Directions: Answer two of the three questions below. Your answers should be typed, in
12 point font and double spaced. Your answers should be between 750 and 1000 words,
for each answer. Each answer should be supported by at least one Court of Appeal Case
or a Supreme Court of Canada case, along with other references.
Please refer to Canadian Commercial and family Law legislations
Please use your own words, You cannot copy and paste from sources on the internet.
Please refer to the textbook “Smyth, Soberman, The Law and Business Administration in Canada,
14 th Edition, Pearson, 2016” to help guide your answers
Question One:
Hussain, is a 66 year-old lab technician with 36 years’ service. He works for Health First Ltd,
located in Toronto, Ontario. Hussain was just dismissed without cause. Assuming Hussain does
not have an employment contract, what would be the amount of reasonable damages he would be
entitled to receive? Support your answer.
Question Two:
Clayton began working for Sleep Eze, located in Newmarket, Ontario, in 1980 as a customer service
manager. In 1995, Sleep Eze had Clayton and all other salespeople enter into a series of one-year
agreements that stated that they could be terminated on 60 day’s notice. Three years later, in 1998,
the company insisted that Clayton incorporate, and from that point on, the agreements were between
Sleep Eze and Clayton’s incorporation. The agreements defined Clayton, and later his corporation as
an “independent marketing consultant” and expressly stated that the relationship was not an
employment relationship, but rather an independent contractor – principal relationship. Clayton paid
for his own office space and remitted his own income taxes and workers’ compensation premiums. At
the same time, Sleep-Eze set prices, territory, and promotional methods and Clayton was limited to
servicing Sleep-Eze exclusively. In 2003, Sleep-Eze terminated the agreement with 60 days’ notice.
Clayton sued for wrongful dismissal damages, alleging that he was an employee.
i. What arguments could Clayton make to support his position that he was an employee?
ii. What arguments could Sleep Eze make to support its position that Clayton was an independent
contractor?
iii. Which side do you think would be successful? Your answer should be supported by relevant case
law.
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