriousreason
(2094CCQ).
Terminationofemployment
1)Reasonablenotice/Severance(CCQ2091)***
2091.
Eitherpartytoacontractwithanindeterminatetermmayterminateitbygiving
noticeofterminationtotheotherparty.
Thenoticeofterminationshallbegiveninreasonabletime,takingintoaccount,in
particular,thenatureoftheemployment,thespecialcircumstancesinwhichitiscarried
onandthedurationoftheperiodofwork.
If the contract of employment is of indeterminate term, the employeroremployee
may terminate it by giving notice in reasonable time. The employer also has the
optiontogivetheemployeeseverance.
2)Seriousreason/withoutpriornotice(CCQ2094)***
2094.
One of the parties may, for a serious reason, unilaterally resiliate the contract of
employmentwithoutpriornotice.
The employer may resiliate the contract of employment without prior notice if
thereisaseriousreason.
Appliestobothfixedandindeterminatetermcontracts.

Ex. (Serious reason): Insubordination Incompetence Theft Late for work on
habitualbasis.
Probationaryperiod
The beginning of a work period, usually 3 months, where either party may terminate the
agreementwithoutrecourse.
Appliesonlytoindeterminatetermcontracts.
Publicorder(CCQ2092)i.e.Indemnityinlieuofreasonablenotice
2092.
The employee may not renouncehisrighttoobtaincompensationforanyinjuryhesuffers
whereinsufficientnoticeofterminationisgivenorwherethemannerofresiliationisabusive.
Compensationfordamageoflossif1)insufficientnoticeor2)compensationisinsufficient

Ex. Employer cannot make the employee sign a paper saying he cannot sue for more
compensation
Death(CCQ2093)
2093.
Acontractofemploymentterminatesuponthedeathoftheemployee.
Dependingonthecircumstances,itmayalsoterminateuponthedeathoftheemployer.
Whentheemployeedies,hiscontractends.Thisisanexceptiontotherule.Normally,obligations
donotendwhensomeonedies(e.g.mortgage,debts).Thisisbecauseanemploymentcontractis
basedonaverypersonalskillset.Insomecases(e.g.soleproprietorships),thecontractmayend
uponthedeathoftheemployer.
Saleofbusiness(CCQ2097)
2097.
Acontractofemploymentisnotterminatedbyalienationoftheenterpriseoranychange
initslegalstructurebywayofamalgamationorotherwise.
Thecontractisbindingonthesuccessoroftheemployer.
Anemployeescontractisstillineffectevenifhisemployergoesthroughabuyout.
Privacyissueatwork:(Cameras,phones,emails,computers)
As a general rule the employer can monitor within reason. He cant have a little monitor on
everyones computer or install cameras in the washroom but he is allowed to monitor the
companysproperty.
WorkplaceCodeofConduct
A Code of Conduct is a legal and ethical guide that gives employees the dos and donts of the
corporation. On the flip side, the employer can say: I have grounds to fire the person. The
employeeusuallysignsforitaswell.
B)Independentcontractor(CCQ20982100)***
Def: An independent contractor is a consultant. This consultant isbroughtinfromoutsideforhis
knowledgeandhasfreereigntodowhateverhepleasestosolveaproblemandwriteareport.
IndependentcontractorshaveGSTandPSTnumbers.Theybillyoutheprice+tax.
2098.
Acontractofenterpriseorforservicesisacontractbywhichaperson,thecontractoror
theproviderofservices,asthecasemaybe,undertakestocarryoutphysicalorintellectualwork
foranotherperson,theclientortoprovideaservice,forapricewhichtheclientbindshimselfto
pay.

Norelationshipofsubordinationexists.Forinstance,ifyoucallyourlawyerandtellhim:Getme
outofhere.Donttrytotellhimhowtodohisjobheisnotyoursubordinate.
2099.
Thecontractorortheproviderofservicesisfreetochoosethemeansofperformingthe
contractandnorelationshipofsubordinationexistsbetweenthecontractorortheproviderof
servicesandtheclientinrespectofsuchperformance.
Theindependentcontractorhasafiduciarydutytowardstheclient.
Donotguaranteeanythingtoyourclient.Ifthecontractorguaranteesaspecificresult,hebecomes
liableforthatguarantee(unlesshecanprovetherewasanactofGod).
Ex.
Astockbrokerguaranteesyoua15%return.Ifyouonlyget14%,yourstockbrokerbecomes
liable.
2100.
Thecontractorandtheproviderofservicesareboundtoactinthebestinterestsoftheir
client,withprudenceanddiligence.Dependingonthenatureoftheworktobecarriedoutorthe
servicetobeprovided,theyarealsoboundtoactinaccordancewithusualpracticeandtherules
ofart,and,whereapplicable,toensurethattheworkdoneorserviceprovidedisinconformity
withthecontract.
Wheretheyareboundtoproduceresults,theymaynotberelievedfromliabilityexceptby
provingsuperiorforce.
C)ConditionsofLiability
Thereexisttwoconditionsofliability:
1)
Breachofnoncontractualduty/civilliability(CCQ1457)
2)
Breachofcontract(CCQ1458)
Breachofduty(CCQ1457)
(i.e.noncontractualsituationcivilliability)
1457.
Everypersonhasadutytoabidebytherulesofconductwhichlieuponhim,accordingto
thecircumstances,usageorlaw,soasnottocauseinjurytoanother.
Whereheisendowedwithreasonandfailsinthisduty,heisresponsibleforanyinjuryhecauses
toanotherpersonbysuchfaultandisliabletoreparationfortheinjury,whetheritbe
bodily,
moralormaterial
innature.
Heisalsoliable,incertaincases,toreparationforinjurycausedtoanotherbytheactorfault
of
anotherperson
orbytheactofthingsinhiscustody.
Breach of duty refers to a situation where, in the absence of a contract, a person injures another
person (bodily, moralormaterial).HebecomesliabletoreparationoftheinjuryhecausedAND,
incertaincases,toreparationofinjurycausedbysomeoneinhiscustody.vicariousliability.

Ex. I am rushing to get to the bus todayand Ipushyoudownthestairs.Ihavenocontractsaying
Iwillnothurtyou,butIdidbreachmydutytosocietytoactinareasonableandsafemanner.
Breachofcontract(CCQ1458)
(i.e.contractualsituation)
1458.
Everypersonhasadutytohonourhiscontractualundertakings.
Wherehefailsinthisduty,heisliableforanybodily,moralormaterialinjuryhecausestothe
othercontractingpartyandisliabletoreparation(compensate)fortheinjury().
When a person does not respect his contractual obligations, he becomes liable for any bodily,
moralormaterialinjuryANDliabletocompensatefortheinjury.
Ex.
Ibuyyourbicycle,Igiveyouachequeanditbounces.Iamliabletocompensatefordamages.
Vicariousliability(CCQ1457,1463)
1463.
Theprincipalisliabletoreparationforinjurycausedbythefaultofhisagentsand servants
(employee) in the performance of their duties nevertheless, he retains his recourses against
them.
The employer is liable to compensate for injury caused by the fault of his employee in the
performanceoftheirduties.However,theemployercanalsoturnaroundandsuetheemployee.

Ex.Youreatwork andbored.Youthrowarockatacustomeranditinjureshim.Theemployer is
liabletotheinjuredperson.
Ex.
Iftheemployeethrowsrocksduringhisunpaidbreak,theemployerisnotliable.
D)Assessmentofdamages
Compensation:CCQ1611
1611.
Thedamagesduetothecreditorcompensatefortheamountofthelosshehassustained
andtheprofitofwhichhehasbeendeprived.
Futureinjurywhichiscertainandabletobeassessedistakenintoaccountinawardingdamages.
Compensationisbasedonactuallossandfutureinjury(determinedbyexpertopinion).
Punitivedamages:CCQ1621
1621.
Wheretheawardingofpunitivedamagesisprovidedforbylaw,theamountofsuch
damagesmaynotexceedwhatissufficienttofulfilltheirpreventivepurpose.
Punitivedamagesareassessed
(calculated)
inthelightofalltheappropriatecircumstances,in
particularthegravityofthedebtor'sfault,hispatrimonialsituation,theextentofthereparation
forwhichheisalreadyliabletothecreditorand,wheresuchisthecase,thefactthatthepayment
ofthedamagesiswhollyorpartlyassumedbyathirdperson.
Ifavictimisclaimingpunitivedamages(i.e.ifthelawspecificallyallowsit,e.g.Charter),these
punitivedamagesaremeanttopunishyoufordoingsomethingbadandalsofortopreventothers
fromdoingit.
***TheCCQdoesnotpermitforpunitivedamages.IthastocomefromtheCharterorother
specificlaws.
IIQuebecLaborStandardsAct(LSA),PsychologicalHarassment
Psychologicalharassment
Thislawdealswiththerightofthevictimtosuetheemployer.
Harassment is not just employer harassing employee. It can be female employee harassing male
employee,worker/workerharassment,etc.Itisbroadenoughtocoveranysituation.
Definition:LSA81.18
81.18.
ForthepurposesofthisAct,psychologicalharassmentmeansanyvexatiousbehaviour
intheformofrepeatedandhostileorunwantedconduct,verbalcomments,actionsorgestures,
thataffectsanemployee'sdignityorpsychologicalorphysicalintegrityandthatresultsina
harmfulworkenvironmentfortheemployee.Vexatiousbehaviour.
Asingleseriousincidenceofsuchbehaviourthathasalastingharmfuleffectonanemployee
mayalsoconstitutepsychologicalharassment.
Employersobligation:LSA81.19
81.19.
Everyemployeehasarighttoaworkenvironmentfreefrompsychological
harassment.Dutyofemployers.
Employersmusttakereasonableactiontopreventpsychologicalharassmentand,wheneverthey
becomeawareofsuchbehaviour,toputastoptoit.
Inform your employees on what psychological harassment is. Once you know an employee is
beingharassed,youhavetotakemeasurestostopit.
Rightoftheemployee.
Filingacomplaint:LSA123.6,123.7
123.6.
An employee who believes hehasbeenthevictimofpsychologicalharassmentmay filea
complaint in writing with the Commission. Such a complaint may also be filed by a nonprofit
organization dedicated to the defence of employees' rights on behalf of one or more employees
whoconsenttheretoinwriting.
123.7.
Any complaint concerning psychological harassment must be filed within 90 days of the
lastincidenceoftheoffendingbehaviour.
The employee has 90 days from the lasttimehisemployerharassedhimtofilehisclaimwiththe
LSC.
Powersofcommission:LSA123.15
123.15.
IftheCommissiondesrelationsdutravailconsidersthattheemployeehasbeenthe
victimofpsychologicalharassmentandthattheemployerhasfailedtofulfiltheobligations
imposedonemployersundersection81.19,itmayrenderanydecisionitbelievesfairand
reasonable,takingintoaccountallthecircumstancesofthematter,including
orderingtheemployertoreinstatetheemployee
orderingtheemployertopaytheemployeeanindemnityuptoamaximumequivalenttowages
lost
orderingtheemployertotakereasonableactiontoputastoptotheharassment
orderingtheemployertopaypunitiveandmoraldamagestotheemployee
orderingtheemployertopaytheemployeeanindemnityforlossofemployment
orderingtheemployertopayforthepsychologicalsupportneededbytheemployeefora
reasonableperiodoftimedeterminedbytheCommission
orderingthemodificationofthedisciplinaryrecordoftheemployee.
TerminationundertheQuebecLabourStandardsAct
Recourse:LSA124
124.
Anemployeecreditedwithtwoyearsofuninterruptedserviceinthesameenterprisewho
believesthathehasnotbeendismissedforagoodandsufficientcausemaypresenthiscomplaint
inwritingtotheCommissiondesnormesdutravailormailittotheaddressoftheCommission
desnormesdutravailwithin45daysofhisdismissal,exceptwherearemedialprocedure,other
thanarecourseindamages,isprovidedelsewhereinthisAct,inanotherActorinanagreement.
Exception.
IfthecomplaintisfiledwiththeCommissiondesrelations du travailwithinthisperiod,failureto
have presented it to the Commission des normes du travail cannot be set up against the
complainant
Anemployermayfireanemployeeunder:
o CCQ2091,bygivingreasonablenotice,contractofindeterminateterm
o CCQ2094,forseriousreason,fixedorindeterminateterm
o LSA 124 Employee must have worked there for 2 years. If the employee
believes he has not been dismissed for good and sufficient cause, he can file a
claimwithin45daysofhisdismissal.
o Ex. Good and sufficient cause = Bad economy. Insufficient cause = Employer
preferstheotherpersontodothejob.
Powersofcommission:LSA128
128.
WheretheCommissiondesrelationsdutravailconsidersthattheemployeehasbeen
dismissedwithoutgoodandsufficientcause,theCommissionmay
(1)ordertheemployertoreinstatetheemployee
(2)ordertheemployertopaytotheemployeeanindemnityuptoamaximumequivalenttothe
wagehewouldnormallyhaveearnedhadhenotbeendismissed
(3)renderanyotherdecisiontheCommissionbelievesfairandreasonable,takingintoaccount
allthecircumstancesofthematter.
Domestic.
However,inthecaseofadomesticorapersonwhoseexclusivedutyistotakecareoforprovide
caretoachildortoasick,handicappedoragedperson,theCommissiondesrelationsdutravail
mayonlyorderthepaymenttotheemployeeofanindemnitycorrespondingtothewageand
otherbenefitsofwhichhewasdeprivedduetodismissal.
Iftheemployeehasbeendismissedwithoutgoodandsufficientcause,theCommissionmay:
o Ordertheemployertoreinstatetheemployee(gethisjobback)
o Order the employer to pay to the employee an indemnity up to a maximum
equivalenttothewagehewouldnormallyhaveearnedhadhenotbeendismissed
o Render any other decision the Commission believes fair and reasonable, taking
into account all the circumstances of the matter. (includes severance pay instead
ofhisjobback)
o However, in the case of a domestic (homecare provider), the normes du travail
willneverorderreinstatement.
Noticeoftermination:LSA82,82.1
82.
Theemployermustgivewrittennoticetoanemployeebeforeterminatinghiscontractof
employmentorlayinghimoffforsixmonthsormore.
Lengthofnotice.
Thenoticeshallbeofoneweekiftheemployeeiscreditedwithlessthanoneyearof
uninterruptedservice,twoweeksifheiscreditedwithoneyeartofiveyearsofuninterrupted
service,fourweeksifheiscreditedwithfiveyearstotenyearsofuninterruptedserviceandeight
weeksifheiscreditedwithtenyearsormoreofuninterruptedservice.
Restriction.
ThissectiondoesnotdepriveanemployeeofarightgrantedtohimunderanotherAct.
Before an employer terminates the contract of the employee or lays him off for 6+ months, he
mustgivehimawrittennotice.
Lengthofnotice:
Oneweek:employeehasworkedthereforlessthanoneyear
Twoweeks:employeehasworkedtherefor15years
Fourweeks:employeehasworkedtherefor510years
Eightweeks:employeehasworkedtherefor10+years
82.1.
Section82doesnotapplytoanemployee
EXCEPTIONTOSEVERANCEPAY
1)whohaslessthanthreemonthsofuninterruptedservice
(probationperiod)
2)whosecontractforafixedtermorforaspecificundertakingexpires
(fixedtermcontract)
3)whohascommittedaseriousfault
(CCQ2194)
4)forwhomtheendofthecontractofemploymentorthelayoffisaresultofsuperiorforce.
Ifyouwantmoney,sueunderCCQ2091.Ifyouwantyourjobback,sueunderLSA124
IIICASES
Case1:Kingv.Biochem(CSQ)
Legalissues:
TerminationofemploymentSeriousreasonPriornotice
2094 CCQ.
Oneofthepartiesmay,foraseriousreason,unilaterallyresiliatethe contractof
employmentwithoutpriornotice.
2091.
Eitherpartytoacontractwithanindeterminatetermmayterminateitbygivingnotice
ofterminationtotheotherparty.
Legalparties:
Dr.King,Plaintiff
BioChem,Defendant
Facts/Decision:
Lessthanoneyearafterbeinghired,Dr.Kingwasfiredafterhavingbeengivenduewarning
forinsubordinationandlackofrespectofcolleaguesandotherswithwhomsheinteracted.Dr.
Kingbelievesshewasfiredsuddenly,havingreceivednopreciousindicationofbeingin
jeopardy,herdismissalbeingcausedbyjealousyandpettycomplaints,someofwhichwere
false.
TheemployerclaimstohavefiredKingforseriousreason,underCCQ2094.Ifso,noprior
noticeofterminationwouldhavebeenrequired.However,thejudgedeterminedtherewasno
seriousreasontofireKing.Therefore,KingshouldhavebeenfiredunderCCQ2091.
oWhenfiringanemployeeunderCCQ2091,priornoticeofterminationmustbe
giventotheemployeeinthiscase,itwouldhavebeenof4months.Sinceno
priornoticewasgiven,theemployeemustreceiveseverance.
oAlso,specialcircumstancesneedtobeconsidered.Here,Kingwasawarded12
monthsseveranceandalsogotmoraldamagesof$50,000.
Decision:Kingawardedindemnityplusintereston12monthssalaryTheemployerhasto
proveaseriousreasonunderCCQ2094.Ifhecannotproveit,hehastoprovepriornoticeunder
2091.Ifnopriornoticewasgiven,theemployeemustreceiveseverance.Inthiscase,Kinghad
worked10monthsbutreceived12monthsofseverance+damages.
Case2:Dubv.VolcanoTECHNOLOGIESINC.(CSQ)
Legalissues:
Reasonable notice (or severance): CCQ 2091 Indemnity in lieu of reasonable notice
(CCQ2092)
2091.
Eitherpartytoacontractwithanindeterminatetermmayterminateitbygivingnotice
ofterminationtotheotherparty.
Legalparties:
Dub,Plaintiff
Volcano,Defendant
Facts/Decision:
After26monthsofservice,DubwasterminatedbyVolcanoduetothefinancialsituationof
theplant.Heclaimsasindemnityanamountequivalentto9monthsofsalarypluscarallowance.
ButVolcanoconsidersthataccordingtothetermsoftheemploymentagreement,Dubis
entitledtonomorethan2weeks,whichithaspaidtohim.
VolcanogaveDubpriornoticeoftermination(CCQ2091).
Hewasfiredwithonlytwoweeksofseverancepay,asindicatedintheemployment
agreement.
oInthisagreement,theemployerreferstotheLSA:Volcanoclaimsthatbysigning
theagreement,Dubunderstoodthathewasrenunciatinghisrightsunderthe
CCQtoreceivemorethanoneweekperyearofserviceincaseoftermination.
However,thesimplefactthattheemployerreferstotheLSAintheemployment
contractisnotenoughtoconstitutesucharenunciationYoucannotgiveupyour
rightstosueundertheCCQisthecontractsaysYougiveupyourrightstosue
underCCQandapplyLSAbecauseitisagainstpublicorder.
Here,thecourtappliedCCQ2091andorderedVolcanotopayDub18weeksseverance.
Case3:Hasaniev.Kaufel(CSQ)
Legalissues:
Breachoffiduciaryduty(CCQ2088)Seriousreason(CCQ2094)
Reasonablenotice/severance(CCQ2091)
2088.
Theemployeeisboundnotonlytocarryonhisworkwithprudenceanddiligence,butalso
toactfaithfullyandhonestlyandnottouseanyconfidentialinformationhemayobtainin
carryingonorinthecourseofhiswork.
Theseobligationscontinueforareasonabletimeaftercessationofthecontract,andpermanently
wheretheinformationconcernsthereputationandprivatelifeofanotherperson.
Legalparties:
Hasanie,Plaintiff
Kaufel,Defendant
Facts/Decision:
Thomas&BettsboughtoutKaufelGroupeLtd.in1998.Sixmonthslater,Kaufelterminated
Hasanieandgivehim10monthsnoticeunderCCQ2091.WhileHasanieisonvacation,thethey
cometofindoutthatHasaniehasbreachedhisfiduciaryduty:hewastryingtobuyouta
competingcompany.TheemployerthendecidestofirehimimmediatelyunderCCQ2094for
seriousreason,withoutseverance.
oHasaniearguesheneverbreachedhisfiduciarydutybecausehehadadvised
management.Nottrue,hecouldhavegottenmanagementsapprovalinwriting.
oFurthermore,Hasanieclaimshewasbeingdrivenoutofthecompanyandhadto
savehimselfandhisownfuture(i.e.constructivedismissal).Thereisnoproofof
this.
Decision:Employernotrequiredtopayindemnityordamages.Whenanemployeeplaces
hisowninterestsabovehisfiduciarydutytohisemployer,thiscanbeseenaseriousreasonto
firetheemployeewithoutpriornoticeorseverance:Everyemployeeowesadutyofloyaltyto
hisemployer.Thisdutywouldbetheveryessenceoftheemploymentcontract.Itisimportant
thattheemployeemustnotadvancehispersonalinterestsoverthoseofhisemployer.()
Personsinseniormanagementpositionsuchasplaintiffareheldtoahigherstandard()
Case4:Copyfaxv.Lambert
Legalissues:
Noncompetitionclause(CCQ2089)Confidentialinformation(CCQ2088)
Interlocutoryinjunction
2089.
Such a stipulation shall be limited, however, as to
time
,
place and
type of employment, to
whateverisnecessaryfortheprotectionofthelegitimateinterestsoftheemployer.
Legalparties:
Copyfax,Plaintiff
ClaudeLambert,Defendant
Facts/Decision:
NOTE:Whenyoubreachaclauseforfiduciarydutyorconfidentialinformationor
noncompetitionclause,thecompanyisnotconcernedaboutmonetarydamagestheyare
concernedaboutaccesstoinformationwhichiswhytheyaskforaninterlocutoryinjunction
(i.e.courtordertopreservethestatusquoandmakeyoustopusingtheinformationandstop
competinguntiljudgment).Thecasedealswithtwointerlocutoryinjunctions:1)non
competitionclause2)confidentialinformation
LambertwasfiredunderCCQ2094becausehesetupacompetingbusiness.Lamberthad
beenworkingforCopyfaxforanumberofyearsandsignedacontractthatincludeda
noncompetitionclause:time(14months)place(25miles)andjobdescription.Thequestionis:
isthenoncompetitionclauseenforceable?Thecourtlooksatthe3factorstodetermineifitis
reasonable.Burdenofproofisontheemployer:
oJobdescription:reasonable
oDuration(14months):unreasonable
oPlace(25miles):unreasonable
Limitationsplacedbynoncompetitionclauseareunreasonable.Thereforetheclausewillnot
beenforceable.
Decision:InterlocutoryinjunctionrefusedfornoncompetitionclauseInterlocutory
injunctiongrantedforuseofconfidentialinformation.
Case5:A.R.Medicomv.Bergeron
Legalissues:
Noncompetitionclause(CCQ2089)Interlocutoryinjunction
2089.
Such a stipulation shall be limited, however, as to
time
,
place and
type of employment, to
whateverisnecessaryfortheprotectionofthelegitimateinterestsoftheemployer
.
Facts/Decision:
AsemployeesofMedicomInc.,BergeronandHubertbothsignedcontractsofemployments.
However,eachcontractvariedastotheirnoncompetitionclause.Medicomseeksan
interlocutoryinjunctionagainstbothformeremployees.Todetermineifthenoncompetition
clausesareenforceable,thecourtmustdetermineifthelimitationsplacedbytheclausesare
reasonable:
oBergeron
Time:2years
Place:worldwide
Jobdescription:similarcommercialactivityoranythingincompetition
withMedicom
oHubert
Time:3years
Place:Canada
Jobdescription:similarcommercialactivityoranythingincompetition
withMedicom
TherestrictionsplacedonBergeronandHubertgobeyondwhatisnecessarytoprotectthe
legitimateinterestoftheemployeritpreventsthemfromworkingintheirchosenfieldofwork.
Thelimitationsareunreasonable:preventingtheexemployeesfromworkingin
Canada/Worldwide:Itcannotbealegitimateinterestofthisemployertopreventthesetwomen
fromworkingintheirfield,inanycapacitywhatever,evenifworkinginthatfieldisnotin
competitionwiththebusiness.
Interlocutoryinjunctiondenied:NeitherBergeronorHubertareboundbythe
noncompetitionclause.
LIKEOURFACEBOOKPAGEASAFORMOFAPPRECIATION
WEOFFERWEEKLIESANDCRASHESFORCOMM,ECON,CHEM&OTHER
BUSINESSRELATEDCLASSES.

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Magic A Tutoring Comm 315 Midterm

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COMM315

He happened to be the janitor not a cashier.Thisisanapparentmandate:youareingoodfaith

s. 154. Directors of a corporation are

General rule: shareholders havenoliabilityfortheactsofthecorporation. However,they

NetworkTransport claimsnotbeingresponsiblefortheunpaidrentbecausetheplaintiff was

Although Network Transport Ltd. and its subsidiary are twolegalentities,theCourtretains

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