Law for Commerce Exam Bank
Course Introduction
Law for Commerce explores the essential legal principles and frameworks that govern business activities and commercial transactions. The course covers topics such as contract law, agency, sales of goods, negotiable instruments, company law, and the regulatory environment impacting businesses. Students learn to identify legal issues in commercial contexts, understand the implications of legal decisions, and apply relevant laws to real-world business scenarios. By analyzing case studies and current legal developments, students gain practical insights into managing legal risks and ensuring compliance in the commercial 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) Contingency fee agreements
A) are typically used for real estate purchases, the drafting of wills, and incorporations.
B) are not subject to any restrictions.
C) are synonymous with retainer agreements.
D) may result in a lawyer not receiving any legal fees for the work done on a file.
E) must be prepared for all lawyer-client relationships.
Answer: D
Q2) Provincial law societies may restrict the use of contingency fee agreements.
A)True
B)False
Answer: True
Q3) Duty counsel are typically available
A) for small claims and real estate disputes.
B) in superior court bankruptcy matters.
C) for commercial litigation.
D) in criminal courts, family courts, or immigration hearings.
E) to review and draft a variety of contracts.
Answer: D
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3
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) While the Charter of Rights and Freedoms protects individuals' rights from government abuses, there is still no legislation to protect individuals' rights from abuse by the public.
A)True
B)False
Answer: False
Q2) Indicate what kind of personal freedoms are protected under the Charter. Answer: Freedom of conscience, religion, freedom of belief, opinion, expression, and freedom of peaceful assembly and association are protected under the Charter.
Q3) Once a bill has received royal assent, it may be effective immediately or it may be effective on later proclamation.
A)True
B)False Answer: True
Q4) There are no limitations to the right of freedom of expression. A)True
B)False
Answer: False
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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) Describe the limits on the jurisdiction of the superior trial court in your province.
Answer: There are no general limitations except for areas that are specifically assigned to other courts or bodies by statute, so that there is unlimited monetary jurisdiction and jurisdiction throughout the province.
Q2) The Supreme Court of Canada only hears appeals from other courts.
A)True
B)False
Answer: False
Q3) Explain what happens in an examination in aid of execution (examination in aid of enforcement, or questioning of debtor in Alberta).
Answer: The judgment debtor is examined under oath to determine what assets she has or what kind of dealing she is involved in which may have been an attempt to hide assets and make them not available to the judgment creditor. She is asked about bank accounts, boats, cottages, homes, wages, etc., to determine what can be seized and garnisheed to satisfy the judgment.
Q4) Who prosecutes a criminal matter?
Answer: The Crown.
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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) Distinguish a crime from a tort.
Q2) When someone spreads False information about another product, he can be sued for what?
Q3) Discuss the various kinds of remedies that are available in tort actions. In your answer, discuss any limitations on the availability of those remedies.
Q4) What is the tort that arises when a person attacks the reputation of another's product or business by spreading a False rumour?
Q5) Until recently, there was no tort of invasion of privacy in common law, but in at least one province, an American legal concept was imported and adopted as a privacy tort. This tort is known as
A) defamation.
B) invasion of privacy.
C) intrusion upon seclusion.
D) nuisance.
E) interference of privacy.
Q6) Health information is not specifically protected by legislation in any province.
A)True
B)False
Q7) Discuss privacy concerns and legal protection against invasion of privacy today.
Page 6
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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 statements with regard to the tort of negligence is true?
A) If a person is injured by a defective product that he himself did not purchase, he cannot sue the manufacturer for negligence.
B) If the court finds contributory negligence, the defendant has no liability at all.
C) If physical injury can be foreseen as the result of a person's actions, the wrongdoer will be not be liable for all the injury suffered.
D) A possible defence to the plaintiff's claim of negligence is that the plaintiff volunteered to take the risk.
E) The test used to determine whether a duty of care is owed is this: would a below-average person foresee that the plaintiff could be affected by the acts of the defendant?
Q2) No-fault personal liability automobile insurance is an attempt to distribute losses among the most accident-prone drivers.
A)True
B)False
Q3) What is the "but for" test used for?
Q4) What test is used to establish a duty of care?
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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) On Friday, Harlan offers to sell Lily his motorcycle for $1000. When Lily hesitates, Harlan tells her to take her time deciding, promising her he will give her the weekend to make up her mind. On Saturday, Harlan runs into Lily at the mall and informs her he has sold the bike to Angie instead. What recourse does Lily have?
Q2) Harry saw Joe in his classic Buick at a local drive-in restaurant and told Joe that he'd like to buy the car. He offered him $15,000. Joe said he had to think about it and that he'd let Harry know. Two days later, Joe decided that he needed the money and couldn't afford to keep the car. He wrote Harry a letter accepting his offer and mailed it that afternoon. The next day, Harry phoned and told Joe he'd changed his mind and that he needed the money for something else. Joe told him about the letter, and in fact Harry received the letter that day after his phone conversation with Joe. Joe insisted on going through with the deal. Explain the legal liability of the parties.
Q3) A formal contract is one that is signed and sealed.
A)True
B)False
Q4) Discuss the implications of a creditor agreeing to take less in full satisfaction of a debt.
Q5) What is "quantum meruit"?
Page 8
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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) Which of the following are in no way incapacitated when entering into contracts?
A) Mentally disabled
B) Women
C) Children
D) Status Indians
E) Trade unions
Q2) Which one of the following is an example of a contract that is binding on an infant in British Columbia?
A) A contract to purchase a new stereo
B) A contract for a camera
C) A contract for baseball tickets
D) A contract for a DVD purchase
E) A contract for a student loan
Q3) Only contracts involving significant sums of money must be in writing to be enforceable.
A)True
B)False
Q4) Indicate any limitation on the ability of status Indians to contract.
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Q5) From the perspective of contract law, why might the distinction between a guarantee and an indemnity be important?
Chapter 8: Factors Affecting the Contractual Relationship
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182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/28032
Sample Questions
Q1) With respect to having the court set aside a contract on the basis of undue influence, which of the following is False?
A) If a client transferred property to his lawyer and later claimed the transfer was due to undue influence, the law would presume the transfer was due to undue influence.
B) If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back.
C) A contract made in favour of a dominant person who exerted undue influence over the weaker party is voidable at the option of the weaker party.
D) If you are a dominant person in relation to an aged relative who wants to sell you his house below market value, you should insist that the aged relative receive independent legal advice.
E) Where undue influence is established, the resulting contract is voidable, not void.
Q2) Rescission of contract citing innocent misrepresentation on behalf of one of the parties is not available in four situations, list and describe these.
Q3) Explain what is meant by "vicarious performance."
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Chapter 9: The End of the Contractual Relationship
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) The victim of a breach cannot recover damages that he could have avoided if he had made a reasonable effort.
A)True
B)False
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 him 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 he can reasonably afford.
E) the plaintiff should only be entitled to compensation for specific and calculable costs and expenses.
Q3) Discuss the equitable remedies that were developed in contract law and why they were necessary.
Q4) Indicate three different types of equitable remedies and distinguish among them.
Q5) Explain the injunction as it is available in contract law.
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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) Discuss the problem of liability with respect to partnership and how this difficulty can be overcome if partnership is chosen as the method of carrying on business.
Q2) Chan sold a business to Scott and in the process they valued the good will of the business at $50,000. In the sale contract, it was agreed that this amount would be paid by Scott giving Chan 15% of the business profits until it was paid. This creates a partnership between them.
A)True
B)False
Q3) A third party is bound to the principal only when he knows that the agent is acting for that principal.
A)True
B)False
Q4) What option does a principal have if the agent has acted beyond both actual and apparent authority, but the principal wants to proceed with the agreement?
Q5) Explain why the law of partnership poses a danger to people carrying on joint business activities.
Q6) Explain how the principle of estoppel can be important in an agency relationship.
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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) There is one common method of creating corporations used across Canada.
A)True
B)False
Q2) A prospectus is an internal document detailing the expected performance of a corporation.
A)True
B)False
Q3) Legislative requirements for distributing corporations are found not only in the Business Corporations Act, but also in the securities legislation, the Securities Act.
A)True
B)False
Q4) Discuss the principle of limited liability, why it arises in the law governing corporations, and its significance.
Q5) The corporation can also borrow funds, thereby accumulating A) shares.
B) debt.
C) bonds.
D) assets.
E) trustees.
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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) An employer is responsible for all torts committed by his employee.
A)True
B)False
Q2) (Modify this question for your province.) To which legislation would a person turn when they have been discriminated against when seeking employment?
A) Bill of Rights
B) Human Rights Code
C) Labour Relations Code
D) Charter of Rights and Freedoms
E) Employment Standards Act
Q3) Indicate what kinds of restrictions there are on an employer's right to dismiss an employee.
Q4) How is certification obtained?
Q5) An employer is vicariously liable for the torts committed on the job by employees and independent contractors.
A)True
B)False
Q6) What is the minimum period of time for which a completed collective agreement can be in force?
Page 14
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Chapter 13: Intellectual Property
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28022
Sample Questions
Q1) Provincial legislation gives the right to copy or reproduce a created work to the author or owner and controls infringements.
A)True
B)False
Q2) Which of the following is False with regard to trademark?
A) Registration of a trademark gives the owner of the trademark the exclusive right to use it throughout Canada.
B) Registration of a trademark grants the owner protection for 15 years with the right to renew.
C) If a person registers a trademark but later fails to use it, protection of the mark will not be lost. It is still his and is protected for the remainder of the period of protection granted. D) The distinctive design of a product container may be the subject of trademark protection.
E) Registration under the Trademark Act establishes a presumption that the person registered is the owner of the trademark.
Q3) What does it mean to say that works are in the "public domain"?
Q4) Give three examples of matters covered by copyright legislation.
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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) About ten years after their marriage, Eric and Bev had saved enough money to buy an investment property. First they bought a duplex, which they held as joint tenants, and later they bought a building lot in Lethbridge, which they held as tenants in common. Eric's will provided that his interest in the duplex would go to their daughter, Lisa, and that his interest in the Lethbridge lot would go to their son, Max. Indicate the statement that accurately describes who will take what upon Eric's death.
A) Lisa will get his interest in the duplex and Max will get the interest in the Lethbridge lot, just as the will said.
B) Bev will get both properties because she and Eric co-owned them both.
C) Bev will get Eric's interest in the duplex but Max will take Eric's interest in the Lethbridge lot.
D) Bev will get Eric's interest in the Lethbridge lot but Lisa will get his interest in the duplex.
E) Max will get Eric's interest in both properties as the oldest son.
Q2) Discuss which economic growth and industry activities have prompted all three levels of government to exercise their legislative authority to protect the environment.
Q3) What is meant by "relief against forfeiture"?
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Page 16
Chapter 15: Priority of Creditors
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28024
Sample Questions
Q1) With regard to bankruptcy and debt collection, which of the following is False?
A) The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his creditors that may or may not result in bankruptcy for the debtor.
B) Both fraudulent conveyance and fraudulent preferences acts attempt to prohibit the debtor from delaying, hindering, or defrauding the creditor.
C) Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract.
D) The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged.
E) Any assets obtained by a discharged bankrupt can still be claimed by former unsecured creditors who placed the former bankrupt into bankruptcy.
Q2) What is the primary remedy available when goods have been used to secure a loan which has been defaulted?
Q3) Discuss alternatives to bankruptcy and why these alternatives might be preferable to bankruptcy itself.
Q4) What is the effect of a payment made in preference to one creditor over another?
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Page 17
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) Define the mission of the Consumer Packaging and Labelling Act.
Q2) Explain the options that are available to the victim of a breach of a condition in the contract.
Q3) When a buyer defaults, the seller has an unpaid ________ against the goods.
Q4) What types of transactions does the Sale of Goods Act apply to?
Q5) Which of the following is False with regard to a holder in due course?
A) A holder in due course cannot be an immediate party.
B) A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against his claim for payment.
C) A person cannot be a holder in due course if he knew the instrument had been obtained by the payee by fraud.
D) A person cannot be a holder in due course if he acquired the instrument in bad faith; e.g., he tricked the person into giving him the cheque.
E) A holder in due course is the same as the drawee or acceptor.
Q6) A bill of exchange is an order by one person to another to pay money to a third.
A)True B)False
Q7) Explain under what circumstances the sale of goods must be evidenced by writing.
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