If the manufacturers actions fall below a reasonable

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the store. If the manufacturer’s actions fall below a reasonable standard and a consumer is injured and damages are reasonably foreseeable, the manufacturer will be liable. Never Too Much Chocolate Ltd. will be liable unless it can show that it did everything it reasonably could have done to prevent the pit from being in the chocolate (which seems unlikely).
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d) 5 marks As in the Data Business Forms case, Paul might be liable personally to Peppermint Patties. By keeping the George’s Chocolates sign, using the old stationery, and writing his own personal cheques to suppliers, he created an impression that he was doing business as a sole proprietorship. Question 2 a. 5 marks Kenny did not have actual authority to conclude the contract on behalf of Beer to U – his authority was restricted. Did Kenny have apparent authority? Apparent authority exists if the principal did something to create an appearance of authority to the third party, the third party relies on that and is induced to enter the contract. Kenny is BTU’s sales representative and regional manager. He had business cards to leave with clients. Arguably the job title and the independence that Kenny had would create an impression that he had authority to conclude contracts on behalf of BTU. Pemberton Benchlands v. Sabre b . 5 marks BTU can be bound to the contract if it ratified the contract. Ratification can be express or implied. By cashing the cheque even though the president had not approved the contract, BTU will likely be found to have ratified the contract, and will be bound to it. c . 5 marks While Kenny told Bobby that he would get free beer for 2 weeks, and a week’s Delivery free for each customer referred, these terms were not included in the written contract. This promise would be excluded by the parol evidence rule that says that the court will not admit evidence of prior oral terms that add to or contradict a final written agreement. General Tire Ltd v Aylwards d. 10 marks Restrictive covenants in employment contracts are prima facie void and therefore unenforceable.
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  • Spring '10
  • elaine
  • Contract Law, Practice Final Exam, Chocolate Ltd.

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