1. This is an open book exam.  You may use any printed or handwritten materials you wish including textbooks, course materials, and notes.  Electronic materials are prohibited.
  2. This exam will be graded out of 100 marks and will constitute 50% of your final grade.
  3. This exam is comprised of 3 pages, including this cover page.  Please verify that you have all of the pages and alert the exam administrator immediately if you are missing any page.
  4. This exam contains 3 questions.  You must answer all of them.  Read the questions carefully and provide detailed answers that defend your position based on the course lectures.
  5. The value of each question as a proportion of the overall exam grade is indicated. Questions 1 and 2 are worth 35% each. Question 3 is worth 30%.
  6. Only responses submitted through the type-written software or written responses in the exercise book provided will be assessed; if handwriting, please DOUBLE SPACE your response and use only one side of each page.  Make sure that your handwriting is clear and legible and double-space your answers.  No points will be awarded for responses recorded on the examination paper.  Write legibly PLEASE!
  7. Make sure you answer the questions you have been asked, all the questions you have been asked, and nothing but the questions you have been asked.
  8. Wherever possible, establish and explain your answers by reference to any relevant case law, regulatory or statutory authority, theory or policy.  Arguments or answers that do not cite authority will be given a lower mark than those that do cite relevant authority.  When citing cases, you are not required to use McGill citations.
  9. During the exam, only one student at a time is permitted to leave the exam room.  No student may leave within 15 minutes before the end of the exam.
  10. Time limits will be strictly enforced.  Students who continue to write after the exam has ended may be subject to a penalty.
  11. The examination paper must be returned in your personalized envelope to the invigilator at the conclusion of the exam.
  12. Finally, best wishes for this exam and your legal career.

Question One


Woodrow Nopaddle Corporation (WNC) provides sticky notes (post-it notes) to Universal Exports Plc (Universal). They have a written agreement which obliges WNC to deliver 1000 boxes to Universal on the last Friday of each month at a price of $10 per box.


Six months into the contract, there is news of a government investigation into the adhesives on sticky notes. According to The Daily Echo, in its story “Sicky Notes” which reports on the government action, the investigation centres around the possibility of the adhesives causing violent illness if individuals touch too many in one day.  This causes a shortage in the supply of sticky notes. As a result, WNC tells Universal that the price will have to be raised to $13 per box in order to maintain the order of 1000 boxes. Universal agrees but in a letter writes that it is doing so reluctantly.


Six months later, Universal discovers in The Guardian that the investigation into the key ingredient that caused the price increase has just concluded and the government has given its approval for the ingredient to be used in manufacturing. The report also reveals that supplies have returned to normal. Universal raises this with WNC, but WNC insists on maintaining the higher price.


Universal comes to you for an assessment of their legal position in contract. They feel that WNC is operating in bad faith.


Advise Universal on its rights against WNC.

Question Two

Diana signed up to the online dating app 4 Ur Soul. She is a well-known managing partner of the top-tier firm, Will Slaughter LLP. As she has accomplished so much, Diana has come to find that she wants someone to share her life with. 4 UR Soul matches her with Charles. His online profile shows that he is also a lawyer but now runs his own investment firm called Mendax. They meet for several dates over a period of three months. Last week, a photographer for the newspaper The Daily Tweet recognises Diana walking with Charles (though he does not recognise Charles) out of a restaurant in the expensive Tripleyourmoney Terrace area. Diana sees the photographer take the photo and smiles for the camera. Charles has no reaction. The photographer brings the photo to The Daily Tweet, thinking that it could be used for the business section. The Editor looks at the photo and recognises Charles as a person the newspaper had been investigating. Several financial industry sources had told The Daily Tweet about Charles and an investigation by the (Ontario) Securities Commission regarding Charles and allegations of insider trading and fraud. The Editor runs a front-page story the next day with the photograph. The headline reads: “The Lawyer and the Beast”. It outlines the allegations made against Charles.


That same morning Diana reads The Daily Tweet’s story. She becomes hysterical and physically ill. Her live-in cook, Toby, hears her and runs to help. Unable to calm her or subside the illness, he called for emergency assistance. An ambulance quickly arrived and took her to the hospital. Doctors quickly treated her. After hours of assessment (including tests, scans and observation), the doctors were unable to account for what had transpired. While at the hospital she regained her composure. However, her manner was different. After an overnight stay, Diana was free to return home (which she did). Diana has not spoken with Charles and will not respond to his calls or messages. Weeks later, Diana’s personality remained changed. Her parents, Elizabeth and Phillip, noticed it. Diana’s friends all noticed this as well.