This is an individual assignment. You must express your answers in legal terms. Do not discuss good business practice or ethics; discuss the law. Refer specifically to legislation and/or case law to explain your answers. Be careful to provide full citations for all your sources whether they are cases, legislation, texts or online resources. When you refer to legislation, include the relevant section of the Act in your citation.
PROBLEM ONE
Peter Smith, is a CGA who was employed by Baker Inc. In 2010, he began to experience high blood pressure as a result of hypertension. By June 2010 his blood pressure was rising on a daily basis and following his doctor's advice he took a leave of absence from work. His doctor advised him that his blood pressure could be controlled through the use of a prescription drug.
Upon his return to work, in March 2011, Smith told his employer that he wished to remain at work, but in a position that carried less responsibility, because “it was the only way to control my blood pressure and reduce the chance of a stroke.” He was advised that Baker would attempt to find another suitable position for him within its corporate structure. On August 31, 2011 Baker Inc. fired Smith. By that time, Smith had worked for worked for Baker Inc. for almost 18 years and was 49 years of age. Baker Inc. initially offered Smith eight weeks of severance pay. Smith rejected Baker Inc.'s severance offer and took the position that his employment was terminated without just cause and without reasonable notice or pay in lieu of reasonable notice. Baker Inc. subsequently withdrew their severance pay offer and now take the position they had just cause for Smith’s dismissal, alleging that he had been dishonest about his medical condition, and the treatments available for it.
Smith has heard from a friend that Baker Inc. may consider putting forward an offer of 4 weeks of severance pay if he agrees to sign a waiver to any future claim.
Required:
Prepare a memorandum which discusses the legal issues in the above set of facts and provides Smith with a course of action. Be specific in your analysis and include your views as to whether he should accept the settlement offered him or what you would recommend. Be aware that Smith has no understanding of employment law.
PROBLEM TWO
Sara Jennings, an Ontario farmer, ordered a kit for the construction of a log home from a lumber company. She had seen a magazine advertisement which stated that the house was in kit form and that a qualified builder could construct it in 10 days. The advertisement advised hiring a qualified builder but indicated that anyone with experience could probably do the work but that the result would be his/her own responsibility.
Jennings ordered the kit in early March for delivery in the second week of April. It did not arrive until late May when Jennings was otherwise busy with her farm. She was unable to begin construction until late autumn at which point she discovered that many of the logs were warped and unsuitable for construction. The lumber company normally instructed buyers to build the house within 24 days of receipt to avoid warping. They had failed to so in this case because of the late delivery. The company refused to refund her money or replace the kit.
Eventually, after much negotiation, the company agreed to replace the warped logs. When Jennings began construction shortly after the replacement logs were delivered, she discovered that because the replacement logs had had a different drying time, they would not fit properly with the remainder of the logs in the kit. She brought an action for rescission.
Required:
Prepare a memorandum which discusses the legal issues in the above set of facts. Reach a conclusion as to whether Jennings would win her case.