Business Administration and the Legal Environment Exam Preparation Guide

Course Introduction

This course explores the intersection of business operations and the legal environment in which organizations operate. Students will examine the fundamental principles of business law, including contracts, agency, torts, property, and the regulatory framework affecting businesses. Emphasis is placed on understanding how laws and regulations impact managerial decision making, risk management, and ethical conduct in business. Through case studies and real-world examples, students will develop analytical skills to identify legal issues, assess risks, and apply legal reasoning to solve business problems, preparing them for responsible leadership in todays dynamic legal landscape.

Recommended Textbook Business Law in Canada 10th Canadian Edition by Richard A. Yates

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16 Chapters

2735 Verified Questions

2735 Flashcards

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Chapter 1: Managing Your Legal Affairs

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136 Verified Questions

136 Flashcards

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Sample Questions

Q1) Fee mediation

A) is compulsory whenever a client raises a concern about a lawyer's bill. B) is offered by every provincial law society as the primary means of dispute resolution for complaints regarding lawyers' fees.

C) involves a review of a lawyer's bill by a court official.

D) involves a judge who determines whether or not a lawyer's bill is reasonable. E) involves a neutral mediator who tries to facilitate a mutually acceptable resolution of a dispute over fees charged by a lawyer.

Answer: E

Q2) A retainer

A) works to secure the release of an arrested person.

B) is the costs incurred by a lawyer on a client's behalf.

C) is the amount a lawyer will receive when charging based on a contingency fee agreement.

D) works as a deposit.

E) is the amount a client must pay that is in addition to regular legal fees and disbursements.

Answer: D

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Chapter 2: Introduction to the Legal System

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Sample Questions

Q1) The custom of following already decided cases is called

A) stare decisis.

B) civil law system.

C) common law.

D) res judicata.

E) ultra vires.

Answer: A

Q2) There are no limitations to the right of freedom of expression.

A)True

B)False

Answer: False

Q3) What is the significance of the Constitution Act,1867?

Answer: It created the Dominion of Canada and,for our purposes today,it divides powers between the federal and provincial governments.

Q4) The body of rules developed by the court of common pleas,court of king's bench,and exchequer court became known as ________.

Answer: the common law

Q5) Indicate the three courts that together made up the common law courts.

Answer: court of common pleas,court of king's bench,exchequer court

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Chapter 3: The Resolution of Disputesthe Courts and Alternatives to Litigation

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220 Verified Questions

220 Flashcards

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Sample Questions

Q1) When a government administrator refuses to make a decision that she is required to make by statute,which of the following remedies is the appropriate one to obtain from the courts?

A) mandamus

B) certiorari

C) declaratory judgment

D) prohibition

E) injunction

Answer: A

Q2) Describe the process of obtaining judicial review,including the historical prerogative writs.

Answer: Historically,judicial review involved obtaining a prerogative writ from the court.The three main ones are the writs of certiorari (an order declaring that the decision of a tribunal is void),prohibition (ordering a tribunal not to proceed),and mandamus (ordering a tribunal to make a decision).In addition,the courts could make a declaratory judgment (declaring the law),and providing such remedies as damages or an injunction to enforce that declaration.Today,many provinces have simplified this procedure by statute.In any case,remedies provided by the court are discretionary.

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Chapter 4: Intentional Torts and Torts Impacting Business

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Sample Questions

Q1) It is possible for wrongful conduct to be both a tort and a crime.

A)True

B)False

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) The federal Privacy Act gives people the right to access their personal information held by government and government agencies and severely restricts how that information can be disseminated to others.

A)True

B)False

Q4) Define "defamation."

Q5) Explain what is meant by "vicarious liability" in the employment context.

Q6) When is a passing-off action appropriate?

Q7) A telephone used to harass people on the other side of the city,interfering with the enjoyment of their property can be seen as evidence of trespass to land.

A)True

B)False

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Chapter 5: Negligence, Professional Liability, and Insurance

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159 Verified Questions

159 Flashcards

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Sample Questions

Q1) To have the schools valued for insurance purposes,a school district hired a firm of surveyors to give them a statement of value.To prepare the report,the surveyors took the relevant measurements,which were then given to a statistical tabulating company that does the calculations based on the measurements.Surveyors always use the services of such tabulating companies.An error was made in the calculations,so the surveyor's report was wrong.Therefore,the buildings were under-insured.When one of the school buildings was destroyed by fire,the school district did not get sufficient funds from the insurance company to rebuild the school.On these facts,which of the following is true? (Assume that the school district has the ability to sue and be sued in court.)

A) This action would most likely be commenced in the small claims court.

B) The insurance company can successfully sue the statistical tabulating company for nuisance.

C) The school district can successfully sue the statistical tabulating company for negligent misstatement causing economic loss.

D) The school district could successfully sue the surveyors for nuisance, for subcontracting the calculating work.

E) The statistical tabulating company cannot be sued by the school district.

Q2) How is negligent misstatement treated in Canada today?

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Page 7

Chapter 6: The Elements of a Contractconsensus and Consideration

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171 Verified Questions

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Sample Questions

Q1) For the requirement of consideration to be satisfied,at least one of the parties must have performed what they promised.

A)True

B)False

Q2) Martin offered to buy the property for $200 000,"offer to remain open until 5:00 p.m.on Thursday,January 21,2011." Which one of the following situations will not cause the offer to end?

A) Insanity of the offeror before the offer is accepted

B) Martin sells the property to another party before the expiration of the period stipulated and before hearing from the offeree.

C) A counter-offer from the offeree

D) Death of offeror

E) The offeree has not accepted and the stipulated time has expired.

Q3) The requirement of consideration is satisfied if "some money" is promised in exchange for an act.

A)True

B)False

Q4) Distinguish between a bilateral and a unilateral contract.

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Q5) What are the ways in which an offer can come to an end prior to acceptance?

Chapter 7: The Elements of a Contract capacity, Legality, and Intention

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161 Verified Questions

161 Flashcards

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Sample Questions

Q1) "Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.

Q2) A requirement for the existence of an enforceable contract is that the parties have the legal capacity to contract.Which of the following is incorrect with respect to the law of incapacity?

A) If someone contracts with an insane person but there was no indication of mental illness, the contract can be binding.

B) A contract by an insane person for necessities, such as food, is binding.

C) The law governing contracts with persons intoxicated by alcohol or drugs is the same as the law governing contracts with the insane.

D) If a mentally impaired person cannot avoid a contract on the basis of insanity, the court could still set the contract aside for being an "unconscionable" transaction.

E) If you knew that you were negotiating a new lease, but that you weren't being as effective as you wanted to be because you had been drinking, you can have the resulting contract set aside.

Q3) Describe how infants are treated in contract law in Canada.

Q4) What is an executed contract?

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Chapter 8: Factors Affecting the Contractual Relationship

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Sample Questions

Q1) The remedy of rescission is not available if the parties cannot be returned to their original positions because the subject matter of the contract has been destroyed or damaged.

A)True

B)False

Q2) A victim of fraud cannot seek damages where rescission is not available.

A)True

B)False

Q3) When the courts find that undue influence is present,the resulting contract is

A) voidable.

B) void.

C) unenforceable.

D) binding.

E) illegal.

Q4) Discuss the concept of an assignment,including an explanation of its significance in the modern business world.

Q5) The doctrine of privity of contract is unique in that is has no exceptions. A)True

B)False

Q6) What is a negotiable instrument?

Page 10

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Chapter 9: The End of the Contractual Relationship

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Sample Questions

Q1) A condition subsequent is an example of a contract being ended by agreement.

A)True

B)False

Q2) What is the result of a breach of a significant term of a contract resulting in a major failure to perform?

Q3) The purpose of damages in contract law is to put the victim in the position he would have been in had the contract been properly performed.

A)True

B)False

Q4) Under what circumstances will a court order a mandatory injunction? Illustrate with a real-world example.

Q5) On the theory that all land is unique,the courts in the past have been willing to award ____________ whenever the parties to the purchase of land breached their contract.

A) damages

B) equitable remedies

C) quantum meruit

D) specific performance

E) an injunction

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Chapter 10: Employment

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164 Verified Questions

164 Flashcards

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Sample Questions

Q1) In RBC Dominion Securities Inc.v.Merrill Lynch,virtually all of the investment advisors at the RBC branch left without notice,and went to work for a competitor,Merrill Lynch.What did the Court determine?

A) Merrill Lynch and its manager were found jointly and severally liable, as the manager had induced the breach of the duty not to compete unfairly.

B) RBC was found liable for inducement of breach of contract.

C) Merrill Lynch and its manager were not liable, since no notice of termination was required.

D) RBC investment advisors were not in violation of their fiduciary duty to RBC, and were not required to provide notice of termination.

E) Fiduciary duties cannot arise in the context of a mere employment relationship.

Q2) Indicate what is meant by the following terms: union shop,closed shop,agency shop,check off,and maintenance of membership.

Q3) Explain how the Workers' Compensation Act modifies the common law position of injured workers.

Q4) What is the significance of a union becoming certified?

Q5) Give three example of unfair labour practices on the part of the employer.

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Page 12

Chapter 11: Agency and Partnership

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219 Flashcards

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Sample Questions

Q1) Despite its organizational simplicity,sole proprietorships must satisfy many federal,provincial,and municipal requirements to carry on business.List and describe three regulatory requirements.

Q2) A third party is bound to the principal only when he knows that agent is acting for that principal.

A)True

B)False

Q3) Reese Publishing Inc.hosts a golf tournament.In attendance are Jennifer Reese,the owner,director,and manager of Reese Publishing Inc.; her husband,Aaryn,a professional race-car driver and voracious reader who reads everything Reese Publishing Inc.publishes; her sales force,Laura,Catherine,and Keighla (each of whom signed deals that day); and Gena,the office manager,who is responsible for all of the company's office supply purchases.Which of these are agents?

A) only Laura, Catherine, Keighla, and Gena

B) only Laura, Catherine and Keighla

C) All of them are agents, except Aaryn.

D) All of them are agents.

E) None of them are agents.

Q4) What restrictions are there on a principal's right to ratify?

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Chapter 12: Corporations

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155 Flashcards

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Sample Questions

Q1) Shareholders do not owe a duty to the corporation.

A)True

B)False

Q2) It is common practice in Canada and the United States to put a value on the share,making it a par-value share.

A)True

B)False

Q3) A corporation does not die but may be dissolved.

A)True

B)False

Q4) Directors owe a fiduciary duty to the shareholders.

A)True

B)False

Q5) Who is the party responsible for ensuring that financial statements for an organization are properly done?

Q6) A corporation is a fiction that does not exist in reality.

A)True

B)False

Q7) Indicate three advantages to incorporation.

Page 14

Q8) Explain the power of a minority shareholder in decision-making situations.

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Chapter 13: Real, Personal, and Intellectual Property

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238 Verified Questions

238 Flashcards

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Sample Questions

Q1) A person who develops a new computer program can obtain copyright protection even though that program is only loaded onto the computer as software.

A)True

B)False

Q2) Which of the following is false with regard to copyright law in Canada?

A) A Canadian author automatically acquires copyright upon the creation of her book, if she wasn't employed to write it.

B) Copyright law is governed by the Copyright Act, but an author need not register under the statute to acquire copyright.

C) Generally, the term of copyright is the life of the author plus fifty years.

D) Registration of copyright is restricted to published works.

E) Not everyone can receive copyright protection in Canada for his work created elsewhere.

Q3) Indicate the extent of ownership above and below a piece of land.

Q4) Explain how the remedy of an accounting works when there has been a violation of copyright.

Q5) Discuss how the common law protects intellectual property.In your discussion,indicate why it was necessary to introduce statutes in some areas.

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Chapter 14: Information Technology and the Internet

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143 Verified Questions

143 Flashcards

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Sample Questions

Q1) You decide to register a domain name "Delicious_breads_R_us.com",although you neither own a bakery nor have any legitimate use for the domain name.Subsequently you receive a complaint alleging that you have registered the name in bad faith.The complainant does not hold a registered trademark in the name nor do they have a domain name registered,but they have used the business name "Breads R Us" for many years.Which of the following statements is true?

A) You have a real property right in the name.

B) You are a cybersquatter.

C) Your domain name dispute must be litigated in court.

D) You can claim good faith justification for your the use of your domain name.

E) The complainant does not have any legitimate claim on the domain name.

Q2) Alternative dispute resolution has been effective in settling certain types of internet disputes.

A)True

B)False

Q3) In assessing damages for defamation over the internet,the size of the audience is irrelevant.

A)True

B)False

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Page 16

Chapter 15: Sales and Consumer Protection

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157 Verified Questions

157 Flashcards

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Sample Questions

Q1) Distinguish between a cheque and a bill of exchange.

Q2) If Jones receives a promissory note from Smith,who passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

A)True

B)False

Q3) 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

Q4) Jones walked into Sam's TV shop and said,pointing to a particular television,"I'll take that one." They wrote up the deal,and Jones was to return the next day to pay for it and pick it up.Explain who bears the risk in the meantime.

Q5) Explain the rights conveyed in an "unpaid seller's lien."

Q6) Explain the relationship between risk and title and how they are dealt with in the Sale of Goods Act.

Page 17

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Chapter 16: Priority of Creditors

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Sample Questions

Q1) Distinguish between bankruptcy and insolvency.

Q2) Explain two methods for a debtor to become bankrupt.

Q3) With regard to negotiable instruments,which of the following is false?

A) A cheque is a bill of exchange drawn on a bank, payable on demand.

B) A cheque that has been certified cannot be countermanded by the drawer.

C) A negotiable instrument used to advance credit in a consumer transaction must be marked "consumer purchase."

D) Bills of exchange can be made payable for some future date.

E) A drawer of a cheque can refuse to pay any holder of it if the drawer can prove that the payee obtained the cheque by fraud.

Q4) A "confirmed letter of credit" is another name for a "standby letter of credit."

A)True

B)False

Q5) Where a debtor has defaulted and the creditor,under the Personal Property Security Act,repossesses and resells the goods,what is his obligation with respect to overages or underages?

Q6) Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).

Q7) How is the debtor rehabilitated under the bankruptcy legislation?

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