midterm answer guide November

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Simon Fraser University *

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Communications

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Jan 9, 2024

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COMM 393 2023 W1 Midterm Exam Questions Question 1 – 18 marks total (27 minutes) Chen works full-time as an insurance customer service representative at the Insurance Corporation of British Columbia (“ICBC”). He started working at ICBC 15 years ago. He is great at his job and well-liked by his colleagues. Two months ago, Chen got into a terrible car accident after which he was no longer able to walk and required use of a wheelchair. Since then, he noticed that his hours were reduced from 40 hours per week to 25 hours per week. When he asked his scheduling manager, Sally, about this, she admitted that she had been told by upper management to “lessen his workload”. Chen works remotely three days per week. His job requires him to work on a computer and have meetings by zoom and by phone. His ability to work has not been impacted in any way since his accident. (A) Chen is upset and decides to sue ICBC under the Charter of Rights and Freedoms. Advise Chen about whether he will be successful, with reference to any applicable law and cases. (10 marks) 1 Law re Charter applies only to government 8 Government action so Charter applies Discrimination based on ability Chen is being treated differently as a result of his injury Chen’s dignity is demeaned The government would not be able to justify the infringement of s. 15 S1 of Charter discrimination not justified in a free and democratic society Liebmann 1 Chen will be successful (A) Chen decides to quit his job at ICBC to work as a customer service representative at a large retail company based in Vancouver. However, he remembers that his employment contract with ICBC contains a restrictive covenant. He reviews the contract and finds the following term: For a period of one year from the date of termination of my employment (whether voluntary or involuntary), I agree not to provide services similar to that which I provided to ICBC to any other person, partnership or corporation in Vancouver. Advise Chen about whether the restrictive covenant is enforceable, with reference to any

applicable law and cases. (8 marks) 1 Law re restrictive covenants- prima facie void unless shown to be reasonable between the parties 6 Public Interest – deprives public of services, restraint on competition? Interests between the parties -Protects a legitimate proprietary interest, Unreasonable with respect to time, Unreasonable with respect to geography Unreasonable with respect to nature of activities prohibited (too broad and vague)= scope, non-compete vs non-solicit if applicable Phoenix 1 The restrictive covenant is not enforceable against Chen Question 2 Aria owns an investment property in Whistler, BC. She rents the property to family and friends as well as on Airbnb. Aria decides to sell the property. She hires a realtor and lists the property for sale at a price of $499,999. Her realtor includes the following in the listing: You can't get better value than this great revenue-producing house in Vale Inn. Fully furnished and ready to use or earn rental income. Walking distance to Creekside ski lifts and Franz Trail shops. Perfect for a weekend getaway, full-time residence or to rent out nightly. All offers to be presented on or before November 15, 2023. (A) Aria’s friend, Sam, sees the listing and recognizes Aria’s property. He rented her property for a few nights last winter and loved it there. On November 2, 2023, he sends Aria an email offering to purchase the property for $450,000. The next day, Aria sends Sam an email saying that she can sell it to him for $490,000. On November 4, 2023, Aria flies to Barcelona for work. While she is on the plane, Sam sends her an email agreeing to pay $490,000 for the property and asking that Aria have the whole place freshly painted before he takes possession. When Aria lands in Barcelona, her realtor calls her and tells her that they received an offer for $495,000 from someone named Mark. Aria tells her realtor to accept the offer. Aria has not yet seen the email from Sam. After hanging up with her realtor, she calls Sam and tells him that the property has been sold and that her offer is off the table. Sam tells her that they already have a binding contract. Advise Aria about whether Sam is correct, with reference to any applicable law and cases. (8 marks) 1 Law re contract formation 6 Intention Listing is an invitation to treat Offer by Sam on November 2 Counteroffer by Aria on November 3

Counteroffer by Sam on November 4 – condition to paint so offer not accepted No acceptance of counteroffer by Aria Consideration Capacity and legality are not an issue Note to Markers: not Hood case as PAR does not apply to email 1 Sam is not correct (B) A few weeks before Aria listed the Whistler property for sale, she was at lunch with her friend Tom. Tom had just helped her clean the property and get rid of some old furniture using his pickup truck. Tom was telling Aria about how he wanted to propose to his girlfriend. Tom and his girlfriend had rented the property before, and Aria knew how much they liked staying in Whistler. To thank Tom for his help, Aria told him that he could stay at the Whistler property for free the following weekend and encouraged him to propose to his girlfriend while they were there. Tom thought this was a great idea and agreed. The next day, Aria received a booking request through Airbnb for the same weekend she promised to Tom. Is Aria bound by her promise? (3 marks) 1 Law re consideration 1 No consideration from Tom to Aria (past consideration) 1 Aria is not bound (C) Assume that on November 8, 2023, Aria signed a contract with Mark for him to purchase the Whistler property for $495,000, with completion of the sale on February 1, 2024 and possession on February 4, 2024. On January 29, 2024, there is heavy rainfall, and as the house is on a steep hill, water has run down the hill and has flooded the basement of the property, causing the electrical system to fail. The house is no longer habitable. Further, the District of Whistler has evacuated residents of the area due to sewage disposal issues. Mark does not want to complete the purchase of the home on February 1, 2024. Aria is saying that Mark must complete the sale or forfeit his deposit, which was $99,000.00, equivalent to 20% of the purchase price. The standard deposit amount in BC is around 5% of the purchase price. (6 marks) (i) Advise Mark about whether he has to complete the purchase, with reference to any applicable law and cases. ( 6 Marks) 1 Law re Frustration 2.5 1 -Law re frustration -discharges contract .5 occurs after contract entered into .5 – makes contract impossible to perform .5 – not self-induced 1 – Bal case, Saturley also accepted

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