Isabella Has Commenced an Action Against a Caribbean-Based Company That

question 10

True/False

Isabella has commenced an action against a Caribbean-based company that offered a "guaranteed 17 percent return on all 30-day foreign investments of $20 000 or more." Both the initial investment and interest were to be repaid in the investor's national currency, regardless of the mode of investment.Instead, the company provided Isabella with a certificate of ownership in a sugarcane farm, presumably obtained for less than its stated value.Because Isabella is a Canadian citizen, she would like the action tried in a Canadian court and, accordingly, must satisfy the real and substantial connection test.Under this approach, Isabella must demonstrate that the effects of the Caribbean company (ie the harms suffered) were experienced in Canada.

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Definitions:

Preferred Dividends

Dividends that are paid out to preferred shareholders before any dividends are distributed to common shareholders, often at a fixed rate.

Market Price

The current price at which an asset or service can be bought or sold in a particular marketplace.

Discontinued Operation

A business segment that has been sold, abandoned, or otherwise discontinued, and is reported separately in financial statements.

Income Statement

A financial statement detailing a company's revenues, expenses, and profits over a specific period, often quarterly or annually.