Introduction to Canadian Law Exam
Materials
Course Introduction
Introduction to Canadian Law provides students with a foundational understanding of the Canadian legal system, including its historical roots, constitutional framework, and the roles of government institutions. The course explores the sources and categories of law in Canada, such as common law, statute law, and the Constitution, and examines key legal principles, rights, and responsibilities. Through the study of landmark cases and contemporary legal issues, students gain insight into the functioning of courts, legal professions, and the impact of law on society. This course serves as an essential primer for further study in law or related disciplines.
Recommended Textbook
Canadian Business and the Law 5th Edition by Dorothy Duplessis
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Page 2
Chapter 1: Knowledge of Law As a Business Asset
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Q1) I'mNottaSoSmart Inc. overlooked the proper registration of its patent for a unique relay component used in its new software before release for public sale. A year later it discovered a competitor had used the component in its just-released patented software. Which of the following best describes the consequences to the competitor for its actions?
A) Unprotected intellectual property can be used with impunity.
B) Theft of business property is a criminal offence.
C) Patent law infringements are punishable offences.
D) Losses due to theft of business property are recoverable.
Answer: A
Q2) What is the primary asset needed to maximize protection of entrepreneurs and the entire business enterprise?
A) inventory tracking software
B) accounting software
C) surveillance cameras
D) knowledge of business law
Answer: D
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Chapter 2: The Canadian Legal System
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Q1) Why is it important for businesses to monitor government policy?
A) Rules and regulations are periodically revised.
B) It is the machinery that regulates government.
C) It provides rulings that resolve existing disputes.
D) It can be overwhelming and very technical.
Answer: A
Q2) What is a distinguishing characteristic of a treaty?
A) A treaty is the sole law governing relations between nations.
B) A treaty is a set of coded laws to regulate relations.
C) A treaty governs relationships between Canada's provinces.
D) A treaty can exist between nations governed by international law.
Answer: D
Q3) There are no limits on the guarantees of rights and freedoms established by the Charter of Rights and Freedoms.
A)True
B)False
Answer: False
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Chapter 3: Managing Legal Risks
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Q1) Rahim's decision to increase the amount of the deductible on his business liability insurance policy will result in the business having to absorb the loss resulting from a future materialization of a legal risk.
A)True
B)False
Answer: True
Q2) Which of the following would immediately indicate that there are circumstances in need of priority consideration when measuring legal risk?
A) implementation of a standard form contract
B) matters where the potential loss is high
C) a review of long-term supplier contracts
D) topics for inclusion in risk policy manuals
Answer: B
Q3) Which of the following are usually classified as functional areas of a business?
A) production, human resources, finance
B) finance, accounting, training
C) marketing, education systems, finance
D) accounting, marketing, training
Answer: A
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Page 5
Chapter 4: Dispute Resolution
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Q1) Which of the following would be a valid criticism of the use of arbitration clauses in contracts between investment brokers and their clients?
A) A code of conduct includes legislated procedures for resolving consumer complaints.
B) Clients are unable to ensure the independence and expertise of a suggested arbitrator.
C) Arbitration firms favour brokers and deny the clients due process.
D) An arbitration procedure requires clients to pay a fee to have their complaint remedied.
Q2) The party ordered by the court to pay a specified amount to a winner of a lawsuit is known as a judgment debtor.
A)True
B)False
Q3) What are advantages and disadvantages of having electronic data as part of the documentary evidence in a lawsuit?
Q4) Identify and briefly describe matters that will influence the best courses of action a business may choose to take with respect to dispute resolution. Include an indication of the key element involved in approaching this process.
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Chapter 5: An Introduction to Contracts
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Q1) Rachel decides to sell her home, so she meets with several real estate agents. One agent offers a reduced commission rate and a guarantee her home will sell within three months without a price reduction. Why should Rachel secure a formal contract if she chooses to use this agent?
A) to ensure the arrangement meets the agent's needs and protects the agent's interests
B) to ensure the agent is motivated to avoid damaging his business reputation
C) to obtain favourable terms that provide for the no-fault cancellation of the contract
D) to allow Rachel to exercise her right to sue if the agent fails to perform as promised
Q2) Under which of the following circumstances would a court be likely to set a contract aside?
A) if there is a lack of sufficient equality of the benefits received by each party
B) if there is an attempt to take advantage of a handicapped, vulnerable person
C) if there were witnesses to the contract
D) if the parties put their contract in writing
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Chapter 6: Forming Contractual Relationships
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Q1) A standard form contract requires one party, typically a consumer, to enter into it without benefit of negotiation.
A)True
B)False
Q2) What key ingredient must be present in order to distinguish a legally enforceable promise from one that is legally unenforceable?
A) acceptance
B) formalization
C) consideration
D) revocation
Q3) Recent legislation in some provincial jurisdictions overrides the common law that governed the acceptance of a payment of a lesser amount in full satisfaction of a debt. What is the policy rationale for the legislation?
A) to allow debtors to pay by instalments over time
B) to promote the settlement of debts on a final basis
C) to allow creditors to increase the collection of debts
D) to promote a reduction in consumer debt
Q4) Explain the difference between offer and invitation to treat. Give an example of each.
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8
Chapter 7: The Terms of a Contract
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Q1) What is the function of an express term with respect to a contract?
A) It gives effect to the parties' intentions.
B) It brings an existing contract to an end.
C) It explicitly states contractual promises.
D) It implicitly states contractual promises.
Q2) Under the UEEA, which of the following would immediately tell you that you have satisfied the best evidence rule with respect to an electronic record?
A) proving the authenticity of an electronic record is as it was claimed to be
B) proving the integrity regarding the claimed authenticity of the electronic record
C) proving the integrity of the electronic system that recorded the data
D) proving authenticity by producing the original electronic contract
Q3) Briefly explain what is meant by the parol evidence rule. Identify when a court might avoid applying the parol evidence rule.
Q4) An implied term may be imposed by the court in order to give effect to the parties' intentions.
A)True
B)False
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Chapter 8: Non Enforcement of Contracts
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Q1) Ranjit, Quan Lu, and Ng are all directors of BigSkyInvestments Inc. who have a beneficial interest in a contract that BigSkyInvestments' management is considering and each must disclose their status to management in accordance with statute requirements.
A)True
B)False
Q2) A simple oversight or error by one negotiating party does not constitute a legal mistake and provides no basis for voiding a contract.
A)True
B)False
Q3) People seeking to avoid a contract owing to mental capacity, duress, undue influence, or unconscionability must do so promptly.
A)True
B)False
Q4) The only basis for a contract being held to be illegal is if it is prohibited by the Criminal Code.
A)True
B)False
Q5) What is an "electronic signature," and is it legally valid?
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Chapter 9: Termination and Enforcement of Contracts
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Q1) What will readily allow the judge to make a determination when a court is asked to determine whether the termination of a contract amounts to termination by performance?
A) the determination of the nature of the contract
B) the oral evidence given by each of the parties
C) the reasonableness of unforeseeability of an event
D) the factual circumstances of subsequent events
Q2) Why did the Supreme Court of Canada grant leave to hear the case of London Drugs Limited v. Kuehne & Nagel International Ltd. (1992), 97 D.L.R. (4th) 261 (S.C.C.)?
A) to restrict employee liability relative to the doctrine of privity of contract
B) to ensure employee exclusion clauses are no longer recognized by the lower courts
C) to restrict employee liability relative to the doctrine of vicarious liability
D) to ensure employer exclusion clauses are no longer recognized by the lower courts
Q3) Identify four situations in which the equitable remedy of an order for specific performance may not be available.
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11
Chapter 10: Introduction to Tort Law
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Q1) What does the law consider to be a qualifying act with respect to the commission of a tort of battery?
A) an uninvited intentional occupation of another person's property
B) an uninvited intentional physical violation of another's bodily security
C) a careless act or omission that causes harm to another
D) an overt threat of imminent physical harm
Q2) What is considered to be the critical intent behind the prosecution of criminal acts that contravene the laws prescribed in the Criminal Code of Canada?
A) to facilitate the rehabilitation of society's less than fortunate citizens
B) to determine awards of compensation for the victims of crimes
C) to determine and enforce the adequate punishment of wrongdoers
D) to maintain respect for established societal rights of the Canadian people
Q3) What is the meaning of the legal term "structured settlement"?
A) a settlement in the form of tax-free apportioned annuity payments
B) a form of victim compensation paid from a taxpayer-funded program
C) a monetary settlement awarded by a court as compensation for injury or loss
D) a settlement encompassing amounts awarded for differing damage entitlements
Q4) Identify and briefly describe the law's rationale for holding employers vicariously liable for the tortious actions of their employees.
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Chapter 11: The Tort of Negligence
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Q1) Businesses affected adversely by product liability face claims arising from both negligence law and the law of contract.
A)True
B)False
Q2) The duty to love your neighbour imposed by society is synonymous with what duty imposed by law?
A) the duty to be watchful of your neighbour's property
B) the duty to know who your neighbour is
C) the duty to participate in a neighbourhood watch program
D) the duty to not injure your neighbour
Q3) Strict liability does not automatically apply under Canadian law in circumstances where a breach of contract arises as a result of an employee's breach.
A)True
B)False
Q4) What is the meaning of the Latin term prima facie?
A) a reasonably foreseeable consequence of an action
B) at first sight or on first appearance
C) a standard of measurement of questionable behaviour
D) a relationship relating to causality
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Chapter 12: Other Torts
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Q1) A trespasser is someone whose presence on land is practically objected to by the occupier of that land.
A)True
B)False
Q2) The Trade-marks Act contains a statutory form of action that bears a strong resemblance to the tort of passing off.
A)True
B)False
Q3) The general rule with respect to occupier's liability for responsibility to a licensee is for the occupier to make the licensee aware of any unusual danger of which the occupier is aware.
A)True
B)False
Q4) Which of the following is synonymous with a misrepresentation causing loss?
A) the fraudulent use of dirty tricks
B) an uncommon remedy in damages
C) the tort of passing off
D) a reckless disregard for the truth
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Chapter 13: The Agency Relationship
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Q1) An agency relationship created when one party adopts a contract entered into on his behalf by another who acted without authority at the time is legally known as an agency by estoppel.
A)True
B)False
Q2) Kyrie negotiated a contract in good faith with a party whose introductory letter from his employer reasonably led her to believe he had the proper authority to do so. What would be the most likely outcome of any dispute challenging the existence of an agency relationship?
A) The law sides with the principal through ratification.
B) A court will determine the agent had actual authority.
C) The law sides with the customer through estoppel.
D) A court will determine the agent had apparent authority.
Q3) How will a power of attorney operate if it states that the occurrence of a specific event will make it operational?
A) as a variation of a general power of attorney
B) as a variation of an enduring power of attorney
C) as a variation of a springing power of attorney
D) as a variation of a specific power of attorney
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Page 15
Chapter 14: Business Forms and Arrangements
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Q1) Which of the following is a provision of the Partnership Act in matters relating to Sheps & Shaps Law Offices?
A) The managing partner is the authorized agent of the firm.
B) Each partner is an agent of the firm.
C) Each partnership must designate a managing partner.
D) The partners are the firm's fiduciary agents.
Q2) Which of the following strongly supports the need for each one of the partners to be aware of each and every obligation incurred by their partnership with respect to personal liability?
A) full and complete exposure
B) predetermined limited liability
C) proportional limited liability
D) full and complete impunity
Q3) What priority must business owners place on the choice of the form of ownership for their business?
A) It is a relevant decision.
B) It is a critical decision.
C) It is a complicated decision.
D) It is a minor decision.
Q4) Discuss the distribution of the profits of a corporation.
Page 16
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Chapter 15: The Corporate Form: Organizational Matters
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Q1) Which of the following is synonymous with the term "widely held"?
A) restrictions on classes of shares
B) private corporations
C) rights attaching to a share class
D) public corporations
Q2) All Canadian jurisdictions follow a similar procedure for the creation of a corporation and all require payment of the filing fee, payable to the Receiver General, to be made concurrent with the submission of the incorporating documents for registration.
A)True
B)False
Q3) A class of shares may include a combination of various rights and privileges.
A)True
B)False
Q4) Laws that are designed to regulate transactions involving shares and bonds of corporations are found in securities legislation.
A)True
B)False
Q5) Discuss the requirements in all incorporating jurisdictions with respect to a corporation's name.
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Chapter 16: The Corporate Form: Operational Matters
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Q1) Statutory procedures were enacted to avoid a blanket prohibition on self-dealing contracts.
A)True
B)False
Q2) Which of the following is a commonly held characteristic of corporate opportunities?
A) Most tempt fiduciaries to act with self-interest.
B) They have a very high revenue potential.
C) They can be either pursued or declined.
D) Most give rise to conflict-of-interest situations.
Q3) The oppression remedy is a personal action that can be brought by shareholders, creditors, directors, and officers.
A)True
B)False
Q4) Which of the following would allow a party to avoid strict liability for a statutory offence?
A) showing reasonable care and due diligence
B) showing a lack of moral blameworthiness
C) showing the potential for rehabilitation
D) publishing the offence in the media
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Chapter 17: Personal Property
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Q1) Explain what a court will be require in order to determine who is responsible for damaged goods and for how much.
Q2) What is most likely to be the result in circumstances involving an outstanding payment for the repair and subsequent storage of a sailboat?
A) a limited defence, mainly relating to circumstances
B) the severe limitation of the bailee's liability
C) the retained possession and sale by right of lien, if needed
D) the bailor's expectation of the receipt of property in good repair
Q3) Identify the risks relating to personal property.
Q4) What aspect would normally be described in a contract for services in circumstances involving a bailment of value?
A) the parties' remedies for failure to perform
B) the price to be paid by the bailee for bailment
C) the bailor's remedies for collecting storage charges
D) the services to be provided for the bailor
Q5) Remedies for failure to perform obligations arising in a bailment relationship originate in two contexts. Discuss.
Q6) Identify the elements that are applied to determine the liability of bailees.
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Chapter 18: Intellectual Property
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Q1) What is the relationship between the qualitative and quantitative aspects of copying a substantial part of another's work with respect to copyright infringement?
A) determines whether the author has a valid right to object to dealings with or uses of the work
B) determines whether the author has a valid right to be associated with the work
C) determines infringement based on whether the part taken is a key or distinctive part
D) determines infringement based on whether the work is associated with a cause
Q2) What valid commonality do the elements of private study, research, criticism, and review share?
A) copyright exemption
B) fair dealing exemption
C) trademark exemption
D) confidentiality exemption
Q3) Briefly discuss how parties may acquire an express obligation to keep information confidential and how that obligation is often expressed in relation to an employee.
Q4) Discuss the rights attributable to a registered industrial design.
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Chapter 19: Real Property
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Q1) Real property is largely governed by common law, which, by tradition, devotes its focus on protecting rights to property and, in particular, determining the rights of ownership to a piece of land.
A)True
B)False
Q2) Marina has given the required 90 days' notice that she will not be renewing her lease to her landlord. Marina's business has leased space from this landlord under a periodic tenancy arrangement.
A)True
B)False
Q3) Joint tenancy, which is typically the form of ownership in land used for property acquired by spouses as their marital home, is distinguished by the right of survivorship.
A)True
B)False
Q4) Tangible personal property that is attached to land, buildings, or other fixtures is commonly known as real estate.
A)True
B)False
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Chapter 20: The Employment Relationship
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Q1) Adverse effects discrimination involves a workforce that is overwhelmingly dominated by males, such as the male-dominated federal Parliament.
A)True
B)False
Q2) What body of law has been amended to impose a new legal duty on organizations and individuals to protect the health and safety of workers?
A) the federal Employment Standards Act
B) provincial employment standards legislation across Canada
C) the Criminal Code of Canada
D) each province's workers' compensation legislation
Q3) Tegral hosts a nightly newscast on CWB. What would be the most likely result if Tegral becomes injured in the course of his employment?
A) The nature of his employment relationship will be determined according to its duration.
B) He will be protected and compensated by federal legislation.
C) He will be protected and compensated by provincial legislation.
D) Special public sector employees' legislation will protect his interests.
Q4) List the essential content that should be included in an employment contract.
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Page 22
Chapter 21: Terminating the Employment Relationship
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Q1) The case of Dowling v. Halifax (City of), [1998] 1 S.C.R. 22, involved a long-serving employee entitled to 24 months' notice of termination. The employer reduced the notice period to six months due to an incident of inappropriate conduct. What was the position taken by the Supreme Court of Canada in this instance?
A) The reduction was rejected, and an assessment of reasonable notice was ordered.
B) The reduction was justified because of just cause.
C) The reduction was justified because of near cause.
D) The reduction was rejected, as the conduct did not merit dismissal with or without notice.
Q2) Which of the following is required to determine whether an employee's conduct justifies dismissal?
A) disobedience in a matter of substance
B) conduct prejudicial to the employer's business
C) assessment of context and circumstances
D) conduct that is incompatible with duties
Q3) Identify the changes that are considered to be fundamental to the triggering of an action for constructive dismissal.
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Chapter 22: Professional Services
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Q1) In the case of Hodgkinson v. Simms, [1994] 3 S.C.R. 377, which of the following was identified by Justice La Forest as being the linchpin of the accounting profession's credibility with the public?
A) maintenance of independence and honesty
B) reliance on skill and knowledge
C) disclosure of real conflicts to clients
D) compliance with the spirit of fair billing practices
Q2) What is the key to limiting the duty of care owed by an auditor to third parties as defined by the foreseeability principle?
A) a statutory prohibition against reliance by third parties
B) the purpose of performing an audit is mandated by law
C) a statutory amendment allowing limited liability partnerships
D) a disclaimer against relying on information from third parties
Q3) Briefly discuss the concept of professional-client privilege.
Q4) Identify the various ways in which a practising lawyer may charge fees for the professional services he or she renders.
Q5) Briefly discuss the effects of a limited liability partnership on liability for partners of a firm and the firm itself.
Q6) Identify specific obligations that apply to a professional as fiduciary.
Page 24
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Chapter 23: Sales and Marketing: the Contract, Product, and Promotion
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Q1) In the case of Chalmers Suspensions International Ltd. v. B&B Automation Equipment Inc., 2008 CanLII 15767 (ON S.C), the court was asked to answer the following:
i) Was there a condition implied in the contract that the robotic machine be suitable for the purpose specified by Chalmers?
ii) If so, was the condition breached?
iii) If the condition was breached, what was Chalmers' remedy? How did the court respond, and why?
Q2) Classification of the relevant term of the contract for sale of goods is essential to determining whether the goods sold by description actually correspond with the description.
A)True
B)False
Q3) A number of terms are automatically implied by the Sale of Goods Act into the contracts of parties, even though they may have expressly agreed to exclude the operation of this legislation with regard to their transaction.
A)True
B)False
Q4) Briefly discuss the right of repudiation with respect to the sale of goods.
Page 25
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Chapter 24: Sales and Marketing: Price, Distribution, and Risk Management
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Q1) Price discrimination involves a producer's attempts to drive the final retail price of goods upward and the imposition of recriminations upon noncompliant retailers.
A)True
B)False
Q2) To which of the following are the existence of a genuine selling opportunity and a realistic opportunity to expand relevant with respect to distributorships?
A) the upward payment of fees
B) the legality of a multi-level marketing plan
C) pyramid selling schemes
D) the timely disclosure of earnings
Q3) Which of the following is synonymous with the terms, "on sale," "reduced," and "clearance"?
A) a lesser price than the ordinary price
B) auto-scan system faulty pricing
C) a lower price based on extensive sales data
D) products promoted in catalogue sales
Q4) How should a producer of products designed for children effectively manage its exposure to legal risks?
26
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Chapter 25: Business and Banking
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Q1) Why are banks placing daily and weekly monetary limits on transactions?
A) to shift risk allocation for the finalization of payments
B) to shift risk allocation for authentication
C) to combat the uncertainty surrounding electronic banking
D) to control losses in the event of fraud
Q2) What party is subject to claims arising from an original contract of sale?
A) an assignee of non-commercial debt
B) a holder in due course
C) a holder of a consumer note
D) a holder of a negotiable instrument
Q3) What distinguishes a cheque from a bill of exchange?
A) Cheques fail to create a self-contained obligation.
B) The party instructed to pay is the bank.
C) Bills of exchange are negotiable instruments.
D) Bills of exchange are regulated by the Bills of Exchange Act.
Q4) When a commercial retailer accepts a cheque as payment from one of its customers, the retailer becomes the payee and the customer is the drawer.
A)True
B)False
Q5) Discuss the purpose of the banking agreement.
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Chapter 26: The Legal Aspects of Credit
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Q1) A letter of commitment contains the actual loan agreement between the lender and the commercial borrower; the borrower, lacking bargaining power, must meet those terms if it wants the loan.
A)True
B)False
Q2) How does the PPSA resolve conflicts when more than one debtor claims a security interest in the same collateral of the debtor?
Q3) Which of the following is a valid characterization of the borrower's promise to repay a loan and the lender's collateral or security if the borrower fails to repay?
A) They are the major elements of the credit agreement.
B) Each refers to any interest in property that is of value to a lender.
C) Each reflects the need for extensive security due to uncertain value.
D) They are the lender's value in any property interest.
Q4) Identify the document registered as evidence of a security interest in personal property, and explain the registration process and requirements that apply to it.
Q5) Explain the environmental due diligence process.
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Chapter 27: Bankruptcy and Insolvency
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Q1) Which of the following would most strongly support a type of superior priority when distributing the proceeds of a bankrupt's estate to creditors that allows employees to be paid from a government fund that would then have a subrogated claim against the estate?
A) provincial fraudulent conveyancing legislation
B) the Bankruptcy and Insolvency Act
C) the Wage Earner Protection Act
D) the Wage Earner Protection Program
Q2) What would be the first step a trustee undertakes following the granting of a receiving order in order to identify and protect assets and identify liabilities?
A) give public notice of the bankruptcy
B) conduct a detailed examination of book debts
C) secure the business premises and inventory
D) prepare appropriate statements
Q3) Discuss the typical actions of a trustee following a commercial operator's assignment in bankruptcy.
Q4) Explain the circumstances that would allow a payment that appears to fraudulently favour one creditor to the detriment of the others to stand.
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Chapter 28: Insurance
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70 Verified Questions
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Sample Questions
Q1) The purpose of comprehensive general liability insurance (also known as CGL insurance) is to compensate business enterprises in a comprehensive way for any liabilities they incur outside the course of their normal business operations.
A)True
B)False
Q2) What is the name given to the rule that prevents an insured from collecting on insurance when the loss has resulted from the insured's willful misconduct?
A) third-party endorsement
B) forfeiture rule
C) subrogation
D) third-party rider
Q3) What is the name often given to the type of insurance coverage that requires an insurer to compensate for the loss of profits?
A) an all-risk policy
B) comprehensive risk insurance
C) a casualty policy
D) environmental impairment insurance
Q4) Identify and briefly describe the basic kinds of insurance.
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