Case
A group of university friends is contemplating the launch of a smoothie business in Canada. During a casual conversation, one of them proposed the idea of initiating the business in Vancouver, with potential expansion to other cities contingent upon its progress. The group’s strategy involves crafting smoothies using premium organic ingredients, including organic fruit and yogurt. Nonetheless, the elevated cost of organic components is noted, prompting a member to suggest a potentially inaccurate claim of selling organic smoothies though the group does not intend to use organic materials exclusively. Another member seconds this notion, highlighting the potential for leveraging a local influencer’s endorsement for free marketing.
Amidst the discussion, a third member offered to shoulder blame for any unmet contractual obligations and pointed out: “We are going to be rich. Even if we cannot fulfill the contracts we sign, you can blame it on me. I am, after all, just a 17-year-old boy or we could modify or terminate the contract in response to changing circumstances. However, a condition is attached: if expansion occurs, the third member advocates exclusively hiring young individuals due to a lack of familiarity with interacting with older adults. A fourth member reassures that member pointing out that this requirement can be included in their inaugural contract.
Recognizing the need to anticipate and circumvent legal complications for their venture’s success, the group concluded that they have two options:
Using AI or Blockchain technology to create a “smart contract.”
Asking you as an “expert” for advice.
Instructions
In addressing this case, students will critically analyze and apply concepts related to the Canadian legal system, tort, professional liability, and contract law (units 1-5). Examples include:
a. Requirements of an Enforceable Contract: What are the major requirements of an enforceable contract in Canada? Remember, one of the group’s members is a 17-year-old. In Uber Technologies Inc. v. Heller, 2020 SCC 16, [2020] 2 S.C.R. 118, the Supreme Court of Canada handed an important decision on unconscionability and contractual enforcement. Can the group learn anything from this case, if at all?
b. Enforceability of AI or Blockchain-based Contracts: Are AI or Blockchain-generated and/or electronic contracts in general enforceable in Canada? How to assess the authenticity of AI or Blockchain-based contracts? Can you think of any major differences between AI/Blockchain-generated and traditional electronic contracts?
c. Age-based Employment Restrictions: Can this group preclude any particular age group from potential employment opportunities and more importantly why? Can the group learn anything from McCormick v. Fasken Martineau DuMoulin LLP, 2014 SCC 39, [2014] 2 S.C.R. 108?
d. Encouraging Non-fulfillment of Contractual Duties: Is it acceptable for one contracting party to encourage another not to fulfill his/her contracting duties, and more importantly why? Can a party to a contract terminate a contract based on a minor or non-material breach?
e. Expert Misrepresentation: Finally, the group asked you to help them get some funding. You really want to help but you are not qualified in finance. What are some of the ramifications of providing incomplete or misleading information by an expert like yourself?
f. Business Licensing and Permits: What specific licenses and permits are required to legally operate a smoothie business in Canada, and what are the potential consequences of operating without them?
Develop a descriptive essay explaining your answers. In addition to the textbook (Units 1-5), students are encouraged to use relevant Canadian case law to support their analysis. All groups must submit their assignments online via Moodle. No assignment will be accepted via email. Please note, the names of all team members must be added to the first page of this assignment. However, only one student may submit this assignment on behalf of the team.
Copyright, Plagiarism, and Academic Integrity
When using content from other sources including the required textbook, always paraphrase using your own words and then use in-text referencing. More specifically, you need to use in-text references. Remember, there are two types of in-text citations: parenthetical [example: Smith, 2019] and narrative. For example, according to Smith (2019), contract enforcement has become more challenging due to COVID-19.
Adding a source/ a reference does not mean you can copy (verbatim copying) other peoples’ work. Any verbatim copying should be placed in quotation marks.
The intention is not part of plagiarism. You might mistakenly (unintentionally) present someone else’s words/ideas as your own. This is not acceptable.
When citing court documents, however, it is acceptable to copy part of the relevant court’s ruling but in this case, you must use quotation marks and add the paragraph/para number. The case’s full citation then should be added to the bibliography.