Manufacturers, Importers, Distributors and Retailers: the Public's Safety is your Business

August 1, 2008

Download this publication

Back to the publications list

Publications that might interest you

May 11, 2023

Bill 8: Amendments to the Code of Civil Procedure to improve access to justice

Introduction On February 1, 2023, Minister of Justice Simon Jolin-Barrette introduced and tabled in the National Assembly Bill 8 entitled An Act to improve justice efficiency and accessibility, in particular by promoting mediation and arbitration and by simplifying civil procedure in the Court of Québec1 (hereinafter the “Bill”). The Bill makes amendments to several laws, including the Courts of Justice Act2 and the Professional Code3. We are particularly interested in those relating to the Code of Civil Procedure (“C.C.P.”),4 and more specifically to proceedings pending before the Court of Québec of which practitioners and persons subject to trial will want to take note. Proposed Amendments to the Code of Civil Procedure Most of the amendments to the C.C.P. will come into effect on June 30, 20235. We note the following, in particular: Jurisdiction of the Court Exclusive jurisdiction granted to the Court of Québec to hear applications in which the amount claimed or the value of the subject matter of the dispute is less than $75,000,6 instead of $85,000, which is the limit in effect on the date of this bulletin. However, the Court of Québec will continue to hear applications under the $85,000 limit that were filed prior to June 30, 2023, and these will remain governed by the provisions of the C.C.P., as they read before June 30, 2023;7 Concurrent jurisdiction with that of the Superior Court granted to the Court of Québec where the amount claimed or the value of the subject matter of the dispute is equal to or exceeds $75,000 but is less than $100,000.8 Case management The Bill also introduces a special procedure for applications in civil matters brought before the Court of Québec in which the amount claimed or the value of the subject matter of the dispute is less than $100,000:9 The preparation of a case protocol will no longer be necessary, as set time limits will now apply to all recourses;10 Originating applications must not exceed five pages in length;11 Preliminary exceptions must be disclosed within 45 days of filing an application;12 A defendant’s arguments must be disclosed within 95 days of filing an application;13 Settlement conferences will be held automatically after trial readiness is achieved (settlement conferences may also be replaced by pre-trial conferences);14 Cases will be set down for trial and judgment by a court clerk.15 Requests for particulars as to allegations made or to strike immaterial allegations The Court of Québec will only authorize such requests by way of exception and if warranted on serious grounds.16 Examinations The limit below which holding an oral examination on discovery is not permitted will be increased to $50,000.17 Currently, the limit is $30,000; Each party will be entitled to only a single oral examination on discovery, unless the Court decides otherwise;18 Written examinations must not exceed three pages in length.19 Expert opinion Parties must seek a joint expert opinion in cases where the amount claimed or the value of the property claimed is equal to or less than $50,000, unless the Court decides otherwise.20 Small claims In a proceeding for a claim not exceeding $3,000, the Court may render a judgment on the face of the record with the parties’ consent.21 Adjustments Each of the monetary limits for the Court of Québec’s jurisdiction will be adjusted annually.22 Conclusion The proposed measures will significantly impact how lawyers will now handle and manage disputes in which the amount claimed is less than $100,000. The concurrent jurisdiction of the Court of Québec with that of the Superior Court for cases with a value equal to or exceeding $75,000 but less than $100,000 is interesting: Although the procedure for conducting proceedings in the Court of Québec has been simplified for such cases, it is likely that many cases will nonetheless be instituted in the Superior Court, as its procedural process is a little less intrusive, particularly with respect to joint expert opinions, mandatory settlement conferences and the number of examinations. The Minister of Justice is hopeful that the amendments to the Act will improve access to justice for persons subject to trial, thanks to faster and less costly justice services, among other things. While these amendments will allow for more out-of-court settlements and prevent costly trials, we believe that there is still some uncertainty as to how accessible the expedited process will be, given the current staffing shortages in courthouses. An Act to improve justice efficiency and accessibility, in particular by promoting mediation and arbitration and by simplifying civil procedure in the Court of Québec, Bill 8 (Introduced — February 1, 2023), 43rd Legislature, 1st Session (Qc) (“B.”). Courts of Justice Act, CQLR c. T-16. Professional Code, CQLR, c. C-26. Code of Civil Procedure, CQLR c. C-25.01. Transitional provision: claims of $85,000 initiated in the Court of Quebec before June 30, 2023 will continue under the provisions in effect prior to the coming into force of the PL amendments (PL, s 44). B., s. 3; C.C.P., art. 35. B., s. 44. B., s. 3; C.C.P., art. 35. B., s. 8; C.C.P., art. 535.1. B., s. 8; C.C.P., art. 535.2. B., s. 8; C.C.P., art. 535.3. B., s. 8; C.C.P., art. 535.5. B., s. 8; C.C.P., art. 535.6. B., s. 8; C.C.P., art. 535.12. B., s. 8; C.C.P., art. 535.13. B., s. 8; C.C.P., art. 535.11. B., s. 7; C.C.P., art. 229. B., s. 8; C.C.P., art. 535.9, para. 2. B., s. 8; C.C.P., art. 535.9. B., s. 8; C.C.P., art. 535.15. B., s. 15; C.C.P., art. 561.1. B., s. 3; C.C.P., art. 35.

Read more
May 10, 2023

2023 Quebec budget: tax holiday for investments in critical and strategic minerals

On March 21, 2023, Quebec’s Minister of Finance tabled his budget for the 2023-2024 fiscal year. One of the budget’s key measures is the introduction of a new tax holiday in connection with major investment projects. At first glance, the new measure does not appear to be specifically aimed at the mining industry, but some mining companies involved in the extraction of critical and strategic minerals and planning substantial investments in the near future could greatly benefit from it. Under the new tax exemption, a corporation or partnership that carries out an investment project of more than $100 million in Quebec will be eligible, under certain conditions, for an income tax holiday and a holiday from the employer contribution to the Health Services Fund. As far as income tax is concerned, this new 10-year tax holiday consists of a deduction in the calculation of the company’s taxable income. The deduction is calculated by applying a rate of 15%, 20% or 25% to the cumulative total of eligible project expenditures. Since this tax measure is intended to promote investment outside major urban centres, the rate will vary according to the project’s location, ranging from 15% for projects in areas with high economic vitality, to 20% for projects in areas with intermediate economic vitality and up to 25% for those in areas with low economic vitality. The higher rates of 20% and 25% are more likely to apply to mining projects, which are generally located in remote areas with lower economic vitality. The critical and strategic minerals identified in the context of this measure are the following: antimony, bismuth, cadmium, caesium, copper, tin, gallium, indium, tellurium, zinc, cobalt, rare-earth elements, platinum-group elements, graphite (natural), lithium, magnesium, nickel, niobium, scandium, tantalum, titanium and vanadium. Let’s briefly consider the example of a mining company carrying out a major investment project for lithium mining in the Nord-du-Québec administrative region, designated by the Quebec government as a territory with intermediate economic vitality. During the investment phase, while the mine is being developed and built, the company incurs $200 million worth of eligible expenditures, which are capital expenditures for new mining equipment and heavy machinery for lithium extraction and processing. Evidently, the company will probably sustain a loss during the investment phase, and, because it has no taxable income, it will not be able to immediately benefit from the tax holiday. However, should the company have taxable income of $50 million in year 5, after four years of investment and mine development, it will be able to deduct $40 million of this taxable income under the new tax holiday, reducing its taxable income to $10 million for that year. This $40 million deduction is based on the application of the 20% rate for territories with intermediate economic vitality to the $200 million of eligible expenditures for the mining project. Another point relevant to the mining industry is that the income tax holiday will apply only to tax payable under the provisions of the Taxation Act. In other words, this tax holiday will not reduce the amounts payable under the Mining Tax Act. With respect to the Health Services Fund, companies will generally be eligible for an employer contribution holiday on wages paid to employees for pay periods falling within the exemption period for major investment projects. In order to benefit from this new tax holiday, companies will have to obtain an initial certificate, as well as annual attestations issued by the Quebec Minister of Finance. Our team of professionals specializing in mining and tax law is available to answer all your questions regarding this new measure and to assist you in your mining investment projects in Quebec.

Read more
April 17, 2023

Introduction of Bill 19, An Act respecting the regulation of work by children: the main amendments proposed by the Quebec government

On March 28, the Minister of Labour introduced Bill 19, an Act respecting the regulation of work by children (the “Bill”), which establishes in particular a minimum working age of 14 and a maximum number of hours of work for children subject to compulsory school attendance. This Bill is presented in the wake of massive and noticeable entry of young workers into the market in the context of shortage of unskilled workers exacerbated by the COVID-19 pandemic. Work performed by these children has received significant media coverage in recent months, in particular because of the concerns raised—especially regarding their health and safety and the risks of school dropouts and disengagement—further to their increased presence on the labour market. This legal newsletter will first provide a brief overview of the existing rules governing work by children and outline the amendments proposed by the Bill. CURRENT LEGISLATION Currently, there is no minimum age for work or a maximum number of hours of work per week in Quebec. The Act respecting labour standards1 already provides certain rules that apply to work performed by children. The following rules remain unchanged: Prohibition of work performed by a child that is disproportionate to the child’s capacity, or that is likely to be detrimental to the child’s education, health or physical or moral development.2 Prohibition of work performed during school hours by a child subject to compulsory school attendance.3 In Quebec, the obligation to attend school extends to the last day of school in the school year in which the child attains 16 years of age or in which the child graduates if they are under 16 years of age.4 The employer must ensure that the child’s work is scheduled such that the child can attend school during school hours.5 Prohibition of work by a child between 11 p.m. and 6 a.m. if the child is subject to compulsory school attendance, except in the case of newspaper deliveries or any other case determined by regulation of the Government, in particular for certain categories of artists.6 Obligation to ensure that the child can be at home between 11 p.m. and 6 a.m., except in the case of a child no longer subject to compulsory school attendance or in the cases, circumstances or periods or under the conditions determined by regulation of the Government.7 In addition, note that certain regulations adopted under the Act respecting occupational health and safety stipulate a minimum age for performing certain tasks (e.g., diving, excavation, demolition, etc.). AMENDMENTS PROPOSED BY THE BILL Amendments to the Act respecting labour standards and the Regulation respecting labour standards Minimum age to perform work: 14 years of age, except as provided in the Regulation: Creator or performer in a field of artistic endeavour referred to in the first paragraph of section 1 of the Act respecting the professional status of artists in the visual arts, film, the recording arts, literature, arts and crafts and the performing arts; Deliverer of newspapers or other publications; Babysitter; Child who provides homework assistance or tutoring; Child working in a family enterprise with fewer than 10 employees if the child is a child of the employer or, where the latter is a legal person or partnership, a child of a director of that legal person or of a partner of that partnership, or if the child is a child of the spouse of one of those persons; Child working in a non-profit organization having social or community purposes, such as a vacation camp or recreational organization; and Child working in a non-profit sports organization to assist another person or provide support, such as an assistant instructor, assistant coach or scorekeeper. Note that for the application of each exception, the employer will have to obtain the consent of the holder of parental authority using the form established by the CNESST. In addition, with respect to the last three exceptions above (5) through (7), such children must work under the supervision of a person 18 years of age or over at all times. Maximum hours: 17 hours per week, including a maximum of 10 hours Monday through Friday for children subject to compulsory school attendance, except during periods of more than seven consecutive days without educational services offered to the child. This new labour standard would come into force on September 1, 2023. Notice of termination of employment: No later than 30 days after the Act respecting the regulation of work by children is assented to, an employer who employs a child under 14 years of age performing work that is now prohibited must send the child a notice of termination of employment. The length of the notice varies depending on the child’s years of service: - Three months to less than one year of uninterrupted service: one week’s notice - One to two years of uninterrupted service: two weeks’ notice - Two years or more of uninterrupted service: three weeks’ notice The employer may have the child perform work during the period of notice or pay the child a compensatory indemnity. Penalties: An employer who fails to abide by the provisions governing the work of children commits an offence and is liable to a fine under the Act respecting labour standards. Fines are doubled in the event of a repeat offence. Amendments to the Act respecting occupational health and safety The Bill also amends provisions of the Act respecting occupational health and safety that are already being amended by the Act to modernize the occupational health and safety regime, not all of which are currently in force. The amendments made by the Bill include the following: Prevention program: The program must include the identification and analysis of risks that may affect in particular the health and safety of workers in the establishment, but more specifically those affecting workers who are 16 years of age or under. The same applies to establishments subject to the obligation to develop an action plan. Health and Safety Committee: The committee’s functions include participating in the identification and analysis of risks that may affect in particular the health and safety of workers in the establishment, including those that may particularly affect workers who are 16 years of age or under. Health and safety representative and health and safety liaison officer: They identify situations that may be hazardous to workers, including those specific to workers who are 16 years of age and under, and make recommendations to the Health and Safety Committee, the employer and the union, if any, regarding tasks that should not be performed by workers 16 years of age or under. In conclusion, the Bill provides for more restrictive provisions regarding the supervision of work of children by setting the minimum working age, with certain exceptions, at 14 years of age and by limiting the working week of a child subject to the obligation to attend school to 17 hours. While awaiting the next steps of the study of the Bill in the National Assembly, we suggest that employers follow this matter closely and draw up a list of their employees who are 14 years or under in order to react quickly if the Bill is adopted, as the proposed amendments are likely to have a significant impact on work schedules and the available workforce in certain businesses. The Minister of Labour has indicated that he would like the Bill to come into force by the summer of 2023. CQLR, c. N-1.1 (the “Act”). Section 84.2 of the Act. Section 84.4 of the Act. Section 14 of the Education Act, CQLR, c. I-13.3. Section 84.5 of the Act. Section 84.6 of the Act and Section 35.1 of the Regulation respecting labour standards, RLRQ, c. N-1.1, r. 3 (the “Regulation”). Section 84.7 of the Act and Section 35.2 of the Regulation.

Read more
April 11, 2023

Artificial intelligence in business: managing the risks and reaping the benefits?

At a time when some are demanding that artificial intelligence (AI) research and advanced systems development be temporarily suspended and others want to close Pandora’s box, it is appropriate to ask what effect chat technology (ChatGPT, Bard and others) will have on businesses and workplaces. Some companies support its use, others prohibit it, but many have yet to take a stand. We believe that all companies should adopt a clear position and guide their employees in the use of such technology. Before deciding what position to take, a company must be aware of the various legal issues involved in using this type of artificial intelligence. Should a company decide to allow its use, it must be able to provide a clear framework for it, and, more importantly, for the ensuing results and applications. Clearly, such technological tools have both significant advantages likely to cause a stir—consider, for example, how quickly chatbots can provide information that is both surprising and interesting—and the undeniable risks associated with the advances that may arise from them. This article outlines some of the risks that companies and their clients, employees and partners face in the very short term should they use these tools. Potential for error and liability The media has extensively reported on the shortcomings and inaccuracies of text-generating chatbots. There is even talk of “hallucinations” in certain cases where the chatbot invents a reality that doesn’t exist. This comes as no surprise. The technology feeds off the Internet, which is full of misinformation and inaccuracies, yet chatbots are expected to “create” new content. They lack, for the time being at least, the necessary parameters to utilize this “creativity” appropriately. It is easy to imagine scenarios in which an employee would use such technology to create content that their employer would then use for commercial purposes. This poses a clear risk for the company if appropriate control measures are not implemented. Such content could be inaccurate in a way that misleads the company’s clients. The risk would be particularly significant if the content generated in this way were disseminated by being posted on the company’s website or used in an advertising campaign, for example. In such a case, the company could be liable for the harm caused by its employee, who relied on technology that is known to be faulty. The reliability of these tools, especially when used without proper guidance, is still one of the most troubling issues. Defamation Suppose that such misinformation concerns a well-known individual or rival company. From a legal standpoint, a company disseminating such content without putting parameters in place to ensure that proper verifications are made could be sued for defamation or misleading advertising. Thus, adopting measures to ensure that any content derived from this technology is thoroughly validated before any commercial use is a must. Many authors have suggested that the results generated by such AI tools should be used as aids to facilitate analysis and decision-making rather than to produce final results or output. Companies will likely adopt these tools and benefit from them—for competitive purposes, in particular—faster than good practices and regulations are implemented to govern them. Intellectual property issues The new chatbots have been developed as extensions to web search engines such as Google and Bing. Content generated by chatbots may be based on existing copyrighted web content, and may even reproduce substantial portions of it. This could lead to copyright infringement. Where users limit their use to internal research, the risk is limited as the law provides for a fair dealing exception in such cases. Infringement of copyright may occur if the intention is to distribute the content for commercial purposes. The risk is especially real where chatbots generate content on a specific topic for which there are few references online. Another point that remains unclear is who will own the rights to the answers and results of such a tool, especially if such answers and results are adapted or modified in various ways before they are ultimately used. Confidentiality and privacy issues The terms and conditions of use for most chatbots do not appear to provide for confidential use. As such, trade secrets and confidential information should never be disclosed to such tools. Furthermore, these technologies were not designed to receive or protect personal information in accordance with applicable laws and regulations in the jurisdictions where they may be used. Typically, the owners of these products assume no liability in this regard. Other issues There are a few other important issues worth considering among those that can now be foreseen. Firstly, the possible discriminatory biases that some attribute to artificial intelligence tools, combined with the lack of regulation of these tools, may have significant consequences for various segments of the population. Secondly, the many ethical issues associated with artificial intelligence applications that will be developed in the medical, legal and political sectors, among others, must not be overlooked. The stakes are even higher when these same applications are used in jurisdictions with different laws, customs and economic, political and social cultures. Lastly, the risk for conflict must also be taken into consideration. Whether the conflict is between groups with different values, between organizations with different goals or even between nations, it is unclear whether (and how) advances in artificial intelligence will help to resolve or mitigate such conflicts, or instead exacerbate them. Conclusion Chat technologies have great potential, but also raises serious legal issues. In the short term, it seems unlikely that these tools could actually replace human judgment, which is in and of itself imperfect. That being said, just as the industrial revolution did two centuries ago, the advent of these technologies will lead to significant and rapid changes in businesses. Putting policies in place now to govern the use of this type of technology in your company is key. Moreover, if your company intends to integrate such technology into its business, we recommend a careful study of the terms and conditions of use to ensure that they align with your company’s project and the objectives it seeks to achieve with it.

Read more