Business Law
Pre-Test Questions
Course Introduction
Business Law provides an introduction to the fundamental concepts and principles of law as they apply to the business environment. The course covers topics such as the legal system, contracts, agency, sales, negotiable instruments, business organizations, employment law, and property. Emphasis is placed on understanding how laws govern commercial transactions and the legal rights and obligations of business owners and managers. Through case studies and real-world examples, students develop critical thinking skills and the ability to identify, analyze, and resolve legal issues commonly encountered in business settings.
Recommended Textbook Managing the Law The Legal Aspects of Doing Business 5th Edition by McInnes
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Page 2
Chapter 1: Risk Management and Sources of Law
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Q1) Bastarache & Michel is a law firm in your province.Although it occasionally has clients from other jurisdictions, the vast majority of its work comes from within your province.Your legislature recently enacted a statute that imposes a 5% tax on the "sale of professional services, including legal services." As that wording suggests, the statute treats Bastarache & Michel as the taxpayer, even if the firm adds the cost of the tax onto the fees that it charges to its clients.The new tax is probably intra vires and valid because most professionals provide services in only one province.
A)True
B)False
Answer: False
Q2) Quebec is said to be a "civil law system" because it is derived from the legal system that governed the citizens of ancient Greece.
A)True
B)False
Answer: False
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3
Chapter 2: Litigation and Alternative Dispute Resolution
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Q1) Josie lost a breach of contract case against Charles.She has now launched an appeal of the trial judge's decision.Which of the following statements is TRUE with respect to that appeal?
A)Although the appellate court is always entitled to apply its own view of the law, the trial judge's finding of facts can be overruled only if the members of the appellate court are unanimously agreed that the trial judge made a mistake.
B)The appellate court may accept or reject the trial judge's decision, but it cannot vary the terms of the trial judge's final order.
C)If Josie loses her first appeal, she has a right to appeal to the Supreme Court of Canada as long as her claim is worth at least $100 000.
D)Josie's first appeal will likely be heard by three judges of the appellate court.
E)Although an appellate court is entitled to award damages, it cannot order specific performance of a contract.
Answer: D
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Chapter 3: Introduction to Torts
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Q1) Eve is very angry about an incident that she experienced at work last week.She says that her employer acted in a completely negligently manner when it ordered her to perform a dangerous task.Which of the following statements is most likely to be TRUE?
A)If Eve's employer acted very badly, but she did not actually suffer any loss as a result of the incident, a court will award both nominal damages and punitive damages.
B)The workers' compensation scheme will provide Eve with compensation only if she can prove that another employee caused her injury.
C)If Eve is entitled to receive benefits under the workers' compensation scheme, she cannot sue her employer.
D)If Eve receives partial relief from the workers' compensation scheme, she can sue her employer to provide compensation for the rest of her losses.
E)Eve has the right to choose between suing her employer in tort and making a claim to the workers' compensation scheme.
Answer: C
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Chapter 4: Intentional Torts
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Q1) Which of the following statements is TRUE with respect to the concept of invasion of privacy?
A)Although privacy rights may be indirectly protected in certain circumstances, the Supreme Court of Canada has not yet recognized a general tort of invasion of privacy that applies across the country.
B)Although a number of Canadian legislatures have considered the possibility, none have created a statutory action for invasion of privacy.
C)Statutes that create causes of action for invasion of privacy usually impose liability only if the defendant knew, or should have known, that it was violating the plaintiff's privacy rights.
D)The Canadian Charter of Rights and Freedoms creates a cause of action for invasion of privacy.
E)A distinct tort of invasion of privacy can be created by a legislature but not by a court.
Q2) Antonia, a businesswoman, was held liable to Romeo for committing an intentional tort.She is very frustrated by that verdict.Discuss the nature of "intention" in the context of intentional torts.Explain why the concept of "intention" creates special problems from a risk management perspective.
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Page 6
Chapter 5: Miscellaneous Torts Affecting Business
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Q1) What is the defence of justification? To which tort does it apply?
Q2) Bryce consistently commits the tort of nuisance against Aaliyah.She wants an injunction to stop him from doing so.Which of the following statements is TRUE?
A)Aaliyah has an absolute right to an injunction if Bryce's nuisance causes physical damage to her property.
B)Aaliyah cannot receive both an injunction and compensatory damages.
C)An injunction is never available with respect to a nuisance.
D)A court will grant an injunction only if Bryce's nuisance is intrusive.
E)A court may grant an injunction, but is a discretionary remedy
Q3) You and I are competitors in the publishing business.You and I both know that Mysty is my best employee and that much of my success is due to her efforts.You want to find some way of causing Mysty to stop working for me and, if possible, to start working for you.You have persuaded her to meet with you for a discussion of her future employment.You intend to tell her that I am a lousy employer.Identify and explain the risk management issues that you should bear in mind as you prepare for that meeting.
Q4) Identify and briefly explain the considerations that will influence a court's decision to grant an injunction to stop an ongoing nuisance.
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Chapter 6: Negligence
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Q1) Andreas has sued Kathryn for negligence.Kathryn argues that she did not owe a duty of care to Andreas.Which of the following statements is TRUE?
A)The court cannot recognize a duty of care if Andreas was injured as a result of Kathryn's omission, rather than by her action.
B)The court may refuse to recognize a duty of care even if it was reasonably foreseeable that Andreas might be injured as a result of Kathryn's carelessness, on grounds that public policy does not permit the extension of the duty of care to this relationship.
C)A court may recognize a duty of care even if it was not reasonably foreseeable that Andreas might be injured as a result of Kathryn's carelessness.
D)The court cannot recognize a duty of care if Kathryn was Andreas's mother.
E)The court cannot recognize a duty of care if Andreas and Kathryn were parties to the same contract.
Q2) Identify and briefly explain the primary social tension that the cause of action in negligence attempts to resolve.How is the flexibility of the action in negligence related to the resolution of that tension?
Q3) Explain the two-fold significance of the decision in Donoghue v Stevenson.
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Page 8
Chapter 7: The Nature and Creation of Contracts
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Q1) The "master of the offer"
A)can insist that silence will be treated as acceptance.
B)can change the terms of an offer after it has been accepted.
C)is a concept that occurs under a bilateral contract but not under a unilateral contract.
D)is a description of the offeree, who can either accept or reject an offer.
E)is always the same party that made and communicated the offer.
Q2) The phrase consensus ad idem means
A)one idea in two minds.
B)value for the agreement.
C)agreement on that previously mentioned.
D)offer of agreement.
E)less than the value of that.
Q3) It is presumed that people who create agreements in commercial contexts do intend to create legal relations, while people who create agreement in social or family contexts do not intend to create legal relations.Provide an explanation for each of those presumptions.
Q4) How does the death of either the offeror or the offeree affect an offer? Provide examples to illustrate your answer.
Q5) List five ways in which an offer can be terminated.
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Chapter 8: Consideration and Privity
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Q1) Which of the following propositions is TRUE in the context of the doctrine of promissory estoppel?
A)The representee cannot rely on the representor's gratuitous promise if the representor was guilty of inequitable behaviour.
B)Once legal rights are affected by the doctrine of promissory estoppel, they can never be revived.
C)Promissory estoppel can only be based on representations of existing or past facts.
D)Promissory estoppel can be used as a sword but not as a shield.
E)The doctrine of promissory estoppel is relevant if the representor already has existing rights that can be enforced against the representee.
Q2) Which of the following rules applies to an equitable assignment?
A)The assignment must be written.
B)The assignment must be placed under seal.
C)The assignment must be unconditional.
D)The assignment is valid only once the debtor is given written notice.
E)The assignee takes the assignor's rights subject to the equities.
Q3) Briefly describe the requirements that must exist before a promissory estoppel will arise.
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Chapter 9: Representations and Terms
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Q1) Which of the following statements is FALSE? The use of plain language instead of legalese
A)can reduce the amount of time a company spends answering questions from customers about confusing terminology.
B)is required by the official Communications Policy of the Government of Canada.
C)can be mandated by law.
D)makes it more difficult for businesses to enforce contracts.
E)was strategically avoided in the past.
Q2) Which of the following best describes an implied term?
A)It is a statement expressed by one of the parties.
B)It is sometimes inserted into a contract by a court.
C)It cannot create an enforceable legal obligation.
D)It can be used to rectify a mistake in a contractual document.
E)It is always based on the standard in the industry that the parties are engaged in.
Q3) What does it mean to say that a pre-contractual representation is NOT promissory in nature?
Q4) What is an exclusion clause? Why would a business want one included in a contract?
Q5) Why do insurance contracts require a duty of utmost good faith?
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Chapter 10: Contractual Defects
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Q1) Malkit sold a house to Amanda.The evidence indicates that Amanda owed fiduciary obligations to Malkit both before and after the agreement was signed.Which of the following statements is TRUE?
A)Amanda has an absolute right to have the contract set aside.
B)The court will presume that Malkit entered into the contract as a result of Amanda's undue influence.
C)In order to set aside the contract, Malkit must prove that the agreement is unfair to him.
D)The contract will be set aside unless Amanda proves that she was unaware of her fiduciary obligations.
E)Malkit is entitled to receive Amanda's performance even though he is not required to perform his obligations under the agreement.
Q2) Ling is about to enter into a contract that will be carried out over the next year and a half.Is it safe for her to assume that the contract will not be enforced if it is not evidenced in writing in a jurisdiction where the Statute of Frauds applies?
Q3) How should your business manage risk when contracting with an unincorporated association?
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Page 12
Chapter 11: Discharge and Breach
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Q1) Which of the following statements regarding methods of payment is TRUE?
A)PayPal is known as a 3PPS.
B)PayPal is easy to use, but it is dangerous because it requires you to disclose personal banking details to a vendor each time you purchase online.
C)As its developers intended, the PayPal system operates on exactly the same principles and rules as traditional cheques.That explains why it is so popular with consumers.
D)In order to use PayPal with a particular online vendor, you must first provide that vendor with a void cheque from your bank.
E)PayPal operates like a credit card, except that the Government of Canada guarantees that you will be repaid if the online vendor fails to deliver as promised.
Q2) It is necessary to consider all of the circumstances of a case before determining whether or not an innocent party is entitled to discharge a contract on the basis of a breach of warranty.
A)True
B)False
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13
Chapter 12: Contractual Remedies
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Q1) Which of the following statements is TRUE with respect to reliance damages?
A)The plaintiff is entitled to recover both reliance damages and expectation damages.
B)They are available only to the extent that the plaintiff entered into a bad bargain.
C)The plaintiff is entitled to spend the damage award as it chooses.
D)Because contractual promises look to the future, reliance damages are forward-looking.
E)They are intended to allow the plaintiff to complete any work that the defendant did not perform.
Q2) Dina entered into a contract with George.She agreed to decorate his office; he agreed to pay her $10 000.She spent $3000 performing her obligations under the agreement.He has paid her $2000, but refuses to pay any more.Under the concept of reliance damages, George must now pay $8000 to Dina.
A)True
B)False
Q3) In the context of contractual damages, there is only one measure of relief.
A)True
B)False
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Page 14
Chapter 13: Special Contracts: Sale of Goods
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Q1) Juan bought a lawn mower at Raija's garage sale.He gave her a cheque for $100 and explained that he would collect the lawn mower later the same afternoon when he had use of his friend's pickup truck.Juan then asked Raija to leave the lawn mower near her garage.When Juan came to collect the lawn mower two hours later, he discovered that it had been stolen from the place where he had told Raija to leave it.Which of the following statements is TRUE?
A)Juan is entitled to a refund of $100 because he is not required to pay for a stolen lawn mower.
B)Property and risk did not pass to Juan because he had not taken possession of the lawn mower.
C)Property and risk did not pass to Juan unless Raija cashed his cheque before the theft occurred.
D)Even if the transaction occurred in a jurisdiction that deems some oral contracts to be unenforceable, the agreement between Juan and Raija did not have to be evidenced in writing because the price had already been paid.
E)Since the transaction dealt with used goods, the Sale of Goods Act does not apply and it is therefore unnecessary to determine if property passed.
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Chapter 14: Real Property: Interests and Leases
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Q1) Kimiko has the fee simple to a piece of land called Blackacre.It is sometimes said that "with rights, comes responsibility." Explain an important set of obligations that Kimiko owes to other members of the community as a result of her ownership of Blackacre, and that may result in her being held liable in damages.
Q2) Ashoka has the fee simple in a piece of land called Blackacre.Blackacre is about to be expropriated.This means that
A)Ashoka has voluntarily agreed to sell his land to his neighbour.
B)Ashoka has died, leaving a will that gives Blackacre to his eldest son.
C)the government will take Blackacre from Ashoka in exchange for the payment of a fair price.
D)Ashoka is about to renovate the buildings that are located on Blackacre.
E)Ashoka is about to legally divide Blackacre into two separate properties, probably for the purpose of commercially developing them.
Q3) Identify and briefly explain three ways in which a true easement can be created.Are all three methods available in all of Canada's common law jurisdictions? Explain your answer.
Q4) What is the difference between a reversion and a remainder? When will each type of interest arise?
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Page 16
Chapter 15: Real Property: Sales and Mortgages
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Q1) In order to purchase an interest in piece of land called Blackacre, Rhiannon borrowed $100 000 from Nick.As security for the repayment of that loan, she entered into a mortgage over a piece of property.Which of the following statements is TRUE?
A)It is possible that Rhiannon gave a mortgage over a diamond ring that she owned.
B)The transaction must have occurred in a registry system.
C)Rhiannon must have purchased Blackacre from Nick.
D)Rhiannon must have purchased the fee simple in Blackacre.
E)Blackacre must be the property that is subject to the mortgage.
Q2) A piece of land called Blackacre is subject to a mortgage in favour of Henri.The mortgage was used to secure a debt that Sophie owed to him.Sophie defaulted upon payment of that debt.Henri can extinguish her equity of redemption by exercising his right to take possession of Blackacre.
A)True
B)False
Q3) Briefly explain the relationship between the mirror principle and the curtain principle in the context of a land titles system.
Q4) Briefly explain the need for some form of land registration system.
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17
Chapter 16: Personal Property: Bailment and Insurance
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Q1) Which of the following statements is TRUE with respect to statutory liens that apply in the context of bailments?
A)The legislation provides a lien to every type of bailee, as long as the bailment is not gratuitous.
B)A statutory lien always provides a right to retain possession, but not a right of sale.
C)Statutory liens are restricted to "common callings," such as innkeepers and common carriers.
D)If goods are sold under a statutory lien, any money not required to discharge the debt is paid to the bailor.
E)Statutory liens are effective regardless of who has possession of the relevant property.
Q2) Taj borrowed a widget from Dhanna.Even though the relationship was a bailment, rather than a sale, both Taj and Dhanna may be required to exercise "reasonable care" in some sense.
A)True
B)False
Q3) What is subrogation? What is indemnification? How are these two concepts related?
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Chapter 17: Intellectual Property
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Q1) Avery and Bolton are two gifted architecture students at the University of the Outaouais.Both have been involved in a competition to come up with a design for a particularly immense structure.In class one day, one of their professors exposes them to a formula which, when applied in a particular manner to the competition, leads to a new, never-before-thought-of design for particularly immense structures.Independently, both students develop virtually identical designs for the competition.Avery is so enthused by his new discovery that he registers his copyright in the design.Tanner, a slightly lazier student, was considering entering into the same competition.Snooping around Bolton's desk one day, Tanner saw Bolton's design for the super structure.Tanner copied the design, and sold it to an architecture firm.Which of the following is TRUE?
A)Tanner is infringing Avery's copyright but not Bolton's.
B)Tanner is infringing Bolton's copyright but not Avery's.
C)Tanner is infringing Avery's and Bolton's copyright.
D)Tanner is infringing Avery's and Bolton's moral rights.
E)Tanner is not breaking any copyright laws.
Q2) Knock-offs and trademark depreciations are two examples of trademark infringement.How do the two differ? Provide an example of each.
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Chapter 18: Electronic Commerce
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Q1) Which of the following statements is TRUE?
A)The term "blockchain" reflects the fact that Bitcoin's payment system that operates like a chain-link fence, in that outsiders can view transactions but cannot reach with them.
B)The phrase "double-spending" first arose because early online businesses used programs that were unreliable and often billed a customer twice for the same goods.
C)The term "spyware" became popular after an early group of hackers discovered that they were all interested in international espionage and intrigue.
D)The term "spam" reflects the fact that many of the people who first developed online commerce realized that they could work from any location, and chose to live in Hawaii, where Spam, a tinned ham byproduct, is curiously popular.
E)The term "phishing" is taken from the term "phreaking" which was used to designate a clique of early hackers said to be "phone-freaks".
Q2) "Privacy laws are consistent across Canada.Wherever a dispute occurs, the same rules governing the collection and use of private information apply." Explain the extent to which that statement is correct.
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Chapter 19: Agency and Other Methods of Carrying on Business
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Q1) Rula hired Mike to act as her stockbroker.In that capacity, Mike was authorized to buy and sell stocks on behalf of Rula as her agent.Rula paid very little attention to the details of the transactions that Mike entered into on her behalf.She adopted a very different attitude, however, after she received an anonymous tip that Mike was intentionally inflating the commissions that he received for buying and selling stocks for Rula by making an unreasonably large number of trades for her account.Which of the following statements is TRUE?
A)Mike may be held liable for breach of fiduciary duty even if Mike did not cause Rula to suffer a loss and may even have generated a benefit for her.
B)Mike may be held liable for breach of fiduciary duty only if Rula can prove, as a result of that breach, either that she suffered a loss or that Mike received a benefit.
C)Mike may be held liable only if he breached an express instruction from Rula.
D)Mike is liable for breach of his duty of care to Rula.
E)Mike is only liable for breach of a fiduciary duty if Rula can prove that she took reasonable steps to monitor Mike's behaviour.
Q2) How can a principal manage the risk that an agent will commit the principal to contracts that it does not want to be bound by?
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Page 21
Chapter 20: Basic Forms of Business Organizations
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Q1) Doren carried on a toy store business as a sole proprietorship.He incorporated Doren Toys Inc and transferred the business into the corporation.Later the same week, he signed a lease on behalf of Doren Toys with Patrice for a new store premises for the toy store business.The next week, he found a place he liked better and decided to try to figure out a way to get out of the lease with Patrice.He decided that he would transfer the business and all other assets out of the corporation and back to himself.Then he caused the corporation to default on the lease.This is a perfect plan because the corporation is the person who is liable to make the payments under the lease.If Patrice sues the corporation, she will get nothing.There is no possible way that she will be able to claim against Doren directly.
A)True
B)False
Q2) Arthur and Francine have been partners in a pet-sitting business for several years, but since after a vicious disagreement as to whether they should accept jobs involving exotic and difficult animals (such as aardvarks and monkeys), Arthur wants to bring the partnership to an end.Can he do so? Explain your answer.If Arthur and Francine had a partnership agreement, explain how that document might be relevant.
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Page 22
Chapter 21: Legal Rules for Corporate Governance
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Q1) Forest is the majority shareholder in ForCo Inc, a corporation carrying on a business of providing investment advice.She is also a director of DevCo, a corporation incorporated under the Canada Business Corporations Act engaged in real estate development.Is there a legal problem if ForCo provides advice on regular commercial terms to DevCo? How can Forest make sure that no problems arise in connection with her corporation doing business with DevCo?
Q2) The obligation that requires certain people within a corporation to act honestly and in good faith when discharging other responsibilities
A)arises under the common law, and not under statute.
B)imposes liability only if a breach causes the corporation to suffer a loss.
C)is known as the duty of care.
D)is broken when a person with this obligation enters into a transaction with the corporation unless certain requirements are met.
E)was recently abolished because it often prevented the sort of calculated risks that can generate large profits.
Q3) What does the fiduciary duty require of directors and officers?
Q4) Identify and briefly explain the significance of Canadian Air Services Ltd v O'Malley (Case Brief 22.1).
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Page 23
Chapter 22: Secured Transactions
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Q1) Under the Bank Act, banks may take a special type of security interest in specified assets.No other creditor may take this interest.Nevertheless, banks remain free to take any other kind of security interest in any type of personal property in addition to any interest under the Bank Act.
A)True
B)False
Q2) Aruna ran a grocery store business in Niagara Falls.As security for a term loan to her, she had given Eaton Bank a security interest in her assets under s 427 of the Bank Act.Eaton Bank failed to register its interest under the Bank Act and made several other errors in creating the interest so that it was not effective under the Bank Act.Instead, Eaton Bank filed a financing statement under the Ontario Personal Property Security Act.Subsequently, Natasha lent Aruna $5000 and took a security interest in Aruna's assets.Natasha filed a financing statement under the Ontario Personal Property Security Act to perfect her interest.Later Aruna defaulted on her obligations to both Eaton Bank and Natasha.Whose interest in the assets of Aruna's grocery store business has priority? Would your answer be any different if Aruna's business had not been in Ontario?
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Page 24
Chapter 23: Dealing With Bankruptcy and Insolvency
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Q1) Tom, Lucinda, and Hye are friends of Ali and make various loans to him so that he can run his falafel-making business.The business requires cash as well as equipment to run.Tom has loaned Ali a stove worth $3000 which, under the terms of the loan agreement, Ali has pledged to return to Tom whenever Tom requests.Lucinda has lent Ali $3000 in cash, and Hye has given Ali 100 kilograms of sesame seeds worth $1000.Ali's obligations to Lucinda and Hye are simply to repay them when he can.In the event of Ali's bankruptcy, which of the following statements is TRUE?
A)Tom is considered an unsecured creditor, but Lucinda or Hye are not.
B)Tom is automatically considered an unsecured creditor, but so are Lucinda and Hye.
C)Tom is considered a secured creditor, but Lucinda and Hye are not.
D)The claims of Lucinda and Hye have priority over Tom's.
E)Tom is a preferred unsecured creditor compared to Lucinda and Hye because he advanced credit first.
Q2) Explain why bankruptcy is a federal responsibility under Canadian law.
Q3) "Bankruptcy is an alternative to ordinary creditor-debtor action." Discuss this statement and offer business law examples.
Q4) Name three officials in the bankruptcy process and explain what they do.
Q5) What are two differences between corporate and personal bankruptcy?
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Chapter 24: Government Regulation of Business
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Q1) H O Canada Inc is a Burnaby-based water company that seeks to export water from Canada in bottled form.To do so it will most likely have to comply only with federal legislation since the water is for export alone.
A)True
B)False
Q2) Kimo runs a chain of health food supermarkets in Victoria, British Columbia.In the past, his stores offer a number of products that other major grocery retailers did not stock.As a result, Kimo enjoyed a loyal and steadily growing clientele.Recently, however, he has noticed that Global Foods, the major grocery retailer in the area, is offering several of his products, such as dried rice snacks, organic herbs, and shiatsu oils, at cut-rate prices.He cannot possibly match those prices without losing money.Kimo suspects that Global is selling those items below their cost in order to drive him out of business.If Global Foods is engaged in anti-competitive behaviour, it most likely is
A)the reviewable practice of abuse of dominant position.
B)the criminal offence of bid-rigging.
C)the reviewable practice of price maintenance.
D)the criminal offence of misleading advertising.
E)the criminal offence of conspiring to reduce competition.
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Chapter 25: Individual Employment
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Q1) Legislation and common law precedents suggest that a prudent business manager should provide employers with a reasonable period of notice prior to dismissal.List four or five factors that the manager should consider when deciding on the reasonableness of the notice period to be provided.
Q2) Summary dismissal
A)is the same thing as wrongful dismissal.
B)means that the employee is dismissed without notice.
C)means that the employer had just cause.
D)means that the employee is dismissed with notice.
E)means that the employee is dismissed with reasonable notice.
Q3) Employment policy manuals
A)are merely cosmetic and play no actual role in employee supervision.
B)are not enforceable unless their content has been approved by a workplace advisory group.
C)are a means of expressing the conduct that is expected of employees during the course of their employment.
D)are established under the Employment Standards Act.
E)are always binding contracts.
Q4) What is a release? Who signs it? The employer or the employee? Why?
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Chapter 26: Organized Labour
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Q1) After a heated argument between picketers and managers crossing the line, five workers set fire to three company cars and ruined other company property.Can management express its displeasure by firing the employees?
A)No.Under statute, employees cannot be fired while on strike.
B)No.Under statute, employees have the right to be reinstated in their previous positions.
C)Yes.The employer will have grounds to discharge employees so long as it can prove that they have engaged in serious misconduct while on strike.
D)No.Temporary flare-ups of violence on picket lines do not constitute just cause for dismissal.
E)Yes.Employers are always at liberty to discharge any employee deemed to have behaved improperly during a strike.
Q2) A lawyer named Alberta represents a small union that is in the midst of negotiating its very first collective agreement.After explaining the minimum requirements to ensure that the agreement is enforceable, Alberta is asked to provide some basic information on key terms, such as those dealing with strikes and lockouts, grievance procedures, and union security.What should Alberta say?
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Chapter 27: Online: Special Contracts: Negotiable Instruments
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Q1) The Bills of Exchange Act and the Sale of Goods Act both arose as codifications of judge-made rules.Furthermore, the original legislation in each case was intended to increase certainty and efficiency in the commercial world.There is, however, a major difference between the two statutes.One generally provides default rules that the parties are free to accept or reject.The other does not allow the parties to freely opt in and out of its sections.Which of the two statutes is less flexible and why?
Q2) Claire gave a cheque for $5000 to Antonio.Which of the following statements is TRUE?
A)Claire has created a special type of promissory note that is drawn upon a bank.
B)Claire has created a special type of bill of exchange that is drawn upon a bank.
C)Antonio is entitled to receive $5000 from Claire even if he did not provide any consideration in exchange for her cheque.
D)Antonio will acquire rights against Claire only if her cheque is accepted by the drawee.
E)Antonio has acquired rights that can be enforced directly against the drawee.
Q3) What is the difference between a demand draft, a sight draft, and a time draft?
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