BUSINESS LAW

BUSAYO LEYE
ADEGUNLOYE

GROUP B

ASSIGNMENT CHAPTER 9
Case 1
Carlos was a well-known artist who specialized in sculptures of birds and animals. The town where he
lived commissioned Carlos to create a life-size sculpture of birds for the lobby at the town hall. The lobby
was small, so Carlos thought the best use of the space would be to suspend the sculptures from the
ceiling. He proposed a small flock of Canada geese because of their size and the V formation in which
they fly.
The work of art was completed and installed to great acclaim by the town and the town's inhabitants. It
became well known and as Carlos' reputation grew, so did the crowds who came to admire his artwork.
For a holiday season, the town council proposed that large red ribbons be tied around the necks of the
Canada geese in the lobby. It was discussed in council and approved that every year bows would be added
to the sculpture to commemorate the festive season.
Unknown to Carlos, bows were tied around the geese and the ribbon ceremony was completed. A few
days later, a friend mentioned to Carlos that it was interesting to see how much the bows hid the necks on
the geese, making them look deformed. Carlos flew to the town hall to gaze upon his masterpiece looking
like a decoration on the top of a gift parcel.
"This doesn't fly with me," he muttered.
1. Discuss the issues raised by this situation.
2. What, if any, legal rights or remedies does Carlos have to undo this action by the town council?
Answer 1
1. Intellectual property is another type of personal property that arises from an individual's creative
activities. An example of this is the right provided by ownership of a trademark to stop someone
from using that trademark unless they have a license from the owner allowing them to do so. In
Canada, copyright applies to all original literary, dramatic, musical, and artistic works, as well as
computer programs that are classified as literary works under the Act. The federal Copyright Act
protects copyright by granting the owner the exclusive right to publish, perform in public, or
reproduce the original work, as well as the ability to prevent another person or business from
copying or using such work for commercial purposes. Copyright ownership also provides a wide
range of additional protection. First, there are fundamental rights to intellectual property and
artistic creations. Artists, including sculptors like Carlos, typically retain ownership of their
works. This means they have exclusive rights to reproduce, distribute, and modify their works. In
the scenario, Carlos’s rights to his Canada goose sculptures are most likely still intact. Any
modification to his artwork without his permission may violate his copyright.

Furthermore, Canadian labor laws emphasize the value of fair treatment and consultation in the
workplace. Employers are generally required to engage in meaningful dialogue with their
employees, especially about issues that directly affect their work or creations. The town council's
decision to add large red ribbons to Carlos' sculptures without consulting him may violate these
principles. It could be argued that Carlos, as the artwork's creator, should have been informed and
given the opportunity to provide feedback on any proposed changes. Canadian employment law
frequently recognizes the concept of constructive dismissal, in which significant changes to an
employee's job or working conditions without their consent are considered a breach of the
employment contract. While Carlos is not a traditional employee, the town contracted him to
create the sculptures. Unauthorized modification of his artwork may be considered a breach of
contract or a violation of his rights as an independent contractor.
 In terms of legal remedies, Carlos may have grounds to seek relief through a variety of channels.
He could potentially sue the town council for copyright infringement or breach of contract. This
could include obtaining an injunction to remove the ribbons from his sculptures and/or seeking
damages for any harm done to his reputation or the value of his artwork. Carlos may also
consider alternative dispute resolution mechanisms, such as mediation or arbitration, to resolve
the issue without resorting to litigation. These approaches may provide a more amicable and cost-
effective solution to the problem while also protecting his artistic rights. See the case of Snow v
Eaton Centre Ltd for reference.

However, when an artist, such as Carlos, receives a commission from a town or other entity, he or
she usually transfers ownership of the artwork to the commissioner. This transfer of ownership
allows the commissioning party to display, modify, and control the artwork as they see fit. As a
result, the town would be able to decorate the artwork, such as adding ribbons or other
embellishments, without the artist's explicit consent. This principle of ownership also applies to
intellectual property rights, which means that the town may have the right to modify the artwork
even if the artist retains copyright. However, the details of the commission agreement are critical.
If the agreement explicitly defines the town's authority to modify the artwork or includes
provisions for the artist's consultation or approval, the town's actions must be consistent with
those terms. In the absence of such provisions, the town would have a wide range of options for
decorating or modifying the artwork. While the artist may have feelings of attachment or pride in
their work, once ownership is transferred, they lose control over its future presentation and
adornment. Thus, the artist's ability to influence or challenge the town's decisions may be limited,
and any objections would most likely have to be based on specific contractual breaches or
violations of intellectual property rights. Finally, finding the balance between the artistic vision
and the commissioning party's rights necessitate careful consideration of the commission
agreement's terms, as well as an understanding of the legal principles governing ownership and
control of commissioned artworks.
In Conclusion and most importantly, it is important to also know that moral rights endure for the
same duration as economic rights and cannot be assigned or transferred, though they can be
waived. Additionally, moral rights can be enforced independently of economic rights, meaning
that even if a creator has transferred ownership or licensing rights to their work, they still retain
the ability to enforce their moral rights. In the context of commissioned artworks, moral rights are
particularly relevant as they allow artists like Carlos to protect the integrity of their creations and
to object to modifications that could harm their reputation or artistic vision. However, the extent
to which moral rights apply in a given situation can depend on various factors, including the
terms of any contractual agreements between the artist and the commissioning party.
2. From the above, there are various options Carlos can use for these circumstances to undo the
action by the town council. It Is also important and critical to move progressively on the easier
way to undo the action before proceeding to litigation if the situation seems hard to correct. As a
result of this, the first Approach or method is;
i. Alternative Dispute Resolution (ADR)
Alternative dispute resolution (ADR) refers to methods of resolving disputes outside of litigation,
such as through arbitration, mediation, or negotiation. These methods can be less costly and time-
consuming than going to court though they differ in substantial ways. ADR is less Costly,
provides Speedy results, allows parties to resolve their differences and difficulties in a more
friendly manner and allows parties to have more involvement in the resolution of their dispute.
ADR includes the following:
 ii. Negotiation: Negotiation is a process in which the disputing parties communicate
directly with each other in an effort to reach a mutually satisfactory resolution. This is typically
done without the assistance of a third party.
iii. Mediation: This is a process in which a neutral third party (the mediator) helps facilitate
communication between the disputing parties with the goal of reaching a mutually satisfactory
resolution. The mediator does not have the authority to make a binding decision but can only help
the parties come to an agreement on their own. The mediator has limited power to enforce
decisions or compel parties to agree.
iv. Arbitration: The parties select a neutral third party (the arbitrator) who acts as a private
judge in the dispute. The arbitrator reviews the evidence, listens to the arguments presented by
both parties, and renders a binding decision, known as an arbitral award which is binding.
v. Regular Court/Litigation Arrangements
Courts are independent bodies that have the authority to interpret and apply the law, resolve
disputes, and ensure the protection of individual rights and freedoms. The primary function of
courts is to resolve legal disputes through a fair and impartial process. If the ADR methods don’t
work out, Carlos could take the way of court/Litigation to recover his fund. These can either be
done through:
vi. Small Claims Court: Small claims court falls under the jurisdiction of the province and
under provincial court. Businesses are often involved in small claims court matters because of the
monetary amount and the ease of self-representation.
Case 2
Wazeer and Bre, recent graduates from a graphic design program, have decided to begin a graphic design
business called "You Are Our Type." They are short of funds, so purchasing several pieces of expensive
equipment as well as a rental location is prohibitive. Bre suggested that they use their own computers,
printers, desks, couches, and items they individually have in their own apartments to create an office. As
well, they would lease some office furniture and, rather than rent an office, would purchase a house close
to downtown and set up their office there.
1. What advice would you give Wazeer and Bre?
2. What, if any, protection is available for their business name?
3. Outline the areas of potential difficulties they may encounter if they go their separate ways in the
business.
Answer 2
1. It is important to know more about what a property law is in order to answer the situation of
Wazeer and Bre, An interest in property determines whether an individual or organization
owns an item, has the right to possession of the item, has the right to transfer an interest in the
item, or has the right to stop someone else from using the item or occupying a space. Property
is either public property, owned by the government and available to the general public for use
(e.g., sidewalks, a park bench), or it is private property, owned by an individual or business
that is able to exclude others from using it without permission (e.g., a delivery van).
Operating a business always involves some form of property rights and duties. Examples of
this include using a legal right of ownership over property to negotiate a royalty from
someone who wants to use your company's trademark on a T-shirt, or ensuring the pointed
tops on the fence around your storage yard can't injure someone if they climb over it.
Property law is a field of law that includes a broad range of legal rights and duties in the areas
of real property and personal property.

Wazeer and Bre's decision to Start a graphic design business, "You Are Our Type," with their
personal assets demonstrates resourcefulness, but it also entails some risks. While using their
own computers, printers, and furniture helps to reduce initial costs, they must ensure that
these items are professional grade and can meet the demands of their business operations. It is
critical for them to evaluate the condition and functionality of their personal equipment to
avoid potential setbacks caused by equipment failures or deficiencies. Furthermore, leasing
office furniture can provide flexibility without requiring large upfront investments, but
tenants should carefully review lease agreements to understand the terms, costs, and potential
liabilities. Buying a house for their office space offers both advantages and disadvantages.

Personal property and Leasing

personal property plays a crucial role in their startup strategy and ongoing operations.
Initially, Wazeer and Bre are utilizing their personal property, including computers, printers,
desks, and other items from their own apartments, to set up their office space. These items
constitute personal property because they are movable assets owned by individuals. By using
their personal property for business purposes, Wazeer and Bre are able to minimize initial
expenses associated with purchasing new equipment. However, they must ensure that their
personal property is suitable for professional use and can meet the demands of their graphic
design business. Furthermore, if Wazeer and Bre decide to lease office furniture for their
workspace, the leased furniture also falls under the category of personal property. While the
furniture may belong to the leasing company, Wazeer and Bre have possessory rights to use
the furniture for the duration of the lease agreement. This arrangement allows them to furnish
their workspace without the need for significant upfront investments in purchasing furniture.
If Wazeer and Bre opt to lease office space for their graphic design business, they would enter
into a commercial lease agreement with the landlord or property owner. Commercial leasing
involves renting space for business purposes, such as offices, retail stores, or warehouses. By
leasing office space, Wazeer and Bre gain access to a dedicated workspace without the
financial commitment and responsibilities associated with property ownership and the lease
provision might include Lease Term, Maintenance and Repairs and Default and
Remedies etc.

Bailment

Regarding the use of personal property and leasing arrangements. Firstly, Wazeer and Bre are
utilizing their own computers, printers, desks, and other personal items to set up their office.
In this scenario, they are acting as bailors, transferring possession of their personal property
to themselves as bailees for the purpose of conducting business. This form of bailment is for
their benefit and does not involve compensation, making it a bailment for the mutual benefit
of both parties.

Secondly, if Wazeer and Bre decide to lease office furniture for their workspace, they would
enter into a bailment agreement with the furniture provider. In this situation, the furniture
provider (bailor) transfers possession of the furniture to Wazeer and Bre (bailees) in exchange
for rental payments. This type of bailment is known as bailement for reward, as the bailees
pay a fee for the use of the bailed property.
 Additionally, if Wazeer and Bre need to repair or service their computers, printers, or other
equipment, they may entrust these items to a repair shop or technician. This creates a
bailment relationship where Wazeer and Bre are the bailors, and the repair shop or technician
is the bailee. The repair shop or technician temporarily possesses the equipment for the
purpose of performing repairs or services.

Commercial leasing of office space also involves elements of bailment, albeit indirectly.
When Wazeer and Bre lease a house for their office space, they enter into a commercial lease
agreement with the landlord. While the primary focus of the lease is the transfer of
possessory rights to the real property, certain provisions may address the use of personal
property within the leased premises. For example, the lease agreement may specify the
maintenance responsibilities for personal property brought onto the premises by the tenants.

2. Protecting the company name is critical for building brand recognition and preventing
unauthorized use by competitors. Trademark registration provides the most comprehensive
protection for their company name by granting exclusive rights to use the name in connection
with graphic design services. Registering the business name as a trademark with the Canadian
Intellectual Property Office (CIPO) creates a public record of ownership and allows for easier
enforcement of their rights against infringement. Wazeer and Bre should seek legal advice to
successfully navigate the trademark registration process and ensure comprehensive brand
protection. While trademark registration requires some initial costs and administrative
procedures, it offers valuable benefits in terms of brand protection and legal recourse against
unauthorized use, making it a worthwhile investment for their business. To further dive more
into the protection of the business name, below are the few things Wazeer and Bre needs to
know;

1. Trademark Registration: Registering the business name as a trademark with the

Canadian Intellectual Property Office (CIPO) offers the most comprehensive protection.
Trademark registration provides exclusive rights to use the name in connection with graphic
design services and allows Wazeer and Bre to enforce their rights against infringement. By
registering their business name as a trademark, they establish a public record of ownership
and deter others from using the same or similar name in the marketplace.
2. Scope of Protection: Trademark registration grants protection not only for the exact
name but also for variations, logos, and associated branding elements that distinguish their
business from others. This broader scope of protection ensures that competitors cannot
capitalize on their brand recognition or confuse consumers by using similar names or
branding.
3. Legal Recourse: Trademark registration empowers Wazeer and Bre to take legal action
against individuals or businesses that infringe on their trademark rights. They can file
lawsuits for trademark infringement, seeking remedies such as injunctions to stop
unauthorized use of the name, damages for financial losses incurred, and seizure of
infringing goods.
4. Market Recognition and Value: A registered trademark enhances the market recognition
and value of Wazeer and Bre's business by signaling authenticity, reliability, and
professionalism to consumers. It strengthens their brand identity and distinguishes their
business from competitors, fostering trust and loyalty among clients and customers.
5. International Protection: Trademark registration can also provide protection beyond
Canada's borders through international trademark treaties and agreements. This allows
Wazeer and Bre to expand their business globally while maintaining exclusive rights to their
business name in international markets.
 6. Monitoring and Enforcement: Once their business name is registered as a trademark,
Wazeer and Bre should actively monitor the marketplace for any unauthorized use or
infringement. Regular monitoring enables them to detect potential infringements early and
take prompt legal action to protect their trademark rights.
7. Renewal and Maintenance: Trademark registration requires periodic renewal and
maintenance to remain in force. Wazeer and Bre must ensure timely renewal of their
trademark registration to preserve their rights and prevent the registration from expiring or
becoming vulnerable to cancellation for non-use.

3. Here are the potential difficulties they might face if they go their separate ways;
i. Ownership and Intellectual Property: Wazeer and Bre should establish clear
agreements regarding ownership of intellectual property, including designs, client lists,
and business assets. Without clear agreements in place, disputes may arise over
ownership rights if they decide to part ways.
ii. Client Relationships: If Wazeer and Bre have jointly serviced clients, they should
establish protocols for client communication and transition in the event of a separation.
Maintaining professionalism and ensuring continuity of service will be essential to
preserve client relationships.
iii. Financial Obligations and Liabilities: They should address financial obligations such as
business debts, lease agreements, and shared expenses. Establishing a plan for dividing
assets and liabilities fairly can help avoid disputes during the separation process.

iv. Non-Compete and Non-Disclosure Agreements: Wazeer and Bre may consider
implementing non-compete and non-disclosure agreements to protect their business
interests in the event of a separation. These agreements can help prevent former partners
from competing unfairly or disclosing confidential information to third parties.
v. Dispute Resolution Mechanisms: It's advisable for Wazeer and Bre to include
provisions for dispute resolution in their partnership agreement. This could include
mediation or arbitration clauses to facilitate the resolution of disagreements amicably and
avoid costly litigation.
vi. Exit Strategy: Planning for an exit strategy from the outset can help Wazeer and Bre
navigate potential separations more smoothly. They should outline procedures for
dissolution or buyout of one partner's share in the business, including valuation methods
and payment terms.
Case 3
Osimund has been making and selling handmade shoes for customers through his website for a few years.
His sense of style, design, and craftsmanship has made him something of a minor celebrity. Several
months ago, Osimund started to use a special leather sole on the heel of his handmade shoes. The leather
used for the sole is dyed a specific intense red colour developed by Osimund in conjunction with his
tanner, Hadrienna, that Osimund named "Righteous Red." It has made his shoes very distinctive.
Osimund's recent media appearance on "Celebrity Craftsperson Canada" has caused demand for his
perfect pumps and stylish stilettos nationwide. He is worried about competitors and wants to put his foot
down on any attempts they might make to copy his products.
Osimund knows you are taking a business law course at the college and has asked you for advice on steps
he should take.
1. What advice would you give Osimund to protect his product from being copied by other shoe
manufacturers?
2. Explain whether Osimund's use of a specially coloured leather on the sole of his shoes can be
registered as a trademark.
 3. The formula to recreate the colour Righteous Red is not written down or kept on a computer. The
only people who know the ingredients and the quantities required to create it are Osimund and
Hadrienna.
4. What type of property is this formula and what advice would you give Osimund to ensure the
formula is protected?
Answer 3
1. To keep his handmade shoes from being copied by competitors, Osimund should consider several
safeguards. To begin, he should apply for intellectual property protection, such as trademarks for
his brand name, logo, and the distinctive design of his shoes. He can also consider obtaining
design patents for the distinctive features of his footwear, such as the use of the "Righteous Red"
leather soles. Osimund should also enter into non-disclosure agreements (NDAs) with suppliers,
collaborators, and employees to prevent the unauthorized disclosure of proprietary information,
such as manufacturing processes and materials. Furthermore, he can develop effective branding
and marketing strategies to reinforce his products' unique value proposition and increase
customer loyalty. Regularly monitoring the market for potential infringement and taking legal
action against violators will also be essential to protect his intellectual property rights effectively.
2. Osimund's use of a specially coloured leather, known as "Righteous Red," on the sole of his shoes
may be eligible for trademark registration if it meets certain criteria. Trademarks are used to
distinguish the goods or services of one business from those of others, and they can include
colors, sounds, shapes, and other non-traditional marks. For Osimund's "Righteous Red" to be
registered as a trademark, it must be inherently distinctive or have acquired distinctiveness
through extensive use and consumer recognition. Additionally, Osimund must demonstrate that
the color serves as a source identifier for his products and is not merely ornamental. If "Righteous
Red" meets these requirements and is capable of indicating the origin of Osimund's goods to
consumers, it may be eligible for trademark registration, providing him with exclusive rights to
use the color in connection with footwear. To qualify for registration, a trademark may not,
among other things, be:
 Merely descriptive of the goods or services.
 A word that is the name of the goods or services in another language.
 Misdescriptive of the quality or nature of the goods or services.
 Confused with an existing trademark.
 In use by a prior user.
 A name or a surname; or
 Based on a place of origin.
Trademark registrable include;
12 (1) Subject to subsection (2), a trademark is registrable if it is not
(a) A word that is primarily merely the name or the surname of an individual who is living or has
died within the preceding thirty years.
(b) whether depicted, written or sounded, either clearly descriptive or deceptively misdescriptive
in the English or French language of the character or quality of the goods or services in
association with which it is used or proposed to be used or of the conditions of or the persons
employed in their production or of their place of origin;
(c) The name in any language of any of the goods or services in connection with which it is used
or proposed to be used;
(d) Confusing with a registered trademark.
(e) Assign or combination of signs whose adoption is prohibited by section 9 or 10;
(f) A denomination the adoption of which is prohibited by section 10.1;
 (g) In whole or in part a protected geographical indication identifying a wine, where the
trademark is to be registered in association with a wine not originating in a territory indicated
by the geographical indication.
(h) In whole or in part a protected geographical indication identifying a spirit, where the
trademark is to be registered in association with a spirit not originating in a territory indicated
by the geographical indication.
(i) In whole or in part a protected geographical indication, and the trademark is to be registered
in association with an agricultural product or food-belonging to the same category, as set out
in the schedule, as the agricultural product or food identified by the protected geographical
indication-not originating in a territory indicated by the geographical indication; and
(j) Subject to subsection 3(3) and paragraph 3(4)(a) of the Olympic and Paralympic Marks Act, a
mark the adoption of which is prohibited by subsection 3(1) of that Act.

3. The formula to recreate the color "Righteous Red" is considered a form of intellectual property,
specifically a trade secret. As a trade secret, it is valuable proprietary information that provides
Osimund with a competitive advantage in the market. To ensure the formula is protected,
Osimund should take several precautions. Firstly, he should restrict access to the formula to only
trusted individuals who have signed NDAs. Additionally, Osimund should maintain strict
confidentiality protocols, such as storing the formula in a secure location and limiting discussions
about it to a need-to-know basis. Regular audits and monitoring can help detect any unauthorized
access or attempts to misappropriate the formula. Overall, by treating the formula as a valuable
trade secret and implementing robust protection measures, Osimund can safeguard his proprietary
information from unauthorized disclosure or use by competitors.

There is no statutory protection in Canada for trade secrets or confidential information. The only
protection comes from common law principles enforced through tort actions such as breach of
fiduciary duty or breach of confidence or based on a breach of contract; for example, under an
employment agreement that prevents employees from revealing their employer's confidential
business information. Once information is made public, the confidential element is lost and so is
its commercial value. Contractual obligations requiring another person to keep information being
provided to them confidential are one way a business can make information available while
retaining the value of the information dis-closed. Contracts of this nature are known as
nondisclosure agreements or confidentiality agreements. These agreements are intended to protect
the information exchanged by the parties who signed them, usually for a certain period of time,
Whether or not an actual business arrangement and contracts result from their discussions. They
may also be used in an employer and employee relationship. If the terms of the confidentiality
agreement are breached by one of the parties, enforcement is accomplished by going to a
provincial superior court to obtain an injunction to stop the confidential information from being
used or made public. A trade secret is information that has value for a business as long as it is not
known to the public. Provided the information is kept secret, it is protected. This might involve
taking reasonable efforts to maintain the information's secrecy, such as keeping it in a locked
cabinet and showing it to only individuals who are in a confidential relationship, for example an
employee or someone who has signed a confidentiality agreement.
Case 4
Talmon took his $5,000 aluminum frame racing bike to Aiping's bicycle repair shop for a tune-up prior to
a major competition. Aiping told him to leave it parked outside the door at the back of the shop and she
would work on it later that afternoon. An hour later Aiping went to get Talmon's bike, but it was nowhere
to be seen. She phoned Talmon to ask if he had changed his mind and he told her he had left it at the back
door to the store. Aiping then asked if Talmon might have left it at the wrong shop door, to which Talmon
replied: "Don't give me the gears! I left it exactly where you indicated, and it had better be there when I
come by later!"
1. What type of legal relationship exists between Aiping and Talmon?
2. What, if any, duty does the law place on Aiping relating to Talmon's bike?

Answer 4
1. The legal arrangement between Aiping, the owner of the bicycle repair shop, and Talmon, the
owner of the racing bike, can be described as a bailment. A bailment is when one party (the
bailor) transfers possession of personal property to another (the bailee) for a specific purpose,
with the property to be returned or disposed of as agreed. In this case, Talmon left his aluminum
frame racing bike with Aiping's bicycle repair shop for a tune-up, establishing a bailment
relationship between the two. As the bailee, Aiping took temporary possession and control of
Talmon's bike to perform repairs or maintenance.

Legal Relationship

I. Bailment for Reward

Bailment for reward, also known as mutual benefit bailment, occurs when both parties derive
some form of benefit from the arrangement. In this case, Talmon entrusted his racing bike to
Aiping's bicycle repair shop for a tune-up prior to a major competition. Aiping, as the bailee,
agreed to provide repair services to Talmon's bike in exchange for compensation or a fee. The
benefit to Aiping is the opportunity to earn income by providing repair services, while Talmon
benefits from the expertise and skills of Aiping's repair shop to ensure his bike is in optimal
condition for the competition.
In a bailment for reward scenario, both parties have certain rights and obligations. Aiping is
obligated to exercise reasonable care and skill in performing the repair work on Talmon's bike,
ensuring that it is returned to him in a satisfactory and functional condition. Talmon, as the bailor,
is responsible for paying the agreed-upon fee for the repair services rendered by Aiping.
Additionally, both parties must adhere to any terms and conditions agreed upon regarding the
repair work, such as the scope of repairs, timeframe for completion, and method of payment.

II. Bailment for Repair

Bailment for repair occurs when personal property is transferred to a bailee to be repaired,
maintained, or improved. In this case, Talmon's decision to take his racing bike to Aiping's repair
shop constitutes bailment for repair. By leaving his bike at the shop, Talmon entrusted it to
Aiping, with the expectation that she would make any necessary repairs, adjustments, or
maintenance to ensure its optimal performance.
As the bailee, Aiping takes temporary possession and control of Talmon's bike to perform repairs.
She is required to handle the bike with reasonable care and diligence, ensuring that it is not
damaged or exposed to unnecessary risk during the repair process. Aiping must also use her skills
and expertise to accurately diagnose any issues with the bike and make any necessary repairs or
adjustments in an efficient and effective manner.
Talmon, as the bailor, retains ownership of the bike but temporarily transfers possession to Aiping
for repair. He is responsible for providing accurate information about any issues or concerns with
the bike, as well as paying the agreed-upon fee for Aiping's repair services. Furthermore, Talmon
has the right to expect his bike to be returned to him in good working order once the repair work
is completed.
 2. As a bailee, Aiping has specific duties and responsibilities to Talmon regarding the care and
security of his bike. Property law establishes the following duties:
a. Duty of Care: Aiping is required to use reasonable care and diligence when handling and
protecting Talmon's bike while in her possession. This duty requires Aiping to take all
necessary precautions to prevent the bike from being lost, damaged, or stolen, such as
storing it in a secure location and supervising how it is handled by employees or others.

b. Duty to Return: Aiping must return Talmon's bike to him in the same condition in which
it was entrusted to her, excluding any agreed-upon repairs or modifications. This duty
includes returning the bike within a reasonable timeframe and in the manner specified by
Talmon.

Case 5
Vartoch had his eye on some land at the edge of town that he thought would be the perfect location for a
restaurant with a takeout drive-through. It was close enough to the town that people could easily drive to
it, and it was large enough to accommodate a substantial parking lot and the' driveway for takeout.
Vartoch approached Wanda with his business plan and she loaned him $300,000, which was secured by a
mortgage on the property when he purchased it. For over a year Vartoch struggled to get planning
permission from the town for his project. The longer his application took, the more difficult he found it to
make the mortgage payments as his funds were being spent making his application and arguing with the
town council.
Unknown to Vartoch, the town's approval was delayed because of planning discussions the town was
having with the province about a new highway that would pass very close to the property Vartoch owned;
the final decision and when construction could begin were still unknown. As a member of the town
council, Wanda was aware of the plans being discussed relating to the highway and that the value of
Vartoch's property would go up considerably once the highway was approved. However, Wanda could not
tell Vartoch anything about the highway plans because they were confidential.
Eventually, Vartoch defaulted on his payments under his mortgage with Wanda. Wanda has asked your
advice on what her course of action should be. She confirms that the mortgage is two months in default
and Vartoch is unable to make any payments.
1. Advise Wanda on the different remedies available to her as a result of Vartoch's default under the
mortgage and the benefits and issues that each party may have.
2. Discuss whether Wanda's position on the town council should be considered an issue in these
circumstances.
Answer 5 (1)
i. Foreclosure: Wanda has options for resolving her situation, including foreclosure. Wanda can
start foreclosure proceedings to take possession of the property that secures the mortgage.
This enables her to sell the property and recover the outstanding loan balance. Foreclosure
allows Wanda to take legal action to seize and sell the property secured by the mortgage to
satisfy the debt. While foreclosure provides Wanda with a means to recoup her investment, it
may involve lengthy and costly legal proceedings.
ii. The Power of Sale: Wanda can also exercise the power of sale clause in the mortgage
agreement. This allows her to sell the property herself and repay the loan with the proceeds.
This option offers a more expedient and cost-effective means of recovering the debt
 compared to foreclosure. However, Wanda must adhere to specific legal procedures and
timelines governing the power of sale process.
iii. Debt collection: Wanda can pursue Vartoch for the remaining debt even if the property is sold
and the proceeds do not cover the entire amount owed. This option may involve restructuring
the mortgage terms, extending the repayment period, or reducing the interest rate to make the
payments more manageable for Vartoch.
iv. Legal Action: Wanda may also take legal action against Vartoch to recover the mortgage
debt. This option allows Wanda to recover monetary compensation for the missed payments,
interest, legal fees, and other related expenses.

2. In these circumstances, Wanda's position on the town council could potentially be an issue.
As a member of the town council, Wanda had knowledge about the discussions regarding the
new highway that would significantly increase the value of Vartoch's property once approved.
However, Wanda could not disclose this information to Vartoch due to confidentiality
reasons.

The issue arises because Wanda, being aware of the potential increase in property value,
might have had a conflict of interest when loaning Vartoch the money and securing it with a
mortgage on the property. This conflict of interest could raise questions about the fairness of
the loan arrangement. In such situations, it is important to consider ethical guidelines
and legal obligations. Wanda should consult with a legal professional to assess her options
and determine the best course of action. This could involve seeking legal advice on potential
conflicts of interest, exploring possibilities for renegotiating the loan terms, or considering
other appropriate actions to protect her interests. Overall, Wanda's position on the town
council could be a potential issue in these circumstances, and seeking legal advice is crucial
to navigate the situation appropriately.

References
a. Nancy, M.B., Shane, A. E., & Craig, S. (2022). Canadian Business Law Today. McGraw
Hill.
b. OpenAI.(2024).https://chat.openai.com/c/9880e400-573c-409c-bb47-b85960da3d90