Business Ethics and Law
Question Bank
Course Introduction
Business Ethics and Law explores the ethical and legal responsibilities of businesses in contemporary society. The course examines foundational theories of ethics, the role of personal and organizational values, and frameworks for ethical decision-making in complex business scenarios. Students analyze cases related to corporate governance, stakeholder management, consumer protection, workplace diversity, environmental sustainability, and global business operations. Emphasis is placed on understanding the legal principles governing commercial transactions, employment law, regulatory compliance, and the interplay between ethical considerations and legal obligations. Through discussions and case studies, students develop practical skills for identifying and resolving ethical dilemmas while ensuring adherence to legal standards in business practice.
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
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Sample Questions
Q1) "The first thing we do,let's kill all the lawyers" is a popular quotation from William Shakespeare,the meaning of which is open to debate.
A)True
B)False
Answer: True
Q2) When searching online for legal information,it is best to
A) trust that if it is published online, it must be accurate.
B) never trust the information found on a website.
C) use American sources, as they tend to be more comprehensive than Canadian ones.
D) gauge the accuracy of the information by the look of the website.
E) seek advice from a lawyer when answers cannot be readily found.
Answer: E
Q3) It is always wise to retain legal counsel when you are facing criminal charges. A)True
B)False
Answer: True
Q4) For lawyers who are found guilty of misconduct,what penalties might they face?
Answer: a reprimand,fine,suspension,disbarment,costs of the hearing
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Page 3
Chapter 2: Introduction to the Legal System
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164 Flashcards
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Sample Questions
Q1) Which one of the following is a Charter right that the provinces could not override through the use of the notwithstanding clause (section 33 of the Charter)?
A) the right to move anywhere you want in canada
B) the right not to be subjected to any cruel or unusual punishment
C) the right to worship who, how, or what you wish
D) the right to not be discriminated against because you are black
E) the right to be told why you are being arrested
Answer: A
Q2) In Chatterjee.v.Ontario,the Supreme Court of Canada
A) unanimously upheld the provincial law, since the dominant feature related to "property and civil rights", a provincial matter.
B) concluded that the federal and provincial legislation were in conflict, with the result that paramountcy would apply.
C) held that only the provincial legislation was invalid.
D) held that only the federal legislation was invalid.
E) held that both the federal and provincial legislation were invalid.
Answer: A
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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) Explain under what circumstances the courts may be closed to the public and press.
Answer: The courts will only be closed to the public if the security of the country is at stake.Even with juveniles,the courts are open to the public,although there will likely be a ban on the publication of the identities of the parties.
Q2) Explain the effect of a limitation period set out in legislation.
Answer: This sets a time limit,from the time of the event complained of,within which an action must be started-for example,two years for an automobile accident.
Q3) The rules of evidence govern the type of testimony that can be obtained from witnesses and all other types of evidence to be submitted at trial.
A)True
B)False
Answer: True
Q4) Who are the parties to the appeal of a civil action?
Answer: appellant and respondent
Q5) Who prosecutes a criminal matter?
Answer: the Crown
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Chapter 4: Intentional Torts and Torts Impacting Business
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Interference with economic relations is actionable even where no breach of contract has taken place,but
A) there must be some other unlawful conduct associated with the complaint, such as bribery or defamation.
B) there must be some instance of negligence associated with the complaint, such as a product liability claim.
C) the conduct complained of must have been unintentional; otherwise the action will not succeed.
D) the conduct complained of must not have result in actual harm; otherwise the action will not succeed.
E) no damages can be awarded in such an action.
Q2) A civil court can assess only compensation and not punitive damages.
A)True
B)False
Q3) An act that breaches a contract is inherently wrong.
A)True
B)False
Q4) Explain under what circumstances the defence of fair comment can be lost.
Q5) Under what circumstances would one sue for nuisance?
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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) In Canada,under what circumstances will the owner of property be held strictly liable for her conduct?
Q2) Property insurance should correspond to the actual value of the property for all of the following reasons except
A) if the property is insured for more, the insured will pay too high a premium.
B) no insurance means no compensation for loss.
C) if the property is insured for less, the insured will only receive partial compensation.
D) if the property is insured for less, there is a danger of being a co-insurer.
E) if the property is insured for more, there will be no compensation for loss.
Q3) Explain what is meant by an "insurable interest" and how the existence of this principle impacts on the right to collect on an insurance claim.
Q4) Describe four different types of insurance that a businessperson might obtain in relationship to his business.
Q5) What is the test used for legal causation?
Q6) Explain how the courts determine whether a duty of care exists in a negligence action.
Q7) What is the reasonable person test?
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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) Which of the following is false with regard to contract law?
A) A counter-offer ends an offer.
B) A newspaper notice offering to pay a reward for the return of lost kittens is an invitation to treat.
C) An important criterion for determining the place of the contract is the place where the acceptance is effective.
D) An option is a contract in which one person is buying a period of time within which he may accept the offer contained within the option.
E) A revocation is effective only when received.
Q2) For the postbox rule to apply,the offer must be made by mail.
A)True
B)False
Q3) Distinguish between a bilateral and a unilateral contract.
Q4) An offer will end when the subject matter of the offer is sold to someone else.
A)True
B)False
Q5) Explain any limitations on the availability of promissory estoppel.
Page 8
Q6) Distinguish between an offer and an invitation.
Q7) A one-sided promise the courts will not enforce is known as ________.
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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) All commercial contracts must be evidenced by writing to be enforceable.
A)True
B)False
Q2) When a third party says,"I'll see that you get paid," there is an assumption of a primary obligation,and the promise is a(n)________.
A) indemnity
B) guarantee
C) contract
D) obligation
E) interest
Q3) Which of the following contracts is void?
A) a contract with an insane person for a T.V., where the insane person, or his legal representative, can prove that he was insane at the time of the contract but cannot prove anything else about the incident
B) a contract with an insane person for necessaries such as food and shelter
C) a contract containing an exculpatory clause limiting the liability of one of the parties
D) any contract with a status Indian
E) a contract to sell a crop of marijuana growing in a particular field
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Chapter 8: Factors Affecting the Contractual Relationship
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184 Verified Questions
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Sample Questions
Q1) In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?
A) Barry and Mary contracted for the sale and purchase of a boat for the price of $1200. When the contract was written up the price was incorrectly stated as $1700.
B) Two parties contracted for a shipload of fish, but unknown to both parties, at the time of the contract the ship had sunk and the fish had been lost.
C) Carson and Leno had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Leno.
D) Sarah bought three rolls of wallpaper, but found she had made a mistake; two would have been sufficient.
E) Although the seller said nothing to the buyer about the characteristics of the answering machine, the buyer bought it, thinking that it would tell him the date and time of the call. Later, he learned that it did not perform that function.
Q2) An assignee is in no better position than the original contractor.
A)True
B)False
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Page 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) Explain the principle of mitigation in contract law.
Q2) All rules of contract formation apply when parties agree to discharge a contract. A)True
B)False
Q3) What is a force majeure clause?
Q4) A breaching party is responsible for all lost profits flowing from a breach of contract. A)True
B)False
Q5) Indicate any limitations on the availability of specific performance and injunctions.
Q6) Explain the limitations on the ability to request and receive equitable remedies in breach of contract cases.
Q7) Explain what is meant by "quantum meruit."
Q8) A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.
A)True
B)False
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Chapter 10: Employment
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) In Dowling v.Ontario (Workplace Safety and Insurance Board),the Court had to determine whether the employee's dishonest conduct constituted just cause for termination.What did the Court find?
A) Summary dismissal was a proportionate response given the acts of misconduct and the context of the employee's position, which required honesty and impartiality.
B) Summary dismissal was unreasonable. Only the most egregious acts of dishonesty can ever amount to just cause.
C) Summary dismissal is never justified; reasonable notice is always required for reasons of public policy.
D) Summary dismissal is always appropriate for even minor acts of dishonesty, regardless of the circumstances.
E) Summary dismissal can be appropriate, but only in circumstances where the employee has demonstrated incompetence.
Q2) "Lawful picketing allows employees to block others from entering their employer's place of business." Explain the accuracy of that statement.
Q3) "Once a picket line is properly set up,no one can cross it." Explain the accuracy of this statement.
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Page 12
Chapter 11: Agency and Partnership
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219 Flashcards
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Sample Questions
Q1) List three duties that an agent has to the principal.
Q2) Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf.Which of the following is true?
A) If Joe acts outside his express authority and negotiates and signs the contract with Ken, Sam may not be a party to that contract.
B) If Joe acts outside his implied and express authority, Sam will owe him for his services.
C) If Joe acts within his apparent authority, but outside his express or implied authority, Sam will be bound by the contract, but may sue Joe for breach of his agency contract.
D) If Joe acts outside express, implied, and apparent authority, Sam is not bound by the contract, even if he ratifies the contract.
E) If Joe acts outside his express, implied, and apparent authority, he could be sued by Sam, but not by Ken, because he has no contractual relationship with Ken.
Q3) If a person wants to invest in a partnership but avoid the obligations associated with partnership,what can she do?
Q4) Explain how a person's status as a limited partner could be lost.
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Chapter 12: Corporations
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155 Flashcards
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Sample Questions
Q1) Which of the following situations would allow a shareholder of a closely held corporation,with permission of the court,to sue on behalf of the corporation?
A) If four of the five directors, in the best interests of the corporation, voted against the fifth director, voted to end the employment contract of the fifth director, and voted not to buy his shares.
B) If the corporation had been wronged by the negligent and fraudulent acts of one of its directors, but the corporation refused to take any action against the wrongdoer.
C) If the shareholders refused to enter into a shareholder's agreement.
D) If the directors refused to declare a dividend.
E) If the directors solicited proxies from all of the shareholders.
Q2) To what does "franchising" refer?
Q3) Contrast the obligations and duties of directors and shareholders of a corporation.
Q4) Explain the concept of a promoter.
Q5) If dividends are not paid,preferred shares usually convert to voting shares.
A)True
B)False
Q6) Explain the power of a minority shareholder in decision-making situations.
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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) What is a tenancy at sufferance?
Q2) In order to obtain an interlocutory injunction,what must the plaintiff establish?
Q3) What is meant by a "reversionary interest" in a life estate?
Q4) Which one the following is true with regard to real-property law?
A) Property includes only the land and not the buildings attached to it.
B) The "leasehold estate" interest in land is the greatest interest that can be granted and bestows the rights to use or sell the property.
C) If two people own land as tenants in common, the surviving joint owner takes the interest of the deceased co-owner.
D) A legal, registered restrictive covenant "runs with the land"; i.e., it can bind subsequent owners who were not parties to the original contract under which it arose.
E) A person who owns an interest less than an estate (e.g., a right of way) has a right to exclusive possession of that property.
Q5) Distinguish between a tenancy in common and a joint tenancy.
Q6) Explain how the remedy of an accounting works when there has been a violation of copyright.
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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) Which of the following is true with respect to the application of intellectual property law to the internet?
A) Copyright law provides the owner of electronic material with the legal right to prevent unauthorized copying, but does not give the owner any exclusive rights to rent it or otherwise control its use.
B) Because of the "wild west" nature of the internet, websites have typically been exempt from traditional trademark and copyright laws.
C) In Canada, the design of an integrated circuit embodied in a computer chip is protected by a specific statute created for that purpose.
D) If a user accesses a website on which a trademark appears, an actionable infringement has taken place.
E) The Napster trial and other high-profile cases have shown the courts remain powerless to stop abuse of intellectual property rights on the internet.
Q2) The registration of a domain name and use on the internet is one way to get around trademark law.
A)True
B)False
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Page 16
Chapter 15: Sales and Consumer Protection
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157 Flashcards
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Sample Questions
Q1) The purpose of the federal Competition Act is to prevent competition among retailers.
A)True
B)False
Q2) Every Canadian jurisdiction has now enacted an international sale of goods act.
A)True
B)False
Q3) A cheque made payable "after the building is completed" can qualify as a negotiable instrument.
A)True
B)False
Q4) Discuss the different types of negotiable instruments and indicate the significance of them being classified as negotiable.
Q5) What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.
Q6) Explain what common law recourse there is against manufacturers when they manufacture a faulty or dangerous product.
Q7) "The Sale of Goods Act is another example of consumer protection legislation." Discuss the accuracy of this statement.
Page 17
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Chapter 16: Priority of Creditors
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Sample Questions
Q1) With few exceptions,once a bankrupt is discharged,there is no longer an obligation to pay back the creditors.
A)True
B)False
Q2) What purpose is served by requiring the creditor to register his secured transaction?
Q3) With regard to guarantees,which of the following is false?
A) A guarantor can use any defence against the creditor that the debtor could use.
B) A legally binding promise to be primarily responsible for someone else's obligation is an indemnity.
C) A verbal guarantee is as enforceable as a written one.
D) Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed.
E) A legally enforceable guarantee must satisfy all the elements required to create a binding contract.
Q4) What is the purpose of the Fraudulent Conveyances Act? (The name varies by province.)
Q5) What is a bankruptcy offence? Give an example.
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Page 18