Introduction to Commercial Law Study Guide Questions
Course Introduction
Introduction to Commercial Law provides students with an essential overview of the legal principles and frameworks that govern commercial transactions and business relationships. The course explores foundational topics such as contract law, agency, the sale of goods, negotiable instruments, and the regulation of business entities. Students will analyze case law and statutory provisions to understand the legal rights and obligations of parties in commerce, gaining practical skills in problem-solving and risk management. Emphasis is placed on the role of commercial law in facilitating trade, promoting fair dealing, and managing disputes in both domestic and international contexts.
Recommended Textbook
Business Law in Canada 11th Canadian Edition by Richard A. Yates
Available Study Resources on Quizplus
16 Chapters
2535 Verified Questions
2535 Flashcards
Source URL: https://quizplus.com/study-set/1411 Page 2
Chapter 1: Managing Your Legal Affairs
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/28018
Sample Questions
Q1) It is more advantageous to retain your own lawyer than to simply use duty counsel.
A)True
B)False
Answer: True
Q2) If you collect money as a result of a settlement or judgment obtained through the assistance of legal aid, you will
A) probably have to repay some or all of the legal aid benefits you received.
B) probably be ineligible to enforce the settlement or judgment if the debtor refuses to pay.
C) probably be able to keep the full amount of the settlement of judgment.
D) be required to turn the amount of the settlement or judgment over to legal aid.
E) be required to turn the amount of the settlement or judgment over to the court.
Answer: A
Q3) Most provinces set a minimum contingency fee for family law cases.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Introduction to the Legal System
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/28026
Sample Questions
Q1) Contrast public law and private law.
Answer: Public law includes constitutional law and the laws that affect an individual's relationship with the government. Private law involves the rules that govern our personal, social, and business relations.
Q2) In which one of the following cases can the Supreme Court of Canada not override laws of the federal parliament?
A) Parliament enacts legislation that is ultra vires.
B) Parliament enacts legislation in an area outside their jurisdiction.
C) Parliament enacts legislation that infringes on rights contained in the Charter of Rights and Freedoms.
D) Parliament enacts legislation that is not clear.
E) The Supreme Court of Canada disagrees with the substance of the legislation.
Answer: E
Q3) Canon law refers to the law created by the Church.
A)True
B)False
Answer: True
Q4) What role does the civil code system of law play in Canada?
Answer: Quebec uses a civil code for areas that fall under its jurisdiction.
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: The Resolution of Disputes: the Courts and Alternatives to Litigation
Available Study Resources on Quizplus for this Chatper
221 Verified Questions
221 Flashcards
Source URL: https://quizplus.com/quiz/28027
Sample Questions
Q1) Which of the following is False with regard to our legal system?
A) An appeal from the Supreme Court of Canada goes to the Federal Court of Appeal.
B) Our Charter of Rights and Freedoms diminishes the power of both the federal and provincial legislatures.
C) Our constitution can be amended but not by the federal parliament acting alone.
D) If a case were heard before a provincial trial level court, the judge could apply both legal and equitable principles and award both legal and equitable remedies.
E) Although a statute overrides the case law on the same point, subsequent cases may affect the statute by interpreting its meaning.
Answer: A
Q2) What is meant by mandamus?
Answer: This is an order ordering a decision maker to make the decision that he's empowered to make.
Q3) Hao wants to negotiate a settlement but he lacks skill and experience as a negotiator. What option is available to him?
Answer: He can negotiate through a representative.
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Intentional Torts and Torts Impacting Business
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28028
Sample Questions
Q1) The tort of spoliation grants remedy where evidence has been destroyed.
A)True
B)False
Q2) Joe was jogging along a quiet jogging trail beside a river when he met Sam coming the other way. Joe stopped, and in conversation with Sam, accused him of stealing and shoplifting from Joe's store. Sam was appalled, got extremely irate, and struck Joe in the face. Joe was injured, suffering a broken nose and significant bruises. Finally, after some time, another jogger came along on the trail and broke up the fight. Joe sued Sam for battery and Sam sued Joe for defamation. Explain the likely outcome.
Q3) In order to sue for trespass to land, what two elements must be established?
Q4) The federal government's Personal Information and Electronic Documents Act applies in all provinces except where legislation that provides for equivalent protection has been passed by the province.
A)True
B)False
Q5) 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.
Q6) When is a passing-off action appropriate?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Negligence, Professional Liability, and Insurance
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/28029
Sample Questions
Q1) An employee prepared an appraisal of a property for his real-estate development company. The employee had been told that the appraisal would be used by the company to attract a potential investor, Mr. Jones, for the company's client, Mr. Lee.
Because the appraiser carelessly forgot to check the recent changes in the zoning by-laws, the appraisal was not accurate. Mr. Jones was misled about the value of the land and suffered a financial loss of $200,000. On these facts, which of the following is true?
A) Mr. Jones could not take any action because he had no contract with the company or the appraiser.
B) A person cannot be sued for words that cause loss, only for actions that cause physical injury.
C) If Jones sues the appraiser, he cannot also sue the employer company.
D) The cause of action most likely to be taken by the investor is defamation.
E) To win in an action against the appraiser, Jones must prove that the appraiser owed him a duty of care, fell below the standard of care owed, and thereby caused him a foreseeable loss because of his reliance on the information.
Q2) Explain how the standard of care imposed varies when particular expertise is involved (e.g., a doctor).
Q3) Discuss how legislation has impacted in the field of negligence.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: The Elements of a Contract: Consensus and Consideration
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/28030
Sample Questions
Q1) An offer will end when the subject matter of the offer is sold to someone else. A)True
B)False
Q2) Joe owed Sam $500. Two days before the money was due, he came to Sam and told him he couldn't pay the $500, but if Sam would accept $300 right then, in full satisfaction of the debt, he would pay him that amount. Sam agreed, then later sued for the other $200. Will he win?
Q3) For the requirement of consideration to be satisfied, at least one of the parties must have performed what they promised.
A)True
B)False
Q4) The promise of "love and affection" can constitute adequate consideration to support a contract.
A)True
B)False
Q5) Electronic signatures provide a digital certificate that authenticates the identity of a party to the contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/28031
Sample Questions
Q1) Which one of the following is an example of a contract that is binding on an infant in British Columbia?
A) A contract to purchase a new stereo
B) A contract for a camera
C) A contract for baseball tickets
D) A contract for a DVD purchase
E) A contract for a student loan
Q2) All of the following contracts would be illegal, and not binding on the parties, except A) a contract whereby one person agrees to spread False and damaging information about another.
B) a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another.
C) the act of paying for sexual favours (prostitution).
D) a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price.
E) a contract in which a lawyer agrees to represent an accused where the accused did commit the crime.
Q3) What is an "executed contract"?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Factors Affecting the Contractual Relationship
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/28032
Sample Questions
Q1) In 978011 Ontario Ltd. v. Cornell Engineering Co., a businessman signed a contract without reading it. He later discovered it contained a provision with which he did not agree. What did the Court hold?
A) The Court refused to grant an equitable remedy to correct a mistake that the businessman himself had allowed.
B) The Court held that the contract was void due to a lack of consensus.
C) The Court held that the contract was unenforceable due to a lack of consensus.
D) The Court ordered rectification to correct the mistake in the contract.
E) The Court ordered severance due to a lack of intention to be bound to the particular provision.
Q2) Where a heavy-duty equipment supplier sells a truck claiming it can haul ten tonnes of gravel but its actual capacity is only five tonnes, this is misrepresentation even where the seller believes what he said was true.
A)True
B)False
Q3) An assignee is in no better position than the original contractor.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The End of the Contractual Relationship
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/28033
Sample Questions
Q1) The courts prefer to grant an equitable remedy where a breach of contract has taken place.
A)True
B)False
Q2) Which one of the following statements accurately describes the operation of a condition subsequent?
A) This occurs when one party shows up at the right time and place ready, able, and willing to carry out his obligations under the contract.
B) This is a term in a contract that must be met before the contract becomes fully operational.
C) This occurs when some event that the parties have not anticipated makes performance radically different from what they agreed to.
D) There is no such thing recognized in the common law.
E) This is a term in the contract that provides for the premature cessation (ending) of the parties' obligations upon the occurrence of some particular event.
Q3) Explain what restrictions are put on the effect of exemption clauses (sometimes referred to as exclusion or exculpatory clauses) in a contract.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Agency and Partnership
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/28019
Sample Questions
Q1) Explain how a person's status as a limited partner could be lost.
Q2) In the modern economy, agency-by-necessity situations are becoming more commonplace.
A)True B)False
Q3) "Partners must make clear in their partnership agreement any limitations on authority they wish to impose on each other when entering into contracts with outsiders." Discuss the accuracy of this statement.
Q4) Which one of the following statements is correct with respect to sole proprietorships?
A) The sole proprietor has limited liability.
B) The sole proprietor need not adhere to any licensing and government regulations.
C) The sole proprietor must consult with the other owners before making any major decisions regarding the business.
D) The sole proprietor has the same extent of liability as a shareholder.
E) The sole proprietor is responsible for the torts committed by an employee that take place during the course of business.
Q5) Explain the liability of a partner for another partner's actions.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Corporations
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28020
Sample Questions
Q1) Indicate the main disadvantages to incorporation.
Q2) A prospectus is an internal document detailing the expected performance of a corporation.
A)True
B)False
Q3) Joe was the director of XYZ Corporation, and the corporation was experiencing some financial difficulties. The shareholders had received dividends over the years, and this year insisted that they be paid a similar dividend, despite the fact that the corporation did not have enough reserved funds to pay off its debts. Joe, along with the other directors, complied with this request, and a few months later, the corporation was unable to pay a required payment on a bank loan. What can the bank do in these circumstances?
Q4) What happens if annual returns are not filed for a corporation?
Q5) One of the most common ways for small, closely held corporations to come to an end is for the principals to simply neglect to file the annual return.
A)True
B)False
Q6) Explain what is meant by pre-emptive rights.
Q7) Explain the nature of the "corporate myth."
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Employment
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/28021
Sample Questions
Q1) The correction of employment situations where there has been a tradition of racial or gender imbalance is known as ________.
Q2) Which of the following statements is correct with respect to the process of conciliation/mediation?
A) Conciliation/mediation is a process by which a third party is chosen by the government to impose a settlement on the parties.
B) Conciliation/mediation is a process by which a third party is chosen by the parties to impose a settlement on the parties.
C) Conciliation/mediation is a process by which a person is chosen by either the government or the parties, who then tries to bring the parties to an agreement.
D) The conciliator or mediator's recommendations cannot be ignored by the parties.
E) This refers to the requirement that the parties bargain in good faith to reach a contract.
Q3) Discuss the role of strikes, lockouts, and picketing, and whether or not they have any place in our present society.
Q4) Distinguish between a strike and a lockout.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Intellectual Property
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28022
Sample Questions
Q1) Explain what rights a copyright holder has in relationship to the work.
Q2) Joe worked for Harry's Fine Toys for a period of six years. In September, he left Harry's Fine Toys and went to Sam's Toy Shop, a competitor, and disclosed Harry's Christmas line of toys. What could Harry do under these circumstances?
Q3) In order to obtain an interlocutory injunction, what must the plaintiff establish?
Q4) The Industrial Design Act requires registration, within three years of its publication, of a unique shape, pattern, or ornament.
A)True
B)False
Q5) Indicate three things that cannot be used as a trademark.
Q6) "One of the most effective statutes in Canada protecting confidential information is the Trade Secrets Act." Discuss the accuracy of this statement.
Q7) A "passing-off action" prevents a person from misleading the public into thinking it is dealing with some other business and applies whether or not a registered trademark is involved.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Real and Personal Property and Protection of the Environment
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/28023
Sample Questions
Q1) In a three-year commercial lease, the tenant must give the landlord two months' notice upon leaving.
A)True
B)False
Q2) Mr. and Mrs. Dunn divorced and Mr. Dunn applied for a division of the matrimonial home in which they were joint tenants. Mr. Dunn died before the matter was settled. In Dunn Estate v. Dunn, the issue was whether the home was part of Mr. Dunn's estate, or whether it passed by survivorship to Mrs. Dunn. What did the court find?
A) The home passed to the wife. A joint tenancy, if properly created, cannot be severed.
B) The home was part of the estate. The divorce was enough to sever the tenancy.
C) The home was part of the estate. The commencement of a matrimonial property action was enough to sever the tenancy.
D) The home passed to the wife. Neither divorce or commencement of a matrimonial property action was enough to sever the tenancy.
E) The home was part of the estate. A joint tenancy is instantly severed by the death of either joint tenant.
Q3) Explain the rights of a remainderman in a life estate.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Priority of Creditors
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/28024
Sample Questions
Q1) A continuing guarantee
A) allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.
B) is a primary obligation of a third party to pay a debt along with a debtor.
C) is a written commitment not to pursue a legal claim against another.
D) is an equitable principle assuring that when security is repossessed, there will be a period of time during which the debtor can still make payment.
E) allows a breaching party to pay an amount specified in a contract, rather than facing a lawsuit for damages.
Q2) Explain the purpose of the Personal Property Security Act.
Q3) Joe bought a car from Harry's Fine Car Lot and owed him $5000 on the deal, which he was paying back at $500 a month under a Security Agreement. Harry assigned that Security Agreement to Ace Finance Company, and they served notice on Joe that he was to make his payments in future to them. Joe knew, however, that his deal was with Harry, and he ignored the notification and continued to make the payments to Harry. What danger does he face in these circumstances?
Q4) Distinguish between attachment and perfection under the Personal Property Security Act.
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Sales and Consumer Protection
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/28025
Sample Questions
Q1) What types of transactions does the Sale of Goods Act apply to?
Q2) The Sale of Goods Act applies to both goods and services.
A)True
B)False
Q3) Distinguish between conditions and warranties in a sale of goods contract.
Q4) A cheque made payable "after the building is completed" can qualify as a negotiable instrument.
A)True
B)False
Q5) What is the effect of an unpaid seller's lien?
Q6) Discuss the common law and legislative enactments in place controlling debt collection agencies.
Q7) Which of the following is not controlled by consumer protection legislation?
A) False advertising
B) The investigation of complaints
C) Unconscionable transactions
D) Business transactions
E) Unequal bargaining power that is abusive
To view all questions and flashcards with answers, click on the resource link above. Page 18
Q8) Distinguish between a vertical merger, horizontal merger, and a conglomerate merger.