Business Law
Textbook Exam Questions
Course Introduction
Business Law provides an overview of the legal principles and frameworks governing commercial activities and organizations. The course explores topics such as contract law, agency, employment law, business structures, intellectual property, sales of goods, and regulations affecting business operations. Students will examine case studies and legal scenarios to understand the rights and responsibilities of businesses, how to mitigate risk, and the implications of non-compliance with the law. This foundational knowledge equips students with the tools necessary to navigate legal challenges in the business environment and make informed organizational decisions.
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) Outline the steps of the law society's typical complaint-resolution process.
Answer: There is usually an attempt at mediation which,if unsuccessful,is usually followed by a formal investigation.This may result in a hearing before a panel.If the panel finds the lawyer guilty of misconduct,the lawyer faces a number of possible penalties.
Q2) Provincial law societies
A) exist primarily to assist clients with complaints concerning fees.
B) provide compensation to clients who are unhappy with legal services.
C) guarantee success in litigation matters.
D) deal with complaints regarding a lawyer's conduct.
E) are non-profit law firms offering a range of legal services.
Answer: D
Q3) Complete the following quotation from William Shakespeare's Henry VI,Part II: "The first thing we do,let's ________"
Answer: kill all the lawyers.
Q4) When is the fixed fee method of billing most often used?
Answer: For specific tasks,such as preparing a will,purchasing a house,or incorporating a business.
Q5) What is the main role of a lawyer?
Answer: To provide legal advice relevant to a client's situation.
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Chapter 2: Introduction to the Legal System
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Sample Questions
Q1) Which of the following is true with regard to Canada's Constitution?
A) The British North America Act, the first document to determine which classes of subjects could be dealt with by the provinces and which by the federal government, was passed by our federal Parliament.
B) The Charter of Rights and Freedoms is a part of the BNA Act.
C) The Charter of Rights and Freedoms cannot be amended by the federal Parliament acting alone.
D) The Constitution Act, 1982 requires British Parliament to amend it.
E) Our Constitution consists of only the Charter of Rights and Freedoms.
Answer: C
Q2) Which of the following was not one of the factors that led to the creation of the law of equity?
A) rigidity in the common law courts
B) stare decisis
C) the need for a supplement to the common law
D) the unpredictable outcome in the common law courts
E) the adherence to precedent
Answer: D
Q3) Indicate the three courts that together made up the common law courts.
Answer: court of common pleas,court of king's bench,exchequer court
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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) Which of the following accurately reflects a recent change to the court system?
A) Domestic violence courts have been ruled unconstitutional and are currently in the process of being disbanded.
B) Unified family courts have made the court process significantly more complicated, because of added court procedure and complex rules.
C) Drug treatment courts have been established in certain jurisdictions, where the emphasis is on lengthy jail time and other severe penalties.
D) The Nunavut Court of Justice is Canada's first single-level court.
E) Sentencing circles are "circuit courts" which travel throughout rural areas to hear cases.
Answer: D
Q2) Describe the court structure in place in your province.
Answer: This will vary from province to province.In British Columbia,the bottom level is provincial court,consisting of the small claims court,the family court,and the criminal division.The next level is the B.C.Supreme Court; the highest level is the Court of Appeal.
Q3) Who prosecutes a criminal matter?
Answer: the Crown
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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) Joe is a publisher for a newspaper and relied on Harry's account when he published an article stating that a councillor,Sam,had been caught making indecent telephone calls.It turned out later that Joe had misunderstood,and it was someone else that had made the calls.Sam sued for defamation.Will he succeed?
Q2) Distinguish between a tort and a breach of contract.
Q3) A telephone used to harass people on the other side of the city,interfering with the enjoyment of their property can be seen as evidence of trespass to land.
A)True
B)False
Q4) It is possible for wrongful conduct to be both a tort and a crime.
A)True
B)False
Q5) You cannot trespass in a public mall.
A)True
B)False
Q6) The primary purpose of tort law is to punish wrongdoers.
A)True
B)False
Q7) Define "defamation."
Page 6
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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) Explain under what circumstances remoteness can be used as a defence in a negligence action.
Q2) What is the "but for" test used for?
Q3) What is the forfeiture rule?
Q4) Discuss the role of insurance,especially compulsory insurance,and how it relates to tort law.
Q5) Explain the importance of the distinction between an invitee,licensee,and trespasser.
Q6) Explain what is meant by "bonding."
Q7) What is the test used for physical causation?
Q8) If a person attempts to help,there is a duty to exercise reasonable care.
A)True
B)False
Q9) To what does "errors and omissions" insurance refer?
Q10) _____________ is the type of insurance most closely associated with torts.
A) Liability insurance
B) Business interruption insurance
C) Disability insurance
D) Property insurance
E) Vicarious insurance
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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) An acceptance of an offer applies when and where it is received except when it is communicated by telephone.
A)True
B)False
Q2) What must be present in an offer before it qualifies as such?
Q3) Discuss the requirement of consensus in the formation of contract.In your answer,consider the role of offer and acceptance,and also look at the degree of understanding required between the parties.
Q4) Explain any limitations on the availability of promissory estoppel.
Q5) 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 decided to accept his offer and purchase his 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.
Q6) A person is required to honour a gratuitous promise if made under seal.
A)True
B)False
Q7) What is an interim agreement?
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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) When a restriction is excessive and deemed to be an unreasonable restraint of trade,what is the usual result?
Q2) Joe advertised his house for sale,and Sam came to have a look at it.While there,they haggled and struck a bargain that Sam would purchase the house for $200 000.They shook hands on the deal and Sam went home.That night,while thinking about it,he realized that it wasn't exactly what he wanted,and so the next day he wrote a letter to Joe stating,"I'm writing this note to let you know that I've changed my mind with respect to the purchase of your home for $200 000,and since the contract isn't valid in any case,I don't expect to hear any more of the matter.Sincerely,Sam." Joe sued Sam for breach of contract.Discuss the legal position of the parties,including any defences available to Sam.
Q3) Indicate what types of contracts are binding on infants.
Q4) Discuss how some persons are incapacitated in contract law in various jurisdictions and the justification for such a treatment.
Q5) In the legal sense,to what does "insanity" refer?
Q6) Discuss,providing examples,situations in which an agreement would be invalid due to a lack of intention,including any presumptions that arise.
Q7) What is a guarantee?
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Chapter 8: Factors Affecting the Contractual Relationship
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Sample Questions
Q1) Joe agreed to paint Sam's house for $1000.Joe then assigned the $1000 claim to Harry,who served notice on Sam about the assignment.When it came time for payment,Harry was informed by Sam that he would not pay because the paint was peeling off his house.Harry said that that was nothing to do with him and demanded payment.Explain the legal position of the parties.
Q2) Where a heavy-duty equipment supplier sells a truck claiming it can haul 10 tonnes of gravel but its actual capacity is only 5 tonnes,this is misrepresentation even where the seller believes what he said was true.
A)True
B)False
Q3) Jones offers to sell Smith his car.Smith thinks Jones is selling his 2011 Toyota,and Jones thinks he is selling his 2009 Pontiac.This is an example of which of the following?
A) misunderstanding
B) common mistake or shared mistake
C) unilateral mistake or one-sided mistake
D) fraudulent misrepresentation
E) non est factum
Q4) What does it mean that an assignee is "subject to the equities"?
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Page 10
Chapter 9: The End of the Contractual Relationship
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Sample Questions
Q1) Frustration arising when one of the parties to a contract causes or fails to prevent a frustrating event is referred to as ________.
Q2) In awarding damages for breach of contract,
A) the plaintiff should be, to the extent possible, placed in the same position as he was prior to the agreement being made.
B) the defendant should be, to the extent possible, punished for the breach in order to deter her from repeating this course of behaviour.
C) the plaintiff should be, to the extent possible, placed in the same position as he would have been if the contract had been performed.
D) the defendant should only be required to pay what she can reasonably afford.
E) the plaintiff should only be entitled to compensation for specific and calculable costs and expenses.
Q3) A breaching party is responsible for all lost profits flowing from a breach of contract. A)True B)False
Q4) Explain the principle of mitigation in contract law.
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Chapter 10: Employment
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164 Flashcards
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Sample Questions
Q1) Discuss the organization process imposed by labour statutes.In your discussion,comment on the objectives of the legislation and whether those objectives have been met.
Q2) A certified union has exclusive rights to represent the employees,and individual bargaining unit employees are no longer free to enter into separate contractual arrangements with their employer.
A)True
B)False
Q3) "Joe was working for Sam,using his own car to deliver manufactured parts for Sam's business to a client.In the process,Joe was involved in an automobile accident,causing injury to George,a stranger.In these circumstances,George's only recourse is against the employer." Discuss the accuracy of this statement.
Q4) Not only must a non-competition clause be reasonable between the parties,but the party trying to enforce it must show that the clause is necessary to protect some proprietary interest.
A)True
B)False
Q5) Discuss the termination of employees and the notice to which they are entitled.
Q6) Distinguish between an employee and an independent contractor.
Page 12
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Chapter 11: Agency and Partnership
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Sample Questions
Q1) Explain what is meant by an agent's "fiduciary duty" to the principal.
Q2) Joe is a salesperson for Harry's Fine Cars Ltd.He had been told specifically that he had no authority to make any sale,take a trade-in,or otherwise deal with the vehicles without the manager's express approval of every deal.Sam,a customer,came in wanting to buy a used Cadillac and agreed to pay the $16 000 asking price.Unfortunately,the manager had left the lot,and so Joe took it upon himself to write up the agreement.When the manager returned,he liked the deal and realized that the customer might change his mind when he realized that the salesman didn't have the authority to bind the seller in contract.Under these circumstances,what could the manager of the car lot do?
Q3) Discuss the extent of the obligations of the agent to the principal based on her fiduciary duty.
Q4) What are the advantages and disadvantages of being a sole proprietor?
Q5) "Utmost good faith" is another term for a business's reputation and ongoing relations with customers.
A)True
B)False
Q6) To what does the term "estoppel" refer?
Q7) Explain how the principle of estoppel can be important in an agency relationship. To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Corporations
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155 Flashcards
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Sample Questions
Q1) Indicate three advantages to incorporation.
Q2) The articles of incorporation jurisdictions (except British Columbia)have abolished
A) dividends
B) preferred shares
C) par-value shares
D) voting shares
E) promoters
Q3) Discuss the concept of promoters,their duties,and their role in the corporate form.
Q4) Explain the standard of care that a director must live up to in carrying out his duty towards the corporation.
Q5) What does it mean to be a broadly held corporation?
Q6) Directors owe a fiduciary duty to the public.
A)True
B)False
Q7) To what does "franchising" refer?
Q8) A corporation does not die but may be dissolved. A)True B)False
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Chapter 13: Real, Personal, and Intellectual Property
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238 Flashcards
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Sample Questions
Q1) A periodic tenancy refers to a lease in which the parties agree to no set termination date but to the rental period being automatically renewed.
A)True
B)False
Q2) In order to successfully sue someone for violation of trademark,what must be established?
Q3) What rights are conveyed by the granting of a patent?
Q4) A person who develops a new computer program can obtain copyright protection even though that program is only loaded onto the computer as software.
A)True
B)False
Q5) An agreement for sale includes the right to retake possession if the person buying land fails to pay installments.
A)True
B)False
Q6) "One of the most effective statutes in Canada protecting confidential information is the Trade Secrets Act." Discuss the accuracy of this statement.
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Page 15
Chapter 14: Information Technology and the Internet
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Discuss the problems with internet transactions.
Q2) In the context of employment and use of the internet,which of the following is true?
A) Email should be encouraged over other forms of communication, because it is inherently private.
B) Employers can be liable when their employees misuse the internet.
C) An employer need not have a clear and comprehensive policy prohibiting misuse of company resources such as the internet.
D) Employers are not required to notify employees when their use of company resources may be subject to monitoring.
E) Viewing an employee's Facebook account is considered a criminal offence.
Q3) Conflict of laws refers to rules used to resolve questions as to which jurisdiction's laws are to be applied to a particular issue.
A)True
B)False
Q4) In determining jurisdiction for electronic commerce,what factor is particularly important?
Q5) Identify the factors that courts look to when dealing to determine jurisdiction.
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Chapter 15: Sales and Consumer Protection
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Sample Questions
Q1) A certified cheque ensures that the instrument will be honoured by the bank.
A)True
B)False
Q2) To which one of the following contracts would the Sale of Goods Act apply?
A) a contract for the sale and purchase of a farm
B) a contract for the assignment of a company's "accounts receivable"
C) a contract with an artist to have a portrait painted
D) a contract in which one party gives an antique pin in exchange for the other party giving an antique cigar box
E) a contract in which the seller sells a computer, and ownership will transfer to the buyer at a specified future time
Q3) A holder in due course is in the same position as the person from whom a negotiable instrument was received.
A)True
B)False
Q4) Every Canadian jurisdiction has now enacted an international sale of goods act.
A)True
B)False
Q5) Explain what is meant by "merchantable quality."
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Chapter 16: Priority of Creditors
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Sample Questions
Q1) Explain the purpose of the bankruptcy process.
Q2) 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.
Q3) Explain how the rights of the creditors are protected under bankruptcy legislation.
Q4) Explain two methods for a debtor to become bankrupt.
Q5) A "confirmed letter of credit" is another name for a "standby letter of credit." A)True B)False
Q6) Explain the purpose of the Fraudulent Preferences Act (name will vary from province to province).
Q7) What obligations are placed on the owner of property in respect of builders' liens?
Q8) How is the debtor rehabilitated under the bankruptcy legislation?
Q9) What is the role of the Superintendent of Bankruptcy?
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