Hughes Inc Hired Liz to Act as the Chief Architect

question 34

Multiple Choice

Hughes Inc hired Liz to act as the chief architect for a major shopping development.After about a year, however, the parties' relationship began to deteriorate and the situation quickly became intolerable and irreparable.Each side blamed the other.Hughes Inc sued Liz for breach of contract.Liz defended that claim and started a counterclaim in which she alleged that Hughes Inc had broken their agreement.The dispute was eventually resolved through arbitration.Which of the following statements is TRUE?

• A)The parties probably used arbitration, rather than litigation, because a judge decided that the issues were too complicated to be understood by jurors.
• B)Even if both parties are based in Manitoba, even if the contract was signed in Manitoba, and even if the shopping development was intended to be located in Manitoba, the arbitration could have taken place in a different province, as parties who arbitrate disputes are, subject to the contractual terms, free to choose the rules and jurisdiction of the arbitration.
• C)Although the arbitration would not have taken place in a court, it was probably conducted by a judge.
• D)Assuming that the parties served a complete set of pleadings on each other, Hughes Inc.would have used a document called a reply in order to respond to Liz's counterclaim.
• E)Some provinces require the parties in commercial disputes to participate in a mandatory arbitration program, as opposed to a mandatory mediation program, before taking a case to trial.

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Definitions:

Insolvent

A financial state where an individual or entity cannot meet their debts as they become due.

Down Payment

An initial upfront portion of the total amount due, typically in the context of purchasing expensive goods like cars or real estate, representing a fraction of the full price to reduce the loan amount.

Misrepresenting Solvency

Falsely presenting a company's or individual's financial stability or ability to pay debts, often to secure loans or delay bankruptcy.

Reclaim

The process of getting something back or asserting one's rights to a previously ceded property or state.