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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 one in four chance
that the case will eventually be resolved by a judge at a trial.
a. True
b. False
2) Screaming Eagle Inc, a company based in Los Angeles, wants to sue Canuck
Manufacturing Inc in a court in Vancouver. While the American company may be entitled
to sue in Canada, it must be represented by a litigation guardian.
a. True
b. False
3) Although trade unions are unincorporated associations, and therefore are not legal
persons, they generally can sue or be sued because of a statutory change made to the
common law.
a. True
b. False
4) The Crown can be sued only if a statute allows an action to be brought against the
Crown.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
5) Morley suffered a minor injury as a result of using a toothbrush manufactured by
DentPlus Inc. The evidence indicates that the type of toothbrush in question suffers a from
a design defect and therefore is likely to have injured every person who used it. In the
circumstances, Morley wants to bring a class action against DentPlus. Class action
proceedings are, however, available only if certain requirements are met. Morley must,
among other matters, satisfy the court that he has developed a workable plan for notifying
all of the other members of the plaintiff class of the class action.
a. True
b. False
6) Geeta was one of several hundred people who received tainted blood from a hospital that
carelessly collected and stored blood. Although each of the victims will be able to make
essentially the same arguments against the hospital, a court will, as a general rule, not
certify a class action unless each of the victims also intends to claim roughly the same
amount of damages.
a. True
b. False
7) A person generally is not entitled to act as a lawyer in Canada unless they have
completed a “period of articles.” That phrase refers to the fact that admission to the bar
depends upon proof that a person went to law school for a certain length of time.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
8) Citizens are protected from dishonest lawyers who steal money or breach conditions of
trust for holding client’s money, by the law society’s assurance fund. That fund always
consists of the professional liability insurance that each lawyer is required to hold while
practising.
a. True
b. False
9) Makayla was recently served with a statement of claim that alleges that she committed a
breach of contract. Makayla simply denies that allegation. She will likely present her
arguments against the allegation by using a document called a counterclaim.
a. True
b. False
10) While a cross-examination usually occurs in open court, examinations for discovery
occur outside of court.
a. True
b. False
11) Katrina has sued Bensam Inc, her former employer, for unfairly firing her from her job.
The company denies that it has done anything wrong. The parties have exchanged
pleadings and are now preparing to participate in a pre-trial case planning conference. The
trial is less than one month away. This means that they will necessarily meet with a
mediator, rather than a judge, at the pre-trial case planning conference for the purpose of
discussing their case and possibly reaching a settlement.
a. True
b. False
12) Scalia Inc sued Ginsberg Ltd. in tort. Scalia claimed that it was entitled to receive $15
000 in compensation. Ginsberg denied liability, but in an attempt to resolve the issue
quickly and quietly, formally offered to settle the claim for $9000. Scalia rejected the offer
and took the case to trial in the federal court. The trial judge has now decided the case in
favour of Scalia, but damages were limited to $8000. In the circumstances, the trial judge
must award party-and-party costs against Ginsberg for the period up to the day when the
settlement offer was made, and double party-and-party costs against Ginsburg for the
period between that day and the end of the trial.
a. True
b. False
13) Even if a cause of action is not barred or extinguished by a statutory limitation period, a
plaintiff who waited many years before attempting to sue may be prevented from doing so
by the equitable doctrine of laches, if the plaintiff is making an equitable claim.
a. True
b. False
14) Kabesa Inc sued Mahuja Ltd. The court held completely in favour of the defendant and
the claim of Kahesa was dismissed in its entirety. The court probably also ordered Kabesa
Inc to pay Mahuja Ltd’s costs.
a. True
b. False
15) A contractual dispute has arisen between Jyoti and Arlen. She believes that he owes her
money, but he disagrees. The parties do, however, agree that it would be desirable to
resolve the dispute as quickly and as amicably as possible. For that reason they should use
litigation, rather than negotiation. Negotiation tends to take much longer, and is much more
likely to generate hostility, because it requires the parties to discuss the matter between
themselves, rather than through their lawyers.
a. True
b. False
Multiple Choice Questions
1) Hughes Inc hired Liz to act as the chief architect for a major shopping development.
After about a year, however, the parties’ relationship began to deteriorate and the situation
quickly became intolerable and irreparable. Each side blamed the other. Hughes Inc sued
Liz for breach of contract. Liz defended that claim and started a counterclaim in which she
alleged that Hughes Inc had broken their agreement. The dispute was eventually resolved
through arbitration. Which of the following statements is TRUE?
a. The parties probably used arbitration, rather than litigation, because a judge decided that
the issues were too complicated to be understood by jurors.
b. Even if both parties are based in Manitoba, even if the contract was signed in Manitoba,
and even if the shopping development was intended to be located in Manitoba, the
arbitration could have taken place in a different province, as parties who arbitrate disputes
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
are, subject to the contractual terms, free to choose the rules and jurisdiction of the
arbitration.
c. Although the arbitration would not have taken place in a court, it was probably
conducted by a judge.
d. Assuming that the parties served a complete set of pleadings on each other, Hughes Inc.
would have used a document called a reply in order to respond to Liz’s counterclaim.
e. Some provinces require the parties in commercial disputes to participate in a mandatory
arbitration program, as opposed to a mandatory mediation program, before taking a case to
trial.
2) Demartini Inc sued Bentley Regehr for breach of contract. Demartini argued that it was
entitled to receive a payment of $50 000 from Regehr. After failing to reach a settlement,
the parties took their case to court. Which of the following statements is TRUE?
a. If Regehr offered to settle the claim out of court for $30 000, and if the judge eventually
decides that Demartini is entitled to receive $35 000, the judge may award an unusually
large amount of costs against Regehr in order to punish him for making an inadequate
settlement offer.
b. While the courts generally refuse to receive hearsay evidence, the judge in this case will
probably allow expert witnesses to provide such evidence.
c. If the court finds Regehr liable for $50 000, Demartini may try to obtain payment from
Regehr by garnisheeing money that Regehr is entitled to receive from his employer.
d. There are no jurisdictions in Canada where a claim for $50 000 or less can be heard in a
small claims court.
e. The parties’ case will almost certainly be heard by a judge of the provincial court, as the
issues in this claim can only be adjudicated in the small claims court division of the
provincial court of whichever province has the closest connection to the parties and their
agreement.
3) Wolodko Engineering Inc sued Dhaliwal Ltd for the tort of negligence. At one point
during the litigation process, an examination-in-chief occurred. This means that
a. one of the parties asked the other party’s witness a question during an examination for
discovery.
b. the other side asked the opponent’s witness questions under oath.
c. one of the parties hired an expert witness to conduct a scientific investigation on a piece
of physical evidence.
d. the examination in chief occurred while the case was on Appeal.
e. questions were answered under oath at a trial by one party of its own witnesses.
4) A court recently held Acme Corp responsible for spilling pollutants into a stream. Which
of the following statements is most likely TRUE?
a. If the court required proof beyond a reasonable doubt, the claim against Acme Corp
arose in private law.
b. If the court required proof beyond a reasonable doubt, Acme Corp was called the
accused and was prosecuted by the state in criminal or criminal like proceedings.
c. Since Acme Corp is not a human being, the case was heard in a special court called the
Commercial Court of Canada.
d. If Acme Corp is dissatisfied with that decision, it is entitled to appeal, but only if it is
willing to pay for the other side to bring its witnesses back into court.
e. If the claim against Acme Corp arose in private law, it almost certainly was heard by a
jury, as well as a judge.
5) The doctrine of precedent
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
a. prevents a judge from resolving a dispute on the basis of a decision from another
jurisdiction.
b. requires the Supreme Court of Canada to follow decisions of the Judicial Committee of
the Privy Council in England.
c. is never relevant if the resolution of a case involves the interpretation of a statute.
d. draws a distinction between binding authorities and persuasive authorities. A judge is
bound to follow a binding authority, even if the judge disagrees with the reasoning or
conclusion of that authority.
e. prevents the Supreme Court of Canada from relying on a decision of a lower court.
6) A trial judge in Manitoba has heard a case dealing with a particular issue. Which of the
following statements is TRUE according to the doctrine of precedent?
a. If there are no binding precedents, the judge may consider cases from anywhere in the
world, and decide the case based on the extension or modification of established principles
of law, thus creating a new precedent.
b. If there are no precedents, the judge is not entitled to decide the case, and therefore must
refer the matter to the legislature because of the doctrine of parliamentary supremacy.
c. If there are conflicting precedents from the Court of Appeal of Ontario and the Court of
Appeal of Saskatchewan, the judge must follow the former, because it comes from a
jurisdiction with a larger population.
d. If there are conflicting precedents from the Court of Appeal of Ontario and a trial court
in the Bahamas, the judge must follow the former because it is Canadian.
e. If there are no other precedents, the judge is required to follow a decision of the Alberta
Court of Appeal.
7) Jinyan has been involved in a law suit for several years. She recently sought “leave”
from the Supreme Court of Canada. This means that
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
a. she wants the Supreme Court of Canada to grant her leave to hear her appeal at the
Supreme Court of Canada.
b. she wants the court to release her from jail.
c. she wants the Supreme Court of Canada to hear a trial of her case with live witnesses.
d. she wants the Supreme Court of Canada to appoint a new lawyer to work for her.
e. she wants the Supreme Court of Canada to come to her province where she lives and to
have a full new trial in front of the Supreme Court of Canada in her home province.
8) Justice Major dissented in the case of Dobson v Dobson. This means that
a. he was hearing the case as a trial judge and rejected the plaintiff’s claim.
b. he disagreed with the result reached by the majority of his colleagues in an appeal that a
panel of Justices of the Supreme Court of Canada heard.
c. he held that a statute was invalid because it violated the Charter.
d. he rejected a party’s application for leave to appeal an earlier decision.
e. he was unable to decide the case because he had some personal connection to it so he
recused himself from the panel that heard the case.
9) Which of the following statements is TRUE?
a. The phrase “court hierarchy” refers to the fact that the courts must obey the words of a
valid statute.
b. Arbitration is usually binding but it depends on the arbitration agreement of the parties
and on the powers of the courts to review arbitration decisions.
c. The judges of the superior court in each province are appointed by that province’s
government.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
d. The phrase “rule of law” refers to the fact that a law must contain a rule that either
prohibits someone from doing something or allows someone to do something.
e. The phrase “court hierarchy” refers to the fact that the Supreme Court of Canada contains
one chief justice and eight puisine justices.
10) At the end of a case, a court awarded costs against Craig. Which of the following
statements is TRUE?
a. Craig probably won a private law case.
b. Craig probably was convicted of a serious crime.
c. Craig necessarily must reimburse the other party for all of the expenses that it incurred in
connection with the case.
d. The court almost certainly awarded costs against the other party as well.
e. Craig must pay money to the other side in compensation in whole or in part for legal fees
and disbursements of the other side—even if he won his case.
11) Which of the following statements is TRUE?
a. ADR stands for “additional decision resolution.”
b. Mediation is normally binding, unless the parties agree otherwise.
c. The process of negotiation tends to correct any imbalance in bargaining power, and
therefore is usually preferred if one party is a consumer and the other is a large corporation.
d. The decision received from an arbitrator is generally not able to be appealed except
either by agreement or by specific statutory appeal rights which may apply to the arbitration
agreement.
e. ADR is used in criminal law, particularly mediation by the police.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
12) The front window of Polly’s Flower Shop was recently broken when someone threw a
rock through it. Which of the following statements is TRUE?
a. If the person who threw the rock is 13 years old, there will not be a lawsuit because
children under the age of majority cannot be sued.
b. If the person who threw the rock is insane, Polly’s Flowers will not be able to sue unless
it receives permission from the Public Trustee.
c. If the person who threw the rock is a European who is visiting Canada for less than a
year, the case will have to be heard in the International Court of Justice.
d. Because a lawsuit can be brought only by a human, the plaintiff named in the statement
of claim cannot be the corporation that owns Polly’s Flower Shop.
e. The person who threw the rock may be sued even if that person worked for the
government and threw the rock while that person was on duty as a government employee.
13) Which of the following statements is TRUE?
a. A lawsuit may be brought against human beings, corporations, and any unincorporated
associations.
b. A young child who is sued will be represented by an adult who acts in parens patriae.
c. In order to sue in Canadian courts, a person must either be a Canadian citizen or be
represented by a lawyer who is a Canadian citizen.
d. Trade unions sometimes can sue or be sued even though they are unincorporated
associations.
e. Foreign corporations, like Canadian corporations, have an absolute right to sue in
Canadian courts.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
14) Geetha has been diagnosed with skin cancer. Based on her physician’s diagnosis, she
believes that her condition was caused by SofSkin, a lotion that she used for many years.
She wants to sue the manufacturer of SofSkin, but she realizes that a lawsuit would require
a great deal of complicated evidence, and therefore would likely be long and expensive.
Which of the following statements regarding class actions is TRUE in this situation?
a. Even if a court allowed a class action to proceed, it would be possible for other people in
the same situation as Geetha to sue by themselves.
b. By participating in a class action, Geetha almost certainly would be able to avoid any
expense if the claim failed.
c. A court would not allow a class action to proceed unless Geetha was joined by a
substantial number of other people with virtually identical claims against the manufacturer
of SofSkin.
d. Regardless of which province or territory the class action occurred in, it would be
governed by statute.
e. A class action is possible only if Geetha’s lawyer works for a contingency fee.
15) Class actions have become more common in Canada in recent years. This increase in
popularity can be explained, at least in part, by the fact that
a. lawyers are able to aggregate many small claims of similar factual circumstances and
undertake the aggregated class claims on an economical contingency fee basis as the single
claims, because they are so small would be uneconomic to litigate separately on a
contingency fee basis.
b. the rules governing class actions are now contained in statutes in every province.
c. lawyers conducting class actions must work on a contingency fee basis, with the result
that their clients are liable for their expenses only if the case is won.
d. the Supreme Court of Canada recently said that, in contrast to the past, class actions can
now be certified even if success for one claimant does not necessarily mean that all of the
other claimants will also enjoy success.
e. liability in a class action can never be appealed.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
16) The requirements for certification in a class action include
a. proof that the class action will be substantially less convenient than individual
proceedings.
b. proof that all of the claimants are being represented by the same law firm.
c. a clearly defined class and most substantive issues are common to every claimant in that
class.
d. a payment of bond money to the court, to be used to pay for the defendant’s costs if the
claim is unsuccessful.
e. proof that every potential member of the class has been personally notified of the
proceedings.
17) A company that manufactures cigarettes has been named as the defendant in a class
action. Which of the following statements is TRUE?
a. The fact that the defendant has been sued in a class action necessarily means that other
companies have also been sued in the same action.
b. The company will likely place notifications in newspapers in an attempt to avoid
certification.
c. The company will probably have to pay costs on a solicitor-and-client basis if it loses the
case.
d. Because they have sued by way of a class action, the plaintiffs necessarily have hired
lawyers on a contingency basis
e. The class action will be certified even if some other form of litigation is the preferable
procedure if all of the other requirements for certification of a class action are proved to the
court by the plaintiff in the class action at the certification hearing.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
18) Which of the following statements is TRUE with respect to representation in legal
disputes?
a. Litigants are entitled to represent themselves in trials but not in appeals.
b. A lawyer who acts against a former client’s interests may be in conflict of interest, and
may be investigated by a law society.
c. In-house counsel refers only to a situation in which a law firm that has been sued is
represented by one of its own lawyers.
d. The Law Society of Canada has the responsibility of regulating lawyers across the
country.
e. Communications between a paralegal and a client are always confidential and privileged.
19) Herbert & Hart Inc, an accounting firm, was legally represented in a recent dispute by
Alan Munt, who is a lawyer. Herbert & Hart have now learned that Munt professionally
misconducted himself by passing confidential information to the other side in the dispute.
Herbert & Hart consequently lost approximately $12 million. Which of the following
statements is TRUE?
a. Munt probably does not have liability insurance that will help to pay for his liabilities.
b. Munt may be investigated by the law society only if he is an articling student.
c. Munt may be sued, but his behaviour cannot be investigated by the law society.
d. Herbert & Hart very likely violated the law society’s code of conduct.
e. If Herbert & Hart sue Munt they will likely recover their loss if Munt has sufficient
insurance coverage, or personal assets in excess of his insurance coverage sufficient to pay
for the loss.
20) Kirndeep recently received a bachelor of business administration. She has, however,
always dreamed of representing people with legal problems. She has come to you for
advice and guidance regarding the various possibilities. Which of the following statements
is TRUE?
a. Lawyers always make more money than paralegals.
b. Paralegals are permitted to help clients draft legal documents, but they are never entitled
to appear in courts or tribunals.
c. Paralegals are allowed to represent clients in small claims courts in some jurisdictions in
Canada.
d. Paralegals are more heavily regulated than lawyers.
e. Before starting a private practice, a paralegal is required to complete a period of articles
with a law firm.
21) Which of the following statements is TRUE with respect to pleadings?
a. The party that creates a counterclaim is usually also the same party that creates the
statement of claim.
b. Each pleading must be filed with the opposing party and served on the court.
c. A demand for particulars is always created by a plaintiff.
d. The party that files and serves a reply is usually the same party that files and served the
statement of claim.
e. The purpose of a counterclaim is to counter, or contradict, a statement of claim by
alleging facts that have the effect of denying liability.
22) Rawls Inc recently sued Nozick Ltd. As Nozick has pointed out, however, Rawls‘
statement of claim was not filed within the limitation period. Which of the following
statements is TRUE?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
a. The length of the limitation period depends upon the nature of Rawls’s claim.
b. If Rawls’s claim was for breach of contract, it was probably extinguished once the
limitation period lapsed.
c. If Rawls’s claim was for breach of contract, the limitation period was probably 10 years.
d. The primary purpose of limitation periods is to save society money by reducing the
number of cases that need to be heard by courts.
e. There would not be a limitation period if Rawls sued the government.
23) Fuller Inc. has sued Perdue Corp. Which of the following statements is TRUE?
a. If Perdue counterclaims, Fuller will use a reply in order to deny Perdue’s allegations.
b. All of the parties’ pleadings must be stamped and filed at the registry of the court.
c. The judge may draft a demand for particulars in order to receive more information
regarding Fuller Inc.’s claim.
d. If the case goes to court, it will likely be heard by a jury.
e. A counterclaim usually is used if the plaintiff wants to change the details in a statement
of claim.
24) Examinations for discovery
a. take place before the plaintiff drafts a statement of claim.
b. take place after a jury has decided a case.
c. are designed primarily to determine the defendant’s financial situation, and therefore to
help the plaintiff decide whether or not it makes sense to sue.
d. are conducted under oath or affirmation, and are used to discover the evidence of the
other side to prevent surprise at trial and to encourage settlement by all parties having
access to information about the strength and weakness of the case for each side.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
e. usually discourage settlement by demonstrating the weaknesses of each party’s
arguments.
25) Hobbes has sued Kant for breach of contract. The facts and issues are very complicated.
Which of the following statements is TRUE?
a. A pretrial conference will require the parties to explain their arguments to a mediator,
who has the power to decide the case in favour of the defendant if the plaintiff’s evidence is
very weak.
b. Although it would be quicker and less expensive to have the case decided by arbitration,
arbitrators usually have less expertise than judges.
c. If Hobbes wins the case at trial, but is awarded less than Kant offered in a formal
settlement, the court will probably award costs against Hobbes on a solicitor-and-client
basis.
d. Because they occur outside of court, examinations for discovery are entirely voluntary
and neither party could be compelled to answer the other’s questions
e. Hobbes must prove the facts necessary to establish his cause of action to the standard of a
balance of probabilities.
26) Justice Veritas is hearing a case in court. Which of the following statements is TRUE?
a. If the case involves a civil matter, rather than a criminal matter, the only party entitled to
conduct a cross-examination is the plaintiff.
b. If the case involves a criminal matter, rather than a civil matter, the prosecutor must
prove the elements of the offence on a balance of possibilities.
c. Justice Veritas will allow an expert witness, but not an ordinary witness, to present
hearsay evidence.
d. If the case involves a minor crime, Justice Veritas will require proof on a balance of
probabilities.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
e. The rules regarding hearsay apply to both oral testimony and written evidence. However,
there are exceptions which permit or facilitate the introduction of hearsay evidence orally,
and the introduction of certain written documents.
27) Arvid Dunston was severely injured when a large rock tumbled off a steep cliff and
crashed through his windshield as he drove. Arvid sued the company that manufactured his
vehicle on the basis that it had tortiously failed to use a type of glass that might have
prevented the rock from entering the vehicle. He also sued the provincial government on
the basis that the government had tortiously failed to inspect the area for rocks that might
fall onto the road and hurt motorists. Which of the following statements is TRUE?
a. While the common law traditionally said that “the King can do no wrong,” the relevant
rules have been changed so that exactly the same rules will govern both of Arvid’s claims.
b. The limitation periods that are applicable to the two claims will almost certainly be the
same.
c. Arvid’s two claims cannot be heard together because all claims against the government
must be heard in a special type of court that is not available for disputes between two
private parties.
d. In order to sue both the company and the government at the same time, Arvid will be
required to satisfy the rules governing class actions.
e. Even though one of the defendants is a private company and the other is a government,
both claims against each defendant will require Arvid to prove his allegations on a balance
of probabilities.
28) Which of the following statements regarding the right to sue and representation in court
is TRUE?
a. Because they are legally incapable of providing consent, children and people with mental
disabilities cannot be members of class actions.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
b. Trade unions can sue or be sued even though they are unincorporated associations and
therefore are not a type of legal person, and this is a statutory exception to the normal rule
the unincorporated associations cannot be sued as they have no legal status.
c. A lawyer who acts for the plaintiffs in a class action must work on a contingency fee
basis.
d. For public policy reasons, a person who wants to sue the government cannot hire a
lawyer on a contingency fee basis.
e. Paralegals are always entitled to appear in a provincial court but not in a superior court.
29) Retailers Inc. hired Clean Air Services (CAS) to develop and install an air conditioning
system in a large office complex. The system that CAS installed turned out to be grossly
inadequate, largely because, contrary to the terms of its contract, it used inferior materials.
It did so in order to save money and increase its profits. A court has found CAS liable for
breach of contract. In terms of a remedy, the judge
a. will probably impose a conditional sentence, unless CAS’s breach caused someone to
suffer an injury, in which case the judge would probably prefer imprisonment.
b. will classify Retailers Inc as a judgment debtor.
c. may hold CAS liable for a payment of money, in which case Retailers Inc may have
some of CAS’s assets seized and sold under the garnishee process.
d. cannot hold CAS liable for damages unless Retailers Inc has demonstrated that CAS has
sufficient assets to satisfy judgment.
e. may award nominal damages if the defendant’s breach of contract did not actually cause
any loss.
30) Kirndeep Khan wants to sue her employer for sexual harassment. She has therefore
hired Rory McAngus to represent her. Which of the following statements is TRUE?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 2: Litigation and Alternative Dispute Resolution
a. If Kirndeep loses her case against her employer because of Rory’s negligence, and if
Rory is bankrupt, Kirndeep will likely still receive compensation if Rory had insurance that
had adequate policy limits to cover Kirndeep’s losses.
b. If Rory is a lawyer, then Kirndeep’s conversations with him will be privileged, meaning
that Rory cannot reveal what Kirndeep said to him unless a judge orders him to do so.
c. Rory is probably the employer’s in-house counsel.
d. If Kirndeep hired Rory on a contingency fee basis, and if she wins her case, then the
judge will increase the measure of damages to ensure that Kirndeep receives full
compensation even after Rory has received payment of his fee.
e. Whether he is a lawyer or a paralegal, Rory cannot act for Kirndeep unless he has
completed a period of articles.
31) A number of commentators have referred to litigation as a “lottery.” By using that
word, they are suggesting that
a. jurors are selected in a random manner.
b. the results are often unpredictable and embarking upon litigation can often mean that the
outcome is only as predictable as matter of chance.
c. there are far more losers than there are winners.
d. the government heavily regulates trials in the same way that it heavily regulates lotteries.
e. many cases involve the enforcement of gambling debts.
32) Which of the following statements is TRUE with respect to remedies?
a. Nominal damages are defined as damages that are awarded against a named defendant,
rather than against a corporation.
b. Punitive damages are available only in criminal proceedings.
