Business Ethics and Law
Final Test Solutions
Course Introduction
Business Ethics and Law explores the principles and frameworks guiding ethical decision-making and legal compliance in the business world. This course examines the intersection of moral values, corporate social responsibility, and legal requirements that organizations must navigate in a dynamic global marketplace. Students will analyze real-world cases and ethical dilemmas, learning to identify issues, weigh stakeholder interests, and apply relevant legal concepts. Through critical discussion and applied learning, the course equips students with the skills to foster ethical cultures, manage legal risks, and make informed decisions that balance profitability with integrity and social responsibility.
Recommended Textbook
Legal Fundamentals for Canadian Business 3rd Edition by Richard A. Yates
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10 Chapters
1473 Verified Questions
1473 Flashcards
Source URL: https://quizplus.com/study-set/2169 Page 2
Chapter 1: The Canadian Legal System
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139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/43267
Sample Questions
Q1) Discuss why it is important for business people to become familiar with the human rights legislation in force in their province.
Answer: While the legislation may vary by province, all provinces have human rights laws and strong enforcement bodies.These bodies have the power to hear complaints, gather information, hold hearings, and provide remedies.A business person is more likely to have dealings with provincial human rights bodies than with the Charter or other constitutional matters and should become well acquainted with their requirements and processes to avoid any practices that can give rise to complaints.It is critical that employees be trained properly on these laws to eliminate the risk of human rights violations.
Q2) The body of law developed by the Court of Chancery is called ________. Answer: Equity
Q3) The law of equity was developed in the Court of Chancery. A)True
B)False
Answer: True
Q4) Indicate what kind of fundamental freedoms are protected under the Charter. Answer: Freedoms of speech, religion, the press, and association
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Page 3
Chapter 2: Torts and Professional Liability
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143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/43268
Sample Questions
Q1) If a director on the board of ABC Corp.has shares in Company XYZ and the directors of ABC Corp.are considering the acquisition of Company XYZ, that director must disclose his interest; he is still permitted to participate in discussions that influence the decision, but he may not vote on the decision.
A)True
B)False
Answer: False
Q2) Discuss the requirement to mitigate damages in a negligence action.
Answer: The requirement to mitigate means the plaintiff must take all reasonable steps to keep damages as low as possible.If he or she fails to do this, the damages will be reduced to the amount he or she would have received had he or she properly mitigated.
Q3) A person has to prove only that another caused his or her injury to succeed in a negligence action.
A)True
B)False
Answer: False
Q4) When someone intentionally scratches your car, for what can you sue?
Answer: Trespass to chattels
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Page 4
Chapter 3: Formation of Contracts
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167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/43269
Sample Questions
Q1) All of the essential terms of a contract except for consideration must be clearly specified.
A)True
B)False
Answer: False
Q2) Why is an understanding of contract law important for a business person?
Answer: Most commercial transactions have contracts at their base.
Q3) Joe offered to sell Harry his car and agreed to hold the offer open for one week, expiring Saturday at noon.The following Sunday, Harry phoned Joe to tell him that he had decided to accept the offer and purchase Joe's car.Joe said at that time that he had decided to keep the car and was just about to phone Harry to revoke the offer.Harry said, "Too bad," and demanded performance of the contract.Explain the legal responsibilities of the parties.
Answer: There is no contract.The offer expired at the end of a specified time (Saturday at noon) before there was an attempt to accept it.
Q4) Only the person or group to whom an offer is made can accept it.
A)True
B)False
Answer: True
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Chapter 4: Enforcing Contractual Obligations
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177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/43270
Sample Questions
Q1) Privity of contract is a principle that holds that a contract can affect only the immediate parties to it.
A)True
B)False
Q2) What is rescission?
Q3) Discuss the development and importance of the principle of unconscionable contracts.In your answer, compare unconscionability to insanity, duress, and undue influence.
Q4) The facts of a case heard by the Supreme Court of Canada are as follows: Mr.and Mrs.H were induced to sign a mortgage in favour of M.C.R.Ltd.by Johnston, a man living with their daughter.Johnston led them to believe that the document was an unimportant amendment to an existing mortgage when, in reality, it was a substantial second mortgage on their home.Neither read the document nor questioned it.When the payments were in arrears, the mortgage company took an action for foreclosure (to take the home).Mr.and Mrs.H.pleaded non est factum.Would this defence succeed? If so, why; if not, why not?
Q5) When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder, what risk does he take?
Q6) What is the significance of an assignment qualifying as a statutory assignment?
Page 6
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Chapter 5: Legislation in the Marketplace
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Real and personal property can be used to secure a loan.
A)True
B)False
Q2) Identify which of the following statements is true about secured transactions in provinces having a personal property security act.
A)Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes.
B)All kinds of security arrangements involving personal property as collateral now come under one statute.
C)An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved.
D)This kind of transaction, which formerly was legal, is now prohibited by law in all provinces.
E)Only tangible personal property can be used as security.
Q3) The Federal Competition Act refers to predatory pricing as "abuse of dominant position."
A)True
B)False
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7
Chapter 6: Agency and Employment
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158 Verified Questions
158 Flashcards
Source URL: https://quizplus.com/quiz/43272
Sample Questions
Q1) Joe had worked for Sam's Manufacturing Company for 10 years when Sam told him one day that, because Sam had lost a major contract, he had no work for Joe to do and Joe was fired as of that time.Explain Joe's legal position.
Q2) The process by which a particular union achieves the status of bargaining agent for a group of employees is called:
A)Certification
B)Binding arbitration
C)Arbitration
D)Conciliation
E)Job action
Q3) Only employers are responsible for torts committed by their employees during the course of the employment.
A)True
B)False
Q4) What is the significance of determining that an employment relationship exists, aside from the statutory significance, employment insurance benefits, workers' compensation benefits, etc.?
Q5) Distinguish between an agent and an employee.
Q6) Distinguish between a strike and a lockout.
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Chapter 7: Methods of Carrying on Business
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174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/43273
Sample Questions
Q1) Joe, Sam, and Harry set up an accounting partnership in a small town.To earn money on the side, Harry did some accounting for friends at night, for which he received a fee.When Joe and Sam found out about this, they demanded that the fees received be paid into the partnership business.Explain Harry's legal position.
Q2) Which of the following might be a successful claim (i.e., defence) if a director is charged personally for violation of environmental regulations, resulting in pollution?
A)He did not participate in the decision leading to the offence.
B)He had delegated decision authority to someone else.
C)He had exercised due diligence.
D)He was not aware of the regulations.
E)He was not present at the meeting when the decision was made.
Q3) To whom does the director owe the duty to be careful?
Q4) What is the significance of a corporation being classed as a separate legal entity?
Q5) Explain what is meant by a preferred share.
Q6) The Partnership Act provides that no major decisions can be made that affect the nature of the business itself without unanimous agreement of the partners.Provide three examples of major decisions.
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Page 9
Chapter 8: Property
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160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/43274
Sample Questions
Q1) The only person who has a better claim to goods that are found is the original owner.
A)True
B)False
Q2) Which of the following describes involuntary bailment?
A)Someone is forced to provide bail.
B)The bailor sells the goods to compensate for storage costs.
C)Goods have been left without permission.
D)The borrower refuses to return goods.
E)The bailee refuses to claim the stored goods.
Q3) In a second or third mortgage, it is the right to redeem that is mortgaged or transferred as security.
A)True
B)False
Q4) Who is responsible for the repair of the premises in a normal rental agreement?
Q5) Explain what is meant by bonding.
Q6) Some businesses may be subject to both federal and provincial regulations.
A)True
B)False
Q7) Explain what is used as security in a mortgage transaction.
Page 10
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Chapter 9: Ideas and Information
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/43275
Sample Questions
Q1) Give three examples of matters covered by copyright legislation.
Q2) Under the Trademarks Act, an application can be made for a proposed trademark where the mark has not yet been used and is not known to the public but will be used sometime in the future.
A)True
B)False
Q3) The federal government's Personal Information Protection and Electronic Documents Act (PIPEDA) applies in all provinces except where legislation that provides for equivalent protection has been passed by the province.
A)True
B)False
Q4) Identity theft refers to someone accessing some basic information such as a driver's licence, and then using that to obtain a new credit card in the name of the victim.
A)True
B)False
Q5) How long is the protection given under the Copyright Act?
Q6) Canada's Copyright Act is likely to be amended under Bill C-11.What are the key changes expected with this legislation?
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Chapter 10: Electronic Commerce and International Trade
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119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/43276
Sample Questions
Q1) Canadian courts may decline jurisdiction if the court can be convinced that it would be more reasonable for some other jurisdiction to deal with the matter, especially where an action has already been started in that other jurisdiction.
A)True
B)False
Q2) Which of the following provided rules to guide international bodies handling arbitrations?
A)The International Chamber of Commerce
B)The United Nations Commission on International Trade Law
C)The National Arbitration Forum
D)The International Commercial Centre Arbitration
E)The American Arbitration Association
Q3) When a foreign judgment is obtained against a Canadian business, the business is often protected by Canadian laws that rarely allow enforcement of such judgments.
A)True
B)False
Q4) Discuss the validity of online transactions, and the related issues that arise in transacting business over the internet.
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