Legal Aspects of Business Test Questions
Course Introduction
Legal Aspects of Business provides an essential overview of the key laws and regulations affecting modern business operations. The course explores the principles of contract law, agency, partnership, company law, intellectual property, consumer protection, and employment law. Students learn how legal concepts are applied in business contexts and understand the significance of compliance in minimizing legal risks. Emphasis is also placed on the ethical considerations and legal responsibilities of business professionals, equipping students with critical skills to make informed business decisions within a legal framework.
Recommended Textbook
Canadian Business and the Law 5th Edition by Dorothy Duplessis
Available Study Resources on Quizplus
28 Chapters
1993 Verified Questions
1993 Flashcards
Source URL: https://quizplus.com/study-set/1352
Page 2
Chapter 1: Knowledge of Law As a Business Asset
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/26992
Sample Questions
Q1) Which of the following is a distinguishing characteristic of the influence of law on the business environment?
A) The influence of law does not have to be exacting and literal.
B) The influence of law demands strict, literal enforcement.
C) The influence of law requires litigation of all disputes.
D) The influence of law creates rules of procedure for planning.
Answer: A
Q2) Mortgage Plus Inc. made outstanding profits selling derivative, asset-backed investments based on subprime mortgage products. What was the incentive for mortgage lenders to bundle derivative investment products with subprime mortgage loans?
A) Mortgage lenders were able to avoid all risk of loss from borrower default.
B) Borrowers were able to escape consequences of default on payments.
C) Risk of loss to mortgage lenders resulting from borrower default was less.
D) Mortgage lenders could share risk of loss from borrower default.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: The Canadian Legal System
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/26993
Sample Questions
Q1) An accomplished lawyer accepts an appointment by the justice minister to the position of judge in the Provincial Court of Manitoba. What gives the minister authority to appoint this court's judges?
A) Provinces have jurisdiction to appoint judges to superior courts.
B) The province can use parliamentary prerogative to appoint judges.
C) Provinces have jurisdiction to appoint judges to inferior courts.
D) Canada's governments share concurrent jurisdiction to appoint judges.
Answer: C
Q2) Briefly describe the circumstances under which the guarantee of Canadians' rights and freedoms provided under the Canadian Charter of Rights and Freedoms is permitted to be limited.
Answer: Limitation of the guarantee of Canada's Charter rights and freedoms is allowed when the limitation is demonstrated to be justified under section 1 and by the use of the notwithstanding clause contained in section 33 of the Charter.
Q3) Canada's federal Parliament is composed of the House of Commons and the Senate.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Managing Legal Risks
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/26994
Sample Questions
Q1) Identification of loss is the primary goal of a risk management plan.
A)True
B)False
Answer: False
Q2) What set of methods is used when forming a risk management plan to limit exposure to legal risks?
A) avoid, reduce, transfer, and absorb
B) divert, decrease, and align risk
C) avert, tolerate, and lessen risk
D) reduce, shift, diversify risk
Answer: A
Q3) What is enterprise risk assessment, and how is it related to a legal risk management plan?
Answer: An enterprise risk assessment is an exercise whereby all potential risks, including those with legal implications, are identified, assessed, and managed. A legal risk management plan would be one outcome of an enterprise risk assessment since it will identify, evaluate, and create a plan for managing the legal risk.
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Dispute Resolution
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/26995
Sample Questions
Q1) Which of the following characterizes a required element in circumstances where ADR has been chosen as the preferred method of resolving a dispute between commercial entities?
A) the wish to avoid rushing a settlement
B) a mutual desire to retain the relationship
C) one party will make a large payout of cash
D) the wish to amicably terminate the relationship
Q2) One of the most important factors to be considered when deciding whether to proceed with a litigation of a conflict that failed to be remedied through negotiation is whether the business can devote the necessary resources to proceed with the dispute.
A)True
B)False
Q3) What are advantages and disadvantages of having electronic data as part of the documentary evidence in a lawsuit?
Q4) A commercial business should seek to manage the risk of loss by securing a basic coverage insurance policy with a reputable insurance company.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: An Introduction to Contracts
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/26996
Sample Questions
Q1) Identify and briefly explain the legal rules that apply to a commercial relationship between a for-profit figure skating club and the skating instructors it has contractually hired for the current fiscal year. Identify the methods available to these parties for resolving disputes that may arise, including which method is the least expensive and which is recommended as a last resort and the procedure that method entails.
Q2) The purchase of stationery supplies from a retailer for cash, without an invoice or a receipt being provided in return, is an example of which of the following?
A) an incomplete agreement
B) a formal contract
C) a standard form agreement
D) an informal agreement
Q3) Traditionally, contract law focuses its attention on the need to preserve long-term business relationships.
A)True
B)False
Q4) Explain the notion of equality of bargaining power and its impact on the operation of contract law.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Forming Contractual Relationships
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/26997
Sample Questions
Q1) An offeror has specified the method of communication to be used by the offeree when accepting the offer. What principle would a court apply to determine whether acceptance had been perfected?
A) The offer must have been made using the same method of communication.
B) The offer cannot be accepted by another method of communication.
C) Acceptance by a specified method of communication must be reasonable.
D) Acceptance by other means is effective when received by the offeror.
Q2) An offer is a conditional promise.
A)True
B)False
Q3) In his decision, Lord Wilberforce stated, "No universal rule can cover all such cases; they must be resolved by reference to the intention of the parties, by sound business practice and in some cases by a judgment of where the risks should lie...." What legal rule did Lord Wilberforce establish in his ruling on this case?
A) the postage rule
B) the postman rule
C) the postbox rule
D) the post office rule
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Terms of a Contract
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/26998
Sample Questions
Q1) A product that contains a shrink-wrap licence typically bears a notice stating that opening the package constitutes agreement to the licence terms.
A)True
B)False
Q2) Parties to a sale of goods contract are always bound by the implied terms established by the Sale of Goods Act.
A)True
B)False
Q3) When the existence of the contract is not in doubt, the court will assign as reasonable a meaning as possible to vague or ambiguous terms.
A)True
B)False
Q4) When the parties include an "entire contract clause" in their contract, they are directing the courts to apply the parol evidence rule.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Non Enforcement of Contracts
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/26999
Sample Questions
Q1) Under the classic model of illegality, a freely chosen contract will be held unenforceable by a court in which of the following circumstances?
A) if it is contrary to common law and/or violates public policy
B) if it is contrary to statue law and/or violates public policy
C) if it is contrary to public policy and/or the doctrine of good faith
D) if it is contrary to public policy and/or the doctrine of illegality
Q2) What exerts the greatest influence on the law's focus on the enforcement of a contract after negotiations are complete and the formal contract is executed?
A) the endeavour to achieve a good faith between two competing goals
B) the preservation of the integrity, predictability, and reliability of contractual relationships
C) the endeavour to preserve the real agreement reached by the parties
D) the preservation of good faith, honesty, and diligent conduct in contractual relationships
Q3) Identify and briefly explain the relevance of a misrepresentation of relevant facts with regard to an insurance contract.
Q4) When is a contract considered to be contrary to public policy? Give an example.
Q5) What must be proven in order to have a contract set aside for misrepresentation?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Termination and Enforcement of Contracts
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/27000
Sample Questions
Q1) Recovery for non-pecuniary damages is not possible in contract law.
A)True
B)False
Q2) What is the main objective of the remedy of restitution?
A) to enforce the actual performance of contractual obligations
B) to restrain a party from acting for a limited period of time
C) to redress circumstances of unjust enrichment
D) to monetarily compensate for a breach of contract
Q3) 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
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Introduction to Tort Law
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/27001
Sample Questions
Q1) The ability to claim in tort is enhanced under provincial no-fault automobile insurance schemes.
A)True
B)False
Q2) What is the legal significance of the relationship between the conduct authorized by an employer and the wrong committed by the employee?
A) It is the significant connection justifying an employer's vicarious liability.
B) Courts consider that the party who benefits from business should bear its associated costs.
C) It is the significant connection prescribed under the doctrine of primary liability. D) Courts consider that the fact that wrongful acts may occur is a cost of business.
Q3) Identify and briefly describe the law's rationale for holding employers vicariously liable for the tortious actions of their employees.
Q4) Distinguish between pecuniary and non-pecuniary losses. Which of these can lead to compensation under the principles of tort law?
To view all questions and flashcards with answers, click on the resource link above.
12
Chapter 11: The Tort of Negligence
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/27002
Sample Questions
Q1) Why is the application of strict liability necessarily limited by Canadian tort law?
A) Canadian tort law takes contributory negligence into consideration.
B) Canadian tort law is founded on a strict liability system.
C) Canadian tort law is founded on a fault-based system.
D) Canadian tort law is imposed irrespective of proof of negligence.
Q2) The standard of a reasonable person is the responsibility owed to avoid carelessness that causes harm to another.
A)True
B)False
Q3) Answering which of the following in the affirmative would strongly support a court's ability to order redress for negligence causing a victim's loss?
A) Was there carelessness on the part of the defendant?
B) Does the defendant have sufficient funds to pay for the loss?
C) Was the harm independently done?
D) Was the offending act unintentional?
Q4) Negligence is said to be a very common tort action in the commercial world. Provide three examples of a negligence action that could give rise to a claim for injury or loss.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Other Torts
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/27003
Sample Questions
Q1) According to the Supreme Court of Canada, which of the following is synonymous with the reputation of a business and its expectation of patronage in the future?
A) goodwill
B) profitability
C) deceit
D) ethics
Q2) Tort actions that are relevant to business activities can be divided between those that arise because a business occupies a property and those that arise due to actual business operations.
A)True
B)False
Q3) 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
Q4) Identify and briefly describe the elements that must be proven by a plaintiff seeking a remedy from a court for an actionable tort of passing off.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Agency Relationship
Available Study Resources on Quizplus for this Chatper
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/27004
Sample Questions
Q1) There must be three key relationships at play in any given agency situation.
A)True
B)False
Q2) What are the duties required of an agent?
A) reimburse the principal for out-of-pocket expenses
B) pay the principal for services rendered
C) abide by the terms of the agency agreement
D) indemnify the principal for agency business losses
Q3) A duty imposed on a person who has a special relationship of trust with another is legally known as a fiduciary duty.
A)True
B)False
Q4) Which of the following is a duty owed by a principal in an agency relationship?
A) reimburse the agent for out-of-pocket expenses
B) fiduciary duty to uphold the trust placed by the agent
C) retroactively acknowledge authority of agents
D) ratify all contracts within prescribed time limits
Q5) An agent automatically owes a fiduciary duty to his principal.
A)True
B)False
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Business Forms and Arrangements
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/27005
Sample Questions
Q1) Identify the basic issues that should be expressly addressed in a partnership agreement, including the description of each respective clause. Lastly, indicate when a partnership agreement would have to be revisited.
Q2) The president of EcoAgents must affix the company's corporate seal to the bank's lending agreement he signed because this form of business entity lacks the legal capacity to borrow capital.
A)True
B)False
Q3) 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.
Q4) Identify and briefly explain what feature of a corporation allows for the easy transfer of ownership, how ownership is transferred, and the source of restrictions, if any, on the transfer of ownership.
Q5) Discuss the distribution of the profits of a corporation.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Corporate Form: Organizational Matters
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/27006
Sample Questions
Q1) What is meant by the term "secondary market" in terms of equity trading?
A) purchasing or selling securities from third parties
B) purchasing securities pursuant to a prospectus offering
C) buying or selling securities by a securities exchange takeover bid
D) buying or selling securities directly from a corporate entity
Q2) Which of the following would strongly support shareholders maintaining their business values and goals in closely held corporations?
A) the rights and restrictions on first refusal
B) the rights and restrictions on transfer of shares
C) control over who may become a shareholder
D) insider acquisitions of additional shares
Q3) What is the term, in some jurisdictions, for a corporation that does NOT offer its shares for sale to the public?
A) closely held corporation
B) unlimited liability entity
C) non-public corporation
D) limited liability entity
Q4) Briefly discuss how the offences of insider trading and tipping are dealt with in Canada.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: The Corporate Form: Operational Matters
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/27007
Sample Questions
Q1) The exercise of which of the following is required by a duty owed by directors or officers that compares them to a reasonably prudent person in comparable circumstances?
A) honesty, skill, and care
B) diligence, honesty, and fairness
C) diligence, skill, and care
D) prudence, fairness, and honesty
Q2) In which areas of law were rules were developed to determine the legal consequences of corporate behaviour?
A) torts, crimes, agency, and equity
B) torts, contracts, crimes, and regulatory offences
C) agency, torts, contracts, and equity
D) agency, contracts, torts, and regulatory offences
Q3) 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.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Personal Property
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27008
Sample Questions
Q1) Which of the following is a distinguishing characteristic of the legislated ability of innkeepers to post liability limits in their establishments?
A) It gives shared control over guests' property through their occupation of their rooms.
B) Standard form contracts are a common feature used by innkeepers to transfer risk of liability.
C) It is lost due to innkeepers' negligent or deliberate acts or the deposit of the property for safekeeping.
D) It gives an innkeeper a common law lien against the guests' property in its possession.
Q2) Which of the following is reflected by the requirement that a business offering bailment for value appropriately stores perishable items placed in its possession?
A) special terms that limit liability set out in the parties' contract
B) a standard of care based on who benefits from the bailment
C) special regulations that set out the standard of care
D) a standard of care based on the nature of the property
Q3) Identify the issues typically addressed in a commercial chattel lease.
Q4) Identify the elements that are applied to determine the liability of bailees.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Intellectual Property
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/27009
Sample Questions
Q1) Which of the following represents a commonality between a business name and trademark or other identifier?
A) top-level domain
B) domain name
C) root identifier
D) second-level domain
Q2) Rosh Pharmaceuticals Corp. is based in Israel but it maintains intellectual property protection of all its drugs with the Canadian Patent Office. What is most likely to be the result if insufficient quantities of Rosh Pharmaceuticals Corp.'s newly patented pancreatic cancer drug are produced to meet demand in Canada?
A) the loss of intellectual property rights
B) the licence will go to a Canadian facility
C) the assignment will go to a Canadian facility
D) the assignment of patent rights
Q3) Under the Copyright Act, both the copying of musical works by an individual for private use and the collection of levies on blank audio media in order to compensate the rights holders is permitted.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Real Property
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27010
Sample Questions
Q1) Tenants in common each have an undivided interest in the land and are able to deal with their own interests in any way they see fit without having to consult with one another.
A)True
B)False
Q2) The document that transfers the possession of land from the landlord to the tenant in exchange for the payment of rent is legally described as a tenant lease.
A)True
B)False
Q3) Briefly discuss the relevance of the sequence of registration in a land registry system and a land titles system. Also identify how the sequence of registration has recently become particularly problematic, and identify the parties affected by those problems.
Q4) Describe the role of the administrators of a land titles system
Q5) The rights of the mortgage lender are limited to a combination of the following three remedies: suing the borrower, taking possession of the land, and foreclosure.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 20: The Employment Relationship
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/27011
Sample Questions
Q1) Identify the two methods by which a union may be recognized as a bargaining agent for a group of employees.
Q2) What are the historical terms for employer and employee?
A) owner and chattel
B) owner and tenant
C) master and domestic
D) master and servant
Q3) A defence that excuses discrimination on a prohibited ground when it is done in good faith and for a legitimate business reason is legally known as a bona fide occupational requirement.
A)True
B)False
Q4) Intrusive searches of employees or their belongings are carefully scrutinized by the Canadian courts.
A)True
B)False
Q5) Human rights legislation prohibits all types of discrimination in employment.
A)True
B)False
Q6) List the essential content that should be included in an employment contract.
Page 22
To view all questions and flashcards with answers, click on the resource link above.
Chapter 21: Terminating the Employment Relationship
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27012
Sample Questions
Q1) A senior-level employee, a high-level employee, and a manager are each entitled to receive one week of notice for each year worked, up to a maximum of eight weeks.
A)True
B)False
Q2) Whistle-blowing by an employee is an offence punishable by the employer because it directly conflicts with the employee's duty of loyalty and good faith to the employer.
A)True
B)False
Q3) Explain what "just cause" means, and identify the types of employee conduct that would be considered just cause.
Q4) Why is specific performance or reinstatement rarely an option provided by the courts to an employee claiming wrongful termination from a position in the non-unionized sector?
A) Employment standards tribunals award these remedies.
B) Courts are reluctant to interfere with business decisions.
C) Litigation is a slow process, and the employee has a duty to mitigate losses.
D) Common law views the employment relationship as irreparably damaged.
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Professional Services
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27013
Sample Questions
Q1) A professional should inform the client if expertise required for a certain matter should be sought from an alternate source.
A)True
B)False
Q2) What was the traditional position of the courts to deny the claims of third parties based on?
A) disputes over varying levels of expertise required
B) a policy to protect the economic viability of the professions
C) a burden of proof pertaining to the causality of the loss
D) disputes over who should determine the standard of care
Q3) The fiduciary must comply with the spirit of the obligations owed by it and not merely the letter.
A)True B)False
Q4) One of the characteristics of a professional is that the duties owed by the professional often extend well beyond any contractual obligations the professional may have assumed with his or her client. Outline these additional non-contractual obligations that may be owed by a professional.
Q5) Identify specific obligations that apply to a professional as fiduciary.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Sales and Marketing: the Contract, Product, and Promotion
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/27014
Sample Questions
Q1) Discuss regulation relating to the product component of the marketing mix.
Q2) What is meant by the term "merchantable quality"?
A) a reasonable quality, considering the description of the goods
B) the value declared or known to the buyer at the time
C) the value of goods corresponds with their description
D) the price paid determines the reasonableness of quality
Q3) 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
Q4) What is the term for a contract between a buyer and seller for the sale of goods that, among other things, establishes evidence of goods being transferred?
A) f.o.b. contract
B) certificate of insurance
C) bill of lading
D) c.i.f. contract contract
Q5) Briefly discuss the role of a bill of lading.
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Sales and Marketing: Price, Distribution, and Risk Management
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27015
Sample Questions
Q1) Which of the following is considered to be a valid criticism of the pricing code launched in 2002 by several Canadian retail associations in order to avoid legislated regulations relating to the accuracy of automatic scanner pricing?
A) the absence of retailer accountability
B) uncertainty as to whether the Competition Act is strengthened by the code
C) the absence of retailer awareness
D) uncertainty as to whether voluntary codes effectively replace regulation and enforcement
Q2) Why would Sarafal raise concerns during a marketing strategy meeting regarding lines that may be crossed in relation to the pricing and distribution aspects of the marketing plan?
A) to implement a premium pricing strategy
B) to promote high product quality
C) to avoid needless legal risks
D) to avoid being used as a loss leader
Q3) The regulations affecting telemarketing do not extend to faxes, Internet communications, or automated, prerecorded messages.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Business and Banking
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27016
Sample Questions
Q1) Which of the following would most likely strongly support a retailer qualifying for a guarantee of payment on credit card sales?
A) negotiability requirements
B) the irrevocability of the transaction
C) the secure status of the Internet provider
D) the verification of signatures
Q2) Which of the following international rules deals with, among other things, the obligations of the parties, consequences for technical problems, and damages?
A) Electronic Funds Transfer and Electronic Banking Code
B) FINTRAC Financial Transactions and Reports Analysis Code
C) UNCITRAL Model Law on International Credit Transfers
D) ITRMC Identity Theft and Related Misconduct Code
Q3) What is the second focus of a banking agreement?
A) the rights and obligations of the parties
B) the allocation of loss
C) the protection of privacy
D) the bank's ability to apply charges
Q4) Describe the various models for electronic cashless transactions.
Q5) Discuss the various aspects of the evolution of credit cards.
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: The Legal Aspects of Credit
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27017
Sample Questions
Q1) Which of the following is a common feature shared among the provinces with respect to personal property security arrangements?
A) they all involve major inconvenience and expense
B) there is a patchwork of different statutes
C) each has one set of registration rules
D) they comply with differing sets of rules
Q2) ImaBigBank has completed its risk assessment for a commercial loan application and has decided to grant the loan. What is the legal term given to the form of notice ImaBigBank will provide to the application detailing basic terms of the proposed loan?
A) letter of intent
B) letter of commitment
C) letter of acceptance
D) letter of credit
Q3) Identify the new federal government regulations that apply to credit cards issued by federally regulated institutions.
Q4) Discuss the letter of commitment and describe the basic terms that are detailed in this type of financing document.
Q5) Explain the environmental due diligence process.
To view all questions and flashcards with answers, click on the resource link above. Page 28
Chapter 27: Bankruptcy and Insolvency
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/27018
Sample Questions
Q1) 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
Q2) What is meant by a debtor's assignment in bankruptcy?
A) the creditor's choice between legal action and extending the time to pay
B) the trustee will try to assess the debtor's financial health
C) the voluntary assignment of all the debtor's property for the creditors' benefit
D) the debtor can carry on business or cease business
Q3) Which of the following would most likely be strongly supported by the body of law generically known as insolvency law?
A) a framework for financial bankruptcy
B) a discharge for the unwillingness of creditors to pursue claims
C) an appointed non-professional facilitator
D) an absolute discharge for the refusal by creditors to negotiate
Q4) Identify the purposes that a proposal is intended to achieve.
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 28: Insurance
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/27019
Sample Questions
Q1) What three general categories do insurance policies fall into?
A) auto, life, and property
B) liability, property, and disability
C) all risks, commercial, property
D) fire, life, auto
Q2) Because financing a buyout on the death of one of the shareholders of a company is challenging, that legal risk is typically reduced by shareholder life insurance policies that will provide all or a portion of the financing needed to complete the buyout.
A)True
B)False
Q3) An insurable interest is typically described as being the insured's financial stake in what is being insured.
A)True
B)False
Q4) All types of insurance policies are typically written so that the insured is responsible for the first part of the loss, which is paid in the form of a deductible.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 30