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McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
that (i) a lawyer is competent, (ii) a lawyer will act ethically, and (iii) compensation will be
available if you suffer a loss as a result of a lawyer's careless or wrongful behaviour.
Identify and briefly describe the relevant conditions for each of those three propositions.
7) As a result of recent events, Marshall requires legal representation. Because he has
limited knowledge of the law, he has ruled out the possibility of self-representation. He
realizes that he therefore must hire someone to act on his behalf. In choosing between
hiring a lawyer and hiring a paralegal, what factors should he take into consideration?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
8) Your company has purchased a wide variety of supplies from Acme Inc over the course
of many years. Much to your surprise, Acme has just served a statement of claim on your
company. You are puzzled and annoyed. First, you are puzzled because while the statement
of claim clearly alleges that you owe Acme $15 000, the precise basis for that allegation is
unclear. Given the amount of business that your company does with Acme, that claim
might be made in reference to any one of literally dozens of recent transactions. You are
quite sure, however, that you have not done anything wrong under any of those
transactions. Second, you are annoyed because, in the interests of goodwill, your company
has often accepted from Acme goods that were defective. In the past, you said nothing to
Acme about those problems because you did not want to create bad feelings. But now that
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
Acme has sued your company, you are feeling far less lenient. You are, in particular,
dissatisfied with a shipment of shelving units that you received from Acme last week.
Those shelves stand only 1.8 metres high, even though Acme promised in the contract of
purchase and sale that the shelves would stand 2 metres high. In the circumstances, you
have decided that you should sue Acme for breach of contract. Identify and briefly explain
the pleadings that you will need to serve on Acme Inc. in the near future.
9) Briefly explain the difference between (i) examinations-in-chief and cross-examinations,
(ii) direct evidence and hearsay evidence, (iii) ordinary witnesses and expert witnesses, and
(iv) proof on balance of probabilities and proof beyond a reasonable doubt.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
10) In a case filed in a superior court, Alpha Inc sued Beta Ltd for breach of contract. Alpha
claimed damages of $250 000. Although Beta denied liability, it formally offered to settle
the claim for $100 000. Alpha rejected that offer, but in response, it formally offered to
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
settle its claim for $200 000. Beta rejected that offer. The case has now gone to trial.
Explain what order the judge will likely make with respect to costs if (a) Beta is liable for
$150 000, or (b) Beta is liable for $50 000?
11) In a case filed in the federal court, Gamma Inc sued Delta Ltd for breach of contract.
Gamma claimed damages of $500 000. Although Delta denied liability, it formally offered
to settle the claim for $200 000. Gamma rejected that offer, but in response, it formally
offered to settle its claim for $400 000. Delta rejected that offer. The case has now gone to
trial. Explain what order the judge will likely make with respect to costs if (a) Delta is held
liable for $450 000, (b) Delta is held liable for $100 000, or (c) Delta is held not liable.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
12) The Government of Canada is considering introducing a new law. However, the
government is concerned that the law may not be constitutional. Can the Government of
Canada ask for the Supreme Court of Canada to provide an advisory opinion on the
constitutionality of a law or proposed law?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
13) Panaural Inc is a long-established entertainment company. Among other things, it
manufactures and sells music CDs. One of its best selling artists is a group called Funky
See Funky Do. Under the contract that exists between Panaural and Funky See Funky Do,
copyright in all of the group's songs is held by the company. Panaural was therefore
especially upset when it discovered that Noize Records, a small music company, has been
manufacturing and selling CDs containing music by Funky See Funky Do. Panaural intends
to sue Noize Records in to obtain (i) an injunction to stop Noize Record's illegal sales, and
(ii) $50 000 in compensation for the losses that it has suffered as a result of Noize Record's
breach of copyright. In an effort to keep costs down, however, Panaural wants to bring its
case in a small claims court. Is it entitled to do so? Provide several reasons for your answer.
Answer:
14) Describe the relationship between the concept of hierarchy and the doctrine of
precedent. How are those concepts related to the rule of law?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
15) Omicron Inc is one of several companies that manufactures widgets. For many years,
almost half of its annual sales have been made to Sigma Ltd. Despite those sales, its
financial position has always been somewhat precarious. A dispute recently arose with
respect to financial losses that Sigma claims to have suffered as a result of a defective
widget. Omicron strongly denies that it is responsible for those losses. Sigma, however, has
announced that it will not purchase any more items until the matter is resolved. Omicron
has asked for your advice. Analyze the situation from a risk management perspective by
outlining the advantages and disadvantages associated with the various ways in which the
case might be resolved.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
