Business Law in Canada 12th Canadian Edition by Richard A. Yates Solution manual

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10. Briefly explain three ways lawyers bill their clients. Which of the three is most commonly
used?
Fixed fees - for specific tasks such as will preparation, purchasing a house or incorporation.
Hourly rate - billing for time spent on the client’s file. This is the most common method of
billing a business.
Contingency fee - charging a percentage of the amount the client collects. Most appropriate for
personal injury or product liability cases. If the client does not collect, the lawyer does not get a
fee. The types of cases covered and allowable percentages vary from province to province.
11. “Legal aid is available to anybody with a legal problem.” True or false? Explain your
answer.
False. There are financial limitations and limitations on the types of disputes legal aid will deal
with. This also varies from province to province.
12. What can a client do if she is unhappy with the bill she received from her lawyer?
Attempt to resolve the dispute directly with the lawyer. If not successful, mediation may be an
option. If mediation is not available or successful, the bill could be reviewed by court officials.
The method of review varies from province to province.
13. “Should a client lose money because of the carelessness of his lawyer, he will be compensated
for his losses if he makes a complaint to the law society.” True or false? Explain your answer.
False. The Law Society deals with disciplinary matters only in respect of the carelessness.
Compensation would have to result from settlement or, if unable to reach an agreement, through
a legal suit by the client against the lawyer. The Law Society will likely require the lawyer to
have errors and omissions insurance which will assist with recovery of the loss after settlement
or judgment.
14. When will a lawyer be disbarred?
Lawyers who fail to follow the rules of conduct of the Law Society they belong to are subject to
disciplinary investigations and hearings. If the conduct complained of is a serious breach, such as
misuse of client funds, they may be disbarred.
15. “When a person acts unethically, she will also have broken the law.” True or false? Explain
your answer.
False. Ethics tells us what we should do; the law tells us what we must do. Generally speaking,
every person breaking the law in Canada is acting unethically, but a breach of ethics is not
necessarily breaking the law.
16. What is a code of business conduct? Should such a code be used by a small business?
A code of business conduct is a statement of values and principles of ethical behaviour that
establishes a code of conduct which all employees, officers and directors of the business would
be expected to follow. If created when a small business is first established, it is probably the best
way to ensure the long-term application of these principles as the business grows.
Chapter 1: Managing Your Legal Affairs
Copyright © 2020 Pearson Canada Inc.
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17. What is “corporate social responsibility”? What is a benefit of being transparent about the
reasons why you are engaging in socially responsible behaviour?
Some speak of corporate citizens. With the benefits of citizenship, goes the responsibility of being
a citizen. The exercise of corporate social responsibility shows commitment to the communities
within which a business operates. Transparency about exercising social responsibility being not
just to “do good” for the organization and its community, but also to improve the organization’s
image, will reduce community skepticism and disillusionment about the organization.
Solutions to the Cases
1. Ontario (Public Safety and Security) v. Criminal Lawyers’ Association, [2010] 1 S.C.R. 815,
2010 SCC 23
The Supreme Court unanimously reversed the decision of the Court of Appeal. Section 2(b) of
the Charter does not guarantee access to all government documents. The documents protected
by the Ontario FIPPA dealing with solicitor-client privilege were excluded from being
disclosed. Lawyers required to register as lobbyists may have to disclose client names and the
nature of the lobbying activity. Some banking records of lawyers regarding client names and
information may be accessible under money laundering and state security legislation.
2. Canada (Attorney General) v. Chambre des notaires du Québec, [2016] 1 SCR 336, 2016
SCC 20 (CanLII)
It was unanimously held by the Supreme Court that the provisions requiring the production of
the documents infringed the protection against unreasonable search or seizure found in
Section 8 of the Charter of Rights and Freedoms. The Court further held that Section 8 would