Law for Commerce Exam Preparation Guide
Course Introduction
Law for Commerce introduces students to the legal principles and frameworks governing business activities and commercial transactions. The course explores key areas such as contract law, business organizations, intellectual property, agency, and consumer protection, emphasizing how these legal concepts impact commercial decision-making. Students will gain an understanding of the legal rights and responsibilities of businesses and individuals in the commercial environment, the implications of regulations, and strategies for managing legal risks within various commercial contexts. Through case studies and practical examples, the course equips students with the analytical tools needed to navigate and apply laws relevant to commerce in both local and global settings.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by
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Page 2
Richard A. Yates
Chapter 1: Managing Your Legal Affairs
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) 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.
Q2) If a complaint regarding a lawyer's conduct cannot otherwise be resolved, and the law society decides the complaint is valid, then the lawyer will face automatic disbarment.
A)True
B)False
Answer: False
Q3) Duty counsel are
A) lawyers who assist individuals in court who are not represented by a lawyer.
B) non-lawyers who provide advice to those in financial need.
C) legal assistants who offer legal services at rates significantly lower than those charged by lawyers.
D) retired lawyers and judges who volunteer through legal aid societies.
E) law students who are fulfilling requirements established by a provincial law society.
Answer: A
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3
Chapter 2: Introduction to the Legal System
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159 Verified Questions
159 Flashcards
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Sample Questions
Q1) Which among the following was not a purpose of the Constitution Act, 1982?
A) To list government enactments having constitutional status
B) To guarantee individual rights
C) To place some limitations on the supremacy of parliament
D) To redefine the role of the Queen and her representative, the Governor General
E) To protect individuals against acts of governments or their agencies that infringe on their rights
Answer: D
Q2) Which of the following is true with regard to our legal system?
A) An appeal from the Supreme Court of Canada goes to the Federal Court of Appeal.
B) Our Charter of Rights and Freedoms diminishes the power of both the federal and provincial legislatures.
C) Our constitution can be amended by the federal parliament acting alone.
D) If a case were heard before a provincial trial level court, the judge could apply legal principles and award only cash remedies.
E) Case law overrides the statute law on the same point.
Answer: B
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Chapter 3: The Resolution of Disputes: the Courts and Alternatives to Litigation
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221 Verified Questions
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Sample Questions
Q1) What are the two main things to look for when determining whether the decision of a government bureaucrat can be challenged?
Answer: Did the bureaucrat act within her authority? Was the conduct of the decision maker and the conduct of the process proper?
Q2) Indicate three of the requirements of the rules of natural justice.
Answer: A fair hearing with adequate notice, that the decision be heard by the decision maker, and that the decision maker be free of bias.
Q3) Indicate three situations where someone affected by the decision of an administrator can turn to the courts for relief.
Answer: 1. Where the decision maker has no authority to make the decision
2. Where the process did not comply with the rules of natural justice
3. If the decision maker incorporates a remedy beyond his powers to grant
4. Where there is no legal evidence to justify the conclusion
5. Where there is an abuse of power
6. Where there has been an error of law on the face of the record
Q4) What does a successful negotiation require?
Answer: Negotiation requires an understanding of the issues and a willingness to cooperate and compromise.
Page 5
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Chapter 4: Intentional Torts and Torts Impacting Business
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Sample Questions
Q1) The federal government's Personal Information Protection and Electronic Documents Act
A) applies in all provinces except where legislation that provides for equivalent protection has been passed by the province.
B) creates a general right to sue in tort for a violation of its provisions.
C) gives people right of access to personal information held by the government and government agencies.
D) provides suggested guidelines, but there are no sanctions for violations.
E) does not apply to personal information collected over the Internet.
Q2) Once acquitted of a crime, a person cannot be sued in tort.
A)True B)False
Q3) In Jones v. Tsige the Court conceded that the law had to evolve to protect individuals from unreasonable intrusion into their private lives. The tort, "intrusion upon seclusion," was imported from American common law. It is described as: "one who intentionally intrudes, physically or otherwise, upon the seclusion of another or his private affairs or concerns, is subject to liability to the other for invasion of his privacy, if the invasion would be highly offensive to a reasonable person." Discuss the key features of the cause of action.
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Page 6
Chapter 5: Negligence, Professional Liability, and Insurance
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Sample Questions
Q1) Historically, how did the law treat negligent misstatement differently than negligent misconduct?
Q2) Children are not held liable for their torts.
A)True
B)False
Q3) At common law, a mother owes a duty of care to an unborn child.
A)True
B)False
Q4) Although there was no carelessness on the part of Mr. Tam, and although he had no intention of harming anyone, he could still be sued by someone harmed by dangerous substances that escaped from his property. This is an example of what tort or what principle of tort law?
A) Vicarious liability
B) Contributory negligence
C) False imprisonment
D) Strict liability
E) Defamation
Q5) If a person attempts to help, there is a duty to exercise reasonable care.
A)True
B)False
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Chapter 6: The Elements of a Contract: Consensus and Consideration
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Sample Questions
Q1) Explain any limitations on the availability of promissory estoppel.
Q2) Many jurisdictions have passed legislation providing that when a creditor has agreed to take less in full satisfaction of a debt, and has actually received the lesser sum, the creditor is not bound by the agreement and can sue for the difference.
A)True
B)False
Q3) If a business promises to pay all of its employees $500 to quit smoking, such an arrangement is a(n)
A) valid, binding contract.
B) obligation.
C) commitment.
D) gratuitous promise.
E) quantum meruit.
Q4) If the mail is a reasonable means for accepting an offer, is there 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.
Q5) A contract with fixed terms prepared by a business is known as ________.
Page 8
Q6) Discuss the federal Uniform Electronic Commerce Act (UECA).
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Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
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Sample Questions
Q1) When at war, what happens to contracts with residents of an enemy country if they are not detrimental to Canada?
Q2) What is the term for a primary obligation of a third party to pay a debt along with a debtor?
Q3) Because of the Charter of Rights and Freedoms, status Indians no longer have their capacity to contract limited.
A)True
B)False
Q4) What is a guarantee?
Q5) Explain what is meant by "necessary."
Q6) An adult can't sue an infant in tort to get around the infant's contractual incapacity. A)True
B)False
Q7) Just what has to be in writing to satisfy the requirements of the Statute of Frauds?
Q8) Indicate what types of contracts are binding on infants.
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Q9) If the relationship between the contracting parties is primarily commercial in nature, what do the courts presume?
Chapter 8: Factors Affecting the Contractual Relationship
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Sample Questions
Q1) Rescission of contract citing innocent misrepresentation on behalf of one of the parties is not available in four situations, list and describe these.
Q2) In Sylvan Lake Golf & Tennis Club Ltd. v. Performance Industries Ltd., the defendant attempted to take advantage of a mistake made by the plaintiff. What did the Court hold?
A) The defendant's conduct was sharp business, and the Court dismissed the plaintiff's claim.
B) The defendant's conduct was improper, but there is no remedy available to address such a mistake.
C) The defendant's conduct was equivalent to a fraud or a misrepresentation amounting to fraud, and the Court awarded damages in lieu of rectification.
D) The defendant's conduct was essentially a breach of a fiduciary duty and the Court ruled that the entire contract was void as a result.
E) The defendant's conduct was admirable and the Court ordered the plaintiff to pay costs.
Q3) Explain what is meant by "privity of contract."
Q4) Explain what is meant by a "trust."
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Chapter 9: The End of the Contractual Relationship
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Sample Questions
Q1) A breaching party is responsible for all lost profits flowing from a breach of contract.
A)True
B)False
Q2) Injunction is an example of an equitable remedy.
A)True
B)False
Q3) When one party is responsible for an act that frustrates a contract, it is treated as a breach.
A)True
B)False
Q4) An agreement to end a contract, with extra consideration to be supplied by the party benefiting from the discharge, is known as ________.
Q5) When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.
A)True
B)False
Q6) What is the legal position of the victim of an anticipatory breach?
Q7) Distinguish between a condition precedent and a condition subsequent.
Page 11
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Chapter 10: Agency and Partnership
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Sample Questions
Q1) Explain why the law of partnership poses a danger to people carrying on joint business activities.
Q2) A partnership can always be brought to an end by the service of notice on the other partners, no matter what the partnership agreement says.
A)True
B)False
Q3) The ratification of a contract by the principal must be done in writing.
A)True
B)False
Q4) Where an agent has been guilty of fraudulent misrepresentation, the agent must sue the principal.
A)True
B)False
Q5) Explain under what circumstances the third party can be sued by the principal in the event of default.
Q6) The biggest issue for a sole proprietor is unlimited liability.
A)True
B)False
Q7) Explain how a person's status as a limited partner could be lost.
Page 12
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Chapter 11: Corporations
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Sample Questions
Q1) A corporation is a fiction that does not exist in reality.
A)True
B)False
Q2) Contrast the obligations and duties of directors and shareholders of a corporation.
Q3) The promoter of a corporation, called Seymour Holdings Ltd., contracted for $4000 worth of office furniture "on behalf of Seymour Holdings Ltd.," prior to incorporation. After incorporation, the new directors want to ensure that the corporation is bound. They will be able to do so if
A) the corporation ratifies the contract and ratification is permitted in the jurisdiction.
B) the promoter intended that the corporation, and not himself, would be bound by the contract.
C) the promoter made it clear that he was signing on behalf of the corporation.
D) the corporation is closely held and the promoter is a director.
E) the promoter was acting in the best interests of the corporation to be formed.
Q4) Explain under what circumstances a shareholder will not be permitted to sell his shares.
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Page 13
Chapter 12: Employment
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) What is the significance of determining that an employment relationship exists, aside from the statutory significance, employment insurance benefits, workers' compensation benefits, etc.?
Q2) Explain why picketing can be effective.
Q3) It is up to the labour relations board to determine how much notice must be given when an employee is dismissed.
A)True
B)False
Q4) Give examples of three areas that are controlled by the employment standards legislation.
Q5) (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
Q6) What constitutes "just cause"?
Q7) Explain what it means to bargain "in good faith."
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Chapter 13: Intellectual Property
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Sample Questions
Q1) A person can obtain copyright protection only when the idea upon which the work is based is original.
A)True
B)False
Q2) In order to successfully sue someone for violation of trademark, what must be established?
Q3) What three important remedies does the Copyright Act now provide to copyright owners?
Q4) Explain under what circumstances copyrighted material can be reproduced without permission of the copyright holder.
Q5) Joe wrote a short story that he was extremely proud of, brought it to you, and asked you about how to go about having it copyrighted. What would be your answer?
Q6) Joe worked for Harry's Fine Toys for a period of six years. In September, he left Harry's Fine Toys and went to Sam's Toy Shop, a competitor, and disclosed Harry's Christmas line of toys. What could Harry do under these circumstances?
Q7) Discuss how the common law protects intellectual property. In your discussion, indicate why it was necessary to introduce statutes in some areas.
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Chapter 14: Real and Personal Property and Protection of the Environment
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Mable was employed as a waitress at a respectable restaurant in Winnipeg. After cleaning up at one of the tables, she noticed a valuable broach on the floor beneath the table. Which of the following is correct with respect to her legal claim to the broach?
A) As the finder of the broach, she is entitled to it. She has a prior claim against all but the rightful owner of the broach.
B) She must hand it over to the police, and if the rightful owner does not come forward, the broach becomes the property of the government.
C) Although she found the broach in a public part of the restaurant, she must give the broach to her employer, who has the right to keep it if the rightful owner is not found.
D) Because of the principle of "finders keepers," she gets to keep the broach even against the original owners who lost it.
E) She has no claim to the broach no matter where she found it.
Q2) Discuss how the process of an item becoming a fixture can interfere with the priority of creditors in secured transactions.
Q3) Who is responsible for the repair of the premises in a normal rental agreement?
Q4) Explain what right is conveyed by an easement.
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Page 16
Chapter 15: Priority of Creditors
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Sample Questions
Q1) Once the bankrupt has been discharged, explain his status.
Q2) When a security interest is taken on personal property in a PPSA jurisdiction, the borrower temporarily transfers title to lender.
A)True
B)False
Q3) Bankruptcy is a wholly voluntary process designed primarily to protect debtors from abusive creditors.
A)True
B)False
Q4) After a creditor has taken possession of collateral, the debtor's right to reclaim it on payment of any money owing is known as a
A) right to salvage.
B) right of settlement.
C) right to redeem.
D) constructive trust.
E) collateral contract.
Q5) Real and personal property can be used to secure a loan. A)True
B)False
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Chapter 16: Sales and Consumer Protection
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Sample Questions
Q1) "The Sale of Goods Act imposes terms into the contract that are even and fair, and that don't benefit one side over the other." Discuss the accuracy of this statement.
Q2) Which of the following is a statement of facts to which the Sale of Goods Act would apply?
A) "Waiter, there is a dead fly in my spaghetti."
B) "I ask for a trim! You've cut off five inches!!!"
C) "I brought in five shirts to be laundered and you are returning only four to me!"
D) "I agreed to give you a dozen old campaign buttons for that original signature of the Prime Minister, but received the signature of the Governor General."
E) "Today is the closing date and I am willing to tender the full price in cash, namely $70,000, for the farm, and you are now telling me that you have no intention of closing."
Q3) Distinguish between a promissory note and a bill of exchange.
Q4) Consumer protection legislation falls exclusively under federal jurisdiction.
A)True
B)False
Q5) When a buyer defaults, the seller has an unpaid ________ against the goods.
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