Accounting and Business Law
Question Bank
Course Introduction
Accounting and Business Law explores the fundamental principles of financial accounting and introduces legal concepts relevant to the business environment. Students will learn to analyze and interpret financial statements, understand the regulatory framework governing financial reporting, and apply ethical considerations in accounting practices. The course also covers key topics in business law such as contract formation, agency, business organizations, and commercial transactions, providing a comprehensive understanding of how legal and accounting issues intersect in the modern business world.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by Richard A. Yates
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16 Chapters
2535 Verified Questions
2535 Flashcards
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Chapter 1: Managing Your Legal Affairs
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127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/28018
Sample Questions
Q1) What term can be used to describe someone who understands the role of a lawyer, when and how to retain one, and how to manage the lawyer-client relationship?
Answer: A sophisticated client.
Q2) Duty counsel are
A) lawyers who assist individuals in court who are not represented by a lawyer.
B) non-lawyers who provide advice to those in financial need.
C) legal assistants who offer legal services at rates significantly lower than those charged by lawyers.
D) retired lawyers and judges who volunteer through legal aid societies.
E) law students who are fulfilling requirements established by a provincial law society.
Answer: A
Q3) What are the six core values identified by the Josephson Institute for Ethics?
Answer: The six core values are trustworthiness, respect, responsibility, fairness, caring, and citizenship.
Q4) It is always wise to retain legal counsel when you are facing criminal charges.
A)True
B)False
Answer: True
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Chapter 2: Introduction to the Legal System
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159 Verified Questions
159 Flashcards
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Sample Questions
Q1) Both the federal and the provincial governments have set up special ________ authorized to hear complaints of human rights violations, to investigate, and, where appropriate, to impose significant sanctions and remedies.
A) statutes
B) human rights tribunals
C) constitutional tribunals
D) legislation
E) language rights tribunals
Answer: B
Q2) Explain why the law of equity developed.
Answer: Because of the inequity and harshness of the common law, people petitioned the king for relief. The king appointed the chancellor and eventually the chancellery courts to overcome the inflexibility and harshness of the common law rules. The body of law that developed was equity, and so it can be said that equity developed to supplement the common law because of the inadequacy and rigidity of the common law.
Q3) Subordinate legislation includes regulations and municipal bylaws.
A)True
B)False
Answer: True
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Chapter 3: The Resolution of Disputes: the Courts and Alternatives to Litigation
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221 Verified Questions
221 Flashcards
Source URL: https://quizplus.com/quiz/28027
Sample Questions
Q1) When one person is suing another in a civil matter, the judge must be satisfied about the outcome on the balance of probabilities.
A)True
B)False
Answer: True
Q2) Mediation is a concept developed in the past decade.
A)True
B)False
Answer: False
Q3) Legal concessions made "without prejudice" during negotiations will not hurt the parties if litigation proceeds.
A)True
B)False
Answer: True
Q4) What are the two main things to look for when determining whether the decision of a government bureaucrat can be challenged?
Answer: Did the bureaucrat act within her authority? Was the conduct of the decision maker and the conduct of the process proper?
Page 5
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Chapter 4: Intentional Torts and Torts Impacting Business
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149 Verified Questions
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Sample Questions
Q1) When someone intentionally scratches your car, for what can you sue?
Q2) When a person throws a hammer at another and that person ducks, this is an example of an assault.
A)True
B)False
Q3) If someone sells imitation Seiko watches without permission, for what can she be sued by Seiko?
Q4) The tort of spoliation grants remedy where evidence has been destroyed.
A)True
B)False
Q5) Until recently, there was no tort of invasion of privacy in common law, but in at least one province, an American legal concept was imported and adopted as a privacy tort. This tort is known as
A) defamation.
B) invasion of privacy.
C) intrusion upon seclusion.
D) nuisance.
E) interference of privacy.
Q6) What elements must be established in order to sue another for False imprisonment?
Page 6
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Chapter 5: Negligence, Professional Liability, and Insurance
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) Often, a business suffering a loss from a fire will have insurance to cover the property damage, but there will be nothing to cover the revenue losses the business suffers during the period it is closed down for repairs. What form of insurance will cover the latter issue?
A) liability insurance
B) disability insurance
C) business interruption insurance
D) property insurance
E) professional liability insurance
Q2) Which one of the following explains the effect of a co-insurance clause?
A) A co-insurance clause provides for more than one person paying the premium.
B) A co-insurance clause provides for the insurance claim to be split between two or more beneficiaries.
C) A co-insurance clause provides for the insured to assume part of the responsibility for any loss.
D) A co-insurance clause provides for several different properties being insured under the same policy.
E) A co-insurance clause provides for the insurance company arranging their own insurance on a large policy.
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Page 7
Chapter 6: The Elements of a Contract: Consensus and Consideration
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) A contract with fixed terms prepared by a business is known as ________.
Q2) An ad in the morning paper read: "Brand new Spartan 6s smartphone $349. No payment until January. We make your first payment." This is an example of which of the following?
A) Invitation to treat
B) Offer
C) Gratuitous promise
D) Bilateral contract
E) Unilateral contract
Q3) The ad in the Real Estate Weekly read: "Best offer in Toronto! 3-bedroom home in the Annex for only $700,000!" This is an example of which of the following?
A) Invitation to treat
B) Legal offer
C) Gratuitous promise
D) Bilateral contract
E) Unilateral contract
Q4) Only the person or group to whom an offer is made can accept it.
A)True
B)False
8
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Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) What is the age of majority in your province?
Q2) Explain what is meant by "necessary."
Q3) In Royal Bank of Canada v. Holoboff, the Bank sued Holoboff, a minor, who had sold his client card and personal identification number (PIN) to a third party who defrauded the bank. What was the result?
A) Holoboff was found liable for the tort of conspiracy to commit fraud.
B) Holoboff was found liable for breach of contract, despite being a minor.
C) Holoboff was not liable for anything, as minors can never be liable.
D) Holoboff's parents were automatically liable for Holoboff's tort.
E) Holoboff's parents were automatically liable for Holoboff's breach of contract.
Q4) What is the effect if an agreement that is required to be in writing under the Statute of Frauds is not?
Q5) When a restriction is excessive and deemed to be an unreasonable restraint of trade, what is the usual result?
Q6) The first Statute of Frauds was enacted in the USA in the 20th century.
A)True
B)False
Q7) When will the court waive the requirement of writing?
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Chapter 8: Factors Affecting the Contractual Relationship
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182 Flashcards
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Sample Questions
Q1) A misrepresentation must be a False statement of fact unless it is a statement by an expert.
A)True
B)False
Q2) Distinguish between duress and undue influence.
Q3) Discuss the concept of an assignment, including an explanation of its significance in the modern business world.
Q4) Where the misrepresentation is innocent, explain the remedies available to the victim.
Q5) ________ attempts to return both parties to their original positions. The subject matter of the contract must be returned to the original owner, and any monies paid under the contract must also be returned.
A) Damages
B) Remedies
C) Recession
D) Compensation
E) Avoidance
Q6) Performance by another qualified person of the obligations under a contract is known as ________.
Page 10
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Chapter 9: The End of the Contractual Relationship
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Sample Questions
Q1) Explain what is meant by an anticipatory breach.
Q2) A condition subsequent is an example of a contract being ended by agreement. A)True
B)False
Q3) In Meditek Laboratory Services Ltd. v. Purolator Courier Ltd., a Purolator employee delivered equipment to the wrong address and then falsified documents. In a subsequent lawsuit, Purolator relied on an exemption clause that limited its liability "whether or not from negligence or gross negligence." What properly described the outcome in this case?
A) The falsification of documents was done by the employee, not the company itself, so Purolator could not be liable.
B) The falsification of documents was wilful, not negligent, so Purolator was not protected by this clause.
C) The exemption clause protected Purolator because of the principle of "freedom to contract."
D) The exemption clause was severed as being an illegal restraint of trade.
E) The exemption clause was not applied, because it was not evidenced in writing.
Q4) Explain how a contract can be discharged by agreement.
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Page 11
Chapter 10: Agency and Partnership
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211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/28019
Sample Questions
Q1) Discuss the principle of ratification. In your discussion, look at any injustice caused by its operation and limitations on its availability.
Q2) Usually, the name of the business must be registered for a sole proprietorship, and a licence to operate must be obtained from the appropriate level of government.
A)True
B)False
Q3) Although the sole proprietor's entire personal fortune is at risk, insurance may offset that risk.
A)True
B)False
Q4) Discuss how an agent's authority may be terminated, as well as the effect of such termination.
Q5) A principal whose identity is concealed from the third parties with whom the agent is dealing is known as ________.
Q6) Discuss the role of the Partnership Act as it relates to people carrying on joint business activities.
Q7) Explain how partnership can be brought to an end.
Q8) When one partner dies, what happens to the partnership?
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Chapter 11: Corporations
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) Distinguish between a bond and a share.
Q2) To what does "franchising" refer?
Q3) Discuss the advantages and disadvantages of incorporation as a method of carrying on business as compared to sole proprietorship and partnership.
Q4) Explain what is meant by a preferred share.
Q5) Legislative requirements for distributing corporations are found not only in the Business Corporations Act, but also in the securities legislation, the Securities Act.
A)True
B)False
Q6) What is meant by the term "prospectus"?
Q7) Joe is an environmental activist and he acquired shares in Big Forestry Ltd. (a forestry corporation), only for the purpose of undermining Big Forestry Ltd. by speaking against their practices at annual shareholders' meetings and getting access to confidential information. Joe spoke against Big Forestry Ltd. at every opportunity. Explain his legal obligations to the corporation under these circumstances.
Q8) Distinguish between a par-value share and a non-par-value share.
Q9) To whom does the director owe the duty to be careful?
Q10) How is incorporation effected in a registration jurisdiction?
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Chapter 12: Employment
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) An employer is vicariously liable for the torts committed on the job by employees and independent contractors.
A)True
B)False
Q2) What conditions must be met first before employees can go out on strike?
Q3) "Once a picket line is properly set up, no one can cross it." Explain the accuracy of this statement.
Q4) Which of the following is not an unfair labour practice?
A) A union representative threatens to have an employee beaten if he fails to join the union.
B) An employer threatens to have an employee fired if he joins a union.
C) An employee is required to join a union as a condition of employment.
D) An employer pays higher wages when he learns that a union is trying to organize his employees, with the intention of persuading the employees they don't need a union.
E) An employer threatens to start another business that is non-union and transfer all the work to that business.
Q5) How can you distinguish between an employee and an independent contractor.
Q6) Distinguish between arbitration and conciliation or mediation.
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Chapter 13: Intellectual Property
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) Joe wanted to start up a restaurant business. He did some research and found out McDonald's had not properly registered its trademark, the golden arches, in his particular area. Joe used a similar pair of arches over his restaurant and started business. Explain any danger he might face.
Q2) The Patent Office will conduct a search of patent records for you to determine that the invention is original and unique.
A)True
B)False
Q3) Give three examples of matters covered by copyright legislation.
Q4) What three important remedies does the Copyright Act now provide to copyright owners?
Q5) The mere possibility of confusion is sufficient to block a trademark application. A)True
B)False
Q6) Moral rights means that the creator has the right not to have the work changed in such a way as to diminish or degrade it.
A)True
B)False
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Chapter 14: Real and Personal Property and Protection of the Environment
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) What is meant by "relief against forfeiture"?
Q2) Leasehold estates are another way of describing landlord and tenant relationships. A)True B)False
Q3) If Sam buys the fee simple, which of the following is true with regard to his rights?
A) If fumes from the neighbouring processing plant kill his bushes and vegetables, he may be able to sue the neighbour for the tort of trespass.
B) The maxim "to whomsoever the soil belongs, he owns also to the sky" remains unchanged and is as valid today as ever.
C) If someone intrudes onto his property, the proper cause of action is to sue for the tort of public nuisance.
D) In law, he is entitled only to the surface of his property within the boundaries, and not to things attached to the land, such as fences and barns.
E) He would have the right to all below the surface except those things retained by the Crown in the original Crown grant.
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Page 16
Chapter 15: Priority of Creditors
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115 Verified Questions
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Sample Questions
Q1) Which of the following statements regarding the securing of debt is true?
A) The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation.
B) To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal.
C) In every province, there is now a requirement that a guarantor appear before a notary public.
D) Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor.
E) As guarantees are mere formalities, there is little point in getting legal advice prior to executing one.
Q2) Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.
Q3) Some debtors can submit a reorganization proposal to avoid bankruptcy.
A)True
B)False
Q4) Provide an example of legislation that gives the federal government priority over all other creditors, including secured creditors.
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Chapter 16: Sales and Consumer Protection
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28025
Sample Questions
Q1) Which of the following complaints would lead to a successful action under the Sale of Goods Act?
A) "I paid $1000 for government bonds, but you have sent me shares in a private company that I never heard of!"
B) "You are not going to honour our contract for the land?! I planned to build on that lot in the spring!"
C) "Waiter, there's a spider in my sandwich."
D) "I left the car here with orders to adjust the front lights; I did not order a tune-up!"
E) "I hired you to wait tables, not to stand around doing stand-up comedy routines."
Q2) To which one of the following contracts would the Sale of Goods Act apply?
A) A contract for a table where title to the table will not pass to the buyer until some future date
B) A contract for the assignment of a company's accounts receivable
C) A contract by which two computer programs were swapped for two others
D) A contract with a dentist to have a tooth filled
E) A contract for the purchase of a farm
Q3) Distinguish between conditions and warranties in a sale of goods contract.
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Page 18