Commercial Law
Exam Bank
Course Introduction
Commercial Law explores the legal principles and frameworks that govern business and commercial transactions. This course covers key topics such as contracts, agency, sale of goods, negotiable instruments, and partnership law. Students will examine relevant statutes and case law to understand the rights and obligations of involved parties, methods of dispute resolution within commercial contexts, and the impact of commercial regulations on business operations both domestically and internationally. Emphasis is placed on developing practical problem-solving skills through the analysis of real-world scenarios and legal case studies.
Recommended Textbook
Business Law in Canada 10th Canadian Edition by Richard A. Yates
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16 Chapters
2735 Verified Questions
2735 Flashcards
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Page 2
Chapter 1: Managing Your Legal Affairs
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/47231
Sample Questions
Q1) Legal Aid Ontario will NOT cover any of the following except
A) wrongful dismissal.
B) criminal matters.
C) change of name.
D) personal bankruptcy.
E) defamation.
Answer: B
Q2) When making significant business decisions,when should businesspeople consult their lawyers?
Answer: Taking into consideration time and expense,businesspeople generally ought to consult their lawyers when they cannot find the legal information relevant to their decision on their own,or when they cannot understand the information they find.
Q3) Sophisticated clients understand that success depends on good business decisions,and good business decisions depend on appropriate information (including legal information).
A)True
B)False
Answer: True
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Chapter 2: Introduction to the Legal System
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) Indicate the three courts that together made up the common law courts.
Answer: court of common pleas,court of king's bench,exchequer court
Q2) Which of the following is correct with respect to the role of statutes in our legal system?
A) A statute, if it is clear and concise and properly passed, will always override common law and equity.
B) In Canada, most new laws follow the Civil Code legal system.
C) Where a properly passed provincial statute is in conflict with a well-established common law principle, the statute will be void.
D) Once a statute has been interpreted and applied in a court, a subsequent judge in a lower court is not required to follow that decision if he disagrees with it.
E) Only the federal parliament may enact statutes.
Answer: A
Q3) Indicate what kind of personal freedoms are protected under the Charter.
Answer: Freedom of conscience,religion,freedom of belief,opinion,expression,freedom of peaceful assembly and association.
Q4) When was the last time Quebec revised its Civil Code?
Answer: A new Civil Code in Quebec came into effect on January 1,1994.
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Page 4
Chapter 3: The Resolution of Disputesthe Courts and Alternatives to Litigation
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220 Verified Questions
220 Flashcards
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Sample Questions
Q1) Judicial review is an appeal of the decision to a higher court.
A)True
B)False
Answer: False
Q2) Which of the following is incorrect with respect to the function of the small claims court?
A) The monetary jurisdiction of the court is limited.
B) The procedure is the same as the provincial superior trial court.
C) Lawyers usually don't attend.
D) The recovery of costs to compensate for legal fees is severely limited.
E) The provincial government appoints the judge.
Answer: B
Q3) When,in an assault case,the court has to decide whether the nasty names Joe called James justified James hitting Joe,this is an example of a question of law.
A)True
B)False
Answer: True
Q4) Who are the parties in a civil action?
Answer: plaintiff and defendant
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Chapter 4: Intentional Torts and Torts Impacting Business
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Interference with economic relations is actionable even where no breach of contract has taken place,but
A) there must be some other unlawful conduct associated with the complaint, such as bribery or defamation.
B) there must be some instance of negligence associated with the complaint, such as a product liability claim.
C) the conduct complained of must have been unintentional; otherwise the action will not succeed.
D) the conduct complained of must not have result in actual harm; otherwise the action will not succeed.
E) no damages can be awarded in such an action.
Q2) Until very recently,there was no tort of invasion of privacy in common law,but several provinces made interfering with a person's privacy a statutory tort.This tort is known as
A) defamation
B) invasion of privacy
C) intrusion upon seclusion
D) nuisance
E) interference of privacy
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6
Chapter 5: Negligence, Professional Liability, and Insurance
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159 Verified Questions
159 Flashcards
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Sample Questions
Q1) Explain the potential liability faced by professionals,and how the risks associated with such liability can be minimized.
Q2) Discuss how legislation has impacted the field of negligence.
Q3) When the court recognizes pre-existing frailties and the award of damages aims at restoring the plaintiff to that position,we say the court is applying ________.
Q4) If a person is injured while attempting to rescue someone,he or she may have a claim against the person who caused the situation that endangered the victim and the rescuer.
A)True B)False
Q5) A principle established in Donoghue v.Stevenson is the test used to determine the standard of care that must be exercised by the defendant to escape liability.
A)True
B)False
Q6) Give three examples where tort standards have been modified by legislation.
Q7) What test is used to determine the standard of care?
Q8) Does liability vary with age? Explain.
Q9) What elements must be established in order to succeed in a negligence action?
Page 7
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Chapter 6: The Elements of a Contractconsensus and Consideration
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) What is a gratuitous promise?
Q2) In Lanca Contracting Ltd.v.Brant (County)Board of Education,what was the issue facing the Court and what did the Court decide?
A) The Court had to decide whether notice of the acceptance was sufficient to create a binding contract, and the Court decided that only actual notice could ever suffice.
B) The Court had to decide whether an offer could be accepted by someone to whom it had not been conveyed, and the Court decided it could be.
C) The Court had to decide whether an offer could be accepted by someone to whom it had not been conveyed, and the Court decided it could be, but only if the acceptance were communicated in writing.
D) The Court had to decide whether notice of the acceptance was sufficient to create a binding contract, and the Court decided it had been.
E) The Court had to decide whether a bid could result in a binding contract, and the Court decided it could not be.
Q3) A one-sided promise the courts will not enforce is known as ________.
Q4) When is an offer incapable of being revoked?
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Page 8
Chapter 7: The Elements of a Contract capacity, Legality, and Intention
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) What is the effect if an agreement that is required to be in writing under the Statute of Frauds is not?
Q2) Which of the following is correct with respect to the law of intention?
A) Since domestic relationships are serious, there is a legal presumption that in such relationships there is an intention for the parties to be legally bound by their agreements.
B) In commercial arrangements, there is always an intention to be bound by agreements no matter what the parties state to the contrary.
C) In domestic agreements, there is a presumption that there is no intention to be legally bound.
D) Where intention is the issue, there is never any presumption for or against intention; the courts will always apply the reasonable person test.
E) Since domestic relationships are serious, the parties to such relationships are always bound by their contracts with each other.
Q3) Indicate under what circumstances parents are responsible for the contracts entered into by their children.
Q4) Why was the Statute of Frauds originally passed?
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Page 9
Chapter 8: Factors Affecting the Contractual Relationship
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) If Mills agreed to sell Boothe a used Nissan automobile,which in the contract was described as a 2012 Nissan Murano with a rebuilt transmission,Boothe could sue for _________ if the vehicle turned out to be a 2010 Murano and the transmission was used,not rebuilt.
A) rescission
B) compensation
C) breach of contract
D) damages
E) the tort of deceit
Q2) Discuss what happens when the parties to a contract make mistakes with respect to what they have agreed.
Q3) What is a negotiable instrument?
Q4) Damages are available as a remedy where the misrepresentation has become a term of the contract that is breached,where the misrepresentation is ___________,and where there is negligence.
A) innocent
B) fraudulent
C) negligent
D) material
E) actionable
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Chapter 9: The End of the Contractual Relationship
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173 Verified Questions
173 Flashcards
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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 an non-essential term-i.e., a warranty.
E) Specific performance is an equitable remedy forcing a person to comply with the terms of the contract.
Q2) For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.
A)True
B)False
Q3) Discuss exculpatory (exemption)clauses and how the courts treat them.
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Page 11
Chapter 10: Employment
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) Drew got a non-union,senior management level job.After the first day,Drew came to his dad to discuss his obligations to his boss and his boss's obligations to him.Which of the following is false?
A) Drew must be punctual and obedient.
B) Drew owes the employer a fiduciary duty-i.e., a duty to serve the employer's interests above his own.
C) The employer cannot terminate Drew's employment unless Drew does something wrong.
D) The employer owes Drew not only pay, but also some direction.
E) If Drew wants to quit, he must give the employer proper notice unless the employer has done some wrong-e.g., given an unreasonable or dangerous order.
Q2) Why is the distinction between employment and an independent contract important?
A) An independent contractor cannot be sure that he will be paid.
B) An employee has the right to wages.
C) An employee can bind the employer in a contract he enters into on behalf of the employer.
D) An employer may be held responsible for torts committed by the employee.
E) Employees can withdraw their services.
Q3) Indicate three obligations of an employee in an employment relationship.
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Chapter 11: Agency and Partnership
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219 Verified Questions
219 Flashcards
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Sample Questions
Q1) Information that comes to the agent because of his position as agent must be passed onto the third party.
A)True
B)False
Q2) Distinguish between a partnership and a corporation.
Q3) Which of the following is correct with respect to limited partnerships?
A) Limited partnership refers to the fact that no more than five people are allowed to be partners in such partnerships.
B) Limited partnership refers to the fact that limited partnerships can only carry on in certain kinds of businesses.
C) Limited partnership refers to the fact that some partners have limited liability.
D) Limited partnership refers to the fact that some partnerships are only created for a limited period of time.
E) Limited partnership refers to the fact that the partnership can only issue common shares.
Q4) Explain the limitations of the liability of partners for the acts of other partners.
Q5) What is an enduring power of attorney?
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Chapter 12: Corporations
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) Explain the significance of the determination that a corporation is a broadly held corporation as opposed to a closely held corporation.
Q2) Contrast the obligations and duties of directors and shareholders of a corporation.
Q3) A corporation does not die but may be dissolved.
A)True
B)False
Q4) Shareholders have a right to bring an action against the directors on behalf of the company when the directors fail in their duty to the corporation.
A)True
B)False
Q5) What are three distinct methods that are used for the creation of small corporations in Canada?
Q6) Explain the concept of a promoter.
Q7) Explain the power of a minority shareholder in decision-making situations.
Q8) Explain the significance of a personal guarantee.
Q9) Directors owe a fiduciary duty to the public.
A)True
B)False
Page 14
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Chapter 13: Real, Personal, and Intellectual Property
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238 Verified Questions
238 Flashcards
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Sample Questions
Q1) What is the main difference in the effect of a registration of a certificate under a "certificate of title" jurisdiction such as British Columbia as compared to a normal registration system in other parts of Canada?
Q2) The only person who has a better claim to goods that are found is the original owner.
A)True
B)False
Q3) A person can obtain copyright protection only when the idea upon which the work is based is original.
A)True
B)False
Q4) What rights are obtained by the granting of a patent?
Q5) An employee could not be sued for disclosing a company's customer list because no trade secret or unique manufacturing process is involved.
A)True
B)False
Q6) What is a chattel?
Q7) Indicate four remedies that may be available to the victim of the breach of copyright.
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Chapter 14: Information Technology and the Internet
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Identify the common internet and computer offences.
Q2) Which of the following is true with respect to the application of tort law to the internet?
A) Because the internet provides direct and inexpensive access to a massive audience, torts such as deceit, negligent misstatement, and defamation do not apply. Neither do normal civil and criminal remedies.
B) It is unlikely that courts will be willing to expand existing tort law to encompass new technologies.
C) Since common law provides adequate protection, no new statutes need to be passed to provide additional protection.
D) The principle of defamation will apply to the internet just like any other form of communication, but the problems of jurisdiction and whom to sue will create significant obstacles.
E) Companies that sell their products over the internet cannot be held liable under the laws of negligence if that product causes injury.
Q3) Describe the concept of cybersquatting.
Q4) Discuss the application of the postbox rule and online contracts.
Q5) Identify the factors that courts look to when dealing to determine jurisdiction.
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Chapter 15: Sales and Consumer Protection
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157 Verified Questions
157 Flashcards
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Sample Questions
Q1) Which of the following is false with regard to a "holder in due course"?
A) A holder in due course cannot be an immediate party.
B) A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against her claim for payment.
C) A person cannot be a holder in due course if she knew the instrument had been obtained by the payee by fraud.
D) A person cannot be a holder in due course if she acquired the instrument in bad faith;e.g., she tricked the person into giving her the cheque.
E) A holder in due course is the same as the "drawee" or "acceptor."
Q2) What is a bill of lading? Explain how it can affect the risk in a sale of goods transaction.
Q3) Explain how the money lending business is controlled in your province.
Q4) Distinguish between a sale and an agreement to sell.
Q5) Give examples of several different types of industries that are specifically controlled by consumer protection legislation.
Q6) When a buyer defaults,the seller has an unpaid ________ against the goods.
Q7) State the mission of the Consumer Packaging and Labelling Act.
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Chapter 16: Priority of Creditors
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141 Flashcards
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Sample Questions
Q1) What is the effect on a corporation when it goes bankrupt?
Q2) Here comes your neighbour Max,who wants to ask you more questions about buying an Apple computer for use at home under a conditional sales contract.Which one of the following statements told to him at work is true?
A) If Max has paid two-thirds of the amount owing under the conditional sale contract, the conditional seller could never seize the computer, even if Max were in default.
B) If Max is in default and the conditional seller seizes the computer, the relevant statute provides that it can be sold immediately with no further notice to Max.
C) Max's rights would be much greater and his obligations fewer if he bought it under a chattel mortgage rather than a conditional sales contract.
D) If Max were in default, the conditional seller could sell the computer and keep all the proceeds of that sale, even if they were greater than the debt and costs.
E) In a conditional sales contract, the result of satisfying the condition is that the lien or charge will be removed from the goods used as security.
Q3) Explain two methods for a debtor to become bankrupt.
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