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Course: BUSI 325 Canadian Business Law
Class Exercise – Module 4 (Sole Proprietorships and Partnerships)
1. Wescan Accounting is a partnership which provides accounting services to a number of clients in addition to Island Properties. As a result of the relationship, one of the partners, Clemens, was invited to be a director of two of the corporations that were clients of Wescan. Clemens told his partners of his acceptance of the two directorships but did not tell them that as a director, he was entitled to certain stock options and shares under an employee stock plan. Sometime later, Wescan’s partnership was dissolved, and it was at this point in time that the remaining partners discovered that Clemens had received benefits under the stock plan. Clemens refused to give up the benefits he received to the partnership, and the remaining partners brought legal proceedings for an order requiring Clemens to pay over his benefits to the partnership.
a. You are the judge. What is your decision? Analyze and discuss the issues in supporting your decision.
2. Emily recently graduated from University with a degree in physical education. She hoped to find a job at the new sport and fitness center in Victoria which caters to elite athletes. However, the facility had no openings for her specialty, sport injuries. She decided to start her own business out of her home for starters, hoping to expand into a larger site once her business, Emily’s Fitness, was established. She planned to advertise in the yellow pages as well as putting up posters in various business establishments.
a. You are asked to advise her of the advantages and disadvantages of her proposed venture.
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