Company Law
Question Bank
Course Introduction
Company Law explores the legal framework governing the creation, operation, and dissolution of companies. The course covers key topics such as the formation of companies, the roles and responsibilities of directors and shareholders, corporate governance, and compliance with statutory requirements. Students also examine issues related to mergers, acquisitions, insolvency, and the regulatory landscape that shapes corporate activity. Through case studies and real-world examples, the course provides a comprehensive understanding of the principles and practicalities that underpin modern corporate law, equipping students with the knowledge required to navigate the complexities of the corporate sector.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by Richard A. Yates
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16 Chapters
2535 Verified Questions
2535 Flashcards
Source URL: https://quizplus.com/study-set/1411
Page 2
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) What format must a code of business conduct take?
Answer: There is no prescribed format.
Q2) If a businessperson cannot find important legal information or cannot understand the information which is found, what should be done?
Answer: The businessperson should consult a lawyer.
Q3) 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.
Q4) Sophisticated clients never conduct legal research on their own, but always seek advice from a lawyer.
A)True
B)False
Answer: False
Q5) How does a contingency fee agreement potentially benefit a client?
Answer: The client does not need to pay any legal fees unless and until a settlement or judgment is recovered. Without contingency fee arrangements, some clients would not be able to afford a lawyer at all.
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Chapter 2: Introduction to the Legal System
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159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/28026
Sample Questions
Q1) Which of the following is correct with respect to the characteristics of stare decisis in the common law?
A) It is based on trial by battle and trial by ordeal.
B) It prevents a higher court from overruling a lower one.
C) It allows decisions of the courts to be predictable.
D) Our statutes play the same role as the code used in the French system.
E) This term refers to the role played by the law of equity in our system.
Answer: C
Q2) Transfer payment schemes can allow the federal government to exercise some control over how a provincial government operates certain programs that fall with provincial jurisdiction.
A)True
B)False
Answer: True
Q3) Explain why statutes override the common law.
Answer: Because of the principle of parliamentary supremacy, when parliament passes a statute, it overrides common law or equity and determines the law.
Q4) The law of equity was developed by ________.
Answer: the Courts of Chancery
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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
Source URL: https://quizplus.com/quiz/28027
Sample Questions
Q1) Mediation and arbitration are becoming more common in resolving online disputes. A)True
B)False Answer: True
Q2) Alternative dispute resolution is a way to avoid penalties imposed by the courts. A)True
B)False
Answer: True
Q3) Some businesses may be subject to both federal and provincial regulations. A)True
B)False Answer: True
Q4) When a court has to decide in a battery assault action whether Joe really did hit James, this is a question of law.
A)True
B)False Answer: False
Q5) Indicate two alternatives to court action. Answer: Negotiation, mediation, and arbitration.
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Chapter 4: Intentional Torts and Torts Impacting Business
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28028
Sample Questions
Q1) In Braintech v. Kostiuk, the Court confirmed that in Internet disputes the action should be brought in a jurisdiction having
A) stringent online security laws.
B) a technology-friendly court system.
C) no limitations legislation.
D) a real and substantial connection to the case.
E) a civil or central code.
Q2) Explain what is meant by punitive damages and when such remedies would be available in a tort action.
Q3) In tort, damages attempt to put the victim in the position he would have been in had the tort never taken place.
A)True
B)False
Q4) It is possible for wrongful conduct to be both a tort and a crime.
A)True
B)False
Q5) Discuss the particular legal issues that can arise through the use of the Internet.
Q6) When someone intentionally scratches your car, for what can you sue?
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Chapter 5: Negligence, Professional Liability, and Insurance
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155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/28029
Sample Questions
Q1) Which of the following situations could not result in a successful action for negligence?
A) When Todd was setting up a tent for a backyard wedding, he fell into a hole and broke his leg. The owner forgot to tell the wedding planner that he had been digging a hole to put in a fish pond.
B) An employee of the bank mistakenly wrote to Maria saying that the bank had approved her loan. Relying on that letter, Maria made contracts she could not honour when the bank refused to forward the money. Maria lost $10,000 because of the bank's carelessness.
C) A driver, trying to see what a movie crew was doing, accidentally plowed his car into the side of a catering truck.
D) Nikki almost upset a glass table and broke an expensive vase when she yanked on a large cable without checking what was blocking its path.
E) A real estate agent, fed up with his client, punches him in the nose when he changes his mind about selling his condo.
Q2) What is the "but for" test used for?
Q3) What is the last clear chance doctrine?
Q4) Explain what must be established in order to succeed in a negligence action.
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Page 7
Chapter 6: The Elements of a Contract: Consensus and Consideration
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184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/28030
Sample Questions
Q1) Once a person has promised to hold an offer open for a specified period of time, he cannot change his mind.
A)True
B)False
Q2) What is an interim agreement?
Q3) Which of the following is False with regard to contract law?
A) An exchange of promises can be consideration adequate to form a contract.
B) To form a contract, there must be an offer that is accepted unconditionally.
C) A contract for a $50,000 boat does not have to be evidenced in writing to be a valid contract.
D) A contract is unenforceable if it is required to be evidenced in writing under the Statute of Frauds and is not.
E) The parties to a contract can always go to court and have the court declare a contract void if the consideration is not adequate (i.e. fair), even if there is no evidence of fraud, duress, undue influence, or mental incapacity.
Q4) A formal contract is one that is signed and sealed.
A)True B)False
Q5) 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
157 Flashcards
Source URL: https://quizplus.com/quiz/28031
Sample Questions
Q1) Explain what is meant by "necessary."
Q2) Requirements of a contract include capacity of the parties to contract, legality, and intention of the parties to be legally bound. Which of the following is False with regard to these elements?
A) A restrictive covenant prohibiting one party to the contract from competing with the other is enforceable if it is reasonable between the parties and not contrary to public policy.
B) The court can presume the intention of the parties to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption.
C) If an adult cannot sue the other party to the contract because he is a minor, neither can the infant sue the adult.
D) A seller that contracts with an infant cannot avoid the difficulties of enforcing the contract by suing him in tort instead of breach of contract.
E) A person with mental incapacity might still be held to a contract even if, at the time of the contract, he didn't understand the nature and quality of his act.
Q3) What is a guarantee?
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Page 9
Chapter 8: Factors Affecting the Contractual Relationship
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182 Verified Questions
182 Flashcards
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Sample Questions
Q1) Indicate under which circumstances the remedy of rescission might not be available.
Q2) Jones offers to sell Smith his car. Smith thinks Jones is selling his 2015 Toyota, and Jones thinks he is selling his 2014 Buick. 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
Q3) An assignee is in no better position than the original contractor.
A)True
B)False
Q4) Distinguish between duress and undue influence.
Q5) "Where fraudulent misrepresentation is involved, the victim can obtain rescission and/or damages but where innocent misrepresentation is involved, the only remedy is damages." Discuss the accuracy of that statement.
Q6) What is the significance of an assignment being "statutory" rather than merely an "equitable" assignment?
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Page 10
Chapter 9: The End of the Contractual Relationship
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171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/28033
Sample Questions
Q1) What is the result of a breach of a significant term of a contract where there is a minor failure to perform?
Q2) Injunction is an example of an equitable remedy.
A)True
B)False
Q3) Under what circumstances will a court order a mandatory injunction? Illustrate with a real-world example.
Q4) What is the legal position of the victim of an anticipatory breach?
Q5) Joe paid Sam a debt owed of $50,000 by giving him 10,000 $5 bills. Sam refused to accept the payment. Explain this legal position.
Q6) Explain the injunction as it is available in contract law.
Q7) What is the three-part test for determining if novation has occurred?
Q8) Explain under what circumstances a creditor would be entitled to refuse to accept payment proffered to him on or before the payment due date.
Q9) Legal tender in Canada consists of government-produced coins and bills of any amount or quantity.
A)True
B)False
Page 11
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Chapter 10: Agency and Partnership
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211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/28019
Sample Questions
Q1) Explain how the principle of estoppel can be important in an agency relationship.
Q2) Joe Smith owns a book store as the sole proprietor. He is also a partner in a hotel, which borrowed $100,000 from the bank. Which of the following statements is true?
A) Because of the concept of limited liability, he can lose only what he has invested in the hotel.
B) The book store assets will only be available to the bank if the book store is operated by Smith in conjunction with the hotel.
C) The bank can look to the assets of the book store to pay off a debt.
D) The bank can only go after the assets of the book store if Smith was the actual person who negotiated the loan with the bank.
E) Although the bank can go after Smith's personal assets, they cannot go after the assets of the book store because the book store is a separate legal entity from Smith.
Q3) The relationship between the partners is governed by contract law.
A)True
B)False
Q4) Explain what must be done to create a limited partnership.
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Page 12
Chapter 11: Corporations
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28020
Sample Questions
Q1) Which of the following is an advantage of incorporation?
A) Shareholders are liable for debts of the corporation.
B) There are no tax advantages as compared to a sole proprietorship.
C) Shareholders can veto decisions of directors.
D) Shares are easily transferred.
E) Shareholders owe a duty to the corporation.
Q2) A share interest in the indebtedness of a corporation that can be secured against specific assets is known as a ________.
Q3) Shareholders in a closely held corporation can control the rights and responsibilities they have to each other by a unanimous shareholders' agreement.
A)True
B)False
Q4) Indicate two examples where a director can be personally liable for the debts of the corporation.
Q5) Explain the significance of the determination that a corporation is a broadly held corporation as opposed to a closely held corporation.
Q6) What is the purpose of a unanimous shareholder agreement?
Q7) How can a corporation be brought to an end?
Page 13
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Chapter 12: Employment
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161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/28021
Sample Questions
Q1) Which of the following is correct with respect to restrictive covenants included in employment contracts?
A) Such restrictive covenants are always void and have no place in employment contracts.
B) Such restrictive covenants are enforceable in court if reasonable and not against the public interest.
C) A void restrictive covenant destroys the whole contractual relationship and neither party has any obligations under the agreement.
D) For such a clause to be valid, it is only necessary to show that it was needed to protect the employer's interest.
E) The imposition of such a restriction is at the option of the employer and the employee has no say in the matter.
Q2) Discuss the remedies for the employee in a wrongful dismissal action as well as any obligations the employee may have in this action.
Q3) Prejudice or bias exercised against a person or class for the purpose of correcting a pattern of discrimination against another person or class is known as ________.
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14
Chapter 13: Intellectual Property
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28022
Sample Questions
Q1) Which of the following is true with regard to the law of trade secret/breach of confidence?
A) A person could seek protection under the law of trade secret and the law of copyright at the same time.
B) The subject matter protected by the law of trade secret is set out in the provincial Trade Secrets Act.
C) The protection afforded by this area of the law applies only to personal information, not commercial matters the disclosure of which would increase competition.
D) An injunction could be granted by the court only against a person who stole a trade secret, not against a third person using the stolen secret.
E) An Anton Piller order is an order of the court requiring a person who stole and used a trade secret to make an accounting of all the profit realized from its use.
Q2) Contrast patent and copyright protection. In your discussion, consider the differences in the nature of the protection, the kind of things protected, the effectiveness of the protection granted, and the objectives of the legislation.
Q3) Indicate three things that cannot be patented.
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Page 15
Chapter 14: Real and Personal Property and Protection of the Environment
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130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/28023
Sample Questions
Q1) When a person acquires temporary possession of a chattel by arrangement with the owner, it is known as which of the following?
A) Holder in due course
B) Chose in action
C) Consignment
D) Bailment
E) Fixture
Q2) What is meant by "relief against forfeiture"?
Q3) A right of way is an example of an estate in land since it gives the holder of it the right to go across the land.
A)True
B)False
Q4) Describe the environmental review process in place under federal legislation.
Q5) Describe the evolution of the standing of First Nations groups in the development and transportation of energy and natural resources.
Q6) What is meant by the term "distress" in the context of landlord-tenant relations?
Q7) What is the lessor's obligation to ensure quiet enjoyment?
Q8) Distinguish between a bailment for value and a gratuitous bailment.
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Chapter 15: Priority of Creditors
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28024
Sample Questions
Q1) Holtz hires Joe, a builder, to convert his attic into an apartment so that Holtz's mother can move in. Joe employs two carpenters, an electrician, and a plumber to do the actual work. When making payments to Joe, Holtz holds back the 10% required by statute. After waiting the legislated minimum period, Holtz discovers that several liens have been registered against his property. It turns out that Joe failed to pay the various subcontractors for their work. Which one of the following statements best describes Holtz's position?
A) Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe.
B) Holtz and Joe are equally liable to the lien claimants because of recent amendments to the builders' lien legislation.
C) Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property.
D) Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations.
E) If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater.
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Chapter 16: Sales and Consumer Protection
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28025
Sample Questions
Q1) If Jones receives a promissory note from Smith, who passes it on to Green, who qualifies as a holder in due course, Green is the receiver of assigned contractual rights and is in the same position as Jones.
A)True
B)False
Q2) The Gift Card Regulation stipulates that gift cards are allowed to have expiry dates.
A)True
B)False
Q3) Discuss the function of the federal Competition Act and the role it plays in consumer protection.
Q4) Explain what common law recourse there is against manufacturers when they manufacture a faulty or dangerous product.
Q5) Define the mission of the Consumer Packaging and Labelling Act.
Q6) Sales made to consumers at their dwellings or places of business are known as
Q7) A bill of exchange is an order by one person to another to pay money to a third.
A)True
B)False
18
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