Type:
Test Bank
The Law and Business Resource: Administration in Canada Edition:
14th Edition
Author(s):
J.E. Smyth Dan Soberman Alex Easson Shelley McGill
TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1: Law, Society, and Business
Type: MC Topic: The Role of Law Skill: Applied 4) The Canadian legal profession is organized on a provincial basis with each province having its own “bar” society. However, a member of any provincial bar may appear before a. the House of Lords in England. b. the International War Crimes Tribunal. c. the Supreme Court of Canada. d. any Human Rights Tribunal in any province. e. any Landlord and Tenant Board Tribunal in any province. Answer: c Diff: 3 Type: MC Topic: Legal Risk Management Skill: Recall 5) Joe hired Julie, a lawyer, to defend him on assault charges. At their first meeting he told her the details concerning his involvement in the assault. After a dispute between Joe and Julie in relation to legal fees, Joe decided to retain a new lawyer. The police attended at Julie’s office to ask her questions concerning what Joe told her about the assault. In these circumstances a. the solicitor/client privilege does not allow Julie to reveal any communications she had with Joe without his approval. b. given that the solicitor/client relationship has ended, Julie is at liberty to disclose the information. c. the solicitor/client privilege does not extend to admissions by clients of wrongdoing so communications must be disclosed. d. Julie is at liberty to disclose any information in relation to the dispute with Joe over fees but not in relation to communications about the assault. e. the Canada Evidence Act permits Julie to disclose any information once the retainer has ended. Answer: a Copyright © 2016 Pearson Canada Inc. 1-2
TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1: Law, Society, and Business
Diff: 3 Type: MC Topic: Legal Risk Management Skill: Applied 6) A compliance officer employed by a business for purposes of monitoring legislative requirements applicable to the business ensures a. that outside counsel are hired by the business on a general retainer basis to respond to urgent matters. b. that the business complies with all regulatory and legislative requirements to avoid claims, fines and other possible penalties or sanctions. c. that probationary employees are screened and monitored appropriately by the business in the 90 day period. d. that the business pays outstanding fines. e. that someone attends on all Small Claims Court matters where outside counsel are not required. Answer: b Diff: 3 Type: MC Topic: Legal Risk Management Skill: Applied 7) When we say that the law is part of every facet of business, we mean that a. it is central to business interaction with customers, suppliers, competitors, and government. b. business cannot succeed without understanding the law. c. it outlines what we do, how to do it, and what not to do. d. the failure of businesses to comply with the law may result in criminal, regulatory, and/or civil liability. e. all of the above Answer: e Diff: 2 Type: MC Topic: Law and Business Copyright © 2016 Pearson Canada Inc. 1-3
TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1: Law, Society, and Business
Skill: Recall 8) Effective operation of a business requires that business managers a. rely on lawyers to form the right questions and answers for legal issues. b. do not have to become experts in the activities of their businesses. c. simply rely on the decisions made by those in authority above them. d. do not have to familiarize themselves with the law. e. must know the law and must understand the legal risks associated with the everyday choices that they make. Answer: e Diff: 2 Type: MC Topic: Law and Business Skill: Recall 9) A risk management plan a. does not require regular revision. b. does nothing to promote the better conduct of a business. c. is only necessary in sophisticated businesses. d. does not necessarily involve a lawyer in every part of the overall plan. e. helps a business to identify and anticipate potential legal liability. Answer: e Diff: 2 Type: MC Topic: Law and Business Skill: Applied 10) Which of the following will a business use to reduce its liability? a. risk reduction b. risk absorption c. risk avoidance d. risk transfer e. all of the above
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TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1: Law, Society, and Business
Answer: e Diff: 1 Type: MC Topic: Law and Business Skill: Recall 11) To implement a risk management plan, a business must first a. prioritize the risks. b. develop effective strategies to deal with the risks. c. revise the plan on a regular basis. d. implement the plan. e. conduct a legal audit of the business operation. Answer: e Diff: 3 Type: MC Topic: Law and Business Skill: Applied
12) In deciding whether a statute is valid or invalid, the court must consider a. the effect that the statute has. b. the purpose of the statute. c. whether it should interpret the statute broadly. d. whether it should interpret the statute narrowly. e. all of the above Answer: e Diff: 2 Type: MC Topic: The Courts and Legislation Skill: Recall 13) A binding code of conduct is a a. general code of conduct that is available to anyone.
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TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1: Law, Society, and Business
b. code of conduct established voluntarily by industry. c. code of conduct that governments impose on business and industry. d. code of conduct that regulates specified activities, such as those of professionals. e. code of conduct that a firm or business imposes on itself. Answer: d Diff: 2 Type: MC Topic: Law and Business Ethics Skill: Recall 14) When a court interprets a statute narrowly, the result will most likely be that a. the statute will be found to fall inside the power of the government that made it. b. the court will change the wording in the statute so that it makes sense. c. the statute will be found to be outside, or ultra vires, the government that made it. d. the statute will be struck down. e. the court will send the statute back to the government that made it for revision. Answer: a Diff: 3 Type: MC Topic: The Courts and Legislation Skill: Applied 15) When we say that the law is linked to moral and ethical standards, we mean that a. the law is based on ethics. b. ethical behaviour is generally considered to be a higher standard. c. ethics and morality are one and the same. d. the fundamental truths that give rise to the law include ethics and morality. e. the moral and ethical values of a society as a whole shape the development of the law. Answer: e Diff: 3 Type: MC Topic: The Role of Law Skill: Applied Copyright © 2016 Pearson Canada Inc. 1-6
TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1: Law, Society, and Business
16) Under our legal system, which is derived from English common law, a. our courts simply resolve the dispute based on common sense. b. our courts look to and apply principles of law that have evolved out of cases dealing with the same subject matter as does the dispute between the private parties. c. our courts look to the way other countries have resolved disputes between private parties. d. our courts look to legislation passed by the federal and provincial governments to resolve disputes between private parties. e. our courts look to the constitution to resolve disputes between private parties. Answer: b Diff: 2 Type: MC Topic: Who Makes Law? Skill: Recall
17) In a federal system such as our own, the role of the courts is to a. draft legislation. b. dispense the law, which includes interpreting it as well. c. advise Parliament as to whether its laws are just and fair. d. ensure that the law is handed out equally to every Canadian. e. make it seem that we have a just legal system, when in fact we do not. Answer: b Diff: 3 Type: MC Topic: The Courts and Legislation Skill: Applied 18) The most common complaint about judges when they are interpreting statutes or legislation is that they a. are much too powerful and have no regard for anyone other than themselves. b. are usurping the powers of Parliament and the provincial legislatures. c. are too political and are usurping the powers of Parliament and the provincial legislatures. Copyright © 2016 Pearson Canada Inc. 1-7