Type:
Test Bank
Resource:
Business Law in Canada
Edition:
9th Edition
Author(s):
Richard A. Yates Teresa Bereznicki-Korol Trevor Clarke
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A sophisticated client 1) _______ A) should represent themselves, rather than paying for legal services. B) distrusts and derides lawyers. C) is someone with formal legal training. D) understands the importance of the solicitor-client relationship. E) does not require the services of a lawyer.
2) Raman is a sophisticated client. This means that she A) is a small business owner. B) manages her legal affairs without assistance from a lawyer. C) has a law degree. D) understands how to manage a lawyer-client relationship. E) will probably never find herself in a situation necessitating legal advice.
2) _______
3) In the context of a sophisticated client, "sophisticated" can best be defined as A) refined and cultured. B) aggressive, dynamic, and forceful. C) complicated, self-reliant, and cosmopolitan. D) simple and naïve. E) confident, knowledgeable, and up-to-date.
3) _______
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, will always become involved in such a situation B) Because students are not business people, they never become involved in such situations. C) Legal advice is not available to students. D) Because students cannot be sophisticated, they will often become involved in such situations. E) A student, or someone close to a student, sometimes becomes involved in such a situation.
4) _______
5) Becoming a sophisticated client will A) ensure that a business person never needs a lawyer. B) relieve a business person from having to conduct legal research. C) result in a business person developing a bias against lawyers. D) help a business person manage her legal affairs more efficiently and effectively. E) protect a business person from needing legal advice.
5) _______
6) Having a good lawyer on your team is A) only necessary for large companies. B) a critical component of being a sophisticated client. C) a legal requirement prior to incorporating a business. D) a good alternative to becoming a sophisticated client. E) usually too expensive to be worthwhile.
6) _______
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 threat to all members of the legal profession. C) a humorous attempt to embarrass lawyers everywhere. D) a lawyer-bashing joke. E) an offence meriting severe legal consequences.
7) _______
8) Which of the following best describes the role of the lawyer? A) The client makes decisions regarding civil matters; the lawyer makes decisions regarding criminal matters. B) The lawyer makes the legal decisions for the client. C) The lawyer makes decisions regarding civil matters; the client makes decisions regarding criminal matters. D) The lawyer is simply one of the experts the businessperson consults. E) The client must follow the lawyer's instructions, as long as they are lawful.
8) _______
9) Which of the following statements best describes solicitor-client privilege? A) Refers to the duty of the lawyer to keep the information provided by the client confidential. B) The lawyer makes decisions regarding civil matters; the client makes decisions regarding criminal matters. C) The lawyer is the only expert a client should consult. D) The lawyer makes the legal decisions for the client. E) The lawyer must follow the client's instructions, even if they are illegal in nature.
9) _______
10) Which of the following is NOT a good reason for a business person to seek advice from a lawyer? A) The businessperson cannot find the necessary legal information. B) The businessperson is facing criminal charges. C) It would take too long for the businessperson to find the necessary legal information. D) The businessperson cannot understand the necessary legal information. E) The necessary legal information is available online.
10) ______
11) For sophisticated clients, the availability of an abundance of legal information online is A) a positive development, because it means that they will no longer need to retain lawyers as part of their team. B) a neutral development, because lawyers are still the only ones able to access this information. C) a positive development, because it provides greater access to information they can use as part of their decision-making process. D) a negative development, because accessing this information tends to be more costly than retaining a lawyer. E) a negative development, because online information is rarely accurate or helpful.
11) ______
12) When searching online for legal information, it is best to
12) ______
A) gauge the accuracy of the information by the look of the website. B) trust that if it is published online, it must be accurate. C) seek advice from a lawyer when answers cannot be readily found. D) never trust the information found on a website. E) use American sources, as they tend to be more comprehensive than Canadian ones.
13) Sophisticated clients A) know that it is better to hire a lawyer than to conduct research on one's own. B) tend to be embarrassed to request legal advice. C) do not need to retain a lawyer. D) have the skill and confidence to find basic legal information. E) are willing to pay for legal advice at any cost.
13) ______
14) One reason for the general lack of respect for lawyers is that A) many people do not understand the role of the lawyer in the solicitor-client relationship. B) the cost of legal advice generally outweighs its benefit. C) lawyers who breach their duties are generally not subject to any punishment. D) lawyers are rarely able to provide information or advice relevant to business matters. E) lawyers are not bound by a Code of Professional Conduct.
14) ______
15) The role of the lawyer is to A) provide legal advice relevant to the client's situation, which the client has no choice but to follow. B) tell their clients what they must do. C) tell their clients what they must not do. D) provide legal advice relevant to the client's situation, which the client is free to ignore. E) delay the client's decision-making process.
15) ______
16) The primary purpose of an initial consultation with a lawyer is A) to discuss the availability of Legal Aid. B) for the prospective client to decide whether to retain the lawyer. C) to develop strategies for dealing with the legal situation in question. D) for the prospective lawyer to help mediate the current dispute. E) to arrange payment of the lawyer's fees up front.
16) ______
17) The decision to enter into the lawyer-client relationship should be A) solely up to the lawyer, as he or she is the one with the legal training. B) made quickly to ensure that no one else can retain your lawyer. C) made primarily on the basis of cost. D) solely up the client, as he or she is the one paying for the services. E) a mutual decision made primarily on the basis of trust.
17) ______
18) When setting up a small business, the best approach to follow is to assume that after the business has been set up and commences operating A) a lawyer will no longer be required. B) the lawyer you chose to assist you in the start-up of the business will provide free legal
18) ______
services for
the duration of the business's operation. C) the lawyer you chose to assist you in the start-up of the business will refer you to a different lawyer. D) the lawyer you chose to assist you in the start-up of the business will continue to represent you. E) you will not need legal advice, as long as you are a sophisticated client.
19) Which of the following is NOT an advantage to maintaining an ongoing relationship with your lawyer? A) The lawyer will automatically track your business activities, so that he or she can provide constant advice and guidance. B) The lawyer will view you as her client, giving you and your requests priority. C) The lawyer will know and understand you and your business. D) The lawyer will be able to customize his or her legal advice, so it will be even more useful to you. E) The lawyer will be able to provide legal advice more efficiently, thereby reducing your legal costs.
19) ______
20) When someone refers you to a particular lawyer, you should A) retain the lawyer regardless of their area of practice. B) ensure the referral is from a family member, rather than a mere friend. C) ignore the referral as irrelevant. D) ensure the referral is being given by someone you trust. E) retain the lawyer regardless of who gave you the referral.
20) ______
21) A lawyer referral service A) will enable a businessperson to retain a lawyer without need for an initial consultation. B) is also known as "Legal Aid". C) provides the names and phone numbers of lawyers who practice in a particular area of law. D) is an online fee-based service providing guaranteed results. E) regulates the legal profession in the interest of the public.
21) ______
22) A provincial law society A) is a self-governing body for lawyers. B) has as its mandate the provision of free legal services, in the public interest. C) operates primarily to enhance the commercial interests of its members. D) is a self-governing body for businesspeople seeking legal advice. E) operates primarily to offer low-cost legal advice to members.
22) ______
23) The Canadian Bar Association is A) a professional organization that represents judges and lawyers. B) focused on enhancing public safety in the liquor distribution industry. C) an organization responsible for reviewing lawyers' accounts. D) a disciplinary body for members of the legal profession. E) the national society for legal aid services.
23) ______