Comm 393 (Comm Law) Sample Final
COMMERCE 393/BUSI 393 FINAL EXAMINATION
QUESTION #1
Giovanni and Leporello decided to go into business together under the name of “Great Adventures Unlimited” (GAU). They wanted to provide guided adventure vacations for rich clients. Leporello was very experienced in providing such adventures, and Giovanni was looking for investment opportunities. Giovanni contributed $50,000 to the start up costs and Leporello contributed $25,000. They set up a bank account in the name of Great Adventures Unlimited but did not discuss how profits and losses would be split. They did agree that neither would incur expenditures on behalf of the business in excess of $500 without the approval of the other.
Leporello saw an excellent opportunity to provide a new adventure to clients, and while Giovanni was away on a holiday, Leporello entered into a contract on behalf of GAU with Elvira Sails Ltd. (a corporation engaged in selling and leasing boats) to rent a large cabin cruiser for a period of 3 months at a cost of $10,000 per month. On October 1 Leporello signed the agreement for GAU and paid a deposit of $10,000 with a cheque dated November 1 drawn on the business account.
On October 5, Leporello took delivery of the cruiser and has not been seen since. The cruiser was reportedly last seen in the Virgin Islands.
On October 5 Elvira, who was the only shareholder and director of Elvira Sails Ltd. , endorsed the $10,000 cheque over to Friendly Finance by signing her own name to the back of the cheque. Sails Ltd. Friendly Finance gave her $9500 in return. When Giovanni discovered that the cruiser was taken to the Virgin Islands he put a stop payment on the cheque.
a) 10 MARKS 15 MINUTES
What rights, if any, does Elvira Sails Ltd. have against Giovanni personally?? Explain fully.
b) 10 MARKS 15 MINUTES
Suppose that Leporello returns the cruiser to Elvira Sails Ltd. Giovanni soon learns that while Leporello was in the Virgin Islands he had
QUESTION #1
Giovanni and Leporello decided to go into business together under the name of “Great Adventures Unlimited” (GAU). They wanted to provide guided adventure vacations for rich clients. Leporello was very experienced in providing such adventures, and Giovanni was looking for investment opportunities. Giovanni contributed $50,000 to the start up costs and Leporello contributed $25,000. They set up a bank account in the name of Great Adventures Unlimited but did not discuss how profits and losses would be split. They did agree that neither would incur expenditures on behalf of the business in excess of $500 without the approval of the other.
Leporello saw an excellent opportunity to provide a new adventure to clients, and while Giovanni was away on a holiday, Leporello entered into a contract on behalf of GAU with Elvira Sails Ltd. (a corporation engaged in selling and leasing boats) to rent a large cabin cruiser for a period of 3 months at a cost of $10,000 per month. On October 1 Leporello signed the agreement for GAU and paid a deposit of $10,000 with a cheque dated November 1 drawn on the business account.
On October 5, Leporello took delivery of the cruiser and has not been seen since. The cruiser was reportedly last seen in the Virgin Islands.
On October 5 Elvira, who was the only shareholder and director of Elvira Sails Ltd. , endorsed the $10,000 cheque over to Friendly Finance by signing her own name to the back of the cheque. Sails Ltd. Friendly Finance gave her $9500 in return. When Giovanni discovered that the cruiser was taken to the Virgin Islands he put a stop payment on the cheque.
a) 10 MARKS 15 MINUTES
What rights, if any, does Elvira Sails Ltd. have against Giovanni personally?? Explain fully.
b) 10 MARKS 15 MINUTES
Suppose that Leporello returns the cruiser to Elvira Sails Ltd. Giovanni soon learns that while Leporello was in the Virgin Islands he had