Legal Oddities (Part II): Funny weird laws still on the books in Alberta.

Think you’re not breaking the law? Think again!

In our last post, we outlined some of the quirky laws in the Canadian Criminal Code. In this second installment, we’ll explore some strange laws still in effect in Alberta.

Provincial Laws

In the province of Alberta, it is illegal to:

Keep a rat as a pet.

Since 1950, Alberta has designated the Norway Rat to be “one of the most destructive creatures known to man” and has designated them to be a pest. As such Alberta is the largest rat-free area in the world.

Paint a wooden ladder.

According to the 2013 Occupational Health and Safety Code, it is not lawful to paint a portable wooden ladder, so that users may easily determine their condition and safety. They can however be covered in a “transparent protective coating that won’t conceal any defects.” Let it never be said that Alberta’s ladder laws aren’t transparent!

Municipal Laws

In the city of Calgary, it is not legal to:

Throw snowballs without a permit.

An old bylaw in Calgary makes it illegal for anyone to throw snowballs within city limits without express consent from the mayor or city council.

Place your feet on a public bench.

According to bylaw 54M2006, it is not lawful for a person to “stand or put his feet on the top or surface of any table, bench, planter or sculpture placed in any public place”. Mind where you tie your shoelaces in Calgary!

In the city of Edmonton, it’s illegal to:

Smell bad.

In case there was any confusion regarding the federal law on public odors we mentioned in our last post, the city of Edmonton took things a step further by with the Community Standards Bylaw which bans the “production of any generally offensive odours” not just in public, but in general use of land. Apparently we Canadians (especially Edmontonians) take hygiene very seriously!

*If you’ve been charged with malodorous intent, click here to speak with a criminal lawyer.

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Legal Oddities (Part I): Funny weird laws still on the books in Canada

Think you’re not breaking the law? Think again!

We often think of the law as something born from logic – on the books to serve some end. While this is true for most laws, there are some that seem devoid of reason. This often a result of not aging well: while they may have made sense when they were originally passed, they lack relevance in the modern era. The following are some strange laws that many Canadians likely don’t know they’re breaking.

In Canada, it is illegal to:

Pretend to practice witchcraft

Harry Potter fans beware! According to the Canadian Criminal Code, it is illegal to pretend to perform any kind of “witchcraft, sorcery, enchantment or conjuration”. Note that it’s perfectly legal to perform magic legitimately – just be prepared to prove it!

Watch, or participate in immoral theatrical performances.

This restriction falls under Canada’s anti-obscenity laws. If you think this one hasn’t been used recently, think again. In 2005, a strip-club was fined $7,500 not for nudity, but for the use of sex toys during a performance.

Offend a public place with a bad smell.

Though aimed at preventing the use of stink-bombs and the like in public places, the wording of this law prohibits any “offensive volatile substance” (smell) that causes “discomfort” in public places. Pass gas at your own peril in Canada!

Distribute comic books depicting characters performing illegal acts.

A leftover of the moral panic of the 1950s, under the section of the Canadian Criminal Code outlining “Offenses tending to Corrupt Morals”, it is illegal to distribute “crime comics”, defined as being any publication that “substantially comprises matter depicting pictorially […] the commission of crimes, real or fictitious”. Technically, this means that Batman comics are contraband.

Advertise Erectile Dysfunction Drugs

This is another one of those “Offenses tending to Corrupt Morals”. Originally aimed at stopping fraudsters from selling fake remedies for virility, the law does not consider remedies that are actually proven to work. Sorry Viagra!

*If you’re looking for a criminal lawyer in Edmonton, click here.

*For more information on Canadian laws that actually make sense, click here to read about new impaired driving laws.

 

 

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Need an employment lawyer? Learn more about unjust dismissal claims.

What are the different types of unjust dismissal?

If you’ve lost your job and think you’ve been treated unfairly, you may want to engage an employment lawyer and inquire about an unjust dismissal claim. An unjust dismissal claim is one where you challenge an employer’s decision to terminate your employment as being unlawful (either by violating terms of the original employment contract, or by a violation of legal code governing employment standards) and demand fair compensation. Although such claims are often settled out of court, litigation is sometimes required. In either case, a lawyer specializing in employment law can be invaluable in outlining your options and the best strategy for getting fair compensation.

*If you’re looking for a lawyer specializing in employment law, click here.

Wrongful dismissal claims can be broadly categorized into three types – unfair, wrongful and constructive.

Unfair Dismissal

An unfair dismissal is one where an employee is unjustly dismissed:

• without fair reason, and an employer refuses to pay fair compensation (fair reasons include prolonged absence, misconduct (such as theft), or unsatisfactory performance),
• without fair procedure (such as an unfair evaluation of an appropriate reason to dismiss), or
• for an unfair reason (such as unlawful discrimination based on, sex, gender, religion, ethnicity or sexuality to name a few. Click here to learn more about the Canadian Human Rights Act).

 

Wrongful Dismissal

Wrongful dismissals occur when an employee’s dismissal breaches the terms outlined in their employment contract, such as failing to provide the correct notice period prior to dismissal without compensation (the pay that would have been earned had the dismissal notice period been properly observed.

Constructive Dismissal

Constructive dismissals occur when an employee is forced to resign due to a gross breach of their employment contract by their employer (such as via bullying, failing to pay, creating an intolerable work environment (e.g. dangerous conditions), or unreasonably changing the original conditions of employment (e.g. unreasonable hours or location).

Learn more about unjust dismissal laws in Canada.

*For more information on employment law, see our article here.

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Legal Business Ownership Structures. Which one should I choose? (Part II)

What are the pros and cons of Canadian business ownership structures? (Part II)

Last week, we posted an article outlining the benefits and drawbacks of two of the four business ownership structures: sole-proprietorship and partnerships. This week, we’ll be exploring the remaining two Canadian business ownership structures: corporations and cooperatives.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

Corporations

When a business decides to become a corporation (incorporate), it becomes a legal entity that is separate from its shareholders/owners. This legal curiosity is known as ‘Corporate Personhood‘, where the corporation has some legal rights and responsibilities enjoyed by real persons, such as the right to enter into contracts, be held legally liable for actions or pursue legal actions, etc. Unlike unincorporated associations of persons, shareholders and owners of a corporation do not share in its legal liability. As such, shareholders and owners are not personally liable for any debts or acts of the corporation.

Incorporation in Canada can be done on the federal or provincial level, each having its own unique requirements. As such, Corporate law is tricky and it is strongly advised that you get advice from a lawyer specializing in corporate law before you consider incorporating your business.

*If you’re considering incorporating your business, see this post here.

Pros:

• Separate legal entity from shareholders/owners
• Limited liability
• Set up to make ownership transfer simple
• Raising capital is often easier than with other business ownership structures
• Often are taxed less that unincorporated businesses

Cons:

• Corporations are strictly regulated
• It’s more expensive to set up a corporation than other business ownership structures
• Extensive corporate record keeping is required by law and must be filed each year with government agencies
• Depending on level of incorporation (federal or provincial), directors of the corporation may be subject to residency and/or citizenship requirements
•  Conflicts between shareholders and directors of the corporation can arise.

Learn more about new laws affecting Canadian corporations.

Cooperatives

The least common of the four Canadian business ownership structures is the cooperative. The cooperative is essentially special kind of corporation, where a group of people and/or businesses come together and pool resources to provide access to common social, cultural and/or economic needs. Though often set up as being not-for-profit, cooperatives can be for-profit organizations.

Pros:

• Owned and controlled by its members in a democratic fashion (each member is accorded a vote).
• Limited liability
• Clear profit distribution

Cons:

• Like corporations, cooperatives are required by law to keep extensive records.
• Raising capital can be more difficult than under other business structures, as there can be less incentive to invest further after the initial cooperative is set up.
• Can take longer to make business decisions, as participation of all members is required.
• Conflicts between members can stall business proceedings.

Additional Resources

• For more information on Canadian corporate business structures, click here.
• For more information on the cooperative business structure in Canada, click here.
• For more information on corporate law, see our article here.
• If you’d like to speak with an Edmonton-based corporate lawyer click here.

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Legal Business Ownership Structures. Which one should I choose? (Part I)

What are the pros and cons of Canadian business ownership structures?

Earlier this week, we posted an article outlining certain commercial situations that a business lawyer can help with. In this article, we get into a bit more detail on the pros and cons of the first two common Canadian business ownership structures that a lawyer can help you with.

*If you’re looking for a lawyer specializing in business law in Edmonton, click here.

Sole proprietorship

As its name suggests, businesses under this legal structure are headed by a single owner. As such, the owner of a sole proprietorship business is alone in their responsibility for all debts and obligations related to their business, but also keep all profits. However, because owners under this structure are personally liable, a creditor can make a claim against not only business assets, but also an owner’s personal assets outside of their business, in order to pay off any debts.

Pros:

• Owner keeps all profits.
• Process for registration is simple and relatively inexpensive.
• Start-ups require comparatively little working capital
• Typically fewer legal regulations apply
• Owner has direct control of decision making
• Some tax advantages for struggling businesses

Cons:

• Unlimited liability (claims can be made against your personal assets to pay off creditors)
• Income is taxable at the owner’s personal income tax rate. As such, if a business is profitable, this can result in the owner being placed in a higher tax bracket.
• Owner is required to be personally involved in all major dealings related to the business.
• Available capital is limited to what an owner can raise on their own.

*For more information on the sole proprietorship business structure, click here.

Partnership

Just as it sounds, a partnership is business that is created between two or more people, but is not incorporated. In a partnership, business partners pool financial resources to put into a business and then share profits according to a legal agreement that establishes the terms of the partnership. There are three varieties of partnership business structures:

1. General Partnership – In this business structure, all owners of the business share liability, often in proportion to the amount of the business they own: They are jointly responsible for satisfying any debts their business accrues.
2. Limited Partnership – In this business structure, not all of the owners are involved in the business’ operations. Some owners may buy into or contribute to the businesses solely to share in the profits, but have no power over decisions made.
3. Limited Liability Partnership (LLP) – This is a special kind of partnership business structure that is usually limited to groups of professionals such as lawyers, doctors, engineers or accountants. In an LLP, some or all of the owners/partners have limited liabilities, which means that they are not liable for any other partner’s misconduct or negligence. As such, legal action against one partner does not impact the others.

 

Regardless of the variety of partnership, they all share common benefits and drawbacks:

Pros:

• Process for registration is simple and relatively inexpensive.
• Costs, management, profits and assets are all shared between owners
• Some personal income tax tax advantages for owners of struggling partnership businesses.

Cons:

• Good business partners can be hard to find! Owners are financially responsible for business decisions made by partners (E.g. Broken contracts).
• Unlimited liability (owners’ personal assets can be used to pay off business debts)

*For more information on the partnership business structure, click here.

Next week, we’ll explore the remaining two business ownership structures: Corporation and Co-operative.

The post Legal Business Ownership Structures. Which one should I choose? (Part I) appeared first on Right Legal.

Interested in purchasing a Condo? Be aware of these legal pitfalls.

What lawyers look for when reviewing condo documents.

Though the general rule of “buyer beware”, applies to most property acquisition, it’s particularly important when considering real-estate purchases given the scale in their value. This is further complicated with buying a condo, as you’re actually buying into a condo corporation (essentially becoming a shareholder in a company), rather than acquiring physical land.

The overall well-being of a condo can’t be entirely determined by conventional means, such as doing a walk-through to gauge the overall condition of the building or the unit for sale – you have to dig deeper. The condominium documents allow you to look into the financial state of the condo corporation as well as the effectiveness of the condo board. These documents are usually numerous and can be difficult to interpret, so it’s vital that you get them reviewed professionally by a real-estate lawyer, so that you can make an informed choice in your purchasing decision. The following are a few examples of what real-estate lawyers are trained to look for when reviewing the documents of a condo corporation:

Board meeting minutes content and continuity

Real-estate lawyers carefully review all the records of the condo board meetings, not only analyzing their content, but also looking for gaps in the minutes. The minutes should be complete, with no gaps. If gaps are present, then there may be vital information missing relevant to your choice to buy or not.

Reserve fund health

A condo corporation is required by law to have an properly maintain a reserve fund to cover the costs of anticipated maintenance, repairs or replacement of the property of the corporation. As such, gauging the health of the reserve fund requires looking beyond the actual amount in the the bank and looking at the reserve fund study, which is required to be completed every 5 years. Your lawyer will be able to weigh the cost of current and projected upcoming expenses with the amounts currently in and expected to be in the reserve fund from monthly condo fees. If there is a discrepancy in these values, your lawyer will be able to advise you on the likelihood, timing and magnitude of a future special assessment.

Lawsuits

No one would think of buying into being the target of a lawsuit, but failure to properly review condo documents can result in just that! If you buy into a condo corporation that is being sued, you become, in part, a target of that lawsuit as a legal shareholder. Your real-estate lawyer will be able to inform you of any legal actions currently in process or being proposed against the condo corporation, as well as an estimate of the legal costs and outcomes of these actions. Legal costs come out of the reserve fund, as do any damages ordered to be paid by the condo corporation. A successful lawsuit against the condo corporation can mean costly special assessments for shareholders.

Learn more about condo law in Edmonton.

If you fail to properly review condo documents before making a purchase, you may be left with no course of action against the seller. That’s why it’s vital to have them professionally reviewed by a real-estate lawyer.

*If you’re interested in buying a condo, click here to read about a recent change in the Condominium Property Act.

*If you’re looking for a real-estate lawyer in Edmonton, click here.

 

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