Business Law Assignment

MGT 393- Assignment 1

January, 26th, 2015

Abu-Shaaban, Reyad #999727844

Sidibe, Mohamed #999697500

Facts

This case is complex since there are quite a few occasions where one is left to wonder “what is right and what is wrong?” (Legally speaking). Luigi is a trained tailor stemming from Italy and an immigrant to Canada. He worked for Harry Rosen Inc. as a tailor and was married, in 2010, his wife was killed in a car accident where she was at fault. Luigi and Sofia’s estate was wiped clean, since it was in her name, when the insurance couldn’t cover the resulting damages from the accident.

Following the accident Luigi was terminated from Harry Rosen Inc. because his depression lead to a depletion in his performance at work. Mario, Luigi’s brother, sold the restaurant he owned and operated in Italy to migrate to Canada and assist his brother in his time of need.

Luigi found Target’s entrance into Canada as a business opportunity and he was in contact with the Bloor and Kipling location in an effort to be their tailor. The deal between Target-Bloor and Luigi required that: he provides target customers with tailor services, the customers are charged a fee for these services, the ability to operate a 200 square foot “tailor shop”, in the shop the customers are charged any fee Luigi found acceptable, and lastly Target-Bloor would receive 30% of the tailor shop’s profits. Target agreed to his conditions and they entered in a verbal agreement together.

Mario was also a tailor before opening his restaurant in Italy and so, Luigi only found it befitting that his brother would work with him in the tailor shop. Mario’s responsibilities included managing the tailor shop’s accounting, dealing with the customers, handling the banking, and lastly being involved in discussions with Target-Bloor’s management. Mario was in no need for money but Luigi was insistent that Mario received 35% of end of year profits. Mario would...