TEST ITEM FILE for
Richard A. Yates Teresa Bereznicki-Korol Trevor Clarke
Business Law in Canada Tenth Canadian Edition prepared by
Craig Dyer Red River College
Yates/Bereznicki-Korol/Clarke, Business Law in Canada, Tenth Canadian Edition Chapter 1: Managing Your Legal Affairs 1) A sophisticated client a. does not require the services of a lawyer. b. understands the importance of the solicitor–client relationship. c. distrusts and derides lawyers. d. is someone with formal legal training. e. should represent him- or herself, rather than paying for legal services. Answer: b Diff: 2 Type: MC Topic: Ch. 1 - Managing Your Legal Affairs Skill: Recall Objective: Chapter 1: 1.Explain the meaning of “sophisticated client.” 2) Raman is a sophisticated client. This means that she a. understands how to manage a lawyer–client relationship. b. has a law degree. c. is a small business owner. d. manages her legal affairs without assistance from a lawyer. e. will probably never find herself in a situation necessitating legal advice. Answer: a Diff: 1 Type: MC Topic: Ch. 1 - Managing Your Legal Affairs Skill: Recall Objective: Chapter 1: 1. Explain the meaning of "sophisticated client." 3) 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.
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Yates/Bereznicki-Korol/Clarke, Business Law in Canada, Tenth Canadian Edition Chapter 1: Managing Your Legal Affairs Answer: d Diff: 1 Type: MC Topic: Ch. 1 - Becoming a Sophisticated Client Skill: Recall Objective: Chapter 1: 1. Explain the meaning of "sophisticated client.” 4) Which of the following best describes the likelihood of a student becoming involved in a situation necessitating legal advice? a. A student, or someone close to the student, sometimes becomes involved in such a situation. b. A student, or someone close to the student, will always become involved in such a situation c. Because students are not businesspeople, they never become involved in such situations. d. Because students cannot be sophisticated, they will often become involved in such situations. e. Legal advice is not available to students. Answer: a Diff: 1 Type: MC Topic: Ch. 1 - "I Think I Need Legal Advice ..." Skill: Applied Objective: Chapter 1: 1. Explain the meaning of "sophisticated client.” 5) Becoming a sophisticated client will a. ensure that a businessperson never needs a lawyer. b. help a businessperson manage her legal affairs more efficiently and effectively. c. result in a businessperson developing a bias against lawyers. d. relieve a businessperson from having to conduct legal research. e. protect a businessperson from needing legal advice. Answer: b Diff: 2 Type: MC Topic: Ch. 1 - "I Think I Need Legal Advice ..." . 2
Yates/Bereznicki-Korol/Clarke, Business Law in Canada, Tenth Canadian Edition Chapter 1: Managing Your Legal Affairs Skill: Applied Objective: Chapter 1: 1. Explain the meaning of "sophisticated client.” 6) Having a good lawyer on your team is a. usually too expensive to be worthwhile. b. only necessary for large companies. c. a good alternative to becoming a sophisticated client. d. a legal requirement prior to incorporating a business. e. a critical component of being a sophisticated client. Answer: e Diff: 3 Type: MC Topic: Ch. 1 - Becoming a Sophisticated Client Skill: Applied Objective: Chapter 1: 1. Explain the meaning of "sophisticated client.” 7) William Shakespeare's Henry VI, Part II includes the line "The first thing we do, let's kill all the lawyers." The president of the Canadian Bar Association interpreted this quotation as a. a comment on the importance of the "rule of law." b. a lawyer-bashing joke. c. a threat to all members of the legal profession. d. an offence meriting severe legal consequences. e. a humorous attempt to embarrass lawyers everywhere. Answer: a Diff: 3 Type: MC Topic: Ch. 1 - "I Think I Need Legal Advice ..." Skill: Recall Objective: Chapter 1: 1. Explain the meaning of "sophisticated client.” 8) Which of the following best describes the role of the lawyer? a. The lawyer makes the legal decisions for the client. b. The lawyer is simply one of the experts the businessperson consults. . 3
Yates/Bereznicki-Korol/Clarke, Business Law in Canada, Tenth Canadian Edition Chapter 1: Managing Your Legal Affairs c. The client must follow the lawyer's instructions, as long as they are lawful. d. The client makes decisions regarding civil matters; the lawyer makes decisions regarding criminal matters. e. The lawyer makes decisions regarding civil matters; the client makes decisions regarding criminal matters. Answer: b Diff: 2 Type: MC Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Describe the role of the lawyer. 9) Which of the following statements best describes solicitor–client privilege? a. The lawyer makes the legal decisions for the client. b. The lawyer is the only expert a client should consult. c. The lawyer must follow the client's instructions, even if they are illegal in nature. d. Refers to the duty of the lawyer to keep the information provided by the client confidential. e. The lawyer makes decisions regarding civil matters; the client makes decisions regarding criminal matters. Answer: d Diff: 2 Type: MC Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Describe the role of the lawyer. 10) Which of the following is NOT a good reason for a businessperson to seek advice from a lawyer? a. The businessperson cannot find the necessary legal information. b. The businessperson cannot understand the necessary legal information. c. The necessary legal information is available online. d. It would take too long for the businessperson to find the necessary legal information. e. The businessperson is facing criminal charges.
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