It is hypothetical. I was reading an article where in the US you are entitled to immediate compensation for some items on US carriers:
"It's not true that the airline has 24 hours to return that missing bag before it has to compensate you. According to the DOT, if you reach your destination and your bag doesn't, the airline has to reimburse you on the spot for items you need immediately. If someone challenges your source, cite the Code of Federal Regulations, Title 14, Part 254."
I was wondering what applies in Canada. I don't normally check a bag, but I am heading to LHR next week and will be... Planning for the worst.