Legal Environment of Business Exam Review
Course Introduction
The Legal Environment of Business course provides students with an in-depth understanding of the laws and regulations that shape and influence the business world. Topics covered include the fundamentals of the U.S. legal system, the structure and function of contracts, torts, regulatory compliance, intellectual property rights, business ethics, and dispute resolution mechanisms. Through examination of real-world cases and legal principles, students will develop critical skills to recognize legal risks, make informed decisions, and understand the ethical responsibilities of businesses operating in a dynamic legal framework. This course is essential for anyone seeking to navigate the legal complexities of the business environment.
Recommended Textbook Business Law in Canada 10th Canadian Edition by Richard A. Yates
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16 Chapters
2735 Verified Questions
2735 Flashcards
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Chapter 1: Managing Your Legal Affairs
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/47231
Sample Questions
Q1) What is a code of business conduct?
Answer: A formal statement adopted by a company that sets out its values and standard of business practices,essentially codifying a company's organizational values and establishing procedural norms and standards of expected behaviour.
Q2) In the context of a sophisticated client,"sophisticated" can best be defined as
A) complicated, self-reliant, and cosmopolitan.
B) refined and cultured.
C) simple and naive.
D) confident, knowledgeable, and up to date.
E) aggressive, dynamic, and forceful.
Answer: D
Q3) If a businessperson cannot find important legal information on his own,or cannot understand the information he finds,what should he do?
Answer: Consult a lawyer.
Q4) What recent development has given non-lawyers greater access to legal information?
Answer: The tremendous increase of legal information available online.
Q5) List the three main ways in which lawyers may charge their clients.
Answer: fixed fee,hourly rate,and contingency fee
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Chapter 2: Introduction to the Legal System
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) The law of equity was developed in the Court of Chancery.
A)True
B)False
Answer: True
Q2) Uncle Max just immigrated to Canada and learned some things about our laws and Constitution on the plane.Which of the following things he heard is true?
A) The Charter of Rights and Freedoms, part of the Constitution Act, 1982, has been entrenched in our constitution and therefore cannot be changed.
B) Our Constitution provides that the provincial legislatures have exclusive jurisdiction to enact laws concerning education and property in the province.
C) Our federal parliament is supreme in enacting laws concerning municipalities.
D) The British North America Act, the first document to determine which classes of subjects could be dealt with by the provinces and which by the federal government, was passed by the Queen Victoria.
E) There are many aspects of our constitution we have inherited from the United States.
Answer: B
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Chapter 3: The Resolution of Disputesthe Courts and Alternatives to Litigation
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220 Verified Questions
220 Flashcards
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Sample Questions
Q1) Which of the following is true with respect to recent litigation reforms?
A) Several provinces have started mandatory case management, which involves judicial supervision of the litigation process.
B) Summary trials in Alberta and British Columbia require all evidence to be presented orally, to save the time associated with document preparation.
C) Small claims court procedures are becoming more complicated in all jurisdictions in order to dissuade parties from availing themselves of the court system.
D) The dollar amount of a claim has no bearing on the procedure to be followed in either Ontario or Alberta.
E) Mediation is compulsory in every common law province except for Ontario.
Answer: A
Q2) Which of the following cases would be a good one to mediate?
A) a case where the parties want to ensure the right to appeal
B) a case where the parties want a high degree of public visibility
C) a case where the parties want to maintain goodwill
D) a case where the parties are not concerned about costs and delays
E) a case where the parties do not trust each other
Answer: C
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Chapter 4: Intentional Torts and Torts Impacting Business
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Ms.Reed attended the zoning offices of the city.She explained to the chief zoning officer,Mr.Shore,that she was interested in a piece of property,but only if it were zoned "multiple family dwelling." Mr.Shore checked the property himself and assured her it was zoned "multiple family dwelling," but he had not checked the new regulations properly.Relying on his statement,Reed invested $300 000 in the purchase and the development of the property.When the apartment building was half finished,she was informed by the city that her building was unacceptable because the property was zoned "duplex." Upon hearing this news,she rushed to the city zoning offices and approached Mr.Shore,started yelling,and threw her briefcase at him.He ducked; she missed.When she persisted in yelling,he threw some cold water in her face.On these facts,which of the following is true?
A) Reed could successfully sue Shore for defamation.
B) Shore could successfully sue Reed for assault.
C) Reed could successfully sue the city for negligence.
D) Reed could successfully sue Shore for assault and battery.
E) Reed could not sue Shore for saying the property was zoned "multiple family dwelling" because he did not intend to make the error; it was just a mistake.
Q2) What is an innuendo?
Q3) What is conversion?
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Page 6
Chapter 5: Negligence, Professional Liability, and Insurance
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159 Verified Questions
159 Flashcards
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Sample Questions
Q1) Joe was a customer in Sam's store when he carelessly dropped a very expensive vase,but he was relieved when he found that Sam had insurance to cover the loss.Explain Joe's legal position in these circumstances.
Q2) In Canada,in order for a manufacturer to be held liable for injury caused by his product to an ultimate consumer,what must be shown?
Q3) In which of the following cases is a duty not owed?
A) A person undertakes to rescue someone in danger.
B) It would be apparent to a prudent person that the conduct was likely to cause injury.
C) A person making a misstatement knew that it would be relied on by a member of a group.
D) A visitor comes on your property.
E) A person sees another in desperate need of assistance.
Q4) In insurance,what do comprehensive policies cover?
Q5) No fault personal liability automobile insurance is an attempt to distribute losses among the most accident-prone drivers.
A)True
B)False
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Page 7
Chapter 6: The Elements of a Contractconsensus and Consideration
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) Which of the following could not be used as consideration?
A) a kilogram of green beans
B) 50 cents
C) a promise to deliver three tons of steel
D) a promise to give up a legal right
E) work that was done in the past
Q2) Harry saw Joe in his classic Buick at a local drive-in restaurant,and told Joe that he'd like to buy it.He offered him $1500.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 telling 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 the telephone conversation in which he attempted to revoke the offer.Joe insisted on going through with the deal.Explain the legal liability of the parties.
Q3) Discuss the requirements for a valid offer,explaining both how an offer is to be communicated and how such an offer can be brought to an end.
Q4) What are the ways in which an offer can come to an end prior to acceptance?
Q5) Distinguish between an offer and an invitation.
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Chapter 7: The Elements of a Contract capacity, Legality, and Intention
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) Ted,a 17-year-old high school student,was hired to perform in four episodes of Gossip Girls.To keep up with his schoolwork,he contracted with Mr.Tech,of Technoland,for a $2000 laptop computer.He agreed to pay $500 down and the balance by monthly payments of $250.Read each of the following separately and indicate which is true.
A) If Ted doesn't make his payments, Tech can sue Ted's parents, because parents are liable for the debts of their minor children.
B) This contract is void; therefore, Tech can repossess the laptop which is technically still his whether Ted makes the payments or not.
C) If this contract is in writing and Ted doesn't make his payments, Tech can sue Ted for breach of contract.
D) This contract is a legal contract enforceable by Ted.
E) This contract is a legal contract enforceable against Ted.
Q2) Kashif agreed to sell his acreage to his coworker,Melinda,for $400 000.Because the two worked together,they did not see the need to put the agreement in writing.Nonetheless,Kashif sent Melinda a note that referred to the essential terms of their agreement,to which Melinda replied acknowledging their deal.Without any other writing,can this contract be enforced? Explain.
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Page 9
Chapter 8: Factors Affecting the Contractual Relationship
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) The principle that courts will not permit outside evidence to contradict clear wording of a contract is known as ________.
Q2) Discuss the development and importance of the principle of unconscionable contracts.In your answer compare unconscionability to insanity,duress,and undue influence.
Q3) Only when the misrepresentation is truly innocent and without fault is the victim restricted to the remedy of rescission.
A)True
B)False
Q4) The victim of intentional misrepresentation can sue for damages but cannot ask for rescission.
A)True B)False
Q5) What is the significance of an assignment being "statutory" rather than merely an "equitable" assignment?
Q6) Undue influence takes place when one person uses violence to force another to enter into a contract.
A)True
B)False
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Chapter 9: The End of the Contractual Relationship
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173 Verified Questions
173 Flashcards
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Sample Questions
Q1) Ellis agreed to paint Lee's house for a price of $1500.A month before the performance was due,Lee called and told Ellis that she had changed her mind and was going to have her house restuccoed instead.Ellis insisted that they had a contract and that he was going to paint the house anyway.Lee repeated that she was not going to go through with it,but Ellis insisted the contract was still on.Before further steps could be taken by either party,Lee's house was destroyed by a freak airplane accident.Which one of the following statements describes the law applicable to these facts?
A) Ellis's conduct amounted to repudiation, and Lee could have sued for breach of contract immediately after the phone call.
B) Lee could have accepted Ellis's conduct as an anticipatory breach.
C) The contract has been discharged by frustration.
D) Ellis will be able to successfully claim as damages the amount that he would have made if the contract had been performed.
E) Lee's conduct did not amount to a breach since she told him a month before performance was due that she didn't want the house painted.
Q2) Explain what is meant by "specific performance" in contract law.
Q3) Discuss exculpatory (exemption)clauses and how the courts treat them.
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Chapter 10: Employment
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) Why should employers avoid the temptation to make an employee so uncomfortable he will quit?
Q2) Both employers and employees pay employment insurance premiums.
A)True
B)False
Q3) What is the three-part test used to evaluate if an occupational requirement is justified?
Q4) In which of the following situations will Smith be responsible for the tortious conduct of Jones?
A) Jones is a independent contractor installing drywall for Smith's grocery store.
B) Jones is a computer programmer working for Ace Computer Ltd. and installing new software for Smith's department store.
C) Jones is a self-employed vacuum cleaner salesman and Smith manufactures one of the lines he carries.
D) Jones is a salesperson Watson's Warehouse visiting Smith's Grocery Store Ltd.
E) Jones is a secretary working in Smith's office.
Q5) Explain why picketing can be effective.
Q6) Indicate under what circumstances an employer can dismiss an employee.
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Chapter 11: Agency and Partnership
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219 Verified Questions
219 Flashcards
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Sample Questions
Q1) Which of the following is true with respect to the agency relationship?
A) An agent acting gratuitously can never bind the principal.
B) An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.
C) When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority.
D) An agent's authority is limited to whatever authority the principal specifically gives the agent.
E) Actual authority is the authority the principal has implied in conversations with a third party.
Q2) Apparent authority is determined by the representation of the agent.
A)True
B)False
Q3) "Utmost good faith" is another term for a business's reputation and ongoing relations with customers.
A)True
B)False
Q4) What is an enduring power of attorney?
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Chapter 12: Corporations
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155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/47242
Sample Questions
Q1) Because a director of a closely held corporation breached his duties to the corporation,the corporation lost $15 000.Despite the urging of the shareholders,the board of directors refused to begin an action on behalf of the corporation.Which one of the following provisions would aid the shareholders?
A) relief-from-oppression provisions
B) preemptive right provisions
C) indoor-management rule
D) derivative-action provisions
E) dissent procedure
Q2) If dividends are not paid,preferred shares usually convert to voting shares.
A)True
B)False
Q3) A share interest in the indebtedness of a corporation that is normally secured against specific assets is known as ________.
Q4) A director can be held responsible for unpaid taxes,wages,and environmental harm. A)True
B)False
Q5) What happens if annual returns are not filed for a corporation?
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Chapter 13: Real, Personal, and Intellectual Property
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238 Verified Questions
238 Flashcards
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Sample Questions
Q1) What kinds of things are protected as industrial designs?
Q2) Discuss,in the context of commercial tenancies,what a business person ought to do to reduce his or her risk.
Q3) A right of way is an example of an estate in land since it gives the holder of it the right to go across the land.
A)True
B)False
Q4) Joe wanted to start up a restaurant business.After some research,he found out McDonald's had not properly registered its trademark,the golden arches,in his particular area.Joe used a similar pair of arches over his restaurant and started business.Explain any danger he might face.
Q5) The Patent Office will conduct a search of patent records for you to determine that the invention is original and unique.
A)True
B)False
Q6) What is a fee simple interest?
Q7) Distinguish between a leasehold estate and a freehold estate.
Q8) What qualifications must be met in order for something to be patentable?
Q9) What is the main purpose of patent law?
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Chapter 14: Information Technology and the Internet
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143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/47244
Sample Questions
Q1) Traditional contract rules only apply to written contracts but not internet transactions.
A)True
B)False
Q2) Comment on the accuracy of the following statement: "It is sufficient for a Canadian to simply follow the rules of his or her own jurisdiction."
A)True
B)False
Q3) Where online business is solicited,________ should be included similar to product warranties,such as: "Void where prohibited by law," or "Only available to residents of Canada."
A) contract
B) enforcement
C) control
D) disclaimers
E) exclusion provisions
Q4) Describe the provision with respect to internet transactions,as set out in the Ontario Consumer Protection Act.
Q5) Describe electronic signatures with respect to capacity.
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Chapter 15: Sales and Consumer Protection
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.
A)True
B)False
Q2) What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.
Q3) What two important characteristics of negotiable instruments contribute to their value as a method of transferring funds?
Q4) If you buy a toaster from a second-hand dealer of small appliances,which of the following is true?
A) The Sale of Goods Act does not apply.
B) Title to the toaster would pass at the time the buyer would pick it up the next day.
C) The Sale of Goods Act prohibits the seller from exempting himself from liability in the event that the toaster is not fit for purpose.
D) There is an implied term of the contract that the seller has good title-i.e., the right to sell it.
E) The risk of loss depends on who has possession of the toaster.
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17
Chapter 16: Priority of Creditors
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141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/47246
Sample Questions
Q1) Legislation and the principles of contract and common law primarily protect the interests of the debtor in the event of a default.
A)True
B)False
Q2) Explain how,in a creditor-debtor transaction,the exposure of a guarantor is limited and his rights protected.
Q3) If a fraudulent transfer is made to a bona fide purchaser for value,the transaction can still be reversed for a period of one year.
A)True
B)False
Q4) Distinguish between attachment and perfection under the Personal Property Security Act.
Q5) Explain what is meant by a "chose in action."
Q6) What is the role of the Superintendent of Bankruptcy?
Q7) What is a floating charge?
Q8) Distinguish between a guarantee and an indemnity.
Q9) Provide an example of legislation that gives the federal government priority over all other creditors,including secured creditors.
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