Managing the Law: The Legal Aspects of Doing Business 4th Edition

TEST ITEM FILE for Mitchell McInnes Faculty of Law, University of Alberta Ian R. Kerr Faculty of Law, University of Ottawa J. Anthony VanDuzer Faculty of Law, University of Ottawa Managing the Law The Legal Aspects of Doing Business Fourth Canadian Edition prepared

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 1: Risk Management and Sources of Law Answer: e Diff: 2 Type: MC Skill: Applied 33) Omicron Inc claims that a municipal by-law violates its right to equality under section 15(1) of the Charter. Section 15(1)

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 1: Risk Management and Sources of Law True/False Questions 1) The law can affect a business both positively and negatively. It often prohibits actions that otherwise would be possible. However, it sometimes permits parties to do something

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 10: Contractual Defects e. A transaction is always unconscionable when a big company makes a deal with a consumer that is more to the benefit of the big company. Answer: a Diff: 2 Type:

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 10: Contractual Defects True/False Questions 1) Across Canada, the age of majority is 19, which is a federal law. a. True b. False Answer: b Diff: 1 Type: TF Skill: Recall 2) The

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 11: Discharge and Breach 29) Part of the law's response to a breach of contract is best explained by the fact that a. a breach of condition will usually substantially deprive the party in

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 11: Discharge and Breach True/False Questions 1) Alpha Corp breached its contract with Beta Inc. If Beta discharges the contract on the basis of that breach, the contract no longer will be at all relevant

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 12: Contractual Remedies reasonably sure of getting either the thing, or the value of the thing, that they expected to get. If damages were limited to allowing the plaintiff to get back what it had,

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 12: Contractual Remedies True/False Questions 1) In the context of contractual damages, there is only one measure of relief. a. True b. False Answer: b Diff: 2 Type: TF Skill: Recall 2) While

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 12: Contractual Remedies a. The plaintiff is entitled to recover both reliance damages and expectation damages. b. They are available only to the extent that the plaintiff entered into a bad bargain. c. The plaintiff

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 12: Contractual Remedies 28) Silvio agreed to perform as a pianist with the Moose Jaw Symphony Orchestra (the MJSO). His contract with the orchestra contained two important clauses. One required him to perform with the

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 13: Special Contracts: Sale of Goods Answer: a Diff: 3 Type: MC Skill: Applied 26) The implied term regarding fitness for intended purpose a. applies any time that the buyer relied upon the

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 13: Special Contracts: Sale of Goods True/False Questions 1) Because of the need for commercial certainty, it generally is not possible for the parties to a sale of goods contract to exclude the terms implied

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 14: Special Contracts: Negotiable Instruments e. In the final analysis, the Bank of Gander will necessarily suffer the loss if it honoured the cheque and paid $10 000 to Abby. Answer: d Diff: 3

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 14: Special Contracts: Negotiable Instruments True/False Questions 1) A document may be a negotiable instrument even if it does not satisfy the requirements of the Bills of Exchange Act. a. True b. False Answer:

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 15: Real Property: Interests and Leases 31) Land is sometimes called "real property" because a. it is really more important than personal property. b. traditionally, it was the real source of most wealth in

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 15: Real Property: Interests and Leases True/False Questions 1) Rio bought a piece of land from Bill. Although she now owns that property, the doctrine of privity of contract means that Bill is the only

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 16: Real Property: Sales and Mortgages 30) Ngari borrowed $250 000 from Phoebe. As security for the repayment of that loan, he created a mortgage over a piece of land called Blackacre. Ngari has repaid

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 16: Real Property: Sales and Mortgages True/False Questions 1) Hiram owns a piece of land that he wants to sell to Regina. She wants to buy it for the purpose of building a shopping mall.

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 17: Personal Property: Bailment and Insurance Type: MC Skill: Recall 33) The phrase “nemo dat quod non habet “ a. applies to real property, but not to personal property. b. is generally ineffective with

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 17: Personal Property: Bailment and Insurance True/False Questions 1) The distinction between real property and personal property consists of the fact that real property can never be physically picked up and moved from place to

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 18: Intellectual Property True/False Questions 1) T-Bone Steak, a Canadian pop act, just finished writing a new song. The band does not need to register their copyright ownership in order to protect their copyright. a.

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 18: Intellectual Property a. copyright the idea for the series b. copyright the titles for the articles he is thinking of c. apply for a copyright for the future articles d. exact confidentiality agreements from

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 19: Electronic Commerce True/False Questions 1) Canada's Uniform Electronic Commerce Act creates rights, powers, obligations, and immunities with respect to electronic commerce-related activities within Canada. a. True b. False Answer: b Diff: 1 Type:

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 19: Electronic Commerce 30) Which of the following practices should be adopted in order to respect the consumer protection principles advocated by Industry Canada? a. sending unsolicited email only to parties who you think will

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 2: Litigation and Alternative Dispute Resolution True/False Questions 1) Longhorn Inc has served a statement of claim on Trojan Ltd for breach of contract. Given the current trends in Canadian litigation, there is approximately a

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 2: Litigation and Alternative Dispute Resolution c. If a judgment debtor is bankrupt, a claimant who is entitled to claim that assets of the bankrupt’s estate are held in trust for the claimant may be

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 2: Litigation and Alternative Dispute Resolution that (i) a lawyer is competent, (ii) a lawyer will act ethically, and (iii) compensation will be available if you suffer a loss as a result of a lawyer's

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 20: Agency and Other Methods of Carrying on Business 29) Agents have a fiduciary duty to their principals. Which of the following is FALSE with respect to the fiduciary duty? a. The fiduciary duty of

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 20: Agency and Other Methods of Carrying on Business True/False Questions 1) Wayne is an agent for Sarah, a professional hockey player. For two seasons, he has helped Sarah negotiate her contract with the Saskatoon

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 21: Basic Forms of Business Organizations c. an investor who is looking for a return that is fixed but not guaranteed d. an investor who wants a voice in the affairs of the corporation through

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 21: Basic Forms of Business Organizations True/False Questions 1) Alto Finance Inc carries on a highly profitable business as an investment dealer. Alto is considering buying an interest in a partnership that had been carrying

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 22: Legal Rules for Corporate Governance True/False Questions 1) Shareholders in a corporation incorporated under the Canada Business Corporations Act are entitled to the remaining assets of the corporation after all the creditors are paid.

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 22: Legal Rules for Corporate Governance 30) Denise has been asked to join the board of directors of Summit Corp, which carries on a software development business. She is attracted by the prestige and

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 23: Secured Transactions Answer: c Diff: 3 Type: MC Skill: Applied 28) Sarah, a public servant, gave a security interest to her brother Peter in all her assets to secure her obligation to

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 23: Secured Transactions True/False Questions 1) Banks take collateral to secure the obligations of people who owe them money as a way to reduce the risks associated with non-payment. Having a security interest in collateral

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 23: Secured Transactions Diff: 3 Type: ES Skill: Applied 2) Marlie carries on a business of selling new and used lamps. In 2009, she obtained an operating line of credit from the Bank of

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 24: Dealing with Bankruptcy and Insolvency d. As a general rule, a judge is entitled to resolve a conflict between the Bankruptcy and Insolvency Act and another statute dealing with the debtor–creditor relationship by asking

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 24: Dealing with Bankruptcy and Insolvency True/False Questions 1) The principle of creditor equality in bankruptcy essentially means that all creditors are to recover the same amount from the bankrupt's estate. a. True b. False

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 25: Government Regulation of Business Answer: c Diff: 2 Type: MC Skill: Applied 28) Helena is president and the sole director of a small garment-making company in Markham, Ontario, that specializes in preliminary assembly

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 25: Government Regulation of Business True/False Questions 1) Federal legislation always prevails over provincial legislation. a. True b. False Answer: b Diff: 1 Type: TF Skill: Recall 2) Manitoba decides that it would

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 26: Individual Employment True/False Questions 1) Advertising a job position is risk free because there is no employment relationship at that time. a. True b. False Answer: b Diff: 2 Type: TF Skill: Applied

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 26: Individual Employment d. In the case of summary dismissal, the employee is not actually fired. e. In the case of summary dismissal, a unilateral decision to alter an employee's status is said to amount

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 27: Organized Labour True/False Questions 1) Every worker in Canada has the right to join a union. a. True b. False Answer: b Diff: 1 Type: TF Skill: Recall 2) Some employee organizations

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 27: Organized Labour e. Yes. Employers are always at liberty to discharge any employee deemed to have behaved improperly during a strike. Answer: c Diff: 3 Type: MC Skill: Applied 27) Which of

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 3: Introduction to Torts True/False Questions 1) Although the same set of events may support both a law suit in tort and a criminal prosecution, a civil action will not succeed if a wrongdoer has

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 3: Introduction to Torts Diff: 3 Type: ES Skill: Applied 7) Sasha committed a tort against Katarina. Katarina wants to recover compensatory damages. Identify and briefly explain two doctrines that may limit the

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 3: Introduction to Torts a. Jennifer will not be entitled to sue Brad and Angie. b. Gold Star will have to compensate Brad and Angie if Jennifer collects damages from those two individuals. c. Gold

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 4: Intentional Torts b. Louella is liable for the tort of false imprisonment. c. Louella was entitled to detain Jack until he paid the entire bill. d. Louella is liable for the tort of assault.

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 4: Intentional Torts True/False Questions 1) As a practical joke on April Fools’ Day, Hannah put a mask over her face, carried a toy gun, and knocked on the door of her good friend, Woody.

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 4: Intentional Torts injury (such as embarrassment) that is difficult to quantify in monetary terms for the purpose of awarding damages. Much more importantly, however, the law has always placed a high value on freedom

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 5: Miscellaneous Torts Affecting Business 32) Jimmy's Trucking Ltd has sued Hoffa Security Inc in tort. Jimmy's accuses Hoffa of committing torts that resulted in substantial economic losses. The evidence indicates that, aside from Jimmy's

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 5: Miscellaneous Torts Affecting Business True/False Questions 1) The tort of intimidation always requires proof that the defendant used a threat to cause a third party to act in a way that hurt the plaintiff.

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 6: Negligence True/False Questions 1) A duty of care may be imposed on a person but not on a corporation. a. True b. False Answer: b Diff: 1 Type: TF Skill: Recall 2)

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 6: Negligence 31) Halle is considering creating a new accounting company. She is, however, concerned about the possibility of incurring liability under the tort of negligence if she acts carelessly. Restricting yourself to the

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 7: The Nature and Creation of Contracts True/False Questions 1) In order to decide whether the parties intended to create a legally enforceable agreement, the courts apply a subjective "reasonable person" test. a. True b.

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 7: The Nature and Creation of Contracts a. The store is required to sell a Swirl Brand Blender to Martha for $49.99. b. Martha can force the store to acquire a Juicy Brand Blender and

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 8: Consideration and Privity Answer: c Diff: 1 Type: MC Skill: Recall 31) Which of the following refers to a TRUE exception to the privity doctrine, in the sense that a person is entitled

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 8: Consideration and Privity True/False Questions 1) A gratuitous promise is generally not enforceable. a. True b. False Answer: a Diff: 2 Type: TF Skill: Recall 2) Alpha Corp entered into an agreement

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 9: Representations and Terms a. frequently redesign the standard form agreement to ensure that customers must read through the form each time they sign it. b. teach employees the meaning of onerous and ambiguous contract

McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition Chapter 9: Representations and Terms True/False Questions 1) Pre-contractual representations are always part of the terms of all contracts. a. True b. False Answer: b Diff: 1 Type: TF Skill: Recall 2) A contractual