Business Ethics and Law
Solved Exam Questions
Course Introduction
Business Ethics and Law explores the principles and frameworks guiding ethical decision-making and legal compliance within the business environment. Students examine the intersection of ethical theory, corporate social responsibility, and legal regulations affecting businesses, including topics such as contracts, employment law, intellectual property, consumer protection, and environmental regulation. Through case studies and real-world scenarios, the course challenges students to analyze complex dilemmas, understand the responsibilities of various stakeholders, and develop the skills needed to foster ethical cultures and maintain legal standards in diverse organizational contexts.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by
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16 Chapters
2535 Verified Questions
2535 Flashcards
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Page 2
Richard A. Yates
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) When must a lawyer follow a client's instructions?
Answer: When those instructions are lawful and not unethical.
Q2) What may occur if you collect money as the result of a settlement or judgment obtained through assistance from legal aid?
Answer: You will probably have to repay some or all of the benefits received from legal aid.
Q3) When is the fixed fee method of billing most often used?
Answer: Fixed fees are most often used for specific tasks such as preparing a will, purchasing a house, or incorporating a business.
Q4) 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 input from a lawyer when answers cannot be readily found.
Answer: E
Q5) When should a client ideally first discuss the issue of fees with a lawyer?
Answer: Fees should be discussed during the initial consultation.
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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) The Charter of Rights and Freedoms ensures Canadians can travel and live anywhere within Canada.
A)True
B)False
Answer: True
Q2) "Canada's Constitution is embodied in the British North America Act." Comment on the accuracy of that statement.
Answer: This is incorrect. Canada has a constitution similar to Great Britain's, which is an unwritten constitution that includes a great many separate constitutional documents such as the Magna Carta, English Bill of Rights, etc. The British North America Act is just one of the elements of that constitution. The British North America Act is now referred to as the Constitution Act, 1867.
Q3) Why is law important?
Answer: It determines how effectively we interact with one another. It governs personal and commercial relationships.
Q4) The law of equity was developed in the Court of Chancery.
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
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Sample Questions
Q1) When a person is found not guilty in a criminal matter, he or she can no longer be sued civilly.
A)True
B)False
Answer: False
Q2) Mandamus involves the decision of the decision maker being quashed or of no effect.
A)True
B)False
Answer: False
Q3) Explain why the courts are open to the public and press. Answer: Justice must not only be done, it must be seen to be done.
Q4) Indicate the advantages of mediation and arbitration over judicial process. Answer: Less confrontation, less breakdown in relationship, cheaper, less time consuming, more expertise by the arbitrator as opposed to a judge.
Q5) A person has the right to appeal a decision in a civil court.
A)True
B)False
Answer: True
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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) Discuss the principles underlying the Personal Information Protection and Electronic Documents Act and its application.
Q2) Which of the following is true with regard to the torts of assault and battery?
A) Both torts are "actionable per se"; that is, a person can successfully sue without having to prove damages.
B) The amount of damages paid to Joe, injured by another's battery, will be an amount to cover the extent of injury suffered by a normal person regardless of Joe's actual injuries.
C) A person will always succeed with the defence of self-defence even if he used excessive force.
D) Although assault and battery are often both present in an incident, it is technically possible to be assaulted without being battered.
E) For consent to be an effective legal defence to a claim of battery, the person hit must have been surprised by the incident.
Q3) When you loan your camera to someone and they sells it to a third party, for what can you sue the person to whom you loaned the camera?
Q4) Distinguish between libel and slander.
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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) The court determines the standard of care required and whether or not there was a failure to live up to that standard.
A)True
B)False
Q2) No-fault personal liability automobile insurance is an attempt to distribute losses among the most accident-prone drivers.
A)True B)False
Q3) Innkeepers at common law were required to protect their guests from the wrongful acts of others, even when the innkeeper or servant was not at fault.
A)True B)False
Q4) Children are not held liable for their torts. A)True B)False
Q5) We owe a duty to anyone we can reasonably anticipate might be harmed by our conduct.
A)True B)False
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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) Which of the following is not correct with respect to the adequacy of consideration?
A) Must be of some value and love and affection are not enough
B) Need not be present if the agreement is under seal
C) Need not be fair, unless there are extenuating circumstances (i.e., insanity or fraud)
D) Need not be legal if both parties clearly consent
E) Existing duty: a change in the contract requires new consideration
Q2) What is a "subject-to clause"?
Q3) An invitation to treat is an offer published in the newspaper.
A)True
B)False
Q4) A term making a contract conditional on future events is known as ________.
Q5) When the postbox rule applies, the place of mailing of the acceptance may determine the place of the contract.
A)True
B)False
Q6) Explain the postbox rule and discuss its relevancy in the modern business world.
Q7) Explain the nature of the postbox rule.
Q8) To what does a "standard form contract" refer?
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Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
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157 Verified Questions
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Sample Questions
Q1) Advertisers often use exaggerated claims, such as "This is the best little Buick in Canada." What test is used to determine whether such claims become part of the contract or not?
Q2) When will the court waive the requirement of writing?
Q3) The creation of a joint tenancy in land must be evidenced in writing.
A)True
B)False
Q4) "Contracts must be in writing to be enforceable." Discuss the accuracy of this statement.
Q5) Which of the following contracts is void?
A) A contract with an insane person for a TV, 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 bag of cocaine
Q6) What is a guarantee?
Page 9
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Chapter 8: Factors Affecting the Contractual Relationship
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182 Verified Questions
182 Flashcards
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Sample Questions
Q1) Privity of contract applies in which of the following situations?
A) Where an interest in land is involved
B) Where a trust is involved
C) Where an insurance contract is involved
D) Where goods are being sold
E) Where a trust has been created
Q2) What is the significance of determining that the misrepresentation was negligent rather than innocent?
Q3) The major problem with fraudulent misrepresentation is the need to establish that the person being sued knowingly misled the victim.
A)True
B)False
Q4) Which one of the following will be excluded by the parol evidence rule?
A) Express terms
B) Extrinsic evidence
C) Evidence of implied terms
D) A condition precedent
E) Evidence of a collateral agreement
Q5) Explain what is meant by a collateral contract.
Q6) What is the status of the doctrine of privity today?
Page 10
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Chapter 9: The End of the Contractual Relationship
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171 Flashcards
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Sample Questions
Q1) An agreement to end a contract, with extra consideration to be supplied by the party benefiting from the discharge, is known as ________.
Q2) Explain what restrictions are put on the effect of exemption clauses (sometimes referred to as exclusion or exculpatory clauses) in a contract.
Q3) Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300 that was displayed in the showroom at Joe's Fine Cars. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?
A) Specific performance
B) Damages
C) Injunction
D) No remedy
E) Rescission
Q4) Lack of financial ability, if proven, will establish frustration.
A)True
B)False
Q5) When faced with an anticipatory breach, what is the risk if the innocent party insists on performance?
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Chapter 10: Agency and Partnership
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211 Verified Questions
211 Flashcards
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Sample
Questions
Q1) What are the advantages and disadvantages of being a sole proprietor?
Q2) Despite its organizational simplicity, sole proprietorships must satisfy many federal, provincial, and municipal requirements to carry on business. List and describe three regulatory requirements.
Q3) What restrictions are there on a principal's right to ratify?
Q4) Which one of the following statements is correct with respect to the law of partnership?
A) Every partner is responsible for every contract entered into by his partner.
B) Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership.
C) Partners are responsible for any contracts entered into by their partners related to the partnership business.
D) A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership.
E) Partners cannot bind their partners in contract without specific written authority.
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Page 12
Chapter 11: Corporations
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Sample Questions
Q1) There is one common method of creating corporations used across Canada.
A)True
B)False
Q2) John and two friends incorporated a closely held corporation. Each bought an equal number of common shares in the corporation. Each became a director, an officer, and an authorized agent of the corporation. Which of the following is true?
A) As director, each owes a fiduciary duty to the creditors of the corporation.
B) The corporation is more highly regulated and less free of government regulations and control than a broadly held corporation would be.
C) Each of them, as directors, owe a fiduciary duty to each of the others, as shareholders.
D) Since the corporation is a legal fiction, all of its activities must be carried out through principals.
E) If the affairs of the corporation are being conducted in a manner that is unfairly prejudicial to any one shareholder, that shareholder could seek relief from such oppression from the courts.
Q3) Explain under what circumstances a shareholder will not be permitted to sell his shares.
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Page 13
Chapter 12: Employment
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) The certification process was introduced to solve which of the following kinds of disputes?
A) Jurisdictional dispute
B) Rights dispute
C) Interest dispute
D) Recognition dispute
E) Commercial disputes
Q2) To what does the term "grievance process" refer?
Q3) Eastside Nurseries Ltd., which had long been a family business, was faced with a demand by its workers that it recognize their new organization, a union, for the purposes of collective bargaining. The union was certified by the appropriate governmental board as the bargaining agent for this bargaining unit, but the parties could not reach an agreement as to what should be included in the new collective agreement. Eventually Eastside Nurseries locked out the employees. This sort of dispute is called
A) a jurisdictional dispute.
B) a recognition dispute.
C) an arbitration dispute.
D) an interest dispute.
E) a rights dispute.
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Page 14
Chapter 13: Intellectual Property
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) What qualifications must be met in order for something to be patentable?
Q2) The mere possibility of confusion is sufficient to block a trademark application. A)True
B)False
Q3) Explain how a patent is obtained.
Q4) The 2012 amendments to the Copyright Act first provided copyright protection for computer software and hardware.
A)True
B)False
Q5) Identify the impact the Internet and other forms of electronic communication have had on intellectual property.
Q6) Explain how trademark protection is obtained.
Q7) What does it mean to say that works are in the "public domain"?
Q8) When a trademark is registered, it gives protection for a period of 50 years.
A)True
B)False
Q9) What protection is given under trademark legislation?
Page 15
Q10) In order to successfully sue someone for violation of trademark, what must be established?
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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) Joe was walking in a park and found a watch. He took it to the city's lost-and-found, but it was not claimed. Three years later, Joe went to the lost and found, asked for the watch, and was told that the watch was a property of the city. Explain Joe's legal position in these circumstances.
Q2) What is meant by a reversionary interest in a life estate?
Q3) When people have a tenancy in common and one of them dies, his or her share in the property goes to the survivor.
A)True
B)False
Q4) In a three-year commercial lease, the tenant must give the landlord two months' notice upon leaving.
A)True
B)False
Q5) Governments often override the common law right that water naturally coming to a property owner not be diverted beyond that needed for domestic usage.
A)True
B)False
Q6) Distinguish between a tenancy in common and a joint tenancy.
Page 16
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Chapter 15: Priority of Creditors
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Sample Questions
Q1) Joe bought a car from Harry's Fine Car Lot and owed him $5000 on the deal, which he was paying back at $500 a month under a Security Agreement. Harry assigned that Security Agreement to Ace Finance Company, and they served notice on Joe that he was to make his payments in future to them. Joe knew, however, that his deal was with Harry, and he ignored the notification and continued to make the payments to Harry. What danger does he face in these circumstances?
Q2) If a fraudulent transfer is made to a bona fide purchaser for value, the transaction can still be reversed for a period of one year.
A)True
B)False
Q3) Distinguish between attachment and perfection under the Personal Property Security Act.
Q4) "Joe bought a car from Harry's Fine Cars on time secured by a Security Agreement. It ran fine for a while, then he had a series of problems with it that made Joe regret ever entering into the transaction. Joe simply stopped paying, knowing that the only thing that Harry could do was repossess the goods." Explain the accuracy of the final statement.
Q5) Explain how the rights of the creditors are protected under bankruptcy legislation.
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Chapter 16: Sales and Consumer Protection
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Source URL: https://quizplus.com/quiz/28025
Sample Questions
Q1) Explain how the abuses usually associated with door-to-door sales are controlled.
Q2) The principles of freedom of contract and caveat emptor have been completely done away with by the Sale of Goods Act.
A)True
B)False
Q3) Which of the following contracts would be covered by the Sale of Goods Act?
A) A contract for the sale of a famous painting
B) A contract for medical services with a doctor
C) The trade of a car for a boat involving no money
D) The purchase of a house
E) The sale of corporate shares
Q4) When the sale of goods is involved and a specific price has not been agreed upon, a reasonable price must be paid.
A)True
B)False
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) Explain under what circumstances the sale of goods must be evidenced by writing.
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