Corporate Law
Textbook Exam Questions
Course Introduction
Corporate Law is a foundational course that examines the legal principles and frameworks governing business corporations. It covers key topics such as the formation, structure, and dissolution of corporations, the rights and duties of directors, officers, and shareholders, corporate governance, fiduciary responsibilities, financing, and compliance with relevant legislation. The course also explores the regulatory environment, mergers and acquisitions, and ethical issues in corporate conduct, providing students with a comprehensive understanding of how law interacts with the business world.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by
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16 Chapters
2535 Verified Questions
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Page 2
Richard A. Yates
Chapter 1: Managing Your Legal Affairs
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) What are the six core values identified by the Josephson Institute for Ethics?
Answer: The six core values are trustworthiness, respect, responsibility, fairness, caring, and citizenship.
Q2) A provincial law society's complaint-resolution process usually begins with
A) an attempt at mediating the dispute between the client and the lawyer.
B) a review of the complaint by a court official.
C) a formal investigation.
D) a hearing before a panel.
E) oral submissions by legal counsel.
Answer: A
Q3) Sophisticated clients never conduct legal research on their own, but always seek advice from a lawyer.
A)True
B)False
Answer: False
Q4) What recent development has given non-lawyers greater access to legal information?
Answer: The tremendous increase of legal information available online has given non-lawyers greater access to legal information.
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Chapter 2: Introduction to the Legal System
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159 Verified Questions
159 Flashcards
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Sample Questions
Q1) How are language rights protected by the Charter of Rights and Freedoms?
Answer: The Charter gives the French and English languages equal status and protects the right of minorities to use those languages, including the right to have children educated in one of those languages providing it is the first language of the parents or they received their primary education in that language.
Q2) The common law courts refers to
A) the Court of Common Pleas, the Court of King's Bench, and the Exchequer Court.
B) the Court of Common Pleas, the Chancery Court, and the Exchequer Court.
C) the Court of King's Bench, the Chancery Court, and the Exchequer Court.
D) the Court of Common Pleas, the Court of King's Bench, and the Chancery Court.
E) the Court of King's Bench, the Chancery Court, and the Court of Equity.
Answer: A
Q3) What kind of democratic rights are protected under the Charter?
Answer: The right to vote, the requirement that elections be held on a regular basis, and requirement that the legislature be elected and sit at least once a year are protected under the Charter.
Q4) The law of equity was developed by ________.
Answer: the Courts of Chancery
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Page 4
Chapter 3: The Resolution of Disputes: the Courts and Alternatives to Litigation
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Sample Questions
Q1) Consider the following statements with respect to the exercise of governmental powers. Identify the False statement.
A) Before a government agency can take action that interferes with someone's rights, legislation must have been passed to permit that action.
B) The exercise of governmental power is subject to a number of constitutional limitations.
C) The doctrine of parliamentary supremacy (i.e., the unrestricted right to legislate) has been modified by the addition of the Charter of Rights and Freedoms.
D) The power of government officials to interfere with individuals' rights derives from their status and operates independently of any legislation.
E) Statutes often restrict the power of government officials.
Answer: D
Q2) What does successful mediation require?
Answer: Mediation requires a balance of power and willingness to act in good faith.
Q3) How many judges usually sit on the Supreme Court of Canada?
Answer: There are 9 judges.
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Page 5
Chapter 4: Intentional Torts and Torts Impacting Business
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Sample Questions
Q1) A continuing trespass can be remedied by damages.
A)True
B)False
Q2) Joe wandered onto Sam's land, not realizing that he crossed the property line. Sam found him there and sued him for trespassing. Explain the likely outcome.
Q3) A person could commit a trespass even without coming onto your land.
A)True
B)False
Q4) A person will not succeed in an action for defamation unless the Falsehood has been told to some third party.
A)True
B)False
Q5) Explain what is meant by innuendo.
Q6) Health information is not specifically protected by legislation in any province. A)True
B)False
Q7) Explain what is meant by punitive damages and when such remedies would be available in a tort action.
Q8) Distinguish between assault and battery.
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Chapter 5: Negligence, Professional Liability, and Insurance
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) The standard of care that is required of a professional in a negligence action is that she acts to the best of her ability.
A)True
B)False
Q2) Explain the role of self-governing professional bodies, including a discussion of their disciplinary function.
Q3) Once it has paid out on the loss, an insurance company can step into the shoes of the insured and pursue a claim against the person who caused the loss.
A)True
B)False
Q4) What is the last clear chance doctrine?
Q5) Children are not held liable for their torts.
A)True
B)False
Q6) Joe was driving his automobile when Sam came from a side street and went through a stop sign without stopping, almost causing an accident. Joe swerved to avoid Sam and was successful in doing so. He wrote down Sam's licence number and sued Sam for his negligent driving. Indicate the expected result.
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Chapter 6: The Elements of a Contract: Consensus and Consideration
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Sample Questions
Q1) Hitting the "I Accept" button on a website is equivalent to an acceptance of the seller's offer.
A)True
B)False
Q2) A signature equivalent for electronic documents might be a password or some other form of encryption.
A)True
B)False
Q3) Explain any limitations on the availability of promissory estoppel.
Q4) Once a person has promised to hold an offer open for a specified period of time, he cannot change his mind.
A)True
B)False
Q5) A contract is binding if the consideration involved is a commitment not to do something, as opposed to a promise to do something.
A)True
B)False
Q6) Describe electronic signatures with respect to capacity.
8
Q7) Discuss the federal Uniform Electronic Commerce Act (UECA).
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Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
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Sample Questions
Q1) All contracts must be in writing to be enforceable.
A)True
B)False
Q2) Joe was in a bar and saw his friend Sam. Sam had had a considerable amount to drink. Sam offered to sell Joe his Porsche automobile for only $15,000. Joe made sure to have Sam sign a written agreement to that effect. The next day, Joe went to pick up the car, but Sam didn't remember anything about it. Even when Joe showed him the written agreement signed by him, Sam refused to deliver the car. Joe sued. Which of the following correctly states the legal position of the parties?
A) If Joe can show that there was no indication that Sam was drunk, even though Sam was completely incapacitated, he will be required to go through with the deal.
B) Sam just has to show he was legally intoxicated, and he will not be bound.
C) As long as Joe can produce the agreement in writing, there is nothing Sam can do to get out of the deal. Once Sam has signed the document, he is responsible for its contents.
D) Sam will not have to go through with the deal because no money has yet changed hands.
E) Being drunk is no excuse and the contract is binding.
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Chapter 8: Factors Affecting the Contractual Relationship
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Sample Questions
Q1) Which of the following is False with regard to the law of contracts?
A) Assignments are modifications of the Privity of Contract Rule, since they do allow a stranger to the contract to receive benefits from the contract.
B) An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer.
C) The assignee for value of a negotiable instrument may acquire better rights than the assignor had.
D) A statutory assignment is easier to enforce than an equitable assignment.
E) A party to a contract for services can assign both his contractual obligations and his contractual rights.
Q2) Joe, a student at the local college, had a one-year lease on a suite in a house owned by Sam. Sam sold the house to Jones without telling Jones about the lease. When he discovered Joe in the suite, he demanded that Joe leave. Explain the rights of the parties in terms of privity of contract.
Q3) "A misrepresentation involves one person making a False statement of fact that misleads another and induces that person to enter into the contract." Discuss the accuracy of this statement.
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Chapter 9: The End of the Contractual Relationship
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Sample Questions
Q1) A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.
A)True
B)False
Q2) Which of the following is False with regard to ending a contract by performance, agreement, or breach?
A) A contract can be ended by breach only if there was a breach of condition, not a breach of warranty.
B) A person has not legally tendered performance if he pays a $500 debt in 25-cent coins.
C) If a person properly tenders performance of a service that is rejected by the other party, he is not required to try again.
D) A contract ends by agreement when the parties include in the contract a "condition subsequent," i.e., a clause that says the contract will end upon the happening of a specified future event that then takes place.
E) If one party to the contract has paid for a service, but now the other doesn't want to perform, the contract is ended by agreement as long as they both agree to call it off.
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Page 11
Chapter 10: Agency and Partnership
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211 Verified Questions
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Sample Questions
Q1) Identify the true statement concerning the law of principal and agent.
A) Agency is only created by way of a contract.
B) The principal and his agent owe each other the same duties.
C) An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal.
D) An agent with no express authority can never bind his principal into a contract with a third party.
E) An agent can never be liable to the third party himself while the principal will bear no such liability.
Q2) Joe is a salesman for Harry's Fine Cars Ltd. He had been told specifically that he had no authority to make any sale, take a trade-in, or otherwise deal with the vehicles without the manager's express approval of every deal. Sam, a customer, came in wanting to buy a used Cadillac and agreed to pay the $16,000 asking price. Unfortunately, the manager had left the lot, and so Joe took it upon himself to write up the agreement. When the manager returned, he liked the deal and realized that the customer might change his mind when he realized that the salesman didn't have the authority to bind the seller in contract. Under these circumstances, what could the manager of the car lot do?
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Chapter 11: Corporations
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Sample Questions
Q1) Smith, director of ABC Ltd., intercepted a corporate opportunity for his own benefit and thereby caused the corporation to miss a $45,000 profit. A shareholder urged the board of directors to take action against him. The other directors, all close friends of Smith from school days, did not take any action against him, although they did voice their dissatisfaction with his move. Which of the following provisions would aid the shareholder?
A) Pre-emptive right provision
B) Indoor-management rule
C) Derivative-action provision
D) Dissent procedure
E) Relief-from-oppression provision
Q2) A securities commission is a provincial agency that serves as watchdog on issuance and trading of shares.
A)True
B)False
Q3) Distinguish between a par-value share and a non-par-value share.
Q4) Indicate three significant results of a corporation being classed as a separate legal personality.
Q5) What happens if annual returns are not filed for a corporation?
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Chapter 12: Employment
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161 Verified Questions
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Sample Questions
Q1) In Robichaud v. Canada (Treasury Board), the Supreme Court of Canada had to determine whether the employer was responsible for the sexual harassment committed by another employee. What did the Court find?
A) Such behaviour is regrettable, but not actionable under the Canadian Human Rights Act.
B) Such behaviour constitutes discrimination on the basis of gender but, unless the employer actively encouraged this conduct, the employer cannot be liable.
C) Such behaviour constitutes discrimination on the basis of gender and, under the Canadian Human Rights Act, the employer was liable for such acts.
D) Such behaviour is juvenile, but the employee is contributorily liable, as she must have encouraged the attention in some way.
E) Such behaviour does not constitute discrimination, so the employee's only recourse is a tort law action.
Q2) When one employee sexually harasses another, the only recourse available to the victim is to sue the harassing employee.
A)True
B)False
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Page 14
Chapter 13: Intellectual Property
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Sample Questions
Q1) Explain the nature of "fair dealing."
Q2) What is the period of protection associated with patent law?
Q3) Explain under what circumstances copyrighted material can be reproduced without permission of the copyright holder.
Q4) A patent gives the exclusive right to produce, market, and sell a new invention.
A)True
B)False
Q5) The effect of an Anton Piller order is to
A) stop infringement before trial.
B) seize material from the suspected wrongdoer.
C) prohibit the offender from dealing with certain products.
D) compensate holder of copyright.
E) require the infringer to pay over any profits.
Q6) In order to successfully sue someone for violation of trademark, what must be established?
Q7) The Industrial Design Act is designed to protect distinctive patterns or shapes as opposed to useful ones.
A)True
B)False
Page 15
Q8) Explain what is meant by an ex parte procedure and give an example.
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Chapter 14: Real and Personal Property and Protection of the Environment
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) An option agreement is
A) a contract transferring the fee simple to a new owner.
B) a contract by which the offeror of property promises to hold his offer open for a period of time during which the offeree can accept the offer and the property can't be sold to another.
C) a contract by which an offeree promises to buy the property offered at a later date set in the contract.
D) a contract that provides that a seller will retain the title in the property until the buyer has made all of the required payments.
E) a contract that provides that a debtor will transfer title in the property to a creditor as security for repayment of the debt.
Q2) Discuss how the process of an item becoming a fixture can interfere with the priority of creditors in secured transactions.
Q3) What is meant by a reversionary interest in a life estate?
Q4) A subsidiary contract creating an obligation to hold an offer open for acceptance until the expiration of a specified time is known as ________.
Q5) Indicate what is meant by real property.
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Chapter 15: Priority of Creditors
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Sample Questions
Q1) What is the effect if a debtor fraudulently transfers property to a bona fide purchaser for value?
Q2) The practice of paying out one creditor over another is known as fraudulent preference.
A)True
B)False
Q3) A purchase money security interest
A) will be automatically subordinate to any general security agreement, even if registered within the specified time period.
B) will prevail over a general security agreement covering all of a merchant's assets if it registered within the specified time period.
C) is also known as a floating charge.
D) is now obsolete in light of the Personal Property Security Act.
E) is prohibited in most provinces.
Q4) What is the purpose of the Fraudulent Conveyances Act? (The name varies with the province.)
Q5) A guarantee must be supported by consideration, just like any other contractual obligation. Explain what consideration is present when one person guarantees the debt of another.
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Chapter 16: Sales and Consumer Protection
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Sample Questions
Q1) When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder, what risk does he take?
Q2) Unconscionable transactions statutes apply to any transaction where the price paid is not fair or reasonable.
A)True
B)False
Q3) To which of the following transactions would the Sale of Goods Act apply?
A) A contract to get a dress mended and cleaned
B) A contract for a haircut
C) A contract for a boat
D) A contract for a house
E) A contract with a warehouseman to store a Chevrolet car
Q4) The sale of goods anticipates the transfer of possession but not necessarily property rights from the seller to the purchaser.
A)True
B)False
Q5) Explain what is meant by merchantable quality.
Q6) What's the main purpose of the Sale of Goods Act?
Q7) Distinguish between a promissory note and a bill of exchange.
Page 18
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