Business Law
Exam Questions
Course Introduction
Business Law is an essential course that introduces students to the legal principles and regulations governing the operations of businesses. The course covers key topics such as contracts, agency, sales, negotiable instruments, employment law, business organizations, and the ethical and legal implications of business decisions. Through case studies and real-world examples, students learn to identify legal risks, understand rights and obligations, and apply legal reasoning to solve business problems. This foundational knowledge prepares students to effectively navigate the legal environment of business, make informed decisions, and mitigate potential legal issues in their future professional endeavors.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by Richard A. Yates
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16 Chapters
2535 Verified Questions
2535 Flashcards
Source URL: https://quizplus.com/study-set/1411
Page 2
Chapter 1: Managing Your Legal Affairs
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127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/28018
Sample Questions
Q1) Distinguish between law and ethics.
Answer: Law tells us what we must do, while ethics tells us what we should do.
Q2) 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
Q3) Becoming a sophisticated client will
A) ensure that a business person never needs a lawyer.
B) help a business person manage her legal affairs more efficiently and effectively.
C) result in a business person developing a bias against lawyers.
D) relieve a business person from having to conduct legal research.
E) protect a business person from needing legal advice.
Answer: B
Q4) What is disbarment?
Answer: Disbarment is termination of membership in the law society.
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Page 3
Chapter 2: Introduction to the Legal System
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159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/28026
Sample Questions
Q1) Which of the following is true with regard to Canada's Constitution?
A) The British North America Act of 1867, the first document to determine which classes of subjects could be dealt with by the provinces and which by the federal government, was passed by our federal parliament.
B) The Charter of Rights and Freedoms is a part of the BNA Act, 1867.
C) The Charter of Rights and Freedoms cannot be amended by the federal parliament acting alone.
D) The Constitution Act, 1982 requires British Parliament to amend it.
E) Our Constitution consists of only the Charter of Rights and Freedoms.
Answer: C
Q2) What is a "sunset clause" in the context of limitations on the Charter of Rights and Freedoms?
Answer: A "sunset clause" is applied to the operation of section 33. If the notwithstanding clause is invoked, the statute must be re-enacted by that legislative body every five years.
Q3) Common law is also known as judge-made law.
A)True
B)False
Answer: True
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Page 4
Chapter 3: The Resolution of Disputes: the Courts and Alternatives to Litigation
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221 Verified Questions
221 Flashcards
Source URL: https://quizplus.com/quiz/28027
Sample Questions
Q1) Section 7 of the Charter states that everyone has the right to "life, liberty, and the security of person," and it requires that all decisions depriving a person of them must be made "in accordance with the principles of ________."
A) fair hearing
B) procedural fairness
C) fundamental justice
D) natural justice
E) the Supreme Court
Answer: C
Q2) What is meant by a writ of certiorari?
Answer: Certiorari involves a court order that makes the decision of an inferior administrative body null and void and of no effect.
Q3) A court will invariably disregard a mediated settlement.
A)True
B)False
Answer: False
Q4) Name the Federal Courts.
Answer: Supreme Court of Canada, Federal Court, Federal Court of Appeal, and Tax Court.
Page 5
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Chapter 4: Intentional Torts and Torts Impacting Business
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28028
Sample Questions
Q1) Read the following and indicate the true statement.
A) If a person were given a blood transfusion after making it clear that she didn't want one, the cause of action would be negligence.
B) If a person suffers a loss because a salesman knowingly made a False statement that he knew the other would rely on to his detriment, the cause of action could be defamation.
C) If falling over boxes wrongfully left in his garage by a delivery company injured a person, the cause of action could be breach of contract.
D) If a person suffers damage because of wiring improperly installed by John for his employer, World Wires Ltd., only John could be sued for negligence.
E) If the odour from a neighbour's smokehouse made it impossible for you to use your pool, the proper action would be nuisance.
Q2) Outline the elements required for a breach of confidence.
Q3) In tort, damages attempt to put the victim in the position he would have been in had the tort never taken place.
A)True
B)False
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Page 6
Chapter 5: Negligence, Professional Liability, and Insurance
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155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/28029
Sample Questions
Q1) Sam and John drank beer and watched the Olympics for hours. When John left, he did not feel impaired, but the alcohol in his system affected his driving. He lost control of his car, which crashed through Mr. Mitsu's fence and into Mr. Mitsu's garage. Mitsu's neighbour, Mr. Watson, called the police. John was charged with driving while impaired and was found guilty in the criminal proceedings. Given these facts, which of the following is true?
A) Mr. Watson, the neighbour, could sue John for negligence.
B) Mr. Mitsu could sue John for negligence.
C) If Mr. Mitsu sued John, he would be entitled only to punitive damages.
D) Because John was charged with an offence, Mr. Mitsu cannot sue him in a civil action for compensation. One court action is all that is allowed.
E) Since no one was physically injured, there could be no civil action.
Q2) Children are not held liable for their torts.
A)True
B)False
Q3) What is the last clear chance doctrine?
Q4) What is the test used for legal causation?
Q5) What is the typical result when spouses have overlapping extended benefits coverage, such as dental and disability?
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Chapter 6: The Elements of a Contract: Consensus and Consideration
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184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/28030
Sample Questions
Q1) To what does a "standard form contract" refer?
Q2) Franz bought a round-trip ticket to Germany to visit relatives. Unfortunately, a week before flight time, he broke his leg. He offered his co-worker, Joe, the ticket for 80% of the full price, offer to remain open until 10:00 p.m. on December 15. Indicate to Joe which of the following is true with regard to the law of offer and acceptance.
A) If Franz sells to someone else, it is too late for Joe to accept the original offer.
B) Franz could revoke the offer any time before acceptance, even before 10:00 p.m. on December 15.
C) To create a contract, an offer must be in writing.
D) A letter of acceptance is always effective when it is dropped in the mailbox.
E) If Joe makes a counteroffer of 50% of the full price, and Franz rejects the counteroffer, Joe can still accept the original offer.
Q3) There is a principle that says when a gratuitous promise to do something in the future causes someone to incur an expense, the promisor may be liable for failing to live up to that promise. What is this principle known as?
Q4) A one-sided promise the courts will not enforce is known as ________.
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Page 8
Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
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157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/28031
Sample Questions
Q1) Joe saw an ad in a paper for the sale of a house in a residential area of Victoria. He approached Sam, the owner, and after some negotiation Sam orally agreed to sell the house to Joe for $750,000. Joe gave Sam $100,000 cash as a partial payment, the rest to be given upon transfer of the house. Two days later, Sam changed his mind and sent Joe a letter referring to the deal and stating that he would not honour the agreement. Which of the following is correct with respect to the legal position of the parties? Assume all the facts can be proved.
A) Sam is not bound by the agreement as the contract was not in writing.
B) Sam will not be bound because no oral agreement is ever enforceable.
C) Even if the letter gives evidence of the deal in writing, it cannot satisfy the requirement of writing. It is the whole contract that must be in writing.
D) If the letter mentions the important terms (such as price) and identifies the specific property, Sam must go through with the contract.
E) The contract is void unless it has been partially performed.
Q2) Contracts that unduly restrict competition are void.
A)True
B)False
Q3) Explain how an insurance contract avoids being void as a wager.
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Chapter 8: Factors Affecting the Contractual Relationship
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182 Verified Questions
182 Flashcards
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Sample Questions
Q1) Discuss the principle of caveat emptor and how it relates to misrepresentation in contract law.
Q2) What is the significance of an assignment qualifying as a statutory assignment?
Q3) In Moss v. Chin, Chin's insurer, ICBC, made an offer to settle a claim that was accepted by the public trustee representing Mrs. Moss. ICBC was not aware that Mrs. Moss had died in the interim. ICBC made a unilateral mistake and yet the Court ordered that the contract be rescinded. What was the rationale?
A) ICBC lacked capacity to make an offer, as only Chin had such a right.
B) The public trustee lacked capacity to accept an offer, as only Mrs. Moss could do so, and she had died.
C) It is illegal to settle a claim when the claimant is no longer alive.
D) There was no consideration to support the claim, and therefore the contract was invalid.
E) ICBC had not misled itself, rather the public trustee had deliberately set out to keep ICBC from discovering the truth.
Q4) What is the significance of an assignment being "statutory" rather than merely an "equitable" assignment?
Q5) Explain what is meant by a "statutory assignment."
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Chapter 9: The End of the Contractual Relationship
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171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/28033
Sample Questions
Q1) Which of the following is False with regard to remedies for breach of contract?
A) The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss.
B) An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract.
C) A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach.
D) Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract, but are not awarded for a breach of a non-essential term (e.g., a warranty).
E) Specific performance is an equitable remedy forcing a person to comply with the terms of the contract.
Q2) Explain the limitations on the ability to request and receive equitable remedies in breach of contract cases.
Q3) Under what circumstances will a court order a mandatory injunction? Illustrate with a real-world example.
Q4) Indicate three different types of equitable remedies and distinguish among them.
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Chapter 10: Agency and Partnership
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211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/28019
Sample Questions
Q1) Which of the following is incorrect with respect to the law governing limited partnerships?
A) Limited partners' liability only extends to the amount of money they have invested in the partnership.
B) Limited partners, once registered as such, are assured of limited liability.
C) Limited partners can lose their limited status by participating in management.
D) Limited partners can lose their limited status by allowing their names to be associated with the name of the partnership.
E) Limited partners can lose their limited status by failing to register as such.
Q2) If a person wants to invest in a partnership but avoid the obligations associated with partnership, what can she do?
Q3) Apparent authority is the authority the agent has based on what the principal has led the third party to believe.
A)True
B)False
Q4) Describe what is meant by an agent's apparent authority.
Q5) To what does the term "estoppel" refer?
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Page 12
Chapter 11: Corporations
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28020
Sample Questions
Q1) Aunt Juliet wants to incorporate a small closely held corporation. Which of the following bits of advice, given to her by friends, is False?
A) She can enter into a contract on behalf of the corporation even before incorporation and the corporation will automatically be bound when it is incorporated.
B) The incorporation document to be submitted in Ontario is the "Articles of Incorporation."
C) The incorporation documents to be submitted in B.C. are called the "Memorandum" and the "Articles."
D) In some jurisdictions in Canada, she could be personally responsible for a pre-incorporation contract.
E) She has the option of incorporating federally if she wants.
Q2) Discuss the concept of promoters, their duties, and their role in the corporate form.
Q3) Explain the significance of a personal guarantee.
Q4) Indicate two examples where a director can be personally liable for the debts of the corporation.
Q5) What is the purpose of a unanimous shareholder agreement?
Q6) What duty to directors owe to creditors?
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Page 13
Chapter 12: Employment
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161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/28021
Sample Questions
Q1) Which one of the following is not just cause for dismissal?
A) Serious absenteeism
B) Consistent tardiness
C) Open disobedience
D) Habitual negligence or incompetence
E) No work to do
Q2) The correction of employment situations where there has been a tradition of racial or gender imbalance is known as ________.
Q3) Which of the following statements more accurately describes an employee rather than an independent contractor?
A) The person is an essential part of an employer's organization.
B) The person provides his/her own tools.
C) The person is free to represent others in the same business.
D) The person determines his/her own work schedule
E) The person has a high level of financial risk.
Q4) Explain how the Workers' Compensation Act modifies the common law position of injured workers.
Q5) Which level of government has the authority to pass collective bargaining type legislation?
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Chapter 13: Intellectual Property
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28022
Sample Questions
Q1) Explain what is meant by moral rights under copyright law.
Q2) Tom, a classmate of yours at Red River College, was employed as a programmer by Mohawk Oil Company about three months after graduation. Because you could understand the program he was working on and because you write well, he called to ask if you wanted to take on the task of writing the manual to accompany the program. Read each of the following separately and indicate which is true.
A) The issue of who owns copyright in the manual depends solely on who writes it.
B) If two persons wrote the manual together, only one person can have ownership of the copyright.
C) If the company hires you as an employee to write the manual, the company would own copyright unless your employment contract provided otherwise.
D) If you contract as an independent contractor (independent consultant) with the company, and the contract does not specify otherwise, the company owns the copyright.
E) The owner of the copyright will be whoever first gets his claim of ownership in the copyright office.
Q3) What is meant by a permanent injunction?
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Page 15
Chapter 14: Real and Personal Property and Protection of the Environment
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130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/28023
Sample Questions
Q1) If a person wanted to build a log cabin in a new subdivision, what might prevent him from doing so?
A) Prescription
B) Easement
C) Restrictive covenant
D) Strata regulations
E) Federal statute
Q2) Leasehold estates are another way of describing landlord and tenant relationships.
A)True
B)False
Q3) After saving his money for years, Taylor was finally able to buy property with a small house and a lake. Which of the following is False?
A) His ownership extends to include fixtures.
B) Taylor owns all of the area above his land and all of the land below.
C) Despite the extent of his interest, the Crown can grant the mineral rights to someone else.
D) Taylor's interest is referred to as a fee simple.
E) He can sell part of his interest and create a joint tenancy.
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Chapter 15: Priority of Creditors
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28024
Sample Questions
Q1) Explain how the rights of the creditors are protected under bankruptcy legislation.
Q2) Joe worked as a subcontractor for Harry in framing a house owned by Sam. When it became apparent to Joe that he was not going to be paid by Harry, what rights did Joe have under these circumstances?
Q3) Discuss alternatives to bankruptcy and why these alternatives might be preferable to bankruptcy itself.
Q4) Real and personal property can be used to secure a loan.
A)True
B)False
Q5) Explain the purpose of the Personal Property Security Act.
Q6) What alternatives are available to the bankruptcy process?
Q7) What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?
Q8) What are the practical consequences affecting the individual who declares personal bankruptcy?
Q9) Discuss situations in which a secured creditor may opt not to seize property used as security and the rationale for taking this approach.
Q10) What is the role of the Superintendent of Bankruptcy?
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Chapter 16: Sales and Consumer Protection
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28025
Sample Questions
Q1) In which of the following would the title pass to the buyer only when the goods were "unconditionally appropriated" with assent?
A) Jethro chose the guitar and paid for it, but it had to be strung before it was ready.
B) Alice chose a guitar that was ready and he agreed to buy it. They had agreed that he could pay for it next month and pick it up when he paid.
C) Mark chose a guitar advertised in the catalogue of Guitars Galore Ltd., called the store, and after some discussion on its features and price, ordered it.
D) After some discussion with the owner of Guitars Galore Ltd. as to which of the guitars there were best for a beginner, Rudy bought a guitar for his son "on approval" and took it with him.
E) Jenny wanted amplifier A for her guitar, but the store only had amplifier B. She decided to take it because she wanted one right away.
Q2) The Sale of Goods Act places certain obligations on the seller with respect to conveying good title. What are those requirements?
Q3) Distinguish between a sale and an agreement to sell.
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