Exam 1: Risk Management and Sources of Law

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In an effort to increase sales, Delta Ltd hired Chandra, a marketing expert.Because Delta was concerned about being held responsible for any torts that Chandra might commit, it arranged to hire her as an independent contractor, rather than an employee.It has employed a form of risk management known as

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A judge recently decided a Charter case that involved the government on one side and a corporation on the other.After that decision was released, one of the parties indicated its intention to use the "notwithstanding clause." What is the effect of that clause? Who is entitled to use it?

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Given the expressed intention to invoke the notwithstanding clause, it can be assumed that the company won its Charter challenge and that the court held that a particular law was invalid.The notwithstanding clause, which is found in section 33 of the Charter, allows Parliament or a legislature to create and enforce a law "notwithstanding" the fact that it violates the Charter.It can only ever be used by the government, and not by a corporation.It is intended to allow the government to override a Charter violation in the greater public interest.In that sense, it is part of the delicate balance that the Charter seeks to strike between individual rights and the rights of the majority (as expressed through a democratically elected government).

The notwithstanding clause only applies to some of the rights and freedoms listed in the Charter.Parliament or a legislature can override section 2 (fundamental freedoms) or section 15 (equality rights), for instance, but not section 6 (mobility rights).Furthermore, the notwithstanding clause can only be used for five years at a time.At the end of that period, the clause must be reapplied.That rule ensures that the significant constitutional rules are re-examined on a regular basis.
In practice, the notwithstanding clause is almost never used.The section requires the government to expressly declare that it is overriding fundamental rights and freedoms.That sort of declaration may be politically unpopular or politically unwise.

Subordinate legislation

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Lake Charybdis has long been a popular area for nature-lovers, but it recently was the site of an unfortunate tragedy.A canoe carrying a woman and her young daughter tipped over.The woman desperately tried to hold onto her child while calling for help.Because the event occurred early in the morning, the normally crowded beach was empty with the exception of Glaucus.He is an expert swimmer and he easily could have saved the pair.As he later explained to the police, however, he had just lit a cigarette and he wanted to finish his smoke before getting into the water.By the time he was ready to rescue the woman and her child, both had drowned.Which of the following statements is most likely TRUE?

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The Citizen's Coalition for Property Rights (the CCPR) believes that the Charter should protect the right to own property.Which of the following statements is TRUE?

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Red River Inc, which is based in Winnipeg, Manitoba, has sued a company called Eiffel Tours, which is based in Paris, France.That dispute will be decided by the "common law." That most likely means that the case will be decided by

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The federal, provincial, and territorial governments have decided to re-consider the contents of the Charter.They are particularly interested in the possibility of protecting economic and property rights.Which of the following statements is TRUE?

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Sabeka Inc has discovered that one of its products may cause consumers to suffer a certain form of property damage.In response to that risk, the company has written an exclusion clause into its sales contracts.In doing so, it has adopted a form of risk management known as risk shifting.

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A bill to amend a business corporations statute was introduced in the House of Commons.The statute in question must be a piece of federal legislation, as opposed to provincial legislation.

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Epsilon Inc has recently retained the services of Noriko as in-house counsel.Which of the following statements is most likely TRUE?

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What is the residual power? What is meant by the phrase "ultra vires"? How are those two concepts related to the notion of federalism?

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The Town of Blackville created a set of rules for the licensing of businesses.Which of the following statements is likely TRUE?

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The three steps in risk management are

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Sigma Inc sued Tau Ltd for breach of contract and asked for the remedy of specific performance.The case will be heard in Alberta.Which of the following statements is TRUE?

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Beta Inc has discovered that one of its products is potentially dangerous.It therefore pulled that product from the store shelves before any were sold.It has employed a form of risk management known as

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Is it easy or difficult to change the Constitution? What is the policy that underlies the correct answer to that question? Who must agree before the Constitution can be changed?

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Quebec is said to be a "civil law system" because it is derived from the legal system that governed the citizens of ancient Greece.

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Athlone Inc wants to start a new television channel.To do so, it requires a government licence.It should apply to the federal government, rather than the provincial government, because the issue of telecommunications is not mentioned in the Constitution.It therefore falls under federal jurisdiction because of the residual clause.

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Quiet Corner Bookstore is something of a landmark.It was opened in 1908 and it has long served the needs of the community.The store's popularity is based not only on its reputation for excellent service, but also on the fact that it has always been run by members of the same family: the Meyers clan.In an age of increasingly anonymous chain stores, customers appreciate the personal touch that they receive at the Quiet Corner.Recently, however, the government has announced that it intends to expropriate the land upon which the store is located in order to build a highway through the neighbourhood.The Meyers family may, however, be able to defeat that plan, and save their store, by relying on a provision of the Charter that protects cherished property.

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The category of private law contains

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