Assignment four.

Facts.

Slash Co Knives is an American corporation.
The company’s products are inferior in quality as compared to those from those in common retails.
The company’s products have previously caused accidents to clients.
The company has strong sales due to its pushy sales force.
The price of their products is higher than similar products.
The company use door to door with a mobile sales force in marketing their products.
The company is concerned about Canadian law that may affect its business.

Issues

What laws in Canada governs the consumer goods that will affect slash Co knives in Canada?
What are the objectives of the business laws in Canada?
What legal issues may arise for and against the company?
What consumer protection rules will affect Slash Company knives and how?

Law

Business law
Universal law principals of contract
Tort law of negligence.
Federal statue
Provincial statue.
The sale of goods contract law.

Analysis.

What laws in Canada governs the consumer goods that will affect slash Co knives in Canada.

There are several laws in Canada. Some of these laws affect business in Canada while others are international rules that affect business not only in Canada but across the world and entire Europe. Some of these rules and laws are;

Damages for non-acceptance-These are damages to which a seller is entitled if a buyer refuses to accept goods before the passing of title.
Contract and tort law- These are laws set up under business law that ensures that contracts entered in between buyers and sellers of a commodity. These laws are meant to ensure that the buyers are protected from fraud and low-quality products and breach of contracts by the suppliers.

Sales of Goods Act- This is an act that sets up standards for the commodities and their quality and quantity to ensure that consumers receive goods and services worth of their money.

What are the objectives of the business laws in Canada?

There are several laws in Canada set up at provincial level and national level for various purposes. Some of these laws have been amended several times by court judges to ensure they suit the current trends in business. The main objectives of these laws are to (at. 630)

Protect the parties to the sale of goods transactions, particularly buyers.
Protect consumers from physical harm.

Promote a fair and competitive marketplace.

Protect consumers from unfair selling and marketing practices.

What legal issues may arise for and against the company?

International trade is an economic aspect that is allowed across the world, and Canada is not an exception. Therefore The Slash Co Knives Corporation being an American company can expand its business to Canada. However, the company will have to comply with the Canadian set rules and standards for the provision of goods and services. There are legal principles that, in addition to affecting products or companies from outside Canada. These set rules, as discussed above, are used to protect the consumers. There is “The contract of sale” which is the legal foundation for every sale of goods transaction. This rule has several critical aspects of the contract of sale which are worthy of particular attention- the terms of the agreement relating to the sale, the transfer of ownership of the goods to the buyer, the conditions relating to payment and delivery, and the remedies for a breach of the contract. (631).Therefore the company must familiarize with the content of the contract of sale.

Like in any other parts of the world, when buyers agree to purchase goods, they typically have expectations regarding the attributes and characteristics of the goods. (631).Purchasers of, The Slash Co Knives Corporation’s knives will probably assume that the product is manufactured correctly and safe for it’s intended us. The fact that the company produces low-quality products, the customer’s satisfaction won’t be met, and this will affect the sales of their products.

However, whether such expectations are protected from a legal perspective is a different matter. The historic foundation of the common law concerning the sale of goods is reflected by the Latin phrase caveat emptor, which means “let the buyer beware” or “let the buyer take care.” The common law required prospective purchasers to take care of themselves, to be aware of what they were purchasing, and to make appropriate investigations before buying. If the purchaser expected a product to have specific attributes or exhibit certain characteristics, the common law required those expectations to be contained in the contract. Therefore, if there will be a contract between the company and their customer and the customers do the investigation and be unsatisfied by the products sold to them, this will be considered a breach of contract which will adversely affect the company’s sell in the Canadian market.

What consumer protection rules will affect Slash Company knives and how?

standard law rules in Canada the government demands that goods sold would be reasonably suitable for the purpose for which they were intended to be used and would be of merchantable or reasonable quality. (632).
Consumer protection law in Canada. Consumer protection law, as the name suggests, is primarily concerned with protecting the interests of consumers. The law recognizes that consumers need more excellent protection than non-consumers, based on the assumption that consumers are at a disadvantage compared to businesses. Consumers may be at a problem because they may have less bargaining power, they may not be as well informed, and they may not participate in transactions as frequently
Sale of Goods Act: All the provinces have recognized the need to address the limitations of the

Sale of Goods Act, particularly effects on consumers. However, consumer protection laws go much further and send several concerns. Some of the matters addressed in the consumer protection law include :(. (Consumer Pro: Malott Acr, SS 1994 c C·30.l ss 3<}..75; Co.”tsum€f P1odUd WN13nl)’ tNid L.9b.~11y Act, SNB 1978, c C·.18.1. Consumer ProteCJJon Act 2002, SO 2002 c 30, Schedule A)

contracts for the provision of services (rather than goods)
unfair trade practices (such as false or misleading advertising)
particular types of consumer transactions (including direct sales and online agreements)
consumer transactions in specific industries (such as timeshares and fitness clubs)
credit agreements
product safety standards
Labelling and packaging requirements and matters relating to remedies and enforcement.

Critical areas addressed by the Sale of Goods Act include which influence the company in the Canadian market will consist of:

The seller has the right to sell the goods. In other words, the seller owns the products or will hold them in the future when ownership transfers to the buyer.

The goods will be reasonably fit for their intended purpose where the buyer, expressly or by implication, makes it known what the intended use of the products will be, in such a way as to show that he is relying on the judgment of the seller (a buyer need not make the intended purpose known when goods are used for their common goal).
The goods will be of merchantable quality and free of defect that would not be apparent upon a reasonable examination of the products (“merchantable quality” means the goods are of consistent quality considering the price paid).
Where goods are sold by sample, the goods will correspond to the sample.
Where goods are sold by description, the goods will correspond with the report. This condition would be breached, for example, if a buyer ordered products from a catalogue, but the goods delivered by the seller did

The tort of negligence: This rule compensates someone who has suffered loss or injury due to the unreasonable conduct of another. The tort of negligence is one of the most common torts to arise in a business context. It addresses negligence arising from direct actions such as a taxi driver is injured due to an unsafe lane change by another driver to harm caused due to the negligence of wrong guidance or information passed to the victim. Some of the example aspects related to the business are;
When lawyers, accountants, or other professionals give their clients incompetent advice that causes loss, they have committed not only a breach of contract but also the tort of negligence, more accurately known as professional negligence.
When consumers purchase a defective product, they may have an action against the manufacturer for negligence if the product was improperly designed and produced. This area of law is known more specifically as product liability, but its foundations are in neglect.
When a bar overserves a customer, it may be found negligent if that intoxicated customer is injured or causes injury to others.

Based on the rules discussed above, it is evident that the company may have rough times surviving in the Canadian market as a result of the quality of its products, the high prices of its products and the expectations of the customers in the Canadian market.

Conclusion.

There are no barriers to restrict a company from outside BC to operate within Canada. Therefore The Slash Co Knives Corporation is not an exception. However, there are rules and regulations set up in Canada to protect its consumers against any exploitations. These rules will affect the company and its success in the Canadian market will depend on the level of compliant to these set rules and regulations.

Sale of Goods Act: This rule is strict and is meant to ensure customers are provided with quality products. Based on the quality of the product manufactured by the company, the product may fail to pass the quality test. Therefore the knives might be rejected in the Canadian market unless the quality is improved.

Consumer protection law is also another law that ensures that consumers are protected at all costs and that the products are of the required quality, and the price charged is reasonable. Based on the high rates charged by the company and the low-quality knives sold, it will be hard for the company to pass the required threshold. Also, even if it will get its way to the Canadian market, sooner the customers will raise an alarm of the poor quality and the high prices and soon the company’s market may collapse.

The tort of negligence rule: Based on this rule and based on the previous experience by customers as a result of loss and injuries caused and suffered by accidents, this tort rule will harm the company’s existence on the Canadian market. If the product is proved in a court to have caused harm due to its poor quality, the company will be forced to pay based on negligence. Therefore, if the company want to stand a chance to operate in the Canadian market, then it should work on the quality of its products and standardize their prices.

Bibliography.

DuPlessis, Dorothy, et al. Canadian Business and the Law, sixth edition (Canada: Nelson Education Ltd. 2017).

Consumer Pro: ealott Acr, SS 1994 c C·30.l ss 3<}.75; Co.”tsum€f P1odUd WN13nl)’ tNid L.9b.~11y Act, SNB 1978, c C·.18.1. Consumer Protection Act 2002, SO 2002 c 30, Scnedue A