Legal Studies in Business Exam Answer
Key
Course Introduction
Legal Studies in Business explores the fundamental legal principles and frameworks that affect the business environment. Students will examine key topics such as contracts, torts, property law, agency, employment law, and government regulation, as well as ethical considerations and dispute resolution methods. The course emphasizes how laws shape business operations and decision-making, equipping students with an understanding of legal risks and responsibilities relevant to various business contexts. Through case studies and real-world examples, learners gain practical knowledge of the interaction between law and business in both domestic and global settings.
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) What is a retainer?
Answer: A retainer works as a deposit. It is an amount paid by a client and deposited into a lawyer's trust account to the credit of the client. When the lawyer bills the client, the amount owing is taken from the retainer.
Q2) Compliance with a code of ethics in an organization is unrelated to whether or not top management practices ethical behaviour.
A)True
B)False
Answer: False
Q3) What is the Canadian Bar Association and what is its purpose?
Answer: The Canadian Bar Association is a professional organization representing judges and lawyers. Two of its purposes are to enhance the profession and the commercial interests of its members.
Q4) It is more advantageous to retain your own lawyer than to simply use duty counsel.
A)True
B)False
Answer: True
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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) Regarding the Charter of Rights and Freedoms, which of the following statements is true?
A) Neither the federal nor the provincial governments can change the provisions of the Charter without going through the constitution amending process.
B) Any statute, by any level of government inconsistent with the provisions of the Charter is considered binding on all Canadians.
C) Any action by a government official violating the provisions of the Charter is not actionable under the Charter.
D) The guarantee of the right of free speech allows citizens to avoid being held liable for defamation under the Constitution of Canada.
E) The Charter protects fundamental freedoms that apply only to relations between private citizens.
Answer: A
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.
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4
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) Distinguish the prerogative writ certiorari from mandamus.
Answer: Certiorari involves an order that declares the decision of no effect or void. Mandamus is an order to the decision maker to do his or her job and make the decision.
Q2) Which of the following is correct with respect to the Supreme Court of Canada?
A) The Supreme Court of Canada is always subject to decisions made by the federal parliament.
B) The Supreme Court of Canada can make some decisions that bind both the federal parliament and provincial legislatures.
C) The Supreme Court of Canada only deals with disputes arising from matters in the federal system (matters given to the federal parliament under the Constitution Act, 1867).
D) The Supreme Court of Canada has the power to override parliament in all areas.
E) The Supreme Court of Canada is made up of three judges from each province and one from each territory, although a quorum consists of only nine judges.
Answer: B
Q3) What is the effect of failure to adhere to a limitation period?
Answer: Once the limitation period has expired, the claimant cannot sue.
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Page 5
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) The tort of spoliation grants remedy where evidence has been destroyed.
A)True
B)False
Q2) Which of the following is true with regard to the torts of assault and battery?
A) Both torts are "actionable per se"; that is, a person can successfully sue without having to prove damages.
B) The amount of damages paid to Joe, injured by another's battery, will be an amount to cover the extent of injury suffered by a normal person regardless of Joe's actual injuries.
C) A person will always succeed with the defence of self-defence even if he used excessive force.
D) Although assault and battery are often both present in an incident, it is technically possible to be assaulted without being battered.
E) For consent to be an effective legal defence to a claim of battery, the person hit must have been surprised by the incident.
Q3) Explain what is meant by a continuing trespass.
Q4) When someone spreads False information about another product, he can be sued for what?
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Page 6
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 is true with respect to the law of tort?
A) With assault and battery, a person can successfully sue only if they can prove damages.
B) A negligent person causing physical injury to another is responsible to the full extent of the injury suffered even though the injured person suffered more than would reasonably be expected because of a special weakness.
C) A person will always succeed with the defence of self-defence even if he used excessive force.
D) A customer battered by an employee on the job can sue only the employee, not the employer, because it was the employee who did the wrong.
E) For fair comment to be an effective legal defence to a claim of defamation, the person making the comment must have been made in Parliament or court.
Q2) Explain what must be established in order to succeed in a negligence action.
Q3) A fidelity bond is when the employee pays the employer a fee to cover themselves while they are on the job.
A)True
B)False
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Page 7
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) Discuss the requirement of consensus in the formation of contract. In your answer, consider the role of offer and acceptance and also look at the degree of understanding required between the parties.
Q2) Is an "agreement to agree" binding?
Q3) Discuss the "freedom of contract," explaining what the implications and limitations are in the context of contract law.
Q4) A person is required to honour a gratuitous promise if made under seal.
A)True
B)False
Q5) Once a person has promised to hold an offer open for a specified period of time, he cannot change his mind.
A)True
B)False
Q6) Even though a person promises to hold an offer open for a specified period of time, the offeror can revoke that offer before that time if he feels like it.
A)True
B)False
Q7) What is an interim agreement?
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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) What must a person establish in order to escape contractual obligations on the basis on insanity?
Q2) "The purpose of contract law is to give effect to the reasonable expectations of the parties to a contract." Discuss this observation in terms of the five elements that are required for the creation of a legally binding contract.
Q3) When a person is declared mentally incompetent by a court, who is appointed and for what purpose?
Q4) Which one of the following is an example of a contract that is binding on an infant in jurisdictions other than 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 rent
E) A contract for professional hairstyling
Q5) Indicate any limitation on the ability of status Indians to contract.
Q6) Explain how an insurance contract avoids being void as a wager.
Q7) "Some contracts are considered illegal even though the conduct involved is not prohibited by any law." Explain the accuracy of that statement.
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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) Often a party to a contract wants to avoid his obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress. Which of the following is False with regard to these areas of the law?
A) A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that his misrepresentation, which persuaded the buyer to buy, was true.
B) If a seller persuades a person to buy something by a fraudulent misrepresentation, the buyer could ask for rescission and/or damages for the tort of deceit.
C) A person can successfully argue non est factum and avoid his obligations under a contract only if he was misled about the very nature of the document and was not careless.
D) Independent legal advice given to a person who wants to give a gift to a dominant person (e.g., his doctor) is good evidence to rebut a presumption of undue influence.
E) Where, because of a mistake, a written document does not embody the unchanged term of the original oral agreement, a party to the contract could ask the court for the equitable remedy of rectification.
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Chapter 9: The End of the Contractual Relationship
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171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/28033
Sample Questions
Q1) The principle of substantial performance can best be described as when A) all or most of the contractual obligations are fulfilled.
B) a major term of the contract is mostly fulfilled.
C) minor terms of the contract are yet to be fulfilled.
D) minor terms of the contract are disregarded.
E) only exact compliance with the contract will qualify as performance.
Q2) Discuss the equitable remedies that were developed in contract law and why they were necessary.
Q3) What is the usual impact of an exemption clause in the event of fundamental breach?
Q4) Repudiation occurs when one party indicates that they do not intend to follow through with their end of the deal.
A)True
B)False
Q5) When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.
A)True
B)False
Q6) What is a force majeure clause?
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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) Which of the following statements is true with regard to an agent's duties?
A) A real-estate agent may buy property from a third party if it is at a good price and then sell the property to his principal at a higher price.
B) An agent is not entitled to the agreed-upon commission and reasonable expenses undertaken on behalf of his principal in carrying out his duties.
C) An agent cannot act for two principals even with the knowledge and consent of those principals.
D) An agent must always scrupulously account for moneys coming into his hands on behalf of his principal.
E) An agent need not disclose all relevant information to the principal.
Q2) A contract entered into by an agent cannot be ratified inadvertently by the principal. A)True B)False
Q3) What are the advantages and disadvantages of being a sole proprietor?
Q4) Distinguish between an agent and an employee.
Q5) Discuss how an agent's authority may be terminated, as well as the effect of such termination.
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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) Explain under what circumstances a shareholder's right to dissent arises.
Q2) When a personal guarantee has been signed by a shareholder, the creditor can demand payment from that shareholder despite the separate legal entity nature of the corporation.
A)True
B)False
Q3) Contrast the obligations and duties of directors and shareholders of a corporation.
Q4) Mark wants to incorporate. Which one of the following statements is correct with regard to incorporating in Nova Scotia?
A) Articles of incorporation is the document used to incorporate the company.
B) These are "letters patent" jurisdictions.
C) The documents to be sent to the registrar of companies are called the "memorandum" and the "articles."
D) The "objects" of the company must be set out in the charter document so that the shareholders understand the limits on the capacity of the corporation.
E) You can't incorporate a closely held company in this jurisdictions.
Q5) Explain what is meant by pre-emptive rights.
Q6) What is the purpose of a unanimous shareholder agreement?
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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) Give examples of three areas of employment relations that have been controlled by legislation.
Q2) Which of the following is a true statement about the employer-employee relationship?
A) The critical factor in this relationship is control. That is, the employer tells the employee not only what to do but also how to do it.
B) An employee for a company could not also be an agent at the same time for the company.
C) One responsibility of an employer is to provide the employee with lifetime work availability.
D) An employee does not owe a fiduciary duty to his or her employer.
E) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.
Q3) Under vicarious liability, the employer will not escape liability if the employee negligently hurts the plaintiff while "on a frolic of his own."
A)True
B)False
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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) Discuss how the common law protects intellectual property. In your discussion, indicate why it was necessary to introduce statutes in some areas.
Q2) What protection is given under trademark legislation?
Q3) The Copyright Act provides remedies in the form of statutory damages, enhanced injunction, and summary procedures.
A)True
B)False
Q4) Alternative dispute resolution has been effective in settling certain types of Internet disputes.
A)True
B)False
Q5) A person who develops a new computer program can obtain copyright protection even though that program is only loaded onto the computer as software.
A)True
B)False
Q6) Indicate four remedies that may be available to the victim of the breach of copyright.
Q7) Distinguish between copyright and patent.
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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) When Joan entered into a contract with Mr. Shultz to rent an apartment in a converted house, she noticed that the back stairs and hand railing looked as if they were in disrepair. On the day when she took possession, she found she couldn't use the back stairs because the last two steps were rotten and the handrail was not bolted down at one end. Which of the following is true?
A) Unless the contract states that the landlord has an obligation to repair, the landlord has no obligation to repair.
B) Because Joan has taken possession, she would have the obligation to replace the steps and bolt down the railing.
C) The landlord has an obligation to provide premises in a good state of repair only if any defect was brought to his attention at the time of the contract.
D) The common law places no duty on the landlord to repair, and this has not been overridden by any statute.
E) The landlord has a statutory duty to provide premises in a state of repair that complies with safety standards irrespective of the state of the premises at the time of contract.
Q2) What's the significance of an item being identified as a trade fixture?
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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) Greg told Rick that he would be willing to pay a high rate of interest for a two-month loan of $2000. Rick agreed to lend Greg this amount at an annual rate of 20%, repayable March 1, 2016. Greg agreed to these terms. Greg did not pay on March 1. Rick learned that Greg had recently completed some work for Martinson for which Greg was owed $2000. Now that Greg is in default, which of the following is False?
A) Rick could sue Greg for breach of contract.
B) Rick could execute against Greg even if Rick had not obtained judgment against him.
C) Rick could not place Greg into bankruptcy unless Greg had committed an act of bankruptcy.
D) If Rick obtained a judgment against Greg, he could compel him to be examined about his income, property, and debts.
E) Once he has obtained judgment, Rick can garnishee the money owed to Greg by Martinson.
Q2) A "confirmed letter of credit" is another name for a "standby letter of credit."
A)True
B)False
Q3) What is the role of the Superintendent of Bankruptcy?
Q4) What is the result of a settlement that takes place within a year of bankruptcy?
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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) Every Canadian jurisdiction has now enacted an international Sale of Goods Act.
A)True
B)False
Q2) Which of the following is not a federal statute with a consumer protection aspect?
A) Trade Secrets Act
B) Precious Metals Marketing Act
C) Consumer Package and Labelling Act
D) Textile Labelling Act
E) Competition Act
Q3) Discuss the function of the federal Competition Act and the role it plays in consumer protection.
Q4) When goods are sold, who normally bears the risk?
Q5) An agreement to sell involves a contract to sell goods where the actual title will transfer sometime in the future.
A)True
B)False
Q6) Some jurisdictions allow civil suits against abusive debt collectors.
A)True
B)False
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