LEGAL ASPECTS OF BUSINESS

On what basis, if any, could Molly Micro and Sally Seatbelt initiate civil proceedings against Air Transport Limited and/or Launchpad McQuack in torts and/or contracts? What could Air Transport and/or Launchpad argue in defense against these claims? Discuss the general basis and extent of damages that the plaintiffs could be entitled to if they were successful in their claims.

Molly Micro recently developed a revolutionary new design for a micro processing chip with the capability of doubling the speed of the next fastest chip on the market. However, Molly had limited resources available to her, and wanted to sell her design to a retailer who could distribute the chips across Canada. After much persuasion, she finally convinced the executives of the nation’s largest chip retailer, Micro Computing Limited, to meet with her at their head office in Toronto.

Micro Computing Limited wanted Molly to provide them with a demonstration of the production of the chips, so Molly had to arrange a method to transport all her chip manufacturing equipment from Halifax to Toronto for the meeting. As a result, Molly hired an air shipping company, Air Transport Limited, to deliver the equipment to Toronto. She made it clear to the owner of Air Transport that the equipment was extremely fragile, and that they would have to take all necessary precautions to ensure the equipment was not damaged in transit. The owner of Air Transport assured Molly that all deliveries done with Air Transport would be done to the highest standards, and that they had won several awards in the past for the quality of their delivery services. Satisfied that her equipment would be safe, Molly agreed to pay Air Transport $20,000 for the safe delivery of the equipment.

In fact, Air Transport had only been in business for several months, had never won any service quality awards, and had just recently hired its first pilot, Launchpad McQuack, to do the delivery. In providing instructions to Launchpad, the owner of Air Transport did not mention how fragile the equipment was, nor did he indicate that any special precautions would have to be taken to ensure that the equipment was loaded securely. On the day before the meeting, Launchpad carelessly tossed the equipment into the back of his airplane, and set off on his flight.

On route, Launchpad got bored, and figured the flight would be much more enjoyable if he had a little fun. After completing some elaborate aerial acrobatics with his plane, which included several flips and rolls, Launchpad completed his favorite trick, which involved landing on the TransCanada Highway and then immediately taking off again once touching down. As a result of Launchpad’s reckless flying, Sally Seatbelt, who had been driving on the highway, was distracted by the airplane which landed in front of her, causing her to crash into a pole on the side of the highway. Sally’s injuries were more severe because she was not wearing a seatbelt.

When Launchpad finally arrived in Toronto, he dropped the equipment off at the Micro Computing Limited head office as instructed, and then flew back to Halifax. When Molly arrived in Toronto the next day for her meeting, she realized that all her equipment had been completely destroyed. As a result, Micro Computing rejected her proposal to distribute her chips across Canada.

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