Law and Ethics in Commerce Exam Questions
Course Introduction
Law and Ethics in Commerce explores the fundamental legal principles and ethical considerations that govern business transactions and commercial relationships. The course examines topics such as contract law, consumer protection, intellectual property, corporate social responsibility, ethical decision-making frameworks, and regulatory compliance. Students will analyze real-world business scenarios to understand the interplay between legal obligations and ethical values, fostering critical thinking skills essential for responsible professional conduct in the commercial sector.
Recommended Textbook
Legal Fundamentals for Canadian Business 3rd Edition by Richard A. Yates
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10 Chapters
1473 Verified Questions
1473 Flashcards
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2
Chapter 1: The Canadian Legal System
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) "The term equity refers to fairness in our legal system." Discuss the accuracy of this statement.
Answer: Equity is that body of law developed by the Court of Chancery and may or may not be considered fair by today's standards.In the 19th century, the Court of Chancery and common law courts were merged into one court system, but it must be emphasized that the bodies of law developed (that is, common law and equity) remain separate and distinct bodies of law.
Q2) Which of the following is a legal right under the Charter?
A)The Charter applies only to government employees.
B)Legal rights include the rights to life, liberty, and the security of person.
C)The Charter states that everyone is not equal under the law.
D)The Charter does not protect the rights of Aboriginal people.
E)The Charter applies only to the federal government.
Answer: B
Q3) The law of equity was developed by ________.
Answer: The Court of Chancery
Q4) A person has the right to appeal a decision in a civil court.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Torts and Professional Liability
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Explain what is meant by the "reasonable person" test.
Answer: This test is used in many areas but is especially important in determining the standard against which the defendant's conduct is measured in a negligence action.The reasonable person here is a careful, prudent person going about the activities, not the average person.The test is analogous to par in the game of golf.Par is not what an average golfer would obtain as a score, but the score one would expect from a good golfer having a good day.
Q2) When a doctor treats or operates on a patient, explain why that patient cannot sue for battery.
Answer: The patient has consented to the procedure; therefore, it is not actionable.
Q3) "The person who committed the assault and battery must have intended to hurt the other person." Comment on the accuracy of this statement.
Answer: It is necessary that only the act be wilful or intended, not the results.The act may be motivated by the best of intentions, but if it interferes with the other person, it is still actionable.
Q4) When someone intentionally scratches your car, for what can you sue?
Answer: Trespass to chattels
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Chapter 3: Formation of Contracts
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167 Verified Questions
167 Flashcards
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Sample Questions
Q1) Harry saw Joe in his classic Buick at a local drive-in restaurant, and told Joe that he'd like to buy the car.He offered Joe $1500.Joe said he had to think about it and that he'd let Harry know.Two days later, Joe decided that he needed the money and couldn't afford to keep the car.He wrote Harry a letter accepting the offer and mailed it that afternoon.The next day, Harry phoned Joe, saying that he'd changed his mind and that he needed the money for something else.Joe told Harry about the letter, and in fact Harry received the letter later that day.Joe insisted on going through with the deal.Explain the legal liability of the parties.
Answer: This can go both ways.If it was reasonable to respond by mail in these circumstances, then the post-box rule applies.The contract came into existence when the letter was posted, and there is a binding contract.If it wasn't reasonable to respond by mail, then the acceptance must be communicated, and so the acceptance would not be effective until received, which was after the attempted revocation.Therefore, there would be no contract.
Q2) A contract is a single promise, made by one person to another, enforceable in court.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Enforcing Contractual Obligations
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177 Verified Questions
177 Flashcards
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Sample Questions
Q1) What is the importance of the distinction between a breach of warranty and a breach of condition?
Q2) The longer Adolph stayed on this job, the more he hated it.He thought the boss was too demanding.He especially disliked being reprimanded for being late.One afternoon, he was asked by a secretary to take a letter to the boss for his signature.The boss had had an eye operation and was recuperating at home.Adolph got two signatures, one on the letter and one on a note promising to pay Adolph $1000 in consideration for services rendered.The boss was not careless, but couldn't read the papers.What plea or argument, if any, could the boss use to avoid paying on the promissory note?
A)Unconscionability
B)Duress
C)Shared mistake
D)Rectification
E)Non est factum
Q3) For a misrepresentation to be actionable, it must become a term of the contract.
A)True
B)False
Q4) Discuss what happens when the parties to a contract make mistakes with respect to what they have agreed.
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Chapter 5: Legislation in the Marketplace
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Under the Sale of Goods Act, the seller has a lien against the goods and can recover those goods from the purchaser in the event of default.
A)True
B)False
Q2) A warranty under the Sale of Goods Act is a contract term the breach of which will allow the victim of the breach to refuse to go through with his or her side of the agreement.
A)True
B)False
Q3) Which of the following is not able to file a lien against the property under the Builders' Lien Act?
A)Suppliers
B)Workers
C)Lenders
D)Subcontractors
E)Contractors
Q4) What purpose is served by requiring the creditor to register his or her secured transaction?
Q5) Distinguish between conditions and warranties in a sale of goods contract.
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Chapter 6: Agency and Employment
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158 Verified Questions
158 Flashcards
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Sample
Questions
Q1) Joe had worked for Sam's Manufacturing Company for 10 years when Sam told him one day that, because Sam had lost a major contract, he had no work for Joe to do and Joe was fired as of that time.Explain Joe's legal position.
Q2) Workplace health and safety standards apply to all employees, but they do not apply to dependent and independent contractors.
A)True
B)False
Q3) Discuss the termination of employees and the notice to which they are entitled.
Q4) Explain under what circumstances a principal who is not an employer will be held responsible for the wrongful acts of its agent.
Q5) Explain why picketing can be effective.
Q6) A principal is not bound in contract with the third party with whom the agent dealt if the agent is:
A)Outside his authority but the principal ratified it
B)Within his express authority
C)Outside his actual and apparent authority
D)Within his implied authority
E)Within his apparent authority
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Chapter 7: Methods of Carrying on Business
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) Partners can agree among themselves as to what portion of liability they each will bear, and their losses will be limited to that portion when being sued by outsiders.
A)True
B)False
Q2) John and two friends incorporated a closely held corporation.Each bought an equal number of common shares in the corporation.Each became a director, an officer, and an authorized agent of the corporation.Which of the following is true?
A)Each of them, as a director, owes a fiduciary duty to the others, as shareholders.
B)As director, each owes a fiduciary duty to the creditors of the corporation.
C)The corporation is more highly regulated and less free of government regulations and control than a broadly held corporation would be.
D)If the affairs of the corporation are being conducted in a manner that is unfairly prejudicial to any one shareholder, that shareholder could seek relief from such oppression from the court.
E)Since the corporation is a legal fiction, all of its activities must be carried out through principals.
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Chapter 8: Property
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160 Verified Questions
160 Flashcards
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Sample Questions
Q1) If I grant my grandma a life estate and she asks about her rights and duties as a life tenant, which of the following is true?
A)If I make no indication of who the property is to go to when she dies, the property reverts back to my estate.
B)The life tenant, after 20 years, can establish an easement interest in the property.
C)The life tenant is not responsible to make repairs to keep the property in good condition, only the fee simple owner has that responsibility.
D)Grandma, as life tenant, holds a reversion interest in the property.
E)The life tenant can transfer the fee simple to someone in her will.
Q2) Distinguish between real and personal property.
Q3) Indicate the extent of ownership above and below land.
Q4) Explain what is meant by riparian rights.
Q5) What is the general requirement of the Canadian Environmental Assessment Act?
Q6) Explain what is used as security in a mortgage transaction.
Q7) A right of way is an example of a leasehold estate that is specified for a period of time.
A)True
B)False
Page 10
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Chapter 9: Ideas and Information
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) When a trademark is registered, it gives protection for a period of 50 years.
A)True
B)False
Q2) What rights are conveyed by the granting of a patent?
Q3) Which of the following is essential for a work to have copyright protection?
A)The idea on which the work is based must be original.
B)The creator of the work must register his or her work in Canada.
C)The subject matter of the work must only fall into either musical or artistic categories.
D)The expression of the idea must be an original product of the author's own skill.
E)The expression of the idea will generally be sufficient.
Q4) In Canada, as of January 1, 2004, all organizations involved in the collection, use, and disclosure of personal information in connection with their commercial activities must be in compliance of the Personal Information Protection and Electronic Documents Act (or, where enacted, equivalent provincial legislation).Discuss the salient points of the legislation with which businesses must be in compliance.
Q5) Employers are particularly vulnerable to the misuse of their computer resources by employees. Discuss.
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Page 11
Chapter 10: Electronic Commerce and International Trade
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) In the context of employment and use of the internet, which of the following is true?
A)Employers can be liable when their employees misuse the internet.
B)Viewing an employee's Facebook account is considered a criminal offence.
C)Employers cannot be held liable when their employees misuse the internet.
D)An employer need not have a clear and comprehensive policy prohibiting misuse of company resources such as the internet.
E)Email should be encouraged over other forms of communication, because it is inherently private.
Q2) Foreign courts will enforce a judgment if a reciprocal enforcement agreement is in place.
A)True
B)False
Q3) When a foreign judgment is obtained against a Canadian business, the business is often protected by Canadian laws that rarely allow enforcement of such judgments.
A)True
B)False
Q4) Describe the General Agreement on Tariffs and Trade (GATT).
Q5) Describe electronic signatures with respect to capacity.
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