Entrepreneurship and the Law Test
Bank
Course Introduction
Entrepreneurship and the Law explores the critical legal issues that entrepreneurs and startups face throughout the business lifecycle. The course examines foundational topics such as business formation, intellectual property protection, contract negotiation, employment law, financing, and regulatory compliance. Students learn how legal frameworks impact business strategy and decision-making, gaining practical insights into risk management and leveraging legal tools for competitive advantage. Through case studies and real-world scenarios, the course prepares students to identify legal pitfalls and proactively address challenges in the rapidly evolving landscape of entrepreneurship.
Recommended Textbook
Legal Fundamentals for Canadian Business 3rd Edition by
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10 Chapters
1473 Verified Questions
1473 Flashcards
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Page 2
Richard A. Yates
Chapter 1: The Canadian Legal System
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) The common law courts as developed by the king of England were used to impose the will of the sovereign on the people.
A)True
B)False
Answer: False
Q2) Stare decisis is the Latin term for following the code.
A)True
B)False
Answer: False
Q3) Which of the following statements is correct?
A)Alternate dispute resolution agreements are enforceable and appealable.
B)The parties to a dispute lose control in negotiations.
C)There is a great deal of flexibility in negotiation and mediation.
D)Goodwill is most likely maintained in litigation.
E)Privacy is maintained in an adjudication.
Answer: C
Q4) What is the highest court in Canada?
Answer: Supreme Court of Canada
Q5) Who brings a civil action?
Answer: The plaintiff
Page 3
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Chapter 2: Torts and Professional Liability
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Joe wandered onto Sam's land, not realizing that he had crossed the property line.Sam found him there and sued him for trespassing.Explain the likely outcome.
Answer: It is no excuse to say that you didn't know that you were on the other person's land, as long as you intended to be where you were; it is trespass if you were on another's land without authority.
Q2) In Canada, in order for a manufacturer to be held liable for injury caused by its product to an ultimate consumer, what must be shown?
Answer: That there was a duty to be careful in manufacturing that product, and that there was a failure to live up to the standard of a reasonable person in that manufacturing process (assuming, of course, that some sort of injury had resulted and the injury resulted from the normal use of the product).
Q3) Joe is a publisher of 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 that Joe had misunderstood, and someone else had made the calls.Sam sued for defamation.Will he succeed?
Answer: Yes, mistake is no defence to a defamation action.
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Chapter 3: Formation of Contracts
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167 Verified Questions
167 Flashcards
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Sample Questions
Q1) If the mail is a reasonable means for accepting an offer, is a contract formed when the offeror drops a letter of revocation in the mailbox at the very same instant that the offeree drops a letter of acceptance in the mailbox? Explain.
Answer: The revocation is effective only when received; however, the acceptance is effective when mailed because of the post-box rule.Hence, this is a binding contract.
Q2) Because of the Charter of Rights and Freedoms, status Indians no longer have their capacity to contract limited.
A)True
B)False
Answer: False
Q3) The post-box rule makes it clear that, when people choose to communicate by mail, they take the risk of delay or loss, and the acceptance as a result will be binding only when or if received.
A)True
B)False
Answer: False
Q4) What is the age of majority in your province?
Answer: The age of majority is 18 or 19, depending on the province.
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Page 5
Chapter 4: Enforcing Contractual Obligations
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177 Verified Questions
177 Flashcards
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Sample Questions
Q1) Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.
A)True
B)False
Q2) With regard to the law concerning misrepresentation, which of the following is true?
A)If the buyer realizes the seller persuaded him to contract by a misrepresentation, he will not be able to get the remedy of rescission if he was tainted with wrongdoing himself (i.e., not coming with "clean hands").
B)Damages as a remedy are not available where the misrepresentation becomes part of the contract.
C)A misrepresentation can be a true assertion of fact that induces (persuades) the party to contract.
D)Rescission is available as a remedy for misrepresentation only if it is innocent misrepresentation.
E)The case law allows a remedy for an opinion given by a non-expert.
Q3) Discuss how and why promissory estoppel might come into play when a contract is being discharged or changed by agreement.
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Chapter 5: Legislation in the Marketplace
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Under the Sale of Goods Act, when no time has been set for the return of goods taken on approval, title passes at the expiration of 48 hours.
A)True
B)False
Q2) Who is responsible for repossessing goods that have been used to secure a loan that has been defaulted?
Q3) Attachment takes place:
A)When perfection is completed
B)Upon registration of the claim
C)When a contract is executed
D)When the creditor takes possession of the property
E)When a debtor receives some value under the contract
Q4) Often the title of the goods will be transferred to a creditor as security for a loan.Sometimes this involves the use of a bill of sale, but the nature of the transaction is for the loan to be repaid.In this case, the creditor retains possession of the item used as security.
A)True
B)False
Q5) What is the main purpose of the Sale of Goods Act?
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Chapter 6: Agency and Employment
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158 Verified Questions
158 Flashcards
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Sample Questions
Q1) A principal is bound in contract with the third party with whom the agent dealt if the agent is:
A)Within his implied authority
B)Within his express authority
C)Within his apparent authority
D)Outside his authority but the principal ratified it
E)All of the above
Q2) Discuss the principle of ratification.In your discussion, consider limitations on its availability.
Q3) When an agent acts beyond the specific authority given by the principal, that action will not be binding on the principal.
A)True
B)False
Q4) Discuss the extent of the obligations of the agent to the principal based on his fiduciary duty.
Q5) Explain what is meant by an agent's fiduciary duty.Give three examples of how that fiduciary duty can be breached.
Q6) Distinguish between a rights dispute and an interest dispute.
Q7) How is certification obtained?
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Chapter 7: Methods of Carrying on Business
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) Shareholders have a right to bring an action against the directors on behalf of the company when the directors fail in their duty to the corporation.
A)True
B)False
Q2) A sole proprietor carries on business alone and cannot employ others in the process.
A)True
B)False
Q3) Joe and Mary promote several dances at school and split the profits.Will this be enough to establish a partnership?
Q4) Explain the nature of the director's duties to the corporation.
Q5) In a franchise arrangement, describe the advantages offered in such a business structure to the franchisor.
Q6) The rights associated with preferred shares are always the same, and there is no actual right to a dividend.
A)True
B)False
Q7) What are the advantages and disadvantages of being a sole proprietor?
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Chapter 8: Property
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160 Verified Questions
160 Flashcards
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Sample Questions
Q1) Real property refers to land only.
A)True
B)False
Q2) A right of way is an example of a leasehold estate that is specified for a period of time.
A)True
B)False
Q3) Joe borrowed his neighbour Sam's lawn mower.At the same time, Sam asked Joe to look after a valuable camera for him while he was on vacation.Explain in relation to which of these items Joe has a higher duty to be careful.
Q4) When a person acquires temporary possession of a chattel by arrangement with the owner, it is known as which of the following?
A)Bailment
B)Fixture
C)Consignment
D)Chose in action
E)Holder in due course
Q5) Explain what is foreclosed in the foreclosure proceedings related to mortgages.
Q6) What is meant by a chattel?
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Chapter 9: Ideas and Information
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Aunt Juliet wants to know whether or not to register her trademark.Which of the following is true with regard to registration of trademarks?
A)If she does not register her trademark under the Trademark Act, she will have no legal protection of that mark.
B)Trademarks can only consist of socially acceptable symbols or logos; words and expressions must seek copyright protection.
C)A registered trademark is required for a passing-off action.
D)Registration of the trademark would give her exclusive use of that mark nationwide with respect to the particular type of business, or similar products or services as indicated on the application even though she is not marketing her wares nationwide.
E)Registration gives her the right to use her mark for her life plus 50 years.
Q2) The remedies for infringement included in the Integrated Circuit Topography Act are limited to payment of royalties, payment of damages or profits (including punitive damages), and the seizure and destruction of offending items.
A)True
B)False
Q3) What rights are conveyed by the granting of a patent?
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Chapter 10: Electronic Commerce and International Trade
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) Discuss any liability faced by the internet service provider (ISP) in cases where defamatory or other offensive statements are made on the internet.
Q2) A signature equivalent for electronic documents might be a password or some other form of encryption.
A)True
B)False
Q3) Explain how Canadian businesses can become involved in business in different countries.
Q4) In determining jurisdiction for international business disputes, what factors will the court consider?
Q5) International business contracts may also include specialty contracts such as a bill of lading, letters of credit, or insurance.
A)True
B)False
Q6) Online dispute resolution services for electronic transactions are less expensive and less time consuming than traditional court processes.
A)True
B)False
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