Business and the Law Practice Exam
Course Introduction
This course explores the fundamental legal principles and frameworks that shape and govern business operations. Students will examine areas such as contract law, torts, agency, business organizations, employment law, and the regulatory environment affecting commerce at both national and international levels. Emphasis is placed on understanding how legal considerations influence managerial decision-making and the strategies businesses employ to navigate potential legal challenges. Through case studies and real-world applications, students will gain practical insight into risk management and the ethical responsibilities of businesses within a legal context.
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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Page 2
Chapter 1: Managing Your Legal Affairs
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/47231
Sample Questions
Q1) Which of the following statements best describes solicitor-client privilege?
A) The lawyer makes the legal decisions for the client.
B) The lawyer is the only expert a client should consult.
C) The lawyer must follow the client's instructions, even if they are illegal in nature.
D) Refers to the duty of the lawyer to keep the information provided by the client confidential.
E) The lawyer makes decisions regarding civil matters; the client makes decisions regarding criminal matters.
Answer: D
Q2) Why should a business owner not assume that legal aid will be available to him or her?
Answer: A business owner is usually not able to receive legal aid with respect to the legal issues involving the business,due to both substantive and financial eligibility requirements.
Q3) What are disbursements and what do they generally include?
Answer: Disbursements are out-of-pocket costs incurred by the lawyer on the client's behalf.They typically include court filing fees,long distance telephone charges,courier charges,expert fees,and photocopying costs.
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Chapter 2: Introduction to the Legal System
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) Protection against sexual harassment exists because sexual harassment is regarded as a form of ___________ on the basis of gender.
A) prohibition
B) abuses
C) discrimination
D) human rights
E) fundamental freedom
Answer: C
Q2) What kind of legal rights are protected under the Charter?
Answer: The rights to life,liberty,and security of person and not to be deprived thereof,except in accordance with the principles of fundamental justice; the right to be free from any unreasonable search and seizures; the right to be free of arbitrary imprisonment; the right to be informed about why we are arrested; the right to retain counsel; the right to be tried within a reasonable time; the presumption of innocence; the right not to be tried twice for the same offence; the right not to be subjected to any cruel and unusual punishment.
Q3) The law of equity was developed by ________.
Answer: the Courts of Chancery
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4
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) Which of the following involves a question of law rather than a question of fact?
A) James was accused of fighting and causing injury to Joe, but James claims that Joe was the aggressor.
B) James and Joe were in an automobile accident, and Joe claims that James was speeding.
C) James and Joe were in a fight where Joe claims he was justified in hitting James because James yelled at him and called him nasty names.
D) James owed Joe money, and Joe claimed he had paid it back two years ago.
E) James claimed that Joe called him nasty names and sued for slander. Joe says that he did make some negative statements, but that they were all true.
Answer: C
Q2) What does a successful negotiation require?
Answer: Negotiation requires an understanding of the issues and a willingness to cooperate and compromise.
Q3) How many judges are involved at the Supreme Court of Canada level?
Answer: There are nine.
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Page 5
Chapter 4: Intentional Torts and Torts Impacting Business
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Explain any limitation on the principle of vicarious liability in the employment context.
Q2) An exotic dancer,Jasmine,jumped from the stage onto the lap of a patron.The chair broke,and in the fall,a disc in the plaintiff's back was broken.Jasmine maintained that she would jump on the lap of a patron only if he indicated he wanted her to do so and offered a tip.Which of the following is incorrect with respect to the legal position of the parties?
A) The patron would sue not only Jasmine for negligence but the employer as well for vicarious liability.
B) Jasmine's best defence would be that the patron voluntarily assumed the risk.
C) The patron would bring an action relying on the Occupiers' Liability Act.
D) The employer would not be liable since Jasmine was on a "frolic of her own."
E) Jasmine owes a duty of care to patrons, as they are foreseeable victims.
Q3) You cannot trespass in a public mall.
A)True
B)False
Q4) In order to sue for trespass to land,what two elements must be established?
Q5) Discuss the particular legal issues that can arise through the use of the internet.
Q6) Name two examples of federal privacy legislation.
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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) The forfeiture rule will not allow a criminal to profit from a crime,but does not affect those claiming through the criminal's estate.
A)True
B)False
Q2) In Hall v.Hebert,an individual was severely injured when he allowed his intoxicated friend to drive his car.The Supreme Court of Canada had to deal with whether volenti non fit injuria would apply.What did the Court hold?
A) The plaintiff assumed neither the physical risk nor the legal risk in the circumstances. B) The plaintiff assumed only the legal risk, but this is all that is required for volenti non fit injuria to apply.
C) The plaintiff assumed only the physical risk, but this is all that is required for volenti non fit injuria to apply.
D) The plaintiff assumed the physical risk, but there was no indication he had assumed the legal risk as well.
E) The plaintiff assumed the legal risk, but there was no indication he had assumed the physical risk as well.
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Chapter 6: The Elements of a Contractconsensus and Consideration
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) A letter of revocation takes effect when received by the offeree.
A)True
B)False
Q2) Distinguish between a bilateral and a unilateral contract.
Q3) Harry saw Joe in his classic Buick at a local drive-in restaurant,and told Joe that he'd like to buy it.He offered him $1500.Joe said he had to think about it and that he'd let Harry know.Two days later,Joe decided that he needed the money and couldn't afford to keep the car.He wrote Harry a letter accepting his offer and mailed it that afternoon.The next day,Harry phoned telling Joe he'd changed his mind and that he needed the money for something else.Joe told him about the letter,and in fact Harry received the letter that day after the telephone conversation in which he attempted to revoke the offer.Joe insisted on going through with the deal.Explain the legal liability of the parties.
Q4) "For a contract to be binding,both parties must have a clear understanding of all the terms of that agreement." Discuss the accuracy of that statement.
Q5) A formal contract is one that is signed and sealed.
A)True
B)False
Q6) What is a subject to clause?
Page 8
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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) A person who has voluntarily become intoxicated by drugs or alcohol cannot escape a contract on the basis of his incapacity.
A)True
B)False
Q2) Legislation is now in place in several jurisdictions to give digital records and electronic signatures the status of written documents.
A)True
B)False
Q3) Which of the following types of contracts would not be considered illegal?
A) contracts that reasonably restrain trade
B) contracts to commit a tort
C) contracts preventing someone from marrying
D) contracts that obstruct justice
E) contracts that promote litigation
Q4) Explain what is meant by "necessary."
Q5) Once infants become adults,they are liable for any contract they made while they were infants.
A)True
B)False
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Chapter 8: Factors Affecting the Contractual Relationship
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) The law attempts to help persons who may feel forced to enter contracts.Which of the following is false with regard to the law of undue influence,duress,etc.?
A) An unconscionable transaction is one in which one party has been seriously taken advantage of, and the courts, in their equitable jurisdiction, can set such a contract aside.
B) If a contract favours the stronger party in a relationship (e.g., if a lawyer bought property from a client at far below the market value), the court would presume undue influence, i.e., that the stronger party abused his dominant position.
C) If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back.
D) A contract entered into because of a threat of violence is voidable at the option of the victim.
E) Independent legal advice given to a person who wants to give a gift to a dominant person (e.g., his doctor) is good evidence to rebut a presumption of undue influence.
Q2) In what way is a trust an exception to the privity rule?
Q3) What is a trust?
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10
Chapter 9: The End of the Contractual Relationship
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173 Verified Questions
173 Flashcards
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Sample Questions
Q1) Mikael recently started a home-based business selling custom fishing lures.He decided that he could make a lot more money selling his homemade lures on the internet.Mikael is not the least bit technologically inclined,but he knows that his next-door neighbour,Perm,does web design on the side.He decides to hire her to create a website for his new venture.Perm has him sign an agreement that includes an exemption clause that limits her liability in cases of negligence.In the course of designing the website,Perm becomes annoyed at Mikael because his dog keeps digging up her rose bushes.Rather than confront Mikael directly,Perm deliberately puts the wrong pricing information on Mikael's website to get him back.If Mikael suffered damages as a result and wanted to sue Perm,what would the likely result be?
A) The exemption clause would protect Perm because of the principle of "freedom to contract."
B) The exemption clause would be severed as being an illegal restraint of trade.
C) Perm's actions were outside the scope of the contract, so Mikael would have no claim in law.
D) Perm only did freelance web design; as a non-professional she would not face liability.
E) Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause.
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Page 11
Chapter 10: Employment
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) The only kind of disagreement between union and employer that can lead to a lawful strike is called
A) interest dispute.
B) rights dispute.
C) certification.
D) jurisdictional dispute.
E) conciliation procedure.
Q2) Which of the following is a false statement about the employer-employee relationship?
A) The critical factor in this relationship is control; the employer tells the employee not only what to do but also how to do it.
B) An employee for a company could also be an agent for the company.
C) One responsibility of an employer is to provide the employee with a safe working place.
D) An employee sometimes owes a fiduciary duty to his or her employer.
E) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.
Q3) To what does the term "grievance process" refer?
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Page 12
Chapter 11: Agency and Partnership
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219 Verified Questions
219 Flashcards
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Sample Questions
Q1) In which one of the following situations is the principal not responsible for the conduct of the agent?
A) When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an independent agent.
B) When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an employee of Ace.
C) In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an employee of Ace.
D) In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an independent agent.
E) When driving the employer's car to sell vacuums to a customer, Joe hit a pedestrian. Joe was an employee.
Q2) Explain how the authority of an agent may be terminated.
Q3) Distinguish between the actual and the apparent authority of an agent.
Q4) To what does the term "estoppel" refer?
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13
Chapter 12: Corporations
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) What are "preferred shares"?
Q2) Which one of the following is an example of breach of fiduciary duty?
A) The directors of the corporation refuse to give a pay raise to the employees although they had not received a pay raise for five years.
B) A director profited $120 000 from a contract between the corporation and a firm in which he had an interest after he made full disclosure of his interest to the board of directors and abstained from the vote on the contract.
C) An officer of the corporation learned of a business opportunity intended for the corporation and intercepted it for his own benefit.
D) The directors refused to declare a dividend, contrary to the request by its preferred shareholders.
E) A shareholder owning 2 percent of the outstanding shares started a business in direct competition with the corporation in which he held shares.
Q3) In jurisdictions in which the registration system of incorporation is used,what are the rules governing the internal regulations of a company called?
Q4) Distinguish between a bond and a share.
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Page 14
Chapter 13: Real, Personal, and Intellectual Property
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238 Verified Questions
238 Flashcards
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Sample Questions
Q1) When a landlord seizes the tenant's property for failure to pay rent,this is called what?
Q2) Jurg was hosting a luncheon when his punchbowl broke.He went next door and asked his neighbour,Ethan,if he could borrow his.Ethan reluctantly agreed,commenting that the punchbowl was a family heirloom.This made Jurg a little nervous.On his way back home,he was wondering what his responsibility would be in relation to the bowl.Which one of the following statements is true?
A) Because this is a gratuitous bailment for Jurg's benefit, Jurg must be reasonably careful that no harm or damage comes to the punchbowl.
B) Because this is a gratuitous bailment, Jurg has no legal obligation in relation to the punchbowl.
C) Because Jurg borrowed the punchbowl, he must return it in the same condition and is liable for any damage howsoever caused.
D) Because Ethan lent the punchbowl to him reluctantly, the rules of an involuntary bailment apply.
E) Because the punchbowl is valuable, the rules of a bailment for value will be enforced.
Q3) What three new remedies does the Copyright Act now provide to copyright owners?
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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) Tracey is concerned that her emails may be read by third parties and that her internet surfing is being tracked by businesses hoping to use the information to inundate her with unsolicited email advertising.She is also convinced that embedded software devices on her computer give others the ability to access her private information.Her friends think she is just being paranoid.Which of the following is true in respect of privacy on the internet?
A) Although privacy laws are being enacted as precautionary measures, voluntary protection of privacy has proven overwhelmingly successful.
B) Unauthorized interception of communications between individuals is now a criminal offence in Canada.
C) While unencrypted data is susceptible to unauthorized access, encryption of information communicated online provides a guarantee of security.
D) Now that privacy rights are legally protected, internet users should feel secure in giving out private information online.
E) Every Canadian province is governed by the provisions of the federal Personal Information Protection and Electronic Documents Act.
Q2) Identify the factors that courts look to when dealing to determine jurisdiction.
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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) Which of the following statements is correct with respect to the Sale of Goods Act?
A) The parties are restricted to contract out of any of the terms of the Sale of Goods Act.
B) Some of the terms of the Sale of Goods Act are implied in the contract of sale.
C) The terms included in the Sale of Goods Act override the terms agreed upon by the parties to such a sale of goods.
D) The Sale of Goods Act does apply to the sale of land.
E) The Sale of Goods Act does apply to the assignment of a contractual claim.
Q2) Privity of contract does not apply to consumer transactions.
A)True
B)False
Q3) What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.
Q4) Discuss the consumer protection legislation in place in your province in terms of its effectiveness and purpose.
Q5) Explain the importance of the provisions of the Sale of Goods Act relating to fitness and quality of the goods.
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Chapter 16: Priority of Creditors
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) Which of the following describes the Bankruptcy and Insolvency Act?
A) Determines process by which debtors convey their assets to a trustee in bankruptcy who distributes them to the creditors.
B) Provides alternative to criminal charges.
C) Allow persons with impossible burdens of debt to discharge all of their debts.
D) Protects the interests of debtors.
E) Helps incorporated companies after discharge to carry on without the same burden of debt
Q2) Distinguish between receivership and bankruptcy where corporations are concerned.
Q3) Explain how a bill of sale can be used as a security.
Q4) Owen had borrowed money from a credit union to purchase a car,and the credit union had required a security against the car,which they registered under the Personal Property Security Act.As well,Owen's father guaranteed the loan.Some months later,Owen decided to go back to school,and he had to sell the car to do so.He returned to the credit union and,at his request,the credit union gave up the security they had against the vehicle,knowing that they still had the loan guaranteed by Owen's father.Explain the wisdom of this move.
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Page 18