Test Bank for Business Law for Business Law in Canada 12E by Yates, Korol,Clarke & Palmer - Updated

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TEST BANK

2023

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COMPLETE Elaborated Test Bank For Business Law for Business Law in Canada 12th Edition Richard A. Yates Teresa Bereznicki-Korol, Trevor Clarke Dean A. Palmer 2023

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Business Law for Business Law in Canada, 12th Edition

by Richard A. Yates, Teresa Bereznicki-Korol, Trevor Clarke & Dean A. Palmer.

ISBN-10 013484131X ISBN-13 978-0134841311

Test bank for Business Law for Business Law in Canada, 12th Edition by Richard A. Yates, Teresa Bereznicki-Korol, Trevor Clarke & Dean A. Palmer

ISBN-10 013484131X ISBN-13 978-0134841311

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TABLE OF CONTENTS

Chapter

1. Managing Your Legal Affairs

Chapter

2. Introduction to the Legal System

Chapter

3. The Resolution of Disputes: The Courts and Alternatives to Litigation

Chapter

4. Intentional Torts and Torts Impacting Business

Chapter

5. Negligence, Professional Liability, and Insurance

Chapter

6. The Elements of a Contract: Consensus and Consideration

Chapter

7. The Elements of a Contract: Capacity, Legality, and Intention

Chapter

8. Factors Affecting the Contractual Relationship

Chapter

9. The End of the Contractual Relationship

Chapter

10. Agency and Partnership

Chapter

11. Corporations

Chapter

12. Employment

Chapter

13. Intellectual Property

Chapter

14. Real and Personal Property and Protection of the Environment

Chapter

15. Priority of Creditors

Chapter

16. Sales and Consumer Protection

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Chapter 1 Managing Your Legal Affairs Learning Objectives • • • • • • • •

Explain the meaning of “sophisticated client” Examine the role of the lawyer Identify when to hire a lawyer and when to represent yourself Explain how to find an appropriate lawyer Review how lawyers bill their clients Describe legal aid Outline the procedure to follow to complain about your lawyer Discuss the ethics of lawyers and of clients

Discussion

EXPLAIN THE MEANING OF “SOPHISTICATED CLIENT”

EXAMINE THE ROLE OF THE LAWYER

IDENTIFY WHEN TO HIRE A LAWYER AND WHEN TO REPRESENT YOURSELF

EXPLAIN HOW

A “sophisticated client” understands the role of the lawyer, and their own role as client. This involves knowing when and how to hire a lawyer, the costs involved and what can be done if the lawyer is not meeting your expectations. Good business decisions can only be made with consideration of appropriate laws, whether the client is able to access that information for themself, or through the services of a lawyer. A sophisticated client also understands the importance of evidence, and may change their procedures and those of the business in order to make sure the evidence is there in the event of a dispute.

The client is the ultimate decision maker, but makes those decisions with the advice of a number of experts, of which the lawyer is one. If clients deem other business factors to be of greater importance, they may choose to accept some legal risk, but it is an informed decision. Lawyers must follow the instructions of their clients unless they are illegal or unethical (although a lawyer may always resign).

The decision about when to hire a lawyer starts when decisions need to be made as to how the business will be organized, and whether to create a new business or buy an existing one. It allows business owners to minimize their risks and make sure they are in compliance with all laws. This would also apply to decisions about the premises, financing, existing or new contracts, intellectual property and, finally, selling the business. For less significant decisions, clients may choose to inform themselves, through the internet, or from the resources listed throughout this textbook and in MyBusLawLab. Sophisticated clients will know when to do research themselves and, if unable to obtain the information or understand the information found, to seek legal advice. Small claims court trials are often conducted, due to the relatively low monetary limits, unless the legal issues are too complex for the client to handle themselves. Criminal matters should nearly always be handled by legal counsel.

Finding an appropriate lawyer is difficult. Referrals from trusted friends or

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Instructor’s Manual for Business Law in Canada, 12th Edition TO FIND A GOOD LAWYER

REVIEW HOW LAWYERS BILL THEIR CLIENTS

DESCRIBE LEGAL AID

OUTLINE THE PROCEDURE TO FOLLOW TO COMPLAIN ABOUT YOUR LAWYER

DISCUSS THE ETHICS OF LAWYERS

CODE OF BUSINESS CONDUCT

associates with the same type of legal problems are good. Some provincial law societies or branches of the Canadian Bar Association also have lawyer referral services that provide names of lawyers who practice in specific areas of law. You may have an initial consultation for little or no cost, and then decide if you wish to pursue the matter and hire one of them. If not going through one of those services, initial consultation costs will vary and should be confirmed with the lawyer in advance. The lawyer you choose should be someone who you think may be suitable to establish an ongoing relationship with your business.

Lawyers bill their clients for services either by a fixed fee, an hourly rate or by a contingency fee based on a percentage of the money recovered on behalf of the client. Clients are also responsible for paying disbursements, the lawyer’s out-ofpocket expenses incurred, such as filing fees, long-distance telephone charges, etc.

Sometimes a lawyer will require a financial retainer to start a file, which operates as a deposit against legal work performed.

Legal aid may be available for people with low income, but the eligibility varies from province to province, so it’s best to check with the administrators of the program in your province. What types of legal services are covered also varies, and it is generally not available for business issues. Duty counsel is often available at no charge in criminal court to provide advice, but not representation.

Law is a self-governing profession, with provincial law societies that serve this function. Fee complaints are dealt with differently from province to province.

Complaints about a lawyer’s conduct are dealt with through the law society, which will have a resolution process that could include mediation, investigation and formal hearings, with penalties for wrongdoing. Claims for compensation are subject to limitation periods, as is any other action.

Professional and ethical obligations of lawyers are set out in rules of professional conduct established by each province’s law society. The vast majority of lawyers meet these standards, but as with any profession, there are a few that do not. If this occurs, the client needs to take appropriate action on a timely basis.

There is no code of conduct for business people, and there have recently been a number of well publicized examples of breaches of ethical conduct by high profile business people. This affects the public’s perception of the integrity of enterprises in our country and the advisability of doing business here. Each business should make a commitment to ethical behaviour by preparing a code of conduct for their employees. It needs to include issues such as conflicts of interest, use of corporate assets and opportunities, confidentiality, fair dealing, compliance with laws and reporting of unethical or illegal behaviour within the business. It needs to reflect the business’ core ethical values and principles, in order to encourage ethical behaviour on the part of all those associated with the business. This, in turn, can enhance the long term success of the business.

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Chapter 1: Managing Your Legal Affairs Answers to Questions 1. Explain the meaning of “sophisticated client”.

Sophisticated clients are confident, knowledgeable, up-to-date and understand the role of a lawyer. As well, they know when to represent themselves and when to hire a lawyer, and the costs involved when a lawyer is hired.

2. Why should the owner of a small business have a lawyer on “the team”?

A lawyer is an expert, providing relevant advice to the client, which allows the client to make an informed decision.

3. Distinguish the role of the client from the role of the lawyer.

The client is the decision maker, who consults a number of experts, including lawyers, in order to make decisions. Lawyers are experts in their field who provide advice, and who must follow the instructions of the client.

4. “The elimination of ‘solicitor-client privilege’ would significantly undermine the integrity of the Canadian legal system.” True or false? Explain your answer.

True. Solicitor-client privilege ensures full and frank disclosure between clients and their lawyers.

The value of the lawyer’s advice will be greatly reduced if it is based on incomplete information.

5. What are some examples of decisions that owners of small businesses make? What role can a lawyer play with respect to the making of these decisions?

The legal form of the business, whether to buy an existing business or create a new one, what are the relevant laws and regulations affecting the business and what constitutes compliance, issues with regard to purchase or lease of business premises, funding of the business, contracts with employees, suppliers and customers, intellectual property and, finally, sale of the business.

6. What role has the computer played with respect to the solicitor-client relationship?

Computers allow clients to research easily accessible legal information online, rather than having to consult a lawyer for every decision.

7. “It is a good idea to hire a lawyer when you have been charged with a crime.” True or false? Explain your answer.

True. The stakes are high. If convicted, you will be punished and have a criminal record.

8. When you are trying to find a lawyer to help you, what are some sources of lawyer’s names?

Sources include referrals from friends or relatives, provincial law societies, lawyer referral services, provincial branches of the Canadian Bar Association, advertisements and the Yellow pages.

9. What is the primary purpose of an initial consultation with a lawyer?

To decide whether the lawyer is suitable for you to retain. If so, then the lawyer will decide if it is agreeable to represent you.

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Instructor’s Manual for Business Law in Canada, 12th Edition 10. Briefly explain three ways lawyers bill their clients. Which of the three is most commonly used?

Fixed fees - for specific tasks such as will preparation, purchasing a house or incorporation.

Hourly rate - billing for time spent on the client’s file. This is the most common method of billing a business.

Contingency fee - charging a percentage of the amount the client collects. Most appropriate for personal injury or product liability cases. If the client does not collect, the lawyer does not get a fee. The types of cases covered and allowable percentages vary from province to province.

11. “Legal aid is available to anybody with a legal problem.” True or false? Explain your answer.

False. There are financial limitations and limitations on the types of disputes legal aid will deal with. This also varies from province to province.

12. What can a client do if she is unhappy with the bill she received from her lawyer?

Attempt to resolve the dispute directly with the lawyer. If not successful, mediation may be an option. If mediation is not available or successful, the bill could be reviewed by court officials.

The method of review varies from province to province.

13. “Should a client lose money because of the carelessness of his lawyer, he will be compensated for his losses if he makes a complaint to the law society.” True or false? Explain your answer.

False. The Law Society deals with disciplinary matters only in respect of the carelessness.

Compensation would have to result from settlement or, if unable to reach an agreement, through a legal suit by the client against the lawyer. The Law Society will likely require the lawyer to have errors and omissions insurance which will assist with recovery of the loss after settlement or judgment.

14. When will a lawyer be disbarred?

Lawyers who fail to follow the rules of conduct of the Law Society they belong to are subject to disciplinary investigations and hearings. If the conduct complained of is a serious breach, such as misuse of client funds, they may be disbarred.

15. “When a person acts unethically, she will also have broken the law.” True or false? Explain your answer.

False. Ethics tells us what we should do; the law tells us what we must do. Generally speaking, every person breaking the law in Canada is acting unethically, but a breach of ethics is not necessarily breaking the law.

16. What is a code of business conduct? Should such a code be used by a small business?

A code of business conduct is a statement of values and principles of ethical behaviour that establishes a code of conduct which all employees, officers and directors of the business would be expected to follow. If created when a small business is first established, it is probably the best way to ensure the long-term application of these principles as the business grows.

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Chapter 1: Managing Your Legal Affairs 17. What is “corporate social responsibility”? What is a benefit of being transparent about the reasons why you are engaging in socially responsible behaviour?

Some speak of corporate citizens. With the benefits of citizenship, goes the responsibility of being a citizen. The exercise of corporate social responsibility shows commitment to the communities within which a business operates. Transparency about exercising social responsibility being not just to “do good” for the organization and its community, but also to improve the organization’s image, will reduce community skepticism and disillusionment about the organization.

Solutions to the Cases 1. Ontario (Public Safety and Security) v. Criminal Lawyers’ Association, [2010] 1 S.C.R. 815, 2010 SCC 23 The Supreme Court unanimously reversed the decision of the Court of Appeal. Section 2(b) of the Charter does not guarantee access to all government documents. The documents protected by the Ontario FIPPA dealing with solicitor-client privilege were excluded from being disclosed. Lawyers required to register as lobbyists may have to disclose client names and the nature of the lobbying activity. Some banking records of lawyers regarding client names and information may be accessible under money laundering and state security legislation.

2. Canada (Attorney General) v. Chambre des notaires du Québec, [2016] 1 SCR 336, 2016 SCC 20 (CanLII) It was unanimously held by the Supreme Court that the provisions requiring the production of the documents infringed the protection against unreasonable search or seizure found in Section 8 of the Charter of Rights and Freedoms. The Court further held that Section 8 would not be limited under the closing words of Section 1 of the Charter to allow the impugned provisions to operate.

3. Wayne v. Wayne, 2012 ABQB 763 (CanLII) The relevant legislation does not expressly allow the court to pierce the solicitor-client privilege. The basis for this is for clients to have complete trust their counsel representing them.

Counsel can only represent clients if clients are completely open and speak freely with counsel. The privilege is for the benefit of the client. In this case, the mental state of the trustee’s mother, the privilege does not work to her benefit. The court should grant access to the estate file.

4. University of Alberta v. Chang, 2012 ABCA 324 (CanLII) The appeals were allowed and the applications were remitted back to the trial court for rehearing. The chambers judge copied and pasted the briefs filed by the parties and simply retyped them. He signed them as reasons for judgment. Briefs are often one-sided so they so they were prepared in an adversarial context. The passages from the chambers briefs did not disclose how the chambers judge arrived at his decision. There was no evidence to suggest there was inordinate delay.

The appellate court must rebut the presumption that the lower court has reached its decision through its own unbiased analysis to overturn the decision of the lower court.

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Chapter 2 Introduction to the Legal System Learning Objectives • • • • • •

Define “law” and identify the types of law that exist in Canada Distinguish between Canada’s civil law and common law legal systems Explain how powers are divided and exercised under Canada’s Constitution Outline the protection of Indigenous rights and self-government Describe the rights and freedoms protected by the Charter of Rights and Freedoms List the areas and grounds upon which human rights legislation prohibits discrimination

Discussion DEFINE LAW AND IDENTIFY THE TYPES OF LAW THAT EXIST IN CANADA

Although creating a comprehensive definition of the law is difficult, a workable definition for our purposes is: “Law is that body of rules which can be enforced by the courts or by other government agencies.” An essential aspect of rules being considered as law is that they can be enforced by the judicial system or through administrative process.

Substantive Law - rules that establish rights and place limits on individual conduct Procedural Law - rules governing how the substantive law will be enforced Public Law - rules that govern an individual’s relationship with government (e.g. the Constitution) Private Law - rules that govern personal, social and business relationships which can be enforced by one person suing another

DISTINGUISH BETWEEN CANADA’S CIVIL LAW AND COMMON LAW LEGAL SYSTEMS

The two main legal systems in place in the western world are civil law and common law. The civil law originated with the Romans and finds its modern place in the Napoleonic Code of France and other civil codes, including the Quebec Civil Code. The Common law is used in England and other jurisdictions where the English conquered and colonized. In a civil law jurisdiction, the basic rules and general principles are embodied in a central code and the function of judges is to apply the code to the specific cases that come before them. In such a system prior cases or precedents are merely persuasive and play a much less significant role than in the common law system, which has as its main characteristic the principle of stare decisis or the application of precedent cases. In the common law system, prior cases with similar facts in a court and higher courts in the same heirarchy, are binding on judges in that court. Both the civil law and common law system provide predictability, which facilitates stability in a society.

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Chapter 2: Introduction to the Legal System

EXPLAIN HOW POWERS ARE DIVIDED AND EXERCISED UNDER CANADA’S CONSTITUTION

As judges created the body of laws known as the common law, they borrowed from several sources including the traditions of communities where court was conducted, including canon (Church) law, the law merchant, and the civil law of Rome. Due to the strictures of stare decisis, there was extreme difficulty modifying common law precedents. As a result the courts of equity were separately developed to provide relief from the inadequacies of the common law system. A considerable amount of conflict developed between the two courts until they were eventually merged by the Judicature Acts in 1873-1875. However the two bodies of law remain distinct, and each can be applied by a single judge in a case. The principle of supremacy of Parliament, developed in England and brought into Canada, means acts of Parliament or of a Provincial Legislature will override any conflicting rule developed by either the common law, rules of equity, or a prior statute. Today in Canada, in order to determine what law should be applied to a particular situation, we must look to common law, to equity, and to statutes.

1. Statutes, such as the Constitution Act, 1867 BNA ACT, and the Constitution Act, 1982, including the Charter of Rights and Freedoms, 2. Conventions and traditions, which are unwritten customs and rules dictating how the government is to operate. They include the rule of law, the office of Prime Minister and political parties.

3. Case law on constitutional issues, such as whether the federal or provincial government has jurisdiction to create certain statutes.

It was often necessary to turn to the U.K. Parliament to amend or change the Constitution Act, 1867 until 1982. It was then that the Canada Act was enacted in the U.K. (called the Constitution Act, 1982 in Canada). It gave Canada the power to always amend its own constitution and contained the Charter of Rights and Freedoms. Until this time the principle of supremacy of Parliament prevailed and while a court could determine which level of government had the power to pass particular legislation, the court could not say the legislation was beyond the power of both levels of government. With the Charter of Rights and Freedoms, however, that power is now given to the courts.

The Constitution Act, 1867 assigned different legislative powers to the federal and provincial governments. The powers of the federal government are set out primarily in section 91 of the Constitution Act, 1867, and those of the provincial governments in section 92. The federal government has power over matters of broader national concern such as banking, currency, the postal service, criminal law (although not its administration and enforcement), and the appointment of judges in the federal and higher-level courts of the provinces. The provinces have jurisdiction over such matters as hospitals, education, the administration of justice, and commercial activities carried on at the provincial level.

Legislation is created by both the federal and provincial governments. The process involves the drafting and presentation of a Bill in either the federal House of Commons or the provincial Legislative Assembly. When introduced, a Bill will be given a first reading and normally the vote on first reading passes with little debate. If there is a will among the members to move the Bill forward, it will then be presented to the legislature for a second reading. There it is debated by the members of the house and either approved or rejected. If the Bill is approved it will generally go to a committee of members for review for possible amendment.

When the Bill is in final form, it is presented to the legislature for Third Reading

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Instructor’s Manual for Business Law in Canada, 12th Edition which involves a final debate and a vote. If the Bill passes all the votes, it is submitted to either the Governor General or the Lieutenant Governor for Royal Assent. Once assent is given the new legislation will either come into effect immediately or more commonly now, later upon further proclamation by Cabinet.

OUTLINE THE PROTECTION OF INDIGENOUS RIGHTS AND SELFGOVERNMENT

First Nations enjoy treaty rights dating back to the early 1700s. The Royal Proclamation of 1763 is significant, as it established the relationship between the Crown and First Nation communities as nation-to-nation. With regard to Indigenous title, it explicitly states that “all lands not ceded by or purchased from them by [the Crown] are reserved to the said Indians.” Indigenous peoples did not give up their right to self-government. Although it may have been restricted, it was never extinguished. Various levels of Indigenous self-government exist, often as the result of land claims or comprehensive claim settlements, rather than by constitutional amendment.

Some Métis communities have also achieved, or are in the process of negotiating, self-governance agreements. There are 22 self-government agreements that involve 36 Indigenous communities across Canada.

What this means to businesses interacting with Indigenous peoples is that respect for Indigenous rights and title is necessary and further, failure to consult Indigenous peoples may be costly. Section 35 of the Constitution Act, 1982 recognizes and affirms existing Indigenous and treaty rights. Increasingly, these rights are being enforced by Canada’s courts.

DESCRIBE THE RIGHTS AND FREEDOMS PROTECTED BY THE CHARTER OF RIGHTSAND

FREEDOMS

The Canadian Bill of Rights was a largely ineffective attempt to protect the basic rights of citizens from interference by government. However, the Charter of Rights and Freedoms, being constitutionally entrenched, is very effective. The Charter sets out certain basic rights, privileges and freedoms possessed variously

by Canadians, non-Canadians in Canada, and corporations that cannot be interfered with by any level of government or government official without a constitutional amendment. The Charter is applicable to any relationships existing between individuals and governments or government agencies and covers personal freedoms (freedom of speech), democratic rights (the right to vote), mobility rights, legal rights (a fair trial), equality rights (racial discrimination) and language rights (French and English).

There are three important qualifications on the operation of the Charter of Rights and Freedoms. First the operation of the charter is restricted to an individual’s dealings with governments and government agencies. The second allows the provinces or the federal government in many areas to opt out of the operation of the Charter and the third allows exceptions where “reasonable” in a free and democratic society. The effect of the Charter is to transfer the ultimate burden of protecting our basic rights and freedoms from our parliamentarians to our courts.

These last two exceptions shift the burden back to a degree and restore some supremacy of Parliament. The Charter does not protect an individual’s rights from violation by other individuals or non-government institutions. Such human rights disputes between individuals are handled by human rights commissions created under comprehensive provincial and federal human rights statutes. That is, the Charter protects us from government, and human rights legislation protects us from each other.

Chapter 2: Introduction to the Legal System

LIST THE AREAS AND GROUNDS UPON DISCRIMATION IS PROHIBITED BY HUMAN RIGHTS LEGISLATION

Not all discrimination is illegal. Human rights legislation prohibits discrimination on certain grounds, such as gender, religion, ethnic origin, race, age and disabilities. The legislation only prohibits this discrimination in certain areas, such as employment, tenancies, public facilities, services, and signs. Outside of these grounds and areas, discrimination can still legally occur. Sometimes positive action must be taken to avoid discrimination. That is there is a duty to accommodate different genders, the disabled and etc. when there is not undue hardship to do so.

For many years the Canadian Human Rights Act did not apply to the federal government and First Nation governments for decisions authorized by the Indian Act. In 2008, this exemption from the CHRA was removed and gender equality stipulations were expressly protected.

Answers to Questions 1. Why is it difficult to come up with a satisfactory definition of law?

The main point that students should raise is that a definition of “law” varies with the perception and preferences of the person being asked the question. Someone committed to an empirical approach might adopt the definition of the legal positivist. That is, law is determined by the authority of the body that passed it. A pragmatist would lean toward the American legal realist’s definition. That is, law is whatever a judge is willing to enforce. The point is that the student should understand that the definition of law cannot be separated from the philosophical stance of the person responding to the question.

2. Where do we look to predict the outcome of a legal dispute? (a) In a common law system?

Predictability of the law is determined by precedent-making cases. (b) In a civil law system?

Predictability of the law is determined by the central civil code.

3. Explain how the use of previous decisions differs in civil law and common law jurisdictions.

In a civil law jurisdiction only the code is binding on the judge. Cases decided by other judges are merely persuasive. They can be turned to for guidance but the judge is not bound by them.

However, cases in a common law jurisdiction can be a binding aspect of the law and, therefore, if a particular case qualifies as a precedent the judge faced with that precedent must follow it.

4. Describe what is meant by the statement, “Common law judges did not make the law, they found it.”

When the common law was originally introduced in England it was the legal structure that was imposed, not the rules of law themselves. The judges merely applied the law or rules that were already in place with the “common people” in the local jurisdictions. From this arose the concept that the common law was not imposed but merely found. In reality this can only be applied to a small portion of the common law. In fact, as the common law developed, judges borrowed from many different sources, such as civil law, canon law, the law merchant, etc. As well, statutes have been passed which considerably alter judge made law.

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Instructor’s Manual for Business Law in Canada, 12th Edition 5. Describe the advantages and disadvantages of the system of stare decisis.

The main advantage to stare decisis (or the process of following precedent) is the stability and predictability that it provides for the legal system. It is not always necessary for someone to go to court to find out how the law will be applied in a given situation. Precedent cases can supply that information, and the parties may avoid the cost and difficulties associated with a court action by settling the dispute. Another advantage to the system is that where there is no precedent covering a particular situation before the court, the court then is free to make such precedent.

The main disadvantage of the stare decisis process is that, as the number of precedents grows, the courts are unable to change and adapt as the attitudes of society alter. The courts often find themselves applying rules established centuries earlier which (other than the fact that they form a precedent) may have no justification for being applied in a modern situation. Happily statutes have altered many laws set by precedent and which no longer have a modern use.

6.

Describe the problems with the common law system that led to the development of the law of equity.

Because of stare decisis among other things the common law became rigid in its procedure and inflexible in the rules that were applied. Similarly, the remedies that were applied were limited.

The problems were not corrected internally and, therefore, the courts of chancery developed to provide relief in those situations where it was warranted.

7. Detail what was accomplished by the Judicature Acts of l873-75.

The Judicature Acts (1873-75) rationalized the various different court structures in place in England before this time into one central court system called the English High Court of Justice.

Thus the separate courts of chancery and common law ceased to exist, although the separate bodies of law developed by them continued to exist.

8. Explain what is meant by the phrase, “the supremacy of Parliament.”

In the English and Canadian legal systems, Parliament is supreme. A statute enacted by Parliament becomes the definitive law of the land overriding any other rule or law, such as common law, precedent, etc. This must be contrasted to the American system which has a system of checks and balances among the executive, legislative and judicial branches of government and under various circumstances each branch of government can override what the other does. In Canada the supremacy of Parliament is now subject to the operation of the Charter of Rights and Freedoms.

9.

What effect will a properly passed statute have on inconsistent judge-made law (case law)?

Because of the principle of supremacy of Parliament such a “properly passed” statute will override any inconsistent judge-made law.

10. Outline how a parliamentary bill becomes law.

A new law goes through a process of introduction in the form of a bill, debate, modification, and approval referred to as first, second and third reading and then receives royal assent from the Governor General or a Lieutenant-Governor of a province.

11. Using the principles of stare decisis, explain how judges determine whether or not they are bound by another judge’s decision in a similar case.

Judges are bound by the precedent-making decision of other judges who are in the same court heirarchy at the same or a higher rank.. Thus a Supreme Court of Canada decision is binding on the Ontario Superior Court of Justice and an Alberta Court of Appeal decision is binding on a

Chapter 2: Introduction to the Legal System Court of Queen’s Bench of Alberta judge. An Ontario Court of Appeal decision is not binding on judges in the courts of other provinces. However, judges in other provinces may find the Ontario decision persuasive, and adopt its reasoning. Secondly, the judge must determine whether the case presented as a precedent covers essentially the same facts or whether it can be distinguished. If the facts can be distinguished or differentiated the case is not a binding precedent.

12. What is included in Canada’s Constitution?

Legislation, conventions and court decisions considering the constitution form Canada’s Constitution. The British North America Act (now Constitution Act, 1867) is part of the legislation in the Canadian constitution. The legislation in the Canadian constitution also contains many subsequent important documents, such as: the Statute of Westminster (1931), the Constitution Act (1982) including the Charter of Rights and Freedoms, plus any amendments that have taken place. The various statutes having constitutional standing in Canada are now listed in an appendix to the Constitution Act (1982). In addition to these, the Canadian constitution contains all of the great provisions of England’s constitution, such as: the Magna Carta, the English Bill of Rights, and the many unwritten constitutional conventions, such as the principle of the rule of law. Court decisions considering the constitution form binding precedents that become part of the Canada’s constitution.

13. What is the effect of sections 91 and 92 of the Constitution Act, 1867 formerly the British North America Act? Sections 91 and 92 of the Constitution Act, 1867 divide powers between the federal and provincial governments. Section 91 assigns certain areas of legislative power to the federal government and Section 92 assigns other powers to the provincial governments. It is this separation of powers between the federal and provincial governments that is the foundation of our federal system.

14. How did the Constitution Act, 1867 limit the power of the federal and provincial governments? How is it possible, given that division of powers, to have identical provisions in both federal and provincial legislation and have both be valid?

The Constitution Act, 1867 originally referred to as the British North America Act, assigns certain areas of governmental control to either the federal or provincial governments for their exclusive jurisdiction. Since the Act deals with types of legislation there may be overlap between the powers of the two levels of government. For example, the provincial government can pass legislation making a particular type of activity illegal because it interferes with health and the federal government can make that same activity illegal because it is a crime.

15. Explain what is meant by the doctrine of paramountcy. When does the doctrine apply?

Since it is possible to have valid federal and valid provincial legislation dealing with the same activity, it is also possible to have conflict. When it is not possible for a person to obey both laws the doctrine of paramountcy declares that the federal legislation must be obeyed and that the provincial legislation is inoperative to the extent of the conflict.

16. Describe the limitations on the federal or provincial governments’ power to delegate their authority to make laws.

The federal and provincial governments cannot delegate their power to make laws. They can delegate the administration of the laws to another body, such as an administrative tribunal.

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Instructor’s Manual for Business Law in Canada, 12th Edition 17. Explain how the Constitution Act, 1982, including the Charter of Rights and Freedoms affects the doctrine of supremacy of Parliament.

The Constitution Act, 1982, including the Charter of Rights and Freedoms, places many areas beyond the power of either the provincial or federal governments. Many important rights and freedoms as set out in the Charter cannot be changed or modified without a constitutional amendment, so in those areas Parliament is no longer supreme. The courts now have the power to declare legislation passed by either the provincial or federal governments as unconstitutional, not because it encroaches on the other’s jurisdiction but simply because it is inconsistent with the Charter of Rights and Freedoms.

18. Explain any limitations that apply to the rights and freedoms listed in the Charter.

Section 1 limits our rights when reasonable to do so in a free and democratic society. Section 33 allows government to pass legislation contrary to certain sections of the Charter as long as they state they are doing so at the time. The exemption lasts for only five years but may be renewed at the end of that period.

19. Give examples of democratic rights, mobility rights, legal rights, and equality rights as protected under the Charter.

Democratic rights - right to vote, that elections be held. Mobility rights - the right for citizens to live, work and travel freely in Canada. Legal rights - right to life, liberty, security. Equality rights - the right not to be discriminated against on the basis of sex, religion, race, national origin, etc.

Give examples of three other types of rights protected under the Charter.

Language rights - French and English are guaranteed as the official languages of Canada.

Parliamentary debates - Everyone has the right to use English or French. Aboriginal rights - The Charter will not abrogate aboriginal, treaty or other rights of aboriginal peoples.

20. Explain the limitations that apply to human rights legislation in Canada. Does the Canadian Human Rights Act, for example, address all discrimination?

It only addresses the grounds for discrimination in the areas of society which are described in the legislation. The Canadian Human Rights Act does not address all discrimination. For example, a federally regulated facility containing a restaurant is legally able to only hire attractive servers, so long as they do not discriminate against any applicants on any of the prohibited grounds such as age or physical disability.

21. How do human rights codes differ in their application from the Charter of Rights and Freedoms.

The Charter only deals with our relationships with government and government institutions. The human rights codes govern our relationships with each other and non governmental institutions such as corporations.

Chapter 2: Introduction to the Legal System Solutions to Cases 1. R. v. Clough, 2001 BCCA 613 (CanLII) Clough could argue the trial judge was to take in consideration the court’s judgment for Kozma to receive a conditional sentence. The trial judge was not supposed to pass his own judgment on the court’s ruling of Kozma. Clough could then argue that her circumstances were similar to Kozma and the trial judge must impose the same conditional sentencing. Clough could argue on the principle of stare decisis that the judge of the BC court should be bound by the decision of the judge of the BC Court of Appeal since they are in the same judicial system.

2. R. v. Spratt, 2008 BCCA 340 (CanLII); application for leave to appeal to the Supreme Court dismissed June 18, 2009 The British Columbia Court of Appeal held that the intent of the Access to Abortion Services Act to allow safe access to health care services justified a limitation on the freedom of expression protected under Section 2 of the Charter. The court of Appeal pointed out it was only small limitation and therefore the rights of the patients were found to be paramount.

3. Daniels v. Canada (Indian Affairs and Northern Development), 2016 SCC 12 There must be evidence that there is a “live controversy” among the parties. There is no need to provide evidence to delineate which mixed ancestry groups are non-status Indians and which are Métis. Evidence about the historical, philosophical, and linguistic contexts establish that “Indians” in s. 91(24) of the Indian Act includes all Aboriginal peoples, including non‑status Indians and Métis.

4. Basile v. Attorney General of Nova Scotia, [1984] N.S.J. No. 337 N.S.S.C. (App. Div.) Mr. Basile challenged this decision as a violation of his mobility rights under the Charter of Rights and Freedoms. This was clearly an infringement of the mobility rights under the Charter, which gave any Canadian the right to travel to and earn a living in any part of the country. The main difficulty was to decide whether this fell into one of the exceptions set out in either section 6(3)(a) (laws of general application) or the reasonable limitation clause in section 1 of the Charter. The Court held that this did not qualify as a law of general application, since it was directed at one specific group—non-residents. Further, since no evidence had been presented that would support the argument that this was a reasonable limitation as required under section 1 of the Charter, Mr. Basile was successful, and the offending section was declared by the Court to be “of no force and effect.” Accordingly the remedy Mr. Basile received was to be permitted to carry out door-to-door sales in Nova Scotia.

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.5 E) The businessperson is facing criminal charges.

Answer: C Diff: 3 Type: MC Page Ref: 6 Topic: Ch. 1 - When to Represent Yourself Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom’s Taxonomy: Knowledge

12) For sophisticated clients, the availability of an abundance of legal information online is 1.

2.

3.

4.

5.

A) a negative development, because online information is rarely accurate or helpful.

B) a positive development, because it means that they will no longer need to retain lawyers as part of their team.

C) a negative development, because accessing this information tends to be more costly than retaining a lawyer.

D) a positive development, because it provides greater access to information they can use as part of their decision-making process.

E) a neutral development, because lawyers are still the only ones able to access this information.

Answer: D Diff: 2 Type: MC Page Ref: 6

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When searching online for legal information, it is best to

13)

1.

A) trust that if it is published online, it must be accurate.

2.

B) never trust the information found on a website.

3.

C) use American sources, as they tend to be more comprehensive than Canadian ones.

4.

D) gauge the accuracy of the information by the look of the website.

5.

E) seek input from a lawyer when answers cannot be readily found.

Answer: E Diff: 2 Type: MC Page Ref: 6 Topic: Ch. 1 - When to Hire a Lawyer Skill: Recall Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge Sophisticated clients

14)

1.

A) do not need to retain a lawyer.

2.

B) know that it is better to hire a lawyer than to conduct research on one's own.

3.

C) are willing to pay for legal advice at any cost.

4.

D) tend to be embarrassed to request legal advice.

5.

E) have the skill and confidence to find basic legal information.

Answer: E Diff: 1 Type: MC Page Ref: 6 Topic: Ch. 1 - When to Hire a Lawyer Skill: Recall

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Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge The primary purpose of an initial consultation with a lawyer is

15)

1.

A) to arrange payment of the lawyer's fees up front.

2.

B) to develop strategies for dealing with the legal situation in question.

3.

C) for the prospective client to decide whether to retain the lawyer.

4.

D) for the prospective lawyer to help mediate the current dispute.

5.

E) to discuss the availability of Legal Aid.

Answer: C Diff: 2 Type: MC Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom’s Taxonomy: Knowledge

The decision to enter into the lawyer-client relationship should be

16)

1.

A) made quickly to ensure that no one else can retain your lawyer.

2.

B) solely up to the lawyer, as he or she is the one with the legal training.

3.

C) made primarily on the basis of cost.

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4.

D) a mutual decision made primarily on the basis of trust.

5.

E) solely up the client, as the client is the one paying for the services. Answer: D

Diff: 2 Type: MC Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Applied Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge

When someone refers you to a particular lawyer, you should

17)

1.

A) retain the lawyer regardless of who gave you the referral.

2.

B) gauge the referral on the basis of the level of trust you have for the person making the referral.

3.

C) retain the lawyer regardless of their area of practice.

4.

D) ensure the referral is from a family member rather than a mere friend.

5.

E) ignore the referral as irrelevant.

Answer: B Diff: 1 Type: MC Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge A lawyer referral service

18)

1.

A) will enable a businessperson to retain a lawyer without need for an initial consultation.

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2.

B) is an online fee-based service providing guaranteed results.

3.

C) regulates the legal profession in the interest of the public.

4.

D) provides the names and phone numbers of lawyers who practice in a particular area of law.

5.

E) is also known as "Legal Aid”.

Answer: D

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Diff: 2 Type: MC Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom’s Taxonomy: Knowledge

A provincial law society

19) 1.

A) is a self-governing body for lawyers.

2.

B) has as its mandate the provision of free legal services in the public

interest.

3.

C) operates primarily to offer low-cost legal advice to members.

4.

D) operates primarily to enhance the commercial interests of its

members.

5.

E) is a self-governing body for businesspeople seeking legal advice.

Answer: A

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Diff: 2 Type: MC Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall Objective: Chapter 1: 4. Explain how to find an appropriate lawyer. Bloom’s Taxonomy: Knowledge

The Canadian Bar Association is

20)

1.

A) the national society for legal aid services.

2.

B) a professional organization that represents judges and lawyers.

3.

C) focused on enhancing public safety in the liquor distribution

industry.

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4.

D) an organization responsible for reviewing lawyers' accounts.

5.

E) a disciplinary body for members of the legal profession.

Answer: B Diff: 3 Type: MC Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge When setting up a small business, the best approach to follow is to assume that after the business has been set up and commences operating, 21)

1.

A) the lawyer you chose to assist you in the start-up of the business will continue to represent you.

2.

B) the lawyer you chose to assist you in the start-up of the business will refer you to a different lawyer.

3.

C) a lawyer will no longer be required.

4.

D) you will not need legal advice, as long as you are a sophisticated client.

5.

E) the lawyer you chose to assist you in the start-up of the business will provide free legal services for the duration of the business's operation.

Answer: A Diff: 2 Type: MC Page Ref: 9 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Applied Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge

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Which of the following is not an advantage to maintaining an ongoing relationship with your lawyer?

22)

1.

A) The lawyer will know and understand you and your business.

2.

B) The lawyer will be able to provide legal advice more efficiently, thereby reducing your legal costs.

3.

C) The lawyer will be able to customize legal advice so it will be even more useful to you.

4.

D) The lawyer will automatically track your business activities so that he or she can provide constant advice and guidance.

5.

E) The lawyer will be motivated to do even more for the client.

Answer: D Diff: 2 Type: MC Page Ref: 9 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Applied Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge

Legal fees

23)

1.

A) are always calculated in a single, specified way.

2.

B) should not be discussed with a lawyer until a bill has been prepared.

3.

C) are typically negligible.

4.

D) should be discussed during the initial consultation with the lawyer.

5.

E) are rarely the subject of confusion or misunderstanding.

Answer: D

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Diff: 1 Type: MC Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Recall Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge Which of the following statements is true?

24)

1.

A) It is a popular misconception that legal services can be very costly.

2.

B) Some people don't retain lawyers even when they need them because they are afraid of the cost.

3.

C) All legal matters are billed to clients on an hourly basis.

4.

D) It is considered unprofessional to raise the issue of fees during a consultation with a lawyer.

5.

E) Lawyers should always be retained, regardless of the cost.

Answer: B Diff: 2 Type: MC Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Recall Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

Contingency fee agreements

25)

1.

A) are typically used for real estate purchases, the drafting of wills, and incorporations.

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2.

B) are not subject to any restrictions.

3.

C) are synonymous with retainer agreements.

4.

D) may result in a lawyer not receiving any legal fees for the work done on a file.

5.

E) must be prepared for all lawyer-client relationships.

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Answer: D Diff: 2 Type: MC Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

Which of the following statements regarding provincial law societies is false?

26)

1.

A)Provincial

lawsocietiesmayrestricttheuseofcontingencyfeeagreements.

2. B) Provincial law societies may set maximum contingency fees for certain types of cases.

4.PDro) vincial law societies provide online information on lawyers' fees.

3. C)Provincial lawsocieties mayofferafeemediationservice.

5. E) Provincial law societies provide free legal services to people in need.

Answer: E Diff: 2 Type: MC Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

Typically, lawyers bill their fees on the basis of which of the following?

27)

1.

A) A fixed fee, an hourly rate, or a contingency fee

2.

B) A fixed fee, a pro rata distribution, or a contingency fee

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4.

D) A stipend, an hourly rate, or a contingency fee

5.

E) A fixed fee, a stipend, or a pro rata distribution

Answer: A Diff: 1 Type: MC Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Recall Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

Which of the following statements regarding retainers is false?

28)

1.

A) Before commencing work on a matter for a new client, a lawyer usually requests that a retainer be paid.

2.

B) Provincial law societies typically restrict the use of retainers to personal injury or product liability cases.

3.

C) A retainer is deposited into a trust account to the credit of the client.

4.

D) The lawyer may require the client to "top up” the retainer as funds are withdrawn from the trust account to pay legal bills.

5.

E) A retainer helps ensure that lawyers will be paid for their legal services.

Answer: B Diff: 3 Type: MC Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

29)

Aretainer

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Bloom's Taxonomy: Knowledge 1.

A) works to secure the release of an arrested person.

2.

B) refers to the costs incurred by a lawyer on a client's behalf.

3.

C) is the amount a lawyer will receive when charging based on a contingency fee agreement.

4.

D) works as a deposit.

5.

E) is the amount a client must pay that is in addition to regular legal fees and disbursements.

Answer: D Diff: 1 Type: MC Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Recall Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

Legal aid is

30)

1.

A) universally available, regardless of subject matter or financial need.

2.

B) available to anyone who can demonstrate financial need, regardless of subject matter.

3.

C) available exclusively for criminal law issues, subject to demonstrated financial need.

4.

D) only available for business law issues.

5.

E) available subject to substantive and financial eligibility requirements.

Answer: E Diff: 2 Type: MC Page Ref: 10

Skil:Recal

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Topic: Ch. 1 - Legal Aid Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

Which of the following statements is most accurate?

31)

1.

A) If you have a legal problem and cannot afford a lawyer, you may be eligible for legal aid.

2.

B) If you have a legal problem and cannot afford a lawyer, one will be provided for you.

3.

C) If you qualify for legal aid, you will automatically be exempt from all legal costs.

4.

D) Everyone qualifies for legal aid.

5.

E) Everyone can afford a lawyer.

Answer: A Diff: 1 Type: MC Page Ref: 31 Topic: Ch. 1 - Legal Aid Skill: Recall Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

If you collect money as a result of a settlement or judgment obtained through the assistance of legal aid, you will 32)

1.

A) probably have to repay some or all of the legal aid benefits you received.

2.

B) probably be ineligible to enforce the settlement or judgment if the debtor refuses to pay.

3.

C) probably be able to keep the full amount of the settlement of judgment.

Skil:Recal

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5.

E) be required to turn the amount of the settlement or judgment over to the court.

Answer: A Diff: 3 Type: MC Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Applied Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

A small business owner

33)

1.

A) is wise to obtain legal aid for business matters rather than having to incur legal costs.

2.

B) is automatically entitled to legal aid assistance.

3.

C) is usually not able to receive legal aid with respect to the type of legal issues involving the business.

4.

D) should always use duty counsel rather than having to retain a lawyer.

5.

E) should retain duty counsel to draft contracts outlining legal duties.

Answer: C Diff: 2 Type: MC Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Applied Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

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Which of the following statements regarding duty counsel is accurate?

34)

1.

A) Duty counsel can provide limited assistance in certain court matters.

2.

B) Duty counsel are available to assist in a wide range of business law issues.

3.

C) There is an advantage to using duty counsel rather than retaining one's own lawyer.

4.

D) Duty counsel typically take on your entire case and represent you at trial.

5.

E) There is a lengthy application process to obtain duty counsel.

Answer: A Diff: 3 Type: MC Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Recall Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge Duty counsel are typically available

35)

1.

A) for small claims and real estate disputes.

2.

B) in superior court bankruptcy matters.

3.

C) for commercial litigation.

4.

D) in criminal courts, family courts, or immigration hearings.

5.

E) to review and draft a variety of contracts.

Answer: D Diff: 2 Type: MC Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Applied

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Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge Duty counsel are

36)

1.

A) lawyers who assist individuals in court who are not represented by a lawyer.

2.

B) non-lawyers who provide advice to those in financial need.

3.

C) legal assistants who offer legal services at rates significantly lower than those charged by lawyers.

4.

D) retired lawyers and judges who volunteer through legal aid societies.

5.

E) law students who are fulfilling requirements established by a provincial law society.

Answer: A Diff: 2 Type: MC Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Recall Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

Provincial law societies

37)

1.

A) exist primarily to assist clients with complaints concerning fees.

2.

B) provide compensation to clients who are unhappy with legal services.

3.

C) guarantee success in litigation matters.

4.

D) among other things, deal with complaints regarding a lawyer's conduct.

5.

E) are non-profit law firms offering a range of legal services.

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Answer: D Diff: 2 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

If you have a complaint about the fees being charged by your lawyer

38)

1.

A) you should not discuss your concerns with your lawyer directly.

2.

B) you can have your bill reviewed by a court official.

3.

C) you must participate in a fee mediation service.

4.

D) your provincial law society represents your only course of action.

5.

E) you should begin by commencing a court action.

Answer: B Diff: 2 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

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Fee mediation

39)

1.

A) is compulsory whenever a client raises a concern about a lawyer's bill.

2.

B) is offered by every provincial law society as the primary means of dispute resolution for complaints regarding lawyers' fees.

3.

C) involves a review of a lawyer's bill by a court official.

4.

D) involves a judge who determines whether or not a lawyer's bill is reasonable.

5.

E) involves a neutral mediator who tries to facilitate a mutually acceptable resolution of a dispute over fees charged by a lawyer.

Answer: E Diff: 3 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

A client who is unable to resolve a fee dispute with a lawyer can have the lawyer's bill reviewed by a court official. These court officials have the power to 40)

1.

A) impose fines on either the client or the lawyer.

2.

B) order that a lawyer be taken into custody.

3.

C) leave the bill unchanged or decide that the bill is too high and reduce it accordingly.

4.

D) require that the client and lawyer attend fee mediation.

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5.

E) authorize compensation to be paid by the provincial law society.

Answer: C Diff: 2 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

A provincial law society's complaint-resolution process usually begins with

41)

1.

A) an attempt at mediating the dispute between the client and the lawyer.

2.

B) a review of the complaint by a court official.

3.

C) a formal investigation.

4.

D) a hearing before a panel.

5.

E) oral submissions by legal counsel.

Answer: A Diff: 2 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Recall Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's

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Taxonomy: Knowledge Complaints made to the provincial law society regarding a lawyer's conduct may result in a hearing. This hearing 42)

1.

A) results in compensation being paid to the client who made the complaint.

2.

B) involves the testimony of witnesses and the entering of other evidence.

3.

C) is held in the absence of legal counsel.

4.

D) is held before a superior court judge.

5.

E) can result in a finding of misconduct, although the law society does not have the power to impose penalties.

Answer: B Diff: 3 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge If you cannot resolve a fee dispute with your lawyer, you could

43)

1.

A) have your bill reviewed by the appropriate court official.

2.

B) refuse payment on ethical grounds.

3.

C) refuse payment on legal grounds.

4.

D) sue your lawyer for non-payment.

5.

E) make a formal complaint to the bar association.

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Answer: A Diff: 1 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Recall Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

If a law society panel finds a lawyer guilty of misconduct, the penalty could include all of the following except 44)

1.

A) a fine.

2.

B) a suspension.

3.

C) disbarment.

4.

D) incarceration.

5.

E) costs of the hearing.

Answer: D Diff: 1 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Recall Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge 45)

If you believe that you have suffered a financial loss because of your lawyer's misconduct

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1.

A) you should wait as long as possible before you proceed.

2.

B) you should have the matter reviewed by a taxation or assessment officer.

3.

C) you may be compensated by the bar association at the end of their investigation.

4.

D) you may need to seek legal advice from another lawyer.

5.

E) you will automatically be awarded compensation by the provincial law society at the end of their hearing.

Answer: D Diff: 2 Type: MC Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

Lawyers' rules of professional conduct

46)

1.

A) are recommended guidelines only.

2.

B) will, if breached, automatically result in a lawyer facing criminal charges.

3.

C) establish professional and ethical obligations of lawyers.

4.

D) are established by the Canadian Bar Association.

5.

E) are generally not taken seriously by members of the legal profession.

Answer: C

Diff:2Type:MCPageRef:11

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Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Recall Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

Which of the following statements best describes the difference between law and ethics?

47)

1.

A) Ethics tells us what we must do; law tells us what we should do.

2.

B) Law tells us what we must do; ethics tells us what we should do.

3.

C) Law and ethics are interchangeable.

4.

D) If people act unethically, they have broken the law.

5.

E) People need not worry about acting legally, as long as they act ethically. Answer: B

Diff: 1 Type: MC Page Ref: 12 Topic: Ch. 1 - Ethics Skill: Recall Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

The Canadian “Code of Professional Conduct” for business people

48)

1.

A) establishes the professional and ethical obligations of businesspeople.

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2.

B) was created by the provincial business society.

3.

C) has been used to prosecute a number of high-profile cases.

4.

D) is the same as the lawyers' code of conduct.

5.

E) does not exist.

Answer: E Diff: 3 Type: MC Page Ref: 13 Topic: Ch. 1 - Ethics of Clients Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

Sophisticated clients who are starting a business should

49)

1.

A) make a commitment to ethical behaviour and prepare a statement of values.

2.

B) only concern themselves with ethical behaviour that is required by law.

3.

C) consult a lawyer about how to engage in unethical behaviour undetected.

4.

5.

D) refrain from reporting illegal or unethical behaviour.

E) opt not to prepare a code of conduct because of potential liability exposure in the event of a breach.

Answer: A Diff: 1 Type: MC Page Ref: 13 Topic: Ch. 1 - Ethics of Clients Skill: Recall Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

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Bloom's Taxonomy: Knowledge

You can enhance the success of your business by

50)

1.

A) personally adopting core values and incorporating them into a code of conduct for the business.

2.

B) incorporating core values into a code of conduct, regardless of whether or not you adopt those values personally.

3.

C) relying on the Canadian Code of Professional Conduct for Businesspeople.

4.

D) retaining a lawyer who is willing to engage in unethical conduct on your behalf.

5.

E) not seeking legal advice in cases where your conduct may be questionable, as you will then be bound by the lawyer's code of professional conduct.

Answer: A Diff: 2 Type: MC Page Ref: 15 Topic: Ch. 1 - Code of Business Conduct Skill: Recall Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

Which of the following does not represent a core ethical value identified by the Josephson Institute for Ethics?

51)

1.

A) Respect

2.

B) Fairness

3.

C) Courage

4.

D) Caring

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5.

E) Citizenship

Answer: C Diff: 3 Type: MC Page Ref: 15 Topic: Ch. 1 - Code of Business Conduct Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge According to the Josephson Institute for Ethics, the core ethical value of trustworthiness has as its supporting ethical principles 52)

1.

A) respect, autonomy, courtesy, self-determination.

2.

B) justice, fairness, impartiality, equity.

3.

C) caring, kindness, compassion.

4.

D) citizenship, philanthropy, voting.

5.

E) truthfulness, sincerity, candor, integrity, promise keeping, loyalty, honesty.

Answer: E Diff: 3 Type: MC Page Ref: 16 Topic: Ch. 1 - Code of Business Conduct Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

53)

A sophisticated client knows how to form and use the solicitor-client relationship to facilitate

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making good business decisions.

Answer: TRUE Diff: 1 Type: TF Page Ref: 2 Topic: Ch. 1 - “I Think I Need Legal Advice..."

Skill: Recall Objective: Chapter 1: 1. Explain the meaning of “sophisticated client."

Bloom's Taxonomy: Knowledge

Generally, good business decisions cannot be made without consideration of the appropriate laws.

54)

Answer: TRUE

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Diff: 1 Type: TF Page Ref: 2 Topic: Ch. 1 - Becoming a Sophisticated Client Skill: Recall Objective: Chapter 1:1. Explain the meaning of “sophisticated client.”

Bloom’s Taxonomy: Knowledge

Sophisticated clients never conduct legal research on their own, but always seek advice from a lawyer.

55)

Answer: FALSE Diff: 2 Type:TF Page Ref: 2 Topic: Ch. 1 - Becoming a Sophisticated Client Skill: Recall Objective: Chapter 1:1. Explain the meaning of “sophisticated client.”

Bloom’s Taxonomy: Knowledge

56)

It is always wise to retain legal counsel when you are facing criminal

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charges.

Answer: TRUE Diff: 3 Type:TF Page Ref: 7 Topic: Ch. 1 - When to Represent Yourself Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself. Bloom’s Taxonomy: Knowledge In making business decisions involving legal issues, sophisticated clients will tend to complete some research of the relevant law on their own.

57)

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Answer: TRUE Diff: 3 Type: TF Page Ref: 7 Topic: Ch. 1 - Reducing Risk Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself. Bloom's Taxonomy: Knowledge

The time and cost to be incurred by hiring a lawyer is irrelevant. It is always worthwhile to get legal advice from a lawyer.

58)

Answer: FALSE Diff: 2 Type: TF Page Ref: 7 Topic: Ch. 1 - When to Hire a Lawyer Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge

59)

In the lawyer-client relationship, the decision-maker is the lawyer, not the client.

Answer: FALSE Diff: 3 Type: TF Page Ref: 3

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Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

60)

Solicitor-client privilege refers to the lawyer making all the decisions for the client.

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Answer: FALSE Diff: 3 Type: TF Page Ref: 4 Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

The solicitor-client privilege refers to the duty of the lawyer to keep the information provided by the client confidential.

61)

Answer: TRUE Diff: 3 Type: TF Page Ref: 4 Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

Sophisticated clients understand that success depends on good business decisions, and good business decisions depend on appropriate information (including legal information).

62)

Answer: TRUE Objective:Chapter1:3.Identifywhentohirealawyerandwhentorepresentyourself. Bloom's Taxonomy:Knowledge

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Diff: 1 Type: TF Page Ref: 6 Topic: Ch. 1 - When to Represent Yourself Skill: Recall There is sufficient information in the Yellow Pages to help a person decide whether a particular lawyer would be appropriate.

63)

Answer: FALSE Diff: 1 Type: TF Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge

Given the growing complexity of the law and the consequence that more lawyers specialize, a business person might have multiple lawyers.

64)

Answer: TRUE Diff: 2 Type: TF Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Applied Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge

Bloom'sTaxonomy:Knowledge

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65)

A retainer is the amount a client must pay to a lawyer over and above regular legal fees.

Answer: FALSE Diff: 3 Type: TF Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

66)

Provincial law societies may restrict the use of contingency fee agreements.

Answer: TRUE Diff: 3 Type: TF Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

67)

Most provinces set a minimum contingency fee for family law cases.

Answer: FALSE Diff: 2 Type: TF Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Bloom'sTaxonomy:Knowledge

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Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

68)

It is more advantageous to retain your own lawyer than to simply use duty counsel. Answer:

TRUE Diff: 2 Type: TF Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Applied

Objective:Chapter1:6.Describelegalaid.

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Bloom's Taxonomy: Knowledge Small business owners are usually able to receive legal aid with respect to the legal issues involving the business.

69)

Answer: FALSE Diff: 2 Type: TF Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Recall Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

A complaint made to the provincial law society about a lawyer's conduct does not result in compensation being paid to the client who made the complaint.

70)

Answer: TRUE Diff: 2 Type: TF Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge

Clients who believe that they have suffered financial loss due to their lawyer's misconduct should not procrastinate as limitation periods will exist.

71)

Answer: TRUE

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Diff: 2 Type: TF Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied

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Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

If a complaint regarding a lawyer's conduct cannot otherwise be resolved, and the law society decides the complaint is valid, then the lawyer will face automatic disbarment.

72)

Answer: FALSE Diff: 2 Type: TF Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge

73)

Ethical behaviour implies integrity, honesty, and professionalism.

Answer: TRUE Diff: 1 Type: TF Page Ref: 11 Topic: Ch. 1 - Ethics Skill: Recall Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge Topic:Ch.1-EthicsofLawyersSkil:Recal

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74)

A code of professional conduct is needed because the vast majority of lawyers are

unethical.

Answer: FALSE Diff: 1 Type: TF Page Ref: 12

Topic:Ch.1-EthicsofLawyersSkil:Recal

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Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge Compliance with a code of ethics in an organization is unrelated to whether or not top management practices ethical behaviour.

75)

Answer: FALSE Diff: 2 Type: TF Page Ref: 14 Topic: Ch. 1 - Ethics of Clients Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

In 2005, Canada was ranked number one in the world on a list of countries perceived to be free of corruption.

76)

Answer: FALSE Diff: 3 Type: TF Page Ref: 14 Topic: Ch. 1 - Ethics of Clients Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

Core ethical values, and their supporting ethical principles, should be used as the basis for a business code of conduct.

77)

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Answer: TRUE Diff: 2 Type: TF Page Ref: 16 Topic: Ch. 1 - Code of Business Conduct Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

What term can be used to describe someone who understands the role of a lawyer, when and how to retain one, and how to manage the lawyer-client relationship?

78)

Answer: A sophisticated client.

Diff: 1 Type: ES Page Ref: 3 Topic: Ch. 1 - Becoming a Sophisticated Client Skill: Recall Objective: Chapter 1: 1. Explain the meaning of “sophisticated client.”

Bloom's Taxonomy: Knowledge

79)

In the lawyer-client relationship, who is the decision-maker?

Answer: The client.

Diff: 1 Type: ES Page Ref: 3 Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Examine the role of the lawyer.

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Bloom's Taxonomy: Knowledge

When making significant business decisions, when should business people consult their lawyers?

80)

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 need advice regarding the information they find.

Diff: 2 Type: ES Page Ref: 4 Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

81)

When must a lawyer follow a client's instructions?

Answer: When those instructions are lawful and not unethical.

Diff: 2 Type: ES Page Ref: 4 Topic: Ch. 1 - The Role of the Lawyer Skill: Applied Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

82)

What is the main role of a lawyer?

Answer: To provide legal advice relevant to a client's situation.

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Diff: 1 Type: ES Page Ref: 4 Topic: Ch. 1 - The Role of the Lawyer Skill: Recall Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

83)

Why might a business person have more than one lawyer?

Answer: Given the growing complexity of the law, more lawyers are specializing. If a businessperson faced a wide variety of legal issues, more than one lawyer might be needed.

Diff: 2 Type: ES Page Ref: 5 Topic: Ch. 1 - When to Hire a Lawyer Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge

What must a business person consider before asking a lawyer for assistance in making a business decision?

84)

Answer: The time and cost, and whether the client could effectively find and understand the relevant information.

Diff: 2 Type: ES Page Ref: 5 Topic: Ch. 1 - When to Hire a Lawyer Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

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Bloom's Taxonomy: Knowledge

Why is it unnecessary (and undesirable) for a client to seek legal advice for every decision she must make?

85)

Answer: Because this can be prohibitively expensive and can result in delays in the client's decision-making.

Diff: 1 Type: ES Page Ref: 5 Topic: Ch. 1 - When to Represent Yourself Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge If a businessperson cannot find important legal information or cannot understand the information which is found, what should be done?

86)

Answer: The businessperson should consult a lawyer.

Diff: 1 Type: ES Page Ref: 5 Topic: Ch. 1 - When to Hire a Lawyer Skill: Recall Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge 87)

When will sophisticated clients do their own legal research?

Answer: Whenever legal information is necessary to make a business decision and it is not necessary to hire a lawyer for advice about the information.

Diff: 2 Type: ES Page Ref: 6

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Topic: Ch. 1 - When to Represent Yourself Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge

88)

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.

Diff: 2 Type: ES Page Ref: 6 Topic: Ch. 1 - When to Represent Yourself Skill: Recall Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself.

Bloom's Taxonomy: Knowledge 89)

How has the lawyer-client relationship been affected by computers and the Internet? Answer:

There is now an abundance of legal information accessible to non-lawyers, making it possible for non-lawyers to conduct some legal research without the assistance of a lawyer. Diff: 2 Type: ES Page Ref: 6 Topic: Ch. 1 - When to Represent Yourself Skill: Applied Objective: Chapter 1: 3. Identify when to hire a lawyer and when to represent yourself. Bloom's Taxonomy: Knowledge

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90)

Identify the sources you would consult when looking for an appropriate business lawyer.

Answer: Referrals from trusted colleagues, friends, and relatives; the Yellow Pages; other advertisements; and the relevant lawyer referral service.

Diff: 1 Type: ES Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge

Identify the advantages to a business person of maintaining an ongoing relationship with a lawyer.

91)

Answer: The lawyer will know and understand the client and the client's business. This will enable the lawyer to provide legal advice more efficiently (thereby reducing legal costs) and to customize legal advice (making it more useful). In addition, the lawyer will be more inclined to give priority to the longstanding client.

Diff: 2 Type: ES Page Ref: 8

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Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Applied Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom’s Taxonomy: Knowledge 92)

What is the Canadian Bar Association and what is its purpose?

Answer: The Canadian Bar Association is a professional organization representing judges and lawyers. Two of its purposes are to enhance the profession and the commercial interests of its members.

Diff: 3 Type: ES Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Applied Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom’s Taxonomy: Knowledge

93)

What is a provincial law society and what is its mandate?

Answer: A provincial law society is a self-governing body for lawyers in a province. Its mandate usually involves regulating the legal profession in the public interest.

Diff: 3 Type: ES Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Applied

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Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom’s Taxonomy: Knowledge

94)

List the three main ways in which lawyers may charge their clients.

Answer: Lawyers may charge their clients using fixed fees, hourly rates, and/or contingency fees.

Diff: 1 Type: ES Page Ref: 9

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Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Recall Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

95)

When is the fixed fee method of billing most often used?

Answer: Fixed fees are most often used for specific tasks such as preparing a will, purchasing a house, or incorporating a business.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

96)

In addition to legal fees, what other costs is a client responsible for paying?

Answer: Clients may be responsible for disbursements (out-of-pocket costs incurred by the lawyer on the client's behalf), other charges such as service charges of the firm for conducting searches, and applicable taxes on legal bills.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

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Bloom's Taxonomy: Knowledge 97)

What are disbursements and what do they generally include?

Answer: Disbursements are out-of-pocket costs incurred by the lawyer on the client's behalf. They typically include court filing fees, long distance telephone charges, courier charges, and expert fees.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

98)

What is a retainer?

Answer: A retainer works as a deposit. It is an amount paid by a client and deposited into a lawyer's trust account to the credit of the client. When the lawyer bills the client, the amount owing is taken from the retainer.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

99)

What is a contingency fee arrangement?

Answer: The lawyer is paid a percentage of the amount a client collects from settlement or judgment. If the client does not collect anything, the lawyer does not receive anything.

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Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Recall Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge 100)

When is a contingency fee agreement most often used?

Answer: Contingency fees are most often used in personal injury or product liability cases.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

101)

When should a client ideally first discuss the issue of fees with a lawyer?

Answer: Fees should be discussed during the initial consultation.

Diff: 1 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

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Is it more cost-effective to hire a senior lawyer with a high hourly rate or a junior lawyer with a low hourly rate? Explain.

102)

Answer: It depends. For example, if the senior lawyer is able to work more efficiently than the junior lawyer, the overall fee might be lower for the senior lawyer.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge 103)

How does a contingency fee agreement potentially benefit a client?

Answer: The client does not need to pay any legal fees unless and until a settlement or judgment is recovered. Without contingency fee arrangements, some clients would not be able to afford a lawyer at all.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

104)

What can you do if you cannot resolve a fee dispute with your lawyer?

Answer: You may be able to participate in a fee mediation service. If mediation is unsuccessful or if mediation is not available, you can have your lawyer's bill reviewed by a court official.

Diff: 2 Type: ES Page Ref: 9

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Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge

What should clients do if they believe they have suffered a financial loss because of their lawyer's misconduct?

105)

Answer: They should not procrastinate and may need to seek legal advice from another lawyer.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge

106)

Outline the steps of the law society's typical complaint-resolution process.

Answer: There is usually an attempt at mediation which, if unsuccessful, is usually followed by a formal investigation. This may result in a hearing before a panel. If the panel finds the lawyer guilty of misconduct, the lawyer faces a number of possible penalties.

Diff: 3 Type: ES Page Ref: 9 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

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Bloom's Taxonomy: Knowledge

107)

What is “duty counsel”?

Answer: Duty counsel refers to lawyers who assist individuals in court who are not represented by a lawyer.

Diff: 3 Type: ES Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Applied Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge 108)

Why should business owners not assume that legal aid will be available to them?

Answer: A business owner is usually not able to receive legal aid with respect to the legal issues involving the business due to both substantive and financial eligibility requirements.

Diff: 1 Type: ES Page Ref: 10 Topic: Ch. 1 - Legal Aid Skill: Applied Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

What may occur if you collect money as the result of a settlement or judgment obtained through assistance from legal aid?

109)

Answer: You will probably have to repay some or all of the benefits received from legal aid.

Diff: 3 Type: ES Page Ref: 10

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Topic: Ch. 1 - Legal Aid Skill: Applied Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

110)

What is disbarment?

Answer: Disbarment is termination of membership in the law society.

Diff: 2 Type: ES Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Recall Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge

111)

What penalties might lawyers who are found guilty of misconduct face?

Answer: Lawyers found guilty of misconduct may face reprimand, fine, suspension, disbarment, and payment of the costs of the hearing.

Diff: 2 Type: ES Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer.

Bloom's Taxonomy: Knowledge

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112)

Distinguish between law and ethics.

Answer: Law tells us what we must do, while ethics tells us what we should do.

Diff: 1 Type: ES Page Ref: 12 Topic: Ch. 1 - Ethics Skill: Recall Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge Provide three examples of conduct that fail to meet the standards of professional responsibility for lawyers.

113)

Answer: There are numerous possible responses. Examples provided in the text include failing to serve a client in a timely fashion, failing to respond to clients, failing to disclose to a judge that another judge had previously refused the same application, swearing a false affidavit, poor accounting of a trust account, improper transfers from trust accounts, and misappropriation of trust funds.

Diff: 3 Type: ES Page Ref: 12 Topic: Ch. 1 - Ethics of Lawyers Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge In addition to penalties from the provincial law society, in what else may a lawyer's misconduct result?

114)

Answer: If the behaviour is also criminal, the lawyer may face criminal charges. If the behaviour results in a client suffering a financial loss, the lawyer may also be sued.

Diff: 3 Type: ES Page Ref: 13

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Topic: Ch. 1 - Ethics of Lawyers Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

Provide three examples of issues that ought to be addressed in a business person's code of ethics.

115)

Answer: Examples could include conflicts of interest, protection and proper use of corporate assets and opportunities; confidentiality of corporate information; fair dealing; compliance with laws, rules, and regulations; and the reporting of any illegal or unethical behaviour.

Diff: 3 Type: ES Page Ref: 16 Topic: Ch. 1 - Ethics of Clients Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

116)

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.

Diff: 3 Type: ES Page Ref: 16 Topic: Ch. 1 - Code of Business Conduct Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

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Bloom's Taxonomy: Knowledge

117)

What is a code of business conduct?

Answer: A code of business conduct is a formal statement adopted by a business that sets out its values and standards of business practices, essentially codifying organizational values and establishing procedural norms and standards of expected behaviour.

Diff: 3 Type: ES Page Ref: 16 Topic: Ch. 1 - Code of Business Conduct Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge 118)

Why should a code of business conduct be used by a small business?

Answer: An effective code of conduct is one of the best ways to ensure the long-term adoption of ethical behaviour by employees.

Diff: 2 Type: ES Page Ref: 16 Topic: Ch. 1 - Code of Business Conduct Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

119)

What format must a code of business conduct take?

Answer: There is no prescribed format.

Diff: 2 Type: ES Page Ref: 16

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Topic: Ch. 1 - Code of Business Conduct Skill: Recall Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

What is a good way to ensure the long-term adoption of ethical behaviour of employees of a business?

120)

Answer: Create and use an effective code of conduct.

Diff: 3 Type: ES Page Ref: 16 Topic: Ch. 1 - Code of Business Conduct Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

121)

Explain what makes someone a “sophisticated client.”

Answer: A sophisticated client is someone who understands the role a lawyer plays, when to represent himself or herself, when and how to hire a lawyer, the costs associated with hiring a lawyer, what to expect from the solicitor-client relationship, and what to do if dissatisfied with a lawyer's conduct. A sophisticated client puts aside negative attitudes associated with lawyers and seeks timely legal advice. Here, students would be expected to discuss the ways in which a lawyer can help a business person make good business decisions.

Diff: 2 Type: ES Page Ref: 3 Topic: Ch. 1 - Becoming a Sophisticated Client Skill: Applied

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Objective: Chapter 1: 1. Explain the meaning of “sophisticated client.”

Bloom's Taxonomy: Knowledge

Explain, using examples, what advice and information a lawyer can provide to a person starting a business.

122)

Answer: Here students are expected to provide a variety of examples, including with regard to forms of business organization; purchase of another business or its assets; compliance with relevant municipal, provincial, or federal laws; lease negotiations; review of financing documents; review or preparation of other contracts; and advice regarding intellectual property issues.

Diff: 1 Type: ES Page Ref: 4 Topic: Ch. 1 - The Role of the Lawyer Skill: Applied Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

Explain how a business person would go about finding an appropriate lawyer, including a discussion of what makes a lawyer appropriate for a particular client.

123)

Answer: Here students should outline the search process, including suggesting sources of names of potential lawyers (from advertisements, referrals, the law society, etc.), and setting up a meeting for an initial consultation. Reference should be made to the importance of establishing mutual trust as the foundation for the lawyer-client relationship. It is not enough for a lawyer to be knowledgeable and successful. The lawyer must also practice in the relevant area and be someone whom the businessperson feels they can trust.

Diff: 1 Type: ES Page Ref: 8 Topic: Ch. 1 - How to Find an Appropriate Lawyer Skill: Recall

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Objective: Chapter 1: 4. Explain how to find an appropriate lawyer.

Bloom's Taxonomy: Knowledge

Explain the different ways in which a lawyer may calculate the legal fees to charge a client and provide examples of when each might be used.

124)

Answer: There are three main ways that lawyers calculate their fees. First, a lawyer may charge a fixed fee for the work required, regardless of the time spent. This is often used for specific tasks, such as purchase or sale of real estate, preparation of a will, or an incorporation. Second, the lawyer may bill on the basis of an hourly rate for time actually spent. This is very common for business issues. Third, the lawyer may receive a percentage of the amount the client collects through a settlement or judgment. This is often appropriate for personal injury claims or in product liability cases.

Diff: 2 Type: ES Page Ref: 9 Topic: Ch. 1 - How Lawyers Bill Their Clients Skill: Applied Objective: Chapter 1: 5. Review how lawyers bill their clients.

Bloom's Taxonomy: Knowledge

125)

Explain the concept of legal aid.

Answer: Legal aid is available in limited cases to assist those with legal problems who cannot afford a lawyer. The provision for legal aid varies across the country and applicants may be required to provide details as to financial and substantive eligibility requirements specific to their own province. In any event, students ought to note that not everyone qualifies for legal aid, that even those who qualify may have to pay some legal costs, and that benefits must be repaid in some circumstances. Of particular relevance, a small business owner is usually not able to receive legal aid with respect to the legal issues involving the business.

Diff: 2 Type: ES Page Ref: 10

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Topic: Ch. 1 - Legal Aid Skill: Applied Objective: Chapter 1: 6. Describe legal aid.

Bloom's Taxonomy: Knowledge

Outline the types of complaints a client may have about a lawyer and how the client should proceed in each instance.

126)

Answer: A client may have complaints regarding the fees charged by the lawyer. In this case, the client could attempt to deal with the lawyer directly, may have access to a fee mediation service, and can ultimately have the lawyer's bill reviewed by a court official. A client may have complaints about a lawyer's conduct (other than related to fees). In this case, the client can go through the law society's complaint resolution process. Finally, a client may have suffered financial loss due to the lawyer's misconduct. In this case, the client should act quickly and may need to seek legal advice from another lawyer.

Diff: 3 Type: ES Page Ref: 11 Topic: Ch. 1 - How to Complain About Your Lawyer Skill: Applied Objective: Chapter 1: 7. Outline the procedure to follow to complain about your lawyer. Bloom's Taxonomy: Knowledge

127)

Do business people make good ethical choices? Explain, providing examples.

Answer: Here students should recognize that while many businesspeople do conduct themselves in an ethical manner, not all businesspeople make good ethical choices. There is no general code of professional conduct for businesspeople, and there have been many high-profile cases of businesspeople engaging in questionable activities.

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Diff: 3 Type: ES Page Ref: 14 Topic: Ch. 1 - Ethics of Clients Skill: Applied Objective: Chapter 1: 8. Discuss the ethics of lawyers and clients.

Bloom's Taxonomy: Knowledge

Business Law in Canada, 11e (Yates) Chapter 2 Introduction to the Legal System

In a CBC interview, a noted environmentalist said that if he were forced to choose between the lives of the last breeding pair of whales and those of a boatload of men who were out to kill them, he would sacrifice the men to save the whales. He cited the war-crimes trials after World War II for the principle that immoral laws should be resisted to protect “the higher good.” This position exemplifies which of the following?

1)

1.

A) Legal realism

2.

B) Legal positivism

3.

C) The law of the sea

4.

D) Natural law

5.

E) The law of equity

Answer: D Diff: 2 Type: MC Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Applied

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Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada.

Bloom's Taxonomy: Knowledge

2)

Which of the following is correct with respect to the definition of law?

1.

A) Law defined in moral terms is a reflection of legal positivism.

2. B)

Law defined in terms of authority

is a reflection of legal realism.

3. C) Law defined in practical terms as legal positivism.

to what the court will do is a reflection of

4. D)

Law defined in terms of morality

is a reflection of natural law theory.

5. E)

Law defined in terms of authority

is a reflection of natural law theory.

Answer: D Diff: 2 Type: MC Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Applied Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada.

Bloom's Taxonomy: Knowledge

3)

Which of the following is the most usable definition of law?

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1.

A) It is most useful to us to define law in terms of what we think people ought to do.

2.

B) It is most useful to us to define law in terms of what people do.

3.

C) We must define law in terms of what the courts or other government bodies will enforce.

4.

D) We must define law in terms of what society needs people to do.

5.

E) We must define law in terms of what people used to do.

Answer: C Diff: 1 Type: MC Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada.

Bloom's Taxonomy: Knowledge

4)

Which of the following is an example of substantive law?

1.

A) The rule that a tort action must be commenced within 2 years of the action complained of

2.

B) The rule that establishes the type of document by which an action is commenced

3.

C) The rule that hearsay evidence is not permitted in a trial

4.

D) The rule that a victim of fraud can sue

5.

E) A rule that any action under $50,000 may be brought in the small claims court Answer: D

Diff: 1 Type: MC Page Ref: 21 Skil:Applied

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Topic: Ch. 2 - Categories of Law

Skil:Applied

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Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada.

Bloom’s Taxonomy: Knowledge

5)

Which of the following is true regarding categories of law?

1.

A) Substantive law establishes the rights an individual has in society.

2.

B) Private law includes constitutional law.

3.

C) Criminal law involves the rules that govern our personal, social, and business relations.

4.

D) Substantive law determines how procedural laws will be enforced.

5.

E) Procedural law establishes the limits on an individual's conduct.

Answer: A Diff: 1 Type: MC Page Ref: 21 Topic: Ch. 2 - Categories of Law Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom’s Taxonomy: Knowledge

6)

Which of the following is true regarding the history of the legal system used in England?

1.

A) Strained relations between the English and French kingdoms explain why England adopted Roman civil law as its system of justice.

2.

B) Historically, kings and nobles worked together to establish a common system of justice.

3.

C) The early Norman kings failed to establish a feudal system, which allowed Roman civil

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law to take hold in England.

4.

D) England alternately used common law and civil law legal systems, depending on the strength of the reigning king.

5.

E) During times when power was decentralized, local nobles would administer justice.

Answer: E Diff: 3 Type: MC Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

7)

In terms of the development of the common law legal system, which of the following is true?

1.

A) Historically, local lords, barons, or sheriffs held court as part of their feudal responsibility.

2.

B) Trial by battle involved some psychological test.

3.

C) Trial by ordeal involved armed combat between the litigants or their champions.

4.

D) Travelling courts, established by weak kings, provided a relatively unattractive method of resolving disputes.

5.

E) The courts of the nobles grew in power, eventually evolving into the modern courts of today.

Answer: A Diff: 2 Type: MC Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied

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Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

8)

The custom of following already decided cases is called 1.

A) stare decisis.

2.

B) a civil law system.

3.

C) a common law.

4.

D) res judicata.

5.

E) ultra vires.

Answer: A Diff: 1 Type: MC Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

Which of the following will override a particular province's common-law rule as articulated by a trial-court judge of the highest trial level court in the province?

9)

1.

A) A contrary subsequent ruling by the Court of Appeal of the province

2.

B) A new provincial statute to the contrary in another province

3.

C) A contrary ruling by a small claims court judge

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4.

D) A similar subsequent ruling by a trial-court judge in another province

5.

E) A contrary ruling by an appeal court judge in another province

Answer: A Diff: 2 Type: MC Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

Which one of the following statements is not accurate with respect to the Canadian legal system?

10)

1.

A) The three major components of present Canadian law are the common law, equity, and statutes.

2.

B) The traditional supremacy of parliament to make law has been limited to some extent by the Charter of Rights and Freedoms.

3.

C) The full normal route of a civil action is from a provincial trial court to a provincial Court of Appeal to the Supreme Court of Canada.

4.

D) The principle of stare decisisprovides that courts within a province are bound to follow previous decisions on the same legal point from the courts of other provinces.

5.

E) The original Canadian Constitution is now known as the Constitution Act (1867).

Answer: D Diff: 2 Type: MC Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied

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Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

Which of the following is correct with respect to the civil law system?

1)

1.

A) Quebec and New Brunswick use a system based on the FrenchCivil Code.

2.

B) The code is persuasive only and judges are free to disregard it where the situation warrants.

3.

C) The system used in Quebec is based on Justinian's code rather than the Napoleonic Code.

4.

D) The Civil Codegoverns all legal matters arising in Quebec including criminal actions.

5.

E) The Civil Codeas used in Quebec covers private disputes between individuals.

Answer: E Diff: 2 Type: MC Page Ref: 24 Topic: Ch. 2 - Civil Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

Which of the following is correct with respect to the characteristics of stare decisis in the common law?

12)

1.

A) It is based on trial by battle and trial by ordeal.

2.

B) It prevents a higher court from overruling a lower one.

3.

C) It allows decisions of the courts to be predictable.

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4.

D) Our statutes play the same role as the code used in the French system.

5.

E) This term refers to the role played by the law of equity in our system.

Answer: C Diff: 2 Type: MC Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge In R. v. Keegstra, the Supreme Court of Canada stated that

13)

1.

A) although the freedom of expression is violated by the Code, these infringements are justifiable under Section 1 of the Charter of Rights and Freedoms.

2.

B) the doctrine of stare decisisno longer applies.

3.

C) the decision of a subordinate court must always be followed, regardless of the specific facts of the case.

4.

D) decisions of the Supreme Court of Canada ought only be applied in federal cases.

5.

E) provincial Court judges have no authority to impose sentences in matters involving freedom of expression.

Answer: A Diff: 3 Type: MC Page Ref: 25 Topic: Ch. 2 - Common Law Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

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Which of the following is correct with respect to the law of Quebec?

14)

1.

A) The Civil Codeused in Quebec is a direct copy of the Napoleonic code used in France.

2.

B) The code is binding and prior cases are just persuasive.

3.

C) The Quebec Civil Codewas most recently revised in 1985.

4.

D) Once judges make decisions based on the code, it is those decisions that are binding on other judges faced with similar problems.

5.

E) The code used in Quebec is a variant of Justinian's code rather than the Napoleonic Code.

Answer: B Diff: 2 Type: MC Page Ref: 24 Topic: Ch. 2 - Civil Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

Which one of the following is not generally recognized as a source of the common law?

15)

1.

A) The law of equity

2.

B) The law merchant

3.

C) Local British customs and traditions

4.

D) Roman civil law

5.

E) Church (or canon) law

Answer: A Diff: 1 Type: MC Page Ref: 27

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Topic: Ch. 2 - Common Law Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

Which of the following statements best describes the law merchant?

16)

1.

A) The law merchant is a body of law designed to control trade practices.

2.

B) The law merchant is a body of law created by merchant guilds, part of which was incorporated into the common law.

3.

C) The law merchant was designed to protect consumers from unscrupulous merchants.

4.

D) Our laws relating to consumer protection are derived from the law merchant.

5.

E) The law merchant is another name for theSale of Goods Act.

Answer: B Diff: 1 Type: MC Page Ref: 27 Topic: Ch. 2 - Common Law Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

Which of the following will a judge not apply in a Canadian court?

17)

1.

A) Equitable principles

2.

B) Common law principles

3.

C) Statute law

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4.

D) Roman law

5.

E) Constitutional law

Answer: D Diff: 1 Type: MC Page Ref: 27 Topic: Ch. 2 - Common Law Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

The common law courts refers to

18)

1.

A) the Court of Common Pleas, the Court of King's Bench, and the Exchequer Court.

2.

B) the Court of Common Pleas, the Chancery Court, and the Exchequer Court.

3.

C) the Court of King's Bench, the Chancery Court, and the Exchequer Court.

4.

D) the Court of Common Pleas, the Court of King's Bench, and the Chancery Court.

5.

E) the Court of King's Bench, the Chancery Court, and the Court of Equity.

Answer: A Diff: 1 Type: MC Page Ref: 27 Topic: Ch. 2 - Common Law Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

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Which of the following was not one of the factors that led to the creation of the law of equity?

19)

1.

A) Rigidity in the common law courts

2.

B) Stare decisis

3.

C) The need for a supplement to the common law

4.

D) Unpredictable outcomes in the common law courts

5.

E) The adherence to precedent

Answer: D Diff: 2 Type: MC Page Ref: 27 Topic: Ch. 2 - Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge Which of the following is correct with respect to the law of equity?

20)

1.

A) Equity no longer exists.

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2.

B) Equity means fairness in our legal system.

3.

C) The Court of Equity was one of the original common law courts, along with the Court of King's Bench and the Court of the Exchequer.

4.

D) Equity refers to the body of law created by the Courts of Chancery.

5.

E) Equity refers to the amount still owing on a debt.

Answer: D Diff: 2 Type: MC Page Ref: 27 Topic: Ch. 2 - Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

At a recent computer show, you heard a student trying to explain our legal system to a man who recently immigrated from Russia. Which one of the student's statements, below, is correct?

21)

1.

A) All the provinces follow law that stemmed from the English common law.

2.

B) The chief characteristic of the common law is the theory of precedent. That is, judges are bound by decisions of judges of the same or higher courts in that jurisdiction on the same point of law.

3.

C) Today, we are governed by statutes passed by our elected representatives as well as by judge-made law.

4.

D) Judge-made law in England came from two traditions, civil law and parliamentary supremacy.

5.

E) With the creation of our court system, the equitable tradition was lost. Today a judge of our superior court does not apply principles or remedies developed by the courts of equity.

Answer: B Diff: 2 Type: MC Page Ref: 27 Topic:Ch.2-CommonLawLegalSystemSkil:Applied

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Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

Which of the following is true with regard to our legal system?

2)

1.

A) An appeal from the Supreme Court of Canada goes to the Federal Court of Appeal.

2.

B) Our Charter of Rights and Freedomsdiminishes the power of both the federal and provincial legislatures.

3.

C) Our constitution can be amended by the federal parliament acting alone.

4.

D) If a case were heard before a provincial trial level court, the judge could apply legal principles and award only cash remedies.

5.

E) Case law overrides the statute law on the same point.

Answer: B Diff: 2 Type: MC Page Ref: 27 Topic: Ch. 2 - Sources of Law Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge Which of the following statements about statutes is true?

23)

1.

A) Statutes only apply when there is no common law covering the situation.

2.

B) Statutes often summarize or modify canon law.

3.

C) A statute may be only federal.

4.

D) Government regulations are considered supreme to statute law.

5.

E) Statutes are laws created by legislative bodies.

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Answer: E Diff: 2 Type: MC Page Ref: 28 Topic: Ch. 2 - Statutes Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

Which of the following is correct with respect to the role of statutes in our legal system?

24)

1.

A) A statute, if it is clear and concise and properly passed, will always override common law and equity.

2.

B) In Canada, most new laws follow the Civil Codelegal system.

3.

C) Where a properly passed provincial statute is in conflict with a well-established common-law principle, the statute will be void.

4.

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.

5.

E) Only the federal parliament may enact statutes.

Answer: A Diff: 2 Type: MC Page Ref: 28 Topic: Ch. 2 - Sources of Law Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

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Which of the following statements is correct with respect to the sources of our law?

25)

1.

A) Equity is a system of law developed by the provincial legislatures.

2.

B) The common law derived aspects of the law of families and estates from the French Civil Code.

3.

C) The only province in which a judge is required to follow a comprehensive civil code is Ontario.

4.

D) The term stare decisisrefers to the practice of following precedent, which forms the basis of our common law system.

5.

E) The Courts of Chancery developed the law of contracts.

Answer: D Diff: 2 Type: MC Page Ref: 28 Topic: Ch. 2 - Sources of Law Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge With regard to the relationship between the judiciary (courts) and the legislatures, which of the following is true?

26)

1.

A) Statute law never overrides case law on the same point.

2.

B) The Supreme Court of Canada has the power to find the province didn't have the power to pass the statute, with the result that the statute would no longer be operative as a law.

3.

C) The courts cannot affect the meaning of the statute through subsequent interpretation.

4.

D) The Supreme Court of Canada cannot strike down any statute passed by the federal parliament because "Parliament is supreme.”

5.

E) A provincial statute cannot be struck down by the courts for being contrary to the Charter of Rights and Freedoms.

Answer: B

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Diff: 2 Type: MC Page Ref: 30 Topic: Ch. 2 - Law in Canada Skill: Recall Objective: Chapter 2: 6. Detail how legislation is created in the parliamentary system.

Bloom's Taxonomy: Knowledge

Which of the following is true with regard to Canada's Constitution?

27)

1.

A) The British North America Actof 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.

2.

B) The Charter of Rights and Freedomsis a part of the BNA Act, 1867.

3.

C) The Charter of Rights and Freedomscannot be amended by the federal parliament acting alone.

4.

D) The Constitution Act, 1982requires British Parliament to amend it.

5.

E) Our Constitution consists of only the Charter of Rights and Freedoms.

Answer: C Diff: 2 Type: MC Page Ref: 30 Topic: Ch. 2 - Confederation Skill: Applied Objective: Chapter 2: 4. Isolate the three elements of Canada's Constitution.

Bloom's Taxonomy: Knowledge

28)

Which of the following statements with respect to the power to prorogue (adjourn) Parliament

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is true?

1.

A) The decision of whether to prorogue Parliament or not rests with the Prime Minister.

2.

B) The Queen has exclusive power to prorogue Parliament.

3.

C) The decision of whether to prorogue Parliament or not rests with the Governor General.

4.

D) The decision to prorogue Parliament is specified in the Charter of Rights and Freedoms.

5.

E) The Governor General has the power to prorogue Parliament, but only if the opposition party agrees.

Answer: C Diff: 3 Type: MC Page Ref: 31 Topic: Ch. 2 - Law in Canada Skill: Recall Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge Which of the following is true with regard to Canada's Constitution?

29)

1.

A) The British North America Actof 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.

2.

B) The Charter of Rights and Freedomsis a part of the BNA Act, 1867.

3.

C) The Charter of Rights and Freedomscannot be amended by the federal parliament acting alone.

4.

D) The Constitution Act, 1982requires British Parliament to amend it.

5.

E) Our Constitution consists of only the Charter of Rights and Freedoms.

Answer: C Diff: 2 Type: MC Page Ref: 31 Topic: Ch. 2 - Constitution and Division of Powers

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Skill: Recall Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

With regard to the Constitution of Canada, which of the following is false?

30)

1.

A) Our Constitution provides for a federal system of government (i.e., for two levels of government, federal and provincial).

2.

B) The Constitution Act, 1867(formerly, the British North America Act) clarifies which matters can be dealt with by the provincial governments (i.e., the provincial legislatures).

3.

C) The Constitution Act, 1867was a statute passed by the British Parliament, but it is no longer necessary to have the British Parliament amend it if Canadians want it amended.

4.

D) The Constitution Act, 1982contains a Charter of Rights and Freedoms that curbs the power of the federal and provincial legislatures.

5.

E) Members of our federal parliament in Ottawa have been given the sole power to amend the Charter of Rights and Freedoms.

Answer: E Diff: 2 Type: MC Page Ref: 31 Topic: Ch. 2 - Constitution and Division of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

With regard to the Constitution of Canada, which of the following is true?

31)

1.

A) Our Constitution provides for a single system of government.

2.

B) The Constitution Act, 1982provides which matters can be dealt with only by the federal government.

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3.

C) The British Parliament can continue pass legislation that affects Canada's laws.

4.

D) The Constitution Act, 1982contains a Charter of Rights and Freedoms that curbs the power of the federal and provincial legislatures.

5.

E) Federal judges have been given the sole power to amend the Charter of Rights and Freedoms.

Answer: D Diff: 2 Type: MC Page Ref: 31 Topic: Ch. 2 - Constitution and Division of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge Jake was charged with an offence. Which of the following could not be a legitimate defence in any circumstances?

32)

1.

A) The legislation creating the offence is beyond the authority of the body that created the offence.

2.

B) The legislation violated his Charter

3.

C) He had a legal excuse for doing what he did.

4.

D) The legislative branch of government is the proper body to hear criminal cases.

5.

E) He did not do the act complained of.

Answer: D Diff: 1 Type: MC Page Ref: 31 Topic: Ch. 2 - Delegation of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

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Bloom's Taxonomy: Knowledge

In Rothmans, Benson & Hedges Inc. v. Saskatchewan, the Supreme Court of Canada

3)

1.

A) concluded that the federal and provincial legislation were not in conflict. One simply went further than the other.

2.

B) concluded that the federal and provincial legislation were in conflict, with the result that paramountcy would apply.

3.

C) held that only the provincial legislation was invalid.

4.

D) held that only the federal legislation was invalid.

5.

E) held that both the federal and provincial legislation were invalid.

Answer: A Diff: 3 Type: MC Page Ref: 35 Topic: Ch. 2 - Conflicting Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

Which of the following is true regarding delegation between the federal and provincial governments?

34)

1.

A) Federal and provincial governments can delegate their powers to inferior bodies, such as their boards and individual civil servants.

2.

B) Direct delegation between the federal and provincial government bodies is the only way governmental bodies can conduct their business.

3.

C) The federal government is considered an inferior legislative body, so it can abdicate its powers, but only to a provincial government.

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4.

D) The provincial governments are considered inferior legislative bodies, so they can abdicate their powers, but only to the federal government.

5.

E) There is no practical way for governments to overcome the prohibition against delegation.

Answer: A Diff: 2 Type: MC Page Ref: 36 Topic: Ch. 2 - Delegation of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

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In which one of the following cases can the Supreme Court of Canada not override laws of the federal parliament?

35)

1.

A) Parliament enacts legislation that is ultra vires.

2.

B) Parliament enacts legislation in an area outside their jurisdiction.

3.

C) Parliament enacts legislation that infringes on rights contained in the Charter of Rights and Freedoms.

4.

D) Parliament enacts legislation that is not clear.

5.

E) The Supreme Court of Canada disagrees with the substance of the legislation.

Answer: E Diff: 2 Type: MC Page Ref: 36 Topic: Ch. 2 - Law in Canada Skill: Applied Objective: Chapter 2: 6. Detail how legislation is created in the parliamentary system.

Bloom's Taxonomy: Knowledge

Uncle Max just immigrated to Canada and learned some things about our laws and constitution on the plane. Which of the following things he heard is true?

36)

1.

A) The Charter of Rights and Freedoms, part of the Constitution Act, 1982, has been entrenched in our constitution and therefore cannot be changed.

2.

B) Our constitution provides that the provincial legislatures have exclusive jurisdiction to enact laws concerning education and property in the province.

3.

C) Our federal parliament is supreme in enacting laws concerning municipalities.

4.

D) The British North America Actof 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 Queen Elizabeth.

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5.

E) There are many aspects of our constitution we have inherited from the United States.

Answer: B Diff: 2 Type: MC Page Ref: 39 Topic: Ch. 2 - Protection of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

Which of the following is a legal right under the Charter?

37)

1.

A) Everyone has the right to not to be deprived of their property.

2.

B) Everyone has the right to be employed.

3.

C) Everyone has the right to freedom of expression, regardless of whether it interferes with the freedom of others.

4.

D) Everyone has the right not to be exposed to any unreasonable search and seizure.

5.

E) Everyone has the democratic right to vote, regardless of age or mental capacity.

Answer: D Diff: 2 Type: MC Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

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Bloom's Taxonomy: Knowledge Which of the following statements is correct with respect to our constitutional law?

38)

1.

A) Neither the federal nor provincial governments can ignore protections of the Charter of Rights and Freedomswithout going through the constitutional amending process.

2.

B) The Constitution Act, 1982was passed only by the English parliament.

3.

C) The Constitution Act, 1982is the supreme law of Canada and can override statutes.

4.

D) The CanadianCharter of Rights and Freedoms is part of the BNA Act, 1867.

5.

E) The Charteris entrenched and, as such, none of its provisions can be overridden by any level of government.

Answer: C Diff: 2 Type: MC Page Ref: 39 Topic: Ch. 2 - Constitution and Division of Powers Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

Which of the following is correct with respect to the impact of the passage of the Charter of Rights and Freedoms in Canada?

39)

1.

A) The passage of the Charterhas given judges more power than they had before its passage.

2.

B) The passage of the Charterhas placed no limits on the supremacy of parliament.

3.

C) Section 33 allows parliament or the legislature to override any provision of the Charterproviding they clearly state they are doing so "notwithstanding" the specific provision of the Charter.

4.

D) Section 1 of the Charterdivides powers between the federal and provincial governments.

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5.

E) The Charterapplies only to private disputes between individuals.

Answer: A Diff: 3 Type: MC Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

Which among the following was not a purpose of the Constitution Act, 1982?

40)

1.

A) To list government enactments having constitutional status

2.

B) To guarantee individual rights

3.

C) To place some limitations on the supremacy of parliament

4.

D) To redefine the role of the Queen and her representative, the Governor General

5.

E) To protect individuals against acts of governments or their agencies that infringe on their rights

Answer: D Diff: 2 Type: MC Page Ref: 39 Topic: Ch. 2 - Protection of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

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Which of the following is correct with respect to the Charter of Rights and Freedoms?

41)

1.

A) Section 33 (the notwithstanding clause) applies to all protections in the Charter.

2.

B) The federal or provincial legislature cannot override a person's right to free speech.

3.

C) The federal or the provincial legislature can override a person's right not to be discriminated against on the basis of race or religion.

4.

D) The parliament or provincial legislature cannot override a section of the Charter.

5.

E) The effect of the notwithstanding clause is to shift the power back to the judges.

Answer: C Diff: 2 Type: MC Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

Which of the following is correct with respect to the impact of the Charter of Rights and Freedoms?

42)

1.

A) The passage of the Charterhas placed significant limitations on the power of the judiciary.

2.

B) The passage of the Charterhas shifted power from the federal to the provincial government.

3.

C) The passage of the Charterhas increased the power of the courts.

4.

D) The passage of the Charterhas led the provincial and federal legislatures to become more activist in making law.

5.

E) The passage of the Charterhas shifted power from the courts to parliament.

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Answer: C Diff: 2 Type: MC Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge Which of the following is not a legal right under the Charter?

43)

1.

A) Everyone has the right not to be deprived of life, liberty, and security.

2.

B) Everyone has the right not to be arrested or detained without being told why.

3.

C) Everyone has the right to be presumed innocent until proven guilty.

4.

D) Everyone has the right, if acquitted of an offence, not be tried for it again.

5.

E) Everyone has the right not to be subjected to any cruel and unusual punishment.

Answer: A Diff: 2 Type: MC Page Ref: 42 Topic: Ch. 2 - Charter Provisions Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge Ms. Lott was required by a provision in the B.C. School Act to retire from her position as an elementary teacher at the age of 65. She did not want to retire. She commenced an action against the school board. Which of the following is false with regard to this situation?

4)

1.

A) A provision of the Charter of Rights and Freedomsof the Constitution Act prohibits

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discrimination.

2.

B) The Constitution allows the legislature to discriminate if it can be demonstrated that the discrimination is justified in a free and democratic society.

3.

C) The legislature, if it is acting within its authority (i.e., within s. 92 of the Constitution Act), can pass a statute that discriminates if it states that the statute will operate notwithstanding the provisions of the Charter of Rights and Freedoms.

4.

D) The federal legislature is the proper body to decide if the provincial School Actis lawful.

5.

E) The people of Canada, through their elected representatives, could change the Constitution Act, including the Charter of Rights and Freedoms.

Answer: D Diff: 3 Type: MC Page Ref: 42 Topic: Ch. 2 - Conflicting Powers Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

45)

Regarding the Charter of Rights and Freedoms, which of the following statements is true?

1.

A) Neither the federal nor the provincial governments can change the provisions of the Charterwithout going through the constitution amending process.

2.

B) Any statute, by any level of government inconsistent with the provisions of the Charteris considered binding on all Canadians.

3.

C) Any action by a government official violating the provisions of the Charteris not actionable under the Charter.

4.

D) The guarantee of the right of free speech allows citizens to avoid being held liable for defamation under the Constitution of Canada.

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5.

E) The Charterprotects fundamental freedoms that apply only to relations between private citizens.

Answer: A Diff: 1 Type: MC Page Ref: 42 Topic: Ch. 2 - Charter Provisions Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

46)

Which of the following is correct with respect to limitations on the Charter?

1.

A) Interference with rights must be justifiable in a free and democratic society.

2.

B) It cannot be used by a resident who is not a citizen of Canada.

3.

C) It does not protect the rights of aboriginal people.

4.

D) It only applies to government employees.

5.

E) It only applies to the federal government.

Answer: A Diff: 3 Type: MC Page Ref: 42 Topic: Ch. 2 - Charter Provisions Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

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47)

Which of the following is correct with respect to the Charter of Rights and Freedoms?

1.

A) Section 33 (the notwithstanding clause) only applies to some specified provisions of the Charter.

2.

B) The federal or provincial legislature cannot override a person's right to free speech.

3.

C) The federal or the provincial legislature cannot override a person's right not to be discriminated against on the basis of race or religion.

4.

D) The parliament or provincial legislature can only override a section of the Charter under the notwithstanding clause if they clearly state they are doing so and then wait 5 years before implementing the provision.

5.

E) The effect of the notwithstanding clause is to shift the power back to the judges.

Answer: A Diff: 2 Type: MC Page Ref: 42 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

The Charter of Rights and Freedoms does not apply to which of the following?

48)

1.

A) The provincial cabinet

2.

B) The police

3.

C) A restaurant

4.

D) A human rights commission

5.

E) A municipal council

Answer: C

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Diff: 1 Type: MC Page Ref: 42 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

Which of the following is incorrect with respect to the rights of the party whose Charter rights have been violated?

49)

1.

A) The rights and freedoms guaranteed in the Chartervary depending on whether a person is a citizen, a resident, or a visitor.

2.

B) The remedies available to the victim of a violation of a Charterprovision are restricted to those listed in the Charter.

3.

C) The Chartergives a court the power to exclude any evidence that has been obtained in violation of a Charter

4.

D) When evidence is obtained in violation of a person's Charterrights, the court must exclude that evidence.

5.

E) The court is free to impose any remedy for a Charterviolation that it considers appropriate.

Answer: B Diff: 3 Type: MC Page Ref: 42 Topic: Ch. 2 - Protection of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

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Bloom’s Taxonomy: Knowledge Which of the following is a right or freedom guaranteed in the Charter?

50)

1.

A) The right to own property

2.

B) The right to have your children educated in any language

3.

C) The right to bear arms

4.

D) The right to vote in federal and provincial elections

5.

E) The right to be assured of a minimum level of income

Answer: D Diff: 2 Type: MC Page Ref: 42 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom’s Taxonomy: Knowledge

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Which one of the following is a Charter right that the provinces could not override through the use of the notwithstanding clause (Section 33 of the Charter)?

51)

1.

A) The right to move anywhere you want in Canada

2.

B) The right not to be subjected to any cruel or unusual punishment

3.

C) The right to worship who, how, or what you wish

4.

D) The right to not be discriminated against because you are black

5.

E) The right to be told why you are being arrested

Answer: A Diff: 3 Type: MC Page Ref: 42 Topic: Ch. 2 - Protection of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

Which of the following is correct with respect to the impact of the Charter of Rights and Freedoms?

52)

1.

A) The passage of the Charterhas increased the power of both parliament and the provincial legislatures.

2.

B) The passage of the Charterhas shifted power from the federal government to the provincial governments.

3.

C) The Charterhas shifted power from the provinces to the federal government.

4.

D) The passage of the Charterhas increased the power of the courts.

Diff:2Type:MCPageRef:42

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5.

E) The passage of the Charterhas shifted power from the courts to the parliament.

Answer: D

Diff:2Type:MCPageRef:42

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Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge Which of the following is true regarding human rights?

53)

1.

A) Both the federal and provincial governments have established special human rights tribunals authorized to hear complaints of human rights violations.

2.

B) Human rights tribunals have the power to investigate human rights complaints, but no authority to impose sanctions nor to provide remedies.

3.

C) Human rights protection applies to all areas, without restriction.

4.

D) There is still no legislative protection against sexual harassment.

5.

E) All remaining legal issues concerning human rights protection of same-sex relationships have been resolved.

Answer: A Diff: 2 Type: MC Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

54)

Which of the following statements is correct with respect to human rights laws in Canada?

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1.

A) Protection against discrimination on the basis of sexual orientation is recent and not yet written in some human rights statutes.

2.

B) All employers have an obligation to accommodate all of the religious practices and disabilities of their employees.

3.

C) Federal and provincial human rights commissions are courts, and the commissioners are superior court judges with the rights and powers associated with that office.

4.

D) From a business point of view, the Charteris much more important than the provincial human rights legislation.

5.

E) Human rights in the federal area are protected by the federal human rights commission, which enforces the Canadian Bill of Rights.

Answer: A Diff: 3 Type: MC Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Applied Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

Which of the following is true regarding human rights legislation?

5)

1.

A) The mandate of human rights commissions is to encourage the government to follow principles of equality.

2.

B) Material on the Internet is exempt from the application of human rights legislation.

3.

C) Human rights commissions cannot deal with complaints arising from business interactions.

4.

D) Canada's first-ever human rights complaint concerning an Internet hate site involved Ernst Zundel.

5.

E) Since the introduction of the Charter of Rights and Freedoms, provincial human rights

Topic:Ch.2-HumanRightsLegislationSkil:Applied

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codes are no longer significant.

Answer: D Diff: 2 Type: MC Page Ref: 53 Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

The applies to abuses in sectors regulated by federal legislation, such as the broadcast and telecommunications industries. Similar provincial statutes apply only in areas controlled by provincial legislation.

56)

1.

A) Canadian Human Rights Act

2.

B) Constitution Act, 1867

3.

C) Charter of Rights and Freedoms

4.

D) Meech Lake Accord

5.

E) Constitution Act, 1982

Answer: A Diff: 1 Type: MC Page Ref: 53 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

57)

Both the federal and the provincial governments have set up special

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authorized to

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hear complaints of human rights violations, to investigate, and, where appropriate, to impose significant sanctions and remedies.

1.

A) statutes

2.

B) human rights tribunals

3.

C) constitutional tribunals

4.

D) legislation

Topic:Ch.2-HumanRightsLegislationSkil:Applied

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5.

E) language rights tribunals

Answer: B Diff: 1 Type: MC Page Ref: 53 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

Protection against sexual harassment exists because sexual harassment is regarded as a form of on the basis of gender.

58)

1.

A) prohibition

2.

B)abuse

3.

C) discrimination

4.

D) human rights

5.

E) fundamental freedom

Answer: C Diff: 1 Type: MC Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge 5W 9) hereprotectionagainstdiscriminationonthebasisofhasbeenleftoutofhuman rightslegislation,thecourtshaveshownawilingnesstoimply theexistenceofthisprotection.

1. A)sexualorientation

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2.

B) marriage

3.

C)gender

4.

D) publications

5.

E) freedom of speech

Answer: A Diff: 2 Type: MC Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

60) In Ontario Human Rights Commission et al. v. Simpsons-Sears Ltd., the Supreme Court of Canada 1.

A) held that religious discrimination is acceptable in the workplace.

2.

B) found that the employer was required to take reasonable steps to accommodate the religious practices of an employee.

3.

C) concluded that it is unnecessary to accommodate an employee when doing so would inconvenience the employer.

4.

D) decided that only certain religions are worthy of protection under human rights legislation.

5.

E) determined that it is the intention to discriminate that is relevant, not whether or not discrimination actually occurred.

Answer: B Diff: 3 Type: MC Page Ref: 55

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Topic: Ch. 2 - Human Rights Legislation Skill: Applied

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Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

61)

Law and morality are the same thing.

Answer: FALSE Diff: 1 Type: TF Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge

6T 2) he legal philosophy that defines law in terms of the authority of the person who passed it is called legal realism.

Answer: FALSE Diff: 2 Type: TF Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada.

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Bloom's Taxonomy: Knowledge 63)

Parliamentary supremacy is no longer completely in effect in Canada today.

Answer: TRUE Diff: 2 Type: TF Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Applied Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge

64) ubstantive law deals with rules that establish a structure for enforcing rights and S

obligations.

Answer: FALSE Diff: 2 Type: TF Page Ref: 22 Topic: Ch. 2 - Categories of Law Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada.

Bloom's Taxonomy: Knowledge

65)

Civil law is based on a codified system.

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Answer: TRUE Diff: 1 Type: TF Page Ref: 23 Topic: Ch. 2 - Civil Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

6)

Judges in a common-law system base their decisions on other judges' decisions.

Answer: TRUE Diff: 1 Type: TF Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

67)

Stare decisis is the Latin term for following the Code.

Answer: FALSE Diff: 2 Type: TF Page Ref: 24

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Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

6A 8) British Columbia Provincial Court judge is required to follow the decisions of a higher court in Alberta.

Answer: FALSE Diff: 1 Type: TF Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge 6T 9) he common-law courts as developed by King Henry and subsequent kings were used to impose the will of the sovereign on the people.

Answer: FALSE

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Diff: 3 Type:TF Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom’s Taxonomy: Knowledge

7I0) n our system, if a judge feels that the decision made by a judge in a higher court is wrong, he or she is free to disregard it.

Answer: FALSE Diff: 1 Type: TF Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Bloom’s Taxonomy: Knowledge

71) tare decisis can contribute to stagnation.

S

Answer: TRUE Diff: 2 Type:TF Page Ref: 24

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Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom’s Taxonomy: Knowledge

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7S 2) tare decisis in the common-law system plays the same role as the code in the French system, lending predictability to the law.

Answer: TRUE Diff: 2 Type: TF Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

73)

Common law is also known as judge-made law.

Answer: TRUE Diff: 1 Type: TF Page Ref: 27 Topic: Ch. 2 - Common Law Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

74)

Canon law refers to the law created by the Church.

Answer: TRUE Diff: 2 Type: TF Page Ref: 27 Topic: Ch. 2 - Common Law

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Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge 75)

The law of equity was developed in the Court of Chancery.

Answer: TRUE Diff: 2 Type: TF Page Ref: 27 Topic: Ch. 2 - Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

7T 6) he Courts of Chancery originally followed stare decisis and precedent, as did the common-law courts.

Answer: FALSE Diff: 2 Type: TF Page Ref: 27 Topic: Ch. 2 - Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

7)

Although the Courts of Chancery and common-law courts were merged, the bodies of law

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remain separate today.

Answer: TRUE Diff: 3 Type: TF Page Ref: 27 Topic: Ch. 2 - Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

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Bloom’s Taxonomy: Knowledge

78) he law of equity simply means fairness in our legal system.

T

Answer: FALSE Diff: 3 Type:TF Page Ref: 27 Topic: Ch. 2-Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom’s Taxonomy: Knowledge

79) ubordinate legislation includes regulations and municipal bylaws.

S

Answer: TRUE Diff: 2 Type:TF Page Ref: 28 Topic: Ch. 2 - Statutes Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom’s Taxonomy: Knowledge

8L 0) egislation forms the foundation of our legal system, although judge-made law continues to take precedence over statutes.

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Answer: FALSE Diff: 2 Type:TF Page Ref: 28 Topic: Ch. 2 - Statutes Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom’s Taxonomy: Knowledge Transfer payment schemes can allow the federal government to exercise some control over how a provincial government operates certain programs that fall with provincial jurisdiction.

81)

Answer: TRUE Diff: 3 Type:TF Page Ref: 36 Topic: Ch. 2 - Delegation of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom’s Taxonomy: Knowledge

Once a bill has received royal assent, it may be effective immediately or it may be effective on later proclamation.

82)

Answer: TRUE Diff: 2 Type:TF Page Ref: 37

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Topic: Ch. 2 - Legislative Power Skill: Applied Objective: Chapter 2: 6. Detail how legislation is created in the parliamentary system.

Bloom’s Taxonomy: Knowledge

All provincial bills require royal assent of the Governor General before they can become law.

83)

Answer: FALSE Diff: 3 Type:TF Page Ref: 37 Topic: Ch. 2 - Legislative Power Skill: Applied

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Objective: Chapter 2: 6. Detail how legislation is created in the parliamentary system.

Bloom's Taxonomy: Knowledge

Legislation prohibiting all prison inmates from voting in federal elections was found to constitute an unjustified denial of the right to vote.

84)

Answer: TRUE Diff: 3 Type: TF Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

85)

Everyone in Canada has the right to freedom of conscience and religion.

Answer: TRUE Diff: 3 Type: TF Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

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86)

There are no limitations to the right of freedom of expression.

Answer: FALSE Diff: 3 Type: TF Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

87)

Laws which restrict collective bargaining are not subject to the Charter of Rights and Freedoms.

Answer: FALSE Diff: 3 Type: TF Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

The Charter of Rights and Freedoms ensures Canadians can travel and live anywhere within Canada.

8)

Answer: TRUE Diff: 3 Type: TF Page Ref: 39

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Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

The Charter of Rights and Freedoms expressly prohibits discrimination on the basis of sexual preference.

89)

Answer: FALSE Diff: 3 Type: TF Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

While the Charter of Rights and Freedoms protects individuals' rights from government abuses, there is still no legislation to protect individuals' rights from abuse by the public.

90)

Answer: FALSE Diff: 2 Type: TF Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Applied Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits

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discrimination.

Bloom's Taxonomy: Knowledge

91)

Sexual harassment is regarded as a form of discrimination on the basis of gender.

Answer: TRUE Diff: 2 Type: TF Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Applied Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

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Bloom's Taxonomy: Knowledge Human rights acts prohibit discrimination upon various protected grounds, including gender, religion, ethnic origin, race, age, and disabilities.

92)

Answer: TRUE Diff: 1 Type: TF Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

93)

Three decades ago, discrimination based on sexual orientation was specifically prohibited.

Answer: FALSE Diff: 1 Type: TF Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

Topic:Ch.2-HumanRightsLegislationSkil:Recal

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Private clubs cannot discriminate as to who they will admit as members because discrimination by private facilities is prohibited by the legislation.

94)

Answer: FALSE Diff: 2 Type: TF Page Ref: 53

Topic:Ch.2-HumanRightsLegislationSkil:Recal

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Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

Where protection against discrimination on the basis of sexual orientation has been left out of human rights legislation, the courts have shown a willingness to imply the existence of this protection.

95)

Answer: TRUE Diff: 1 Type: TF Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

Initially, human rights legislation was designed to stop discrimination against identifiable minority groups in specific areas, such as hotels and restaurants.

96)

Answer: TRUE Diff: 2 Type: TF Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Recall Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

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Bloom's Taxonomy: Knowledge 97)

Why is law important?

Answer: It determines how effectively we interact with one another. It governs personal and commercial relationships.

Diff: 1 Type: ES Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Applied Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge

98)

The type of law that depends on a moral code or morality to define what the law is, is called

Answer: natural law Diff: 2 Type: ES Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge

9)

The legal theory that defines law in terms of a command by someone in authority is called

Answer: legal positivism

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Diff: 1 Type: ES Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge

10)

The theory of law that defined law in terms of what the courts actually do is called

.

Answer: legal realism Diff: 1 Type: ES Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Recall Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge

10)

Contrast substantive law and procedural law.

Answer: Substantive law establishes the rights an individual has in society and the limits on that individual's conduct. Procedural law determines how the substantive laws will be enforced.

Diff: 2 Type: ES Page Ref: 22 Topic: Ch. 2 - Categories of Law

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Skill: Applied Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge

102)

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.

Diff: 2 Type: ES Page Ref: 22 Topic: Ch. 2 - Categories of Law Skill: Applied Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada. Bloom's Taxonomy: Knowledge 103)

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.

Diff: 1 Type: ES Page Ref: 23 Topic: Ch. 2 - Civil Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

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104)

Explain what role precedent plays in the civil code legal system.

Answer: Prior judges' decisions are merely persuasive, not binding. The Code is binding.

Diff: 2 Type: ES Page Ref: 23 Topic: Ch. 2 - Civil Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

105)

When was the last time Quebec revised its Civil Code?

Answer: A new Civil Code in Quebec came into effect on January 1, 1994.

Diff: 3 Type: ES Page Ref: 23 Topic: Ch. 2 - Civil Law Legal System Skill: Recall Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge 106)

Which province in Canada continues to use a civil code system?

Answer: Quebec Diff: 1 Type: ES Page Ref: 23 Topic: Ch. 2 - Civil Law Legal System Skill: Recall

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Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

107)

Explain what is meant by stare decisis.

Answer: This means essentially “let the decision stand” and involves the process existing in the common law system whereby one judge's decision must be followed by another. This is the system of precedent whereby one judge's decision forms a precedent that must be followed by other judges in similar cases.

Diff: 2 Type: ES Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge 108)

Is the B.C. Supreme Court judge bound to follow an Ontario Court of Appeal decision?

Answer: No, it's only at the same level or higher in the same court hierarchy (i.e., the B.C. Court of Appeal, the B.C. Supreme Court) that the decision must be followed. Every judge must follow Supreme Court of Canada decisions, but the Supreme Court of British Columbia need only follow the B.C. Supreme Court, the B.C. Court of Appeal, and the Supreme Court of Canada.

Diff: 2 Type: ES Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

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Bloom's Taxonomy: Knowledge

What role does the decision made by an Ontario Court of Appeal judge have on a B.C. Supreme Court judge?

109)

Answer: The decision is merely persuasive. It is not binding since that judge is not in the same court hierarchy (i.e., B.C. Court of Appeal, Supreme Court of Canada).

Diff: 2 Type: ES Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied Objective: Chapter 2: 2. Distinguish between the civil law and common law legal systems found in Canada.

Bloom's Taxonomy: Knowledge

10)

What gives judges flexibility in deciding whether or not to apply a particular precedent?

Answer: While a judge cannot stray very far from the established line of precedents, a judge can “distinguish the facts” by finding essential differences in the facts of the current case and the prior decision.

Diff: 3 Type: ES Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

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Give two examples of other areas of law from which the common law judges borrowed in order to create the common law.

1)

Answer: Roman civil law, canon law or church law, and the law merchant (not equity) Diff: 3 Type: ES Page Ref: 24 Topic: Ch. 2 - Common Law Legal System Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

12)

Indicate the three courts that together made up the common law courts.

Answer: Court of Common Pleas, Court of King's Bench, Exchequer Court Diff: 3 Type: ES Page Ref: 27 Topic: Ch. 2 - Sources of Law Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge The body of rules developed by the Court of Common Pleas, Court of King's Bench, and Exchequer Court became known as .

13)

Answer: the common law Diff: 1 Type: ES Page Ref: 27 Topic: Ch. 2 - Common Law Skill: Recall

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Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

14)

Explain why the law of equity developed.

Answer: Because of the inequity and harshness of the common law, people petitioned the king for relief. The king appointed the chancellor and eventually the chancellery courts to overcome the inflexibility and harshness of the common law rules. The body of law that developed was equity, and so it can be said that equity developed to supplement the common law because of the inadequacy and rigidity of the common law.

Diff: 2 Type: ES Page Ref: 27 Topic: Ch. 2 - Equity Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

15)

The body of law developed by the Courts of Chancery is called

Answer: equity Diff: 1 Type: ES Page Ref: 27 Topic: Ch. 2 - Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

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16)

The law of equity was developed by

.

Answer: the Courts of Chancery Diff: 1 Type: ES Page Ref: 27 Topic: Ch. 2 - Equity Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge “If somebody did not like the decision of the judge in the common law court, they could appeal to the Court of Chancery.” Indicate what is wrong with that statement.

17)

Answer: The Court of Chancery was a separate court system altogether. You didn't need to appeal from the common law courts to the Courts of Chancery. Instead, you went to the Chancery in the first place because you knew that there would be no adequate remedy provided or available in the common law courts.

Diff: 2 Type: ES Page Ref: 27 Topic: Ch. 2 - Equity Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

“The term ‘equity' refers to fairness in our legal system.” Discuss the accuracy of this statement.

18)

Answer: Equity is that body of law developed by the Courts of Chancery and may or may not be considered fair by today's standards. By the Judicature Acts, the Courts of Chancery and common¬law courts were merged into one court system, the English High Court of Justice. It must be emphasized that the bodies of law developed (that is, common law and equity) remain separate

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and distinct bodies of law.

Diff: 3 Type: ES Page Ref: 27 Topic: Ch. 2 - Equity Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

19)

What is meant by a statute?

Answer: A statute is a parliamentary or legislative enactment having the force of law. It is sometimes referred to as a bill prior to passage and legislation or an act afterwards.

Diff: 1 Type: ES Page Ref: 28 Topic: Ch. 2 - Statutes Skill: Recall Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

120)

Explain the relationship between regulations and statutes.

Answer: Often a statute will empower a particular government department to develop regulations pursuant to the statutes to enforce or give effect to the provisions of that statute. For example, regulations under the Employment Insurance Act, Workers' Compensation Act, etc., have the force of law if they are passed properly pursuant to these statutes.

Diff: 3 Type: ES Page Ref: 28 Topic: Ch. 2 - Statutes

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Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

12)

Explain why statutes override the common law.

Answer: Because of the principle of parliamentary supremacy, when parliament passes a statute, it overrides common law or equity and determines the law.

Diff: 2 Type: ES Page Ref: 28 Topic: Ch. 2 - Statutes Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge “Canada's Constitution is embodied in the British North America Act.” Comment on the accuracy of that statement.

12)

Answer: This is incorrect. Canada has a constitution similar to Great Britain's, which is an unwritten constitution that includes a great many separate constitutional documents such as the Magna Carta, English Bill of Rights, etc. The British North America Act is just one of the elements of that constitution. The British North America Act is now referred to as the Constitution Act, 1867.

Diff: 2 Type: ES Page Ref: 30 Topic: Ch. 2 - Law in Canada Skill: Applied Objective: Chapter 2: 4. Isolate the three elements of Canada's Constitution.

Bloom's Taxonomy: Knowledge

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123)

What is the significance of the Constitution Act, 1867?

Answer: It created the Dominion of Canada and, for our purposes today, it divides powers between the federal and provincial governments.

Diff: 1 Type: ES Page Ref: 30 Topic: Ch. 2 - Confederation Skill: Applied Objective: Chapter 2: 4. Isolate the three elements of Canada's Constitution.

Bloom's Taxonomy: Knowledge

124)

Explain what is meant by the principle of the rule of law.

Answer: This principle protects citizens of Canada from arbitrary action; that is, any government official in Canada must be able to point to some statute or regulation authorizing them to do what they have done.

Diff: 2 Type: ES Page Ref: 30 Topic: Ch. 2 - Law in Canada Skill: Applied Objective: Chapter 2: 4. Isolate the three elements of Canada's Constitution.

Bloom's Taxonomy: Knowledge

When we speak of parliamentary supremacy in Canada, which is based on a confederation between federal and provincial governments, which level of government is supreme?

125)

Answer: Sections 91 and 92 divide powers between the federal and provincial governments. They are each supreme in their own spheres.

Diff: 2 Type: ES Page Ref: 31

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Topic: Ch. 2 - Constitution and Division of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

126)

Give examples of areas that fall under federal jurisdiction.

Answer: Money, banking, postal service, currency, criminal law, appointment of judges to a higher level of provincial and federal courts, aviation, and telecommunications fall under federal jurisdiction. Diff: 2 Type: ES Page Ref: 31 Topic: Ch. 2 - Constitution and Division of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge What are some examples of powers that were given to the provincial governments under Section 92 of the Constitution Act, 1867.

127)

Answer: Hospitals, education, public health, administration of courts, and commercial activities carried on at the local level came under the provincial governments.

Diff: 2 Type: ES Page Ref: 31 Topic: Ch. 2 - Constitution and Division of Powers Skill: Recall Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

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When an individual is faced with federal legislation and provincial legislation both dealing with the same subject matter, which should he obey?

128)

Answer: If the federal legislation is valid, the provincial legislation is valid, and there is no conflict between them (that is, one just sets higher standards then the other), the individual must obey the higher standard. If there is a true conflict between them, however, the principle of paramountcy dictates that the federal legislation be followed.

Diff: 1 Type: ES Page Ref: 34 Topic: Ch. 2 - Conflicting Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

How do transfer-payment schemes help to circumvent the constitutional rigidity created by the division of powers?

129)

Answer: Through such schemes, the federal government can exercise influence over how a provincial government operates programs under provincial control.

Diff: 3 Type: ES Page Ref: 36 Topic: Ch. 2 - Constitution and Division of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge 130)

What is meant by the Revised Statutes of Canada?

Answer: Every so many years, the statutes are summarized and brought up to date. When this happens, it is referred as the Revised Statutes. The last time this was done in Canada was 1985.

They are referred to as the Revised Statutes of Canada of 1985 or R.S.C. (1985).

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Diff: 2 Type: ES Page Ref: 37 Topic: Ch. 2 - Delegation of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

13)

Why did we need the Charter of Rights and Freedoms?

Answer: Although we relied on parliamentarians and conventions, before the passage of the Charter, to protect basic rights and freedoms, there were enough examples of violations of those basic rights and freedoms to cast doubt on whether there were sufficient safeguards. The Charter of Rights and Freedoms was passed to place a check on the power exercised by parliamentarians.

Diff: 1 Type: ES Page Ref: 37 Topic: Ch. 2 - Protection of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge 132)

How does the Charter of Rights and Freedoms affect the principle of parliamentary supremacy?

Answer:Priorto1982,intheoryatleast,parliamentwassupreme.Eitherthefederalgovernmentortheprovincialgovernmenthadthepowertopassal typesof legislation.After1982,however, theCharter placedlimitationsonthatpower,therebyredirectingpowertothecourtsandlimitingtheprincipleofsupremacyofparliament.

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Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Protection of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

What is the effect of the passage of the Charter of Rights and Freedoms on the principle of supremacy of parliament?

13)

Answer: Prior to passage of the Charter, reliance was placed on parliamentarians to protect basic rights and freedoms. Subsequent to the Charter, that same reliance is now placed on judges. There has been a transfer of power from the parliamentarians to the courts, and to that extent at least it can be said that parliament is no longer supreme.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Protection of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

“An individual who is refused service at a restaurant because of his race has had his Charter rights violated.” Comment on the accuracy of this statement.

134)

Answer: This statement is not accurate. Because this is not a public matter involving government, Skil:Applied

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but rather is a private matter between citizens, it must be dealt with by the local human rights legislation in the province.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms

Skil:Applied

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Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

135)

Indicate what kind of personal freedoms are protected under the Charter.

Answer: Freedom of conscience, religion, freedom of belief, opinion, expression, and freedom of peaceful assembly and association are protected under the Charter.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge 136)

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.

Diff: 3 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

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137)

What kind of rights are protected under the heading of mobility rights in the Charter?

Answer: The rights of Canadians to travel and live anywhere within the geographical limitation of Canada, and the right to earn a livelihood in those areas.

Diff: 2 Type: ES Page Ref: 39

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Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

138)

What kind of legal rights are protected under the Charter?

Answer: The rights to life, liberty, and security of person and not to be deprived thereof, except in accordance with the principles of fundamental justice; the right to be free from any unreasonable search and seizures; the right to be free of arbitrary imprisonment; the right to be informed about why we are arrested; the right to retain counsel; the right to be tried within a reasonable time; the presumption of innocence; the right not to be tried twice for the same offence; and the right not to be subjected to any cruel and unusual punishment are protected under the Charter.

Diff: 3 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

139)

Explain what is meant by the term “principles of fundamental justice.”

Answer: This is similar to the American “due process” or the rules of natural justice. A person is entitled to a fair hearing, including an opportunity to have notice of the charges that are brought Skil:Applied

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against him, an opportunity to speak to those charges, to present his side of the case, the right to cross-examine witnesses if necessary to determine the validity of the accusation or charges, and the right to be tried by somebody free of bias.

Diff: 3 Type: ES Page Ref: 39 Topic: Ch. 2 - Protection of Rights and Freedoms

Skil:Applied

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Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge 140)

What kind of equality rights are protected by the Charter of Rights and Freedoms?

Answer: The Charter prohibits discrimination of the bases of sex, religion, race, age, colour, mental or physical disability, and national or ethnic origin. It also states that equality of male and female is guaranteed and that aboriginal rights of the Native peoples are not affected in any way. (NOTE: Section 15 of the Charter is really broader than this and prohibits any form of discrimination.)

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Recall Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

141)

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.

Diff: 3 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and

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Freedoms.

Bloom's Taxonomy: Knowledge

142)

Explain how the rights set up in the Charter of Rights and Freedoms are limited.

Answer: 1. The Charter only applies to public matters and government relations.

2. Section 1 of the Charterlimits the rights and freedoms so that they can be interfered with when "demonstrably justified in a free and democratic society." Section 33, the "notwithstanding clause," allows the provinces or the federal government to override Section 2 or Sections 7-15 by so declaring in the legislation.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

Explain how Section 1 of the Charter of Rights and Freedoms limits the rights and freedoms set out in the Charter.

143)

Answer: Legislation can be passed inconsistent with the rights set out in the Charter of Rights and Freedoms when doing so can be justified in a free and democratic society.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter Provisions Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

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Bloom's Taxonomy: Knowledge 14)

How does Section 33 limit the rights set out in the Charter of Rights and Freedoms?

Answer: This is the “notwithstanding clause”; it allows the government, for a period of five years, to override the rights set out in Sections 2 and 7-15 of the Charter by so stating in the legislation. At the end of five years, such overriding legislation lapses but may be passed again.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter Provisions

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Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

145) “The Charter of Rights and Freedoms is separate from, and therefore has no bearing on, other human rights legislation.” Discuss the accuracy of this statement.

Answer: The statement is inaccurate. Because the Charter requires that every individual have “equal protection and equal benefit of the law,” the courts will essentially rewrite human rights legislation that is found to be under-inclusive (such as in Vriend v. Alberta with respect to sexual orientation).

Diff: 3 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter Provisions Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

146)

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.

Objective:Chapter2:7.DescribetherightsandfreedomsprotectedbytheCharterofRightsandFreedoms.

Bloom'sTaxonomy:Knowledge

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Diff: 3 Type: ES Page Ref: 41 Topic: Ch. 2 - Limitations Skill: Applied

Objective:Chapter2:7.DescribetherightsandfreedomsprotectedbytheCharterofRightsandFreedoms.

Bloom'sTaxonomy:Knowledge

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147)

Explain the limitations on the application of the Charter of Rights and Freedoms.

Answer: The Charter only applies to public matters such as government and the laws they create.

This applies to the federal, provincial, and municipal levels of government.

Diff: 1 Type: ES Page Ref: 42 Topic: Ch. 2 - Charter Provisions Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge 148)

Explain a bona fide occupational requirement in the context of human rights legislation.

Answer: Sometimes it is genuinely necessary to discriminate on a prohibited ground or in a prohibited area in order to fill job requirements. For example, in the area of employment, it may be necessary to discriminate on the basis of physical disability against a quadriplegic when hiring a tree pruner who is required to climb trees.

Diff: 1 Type: ES Page Ref: 42 Topic: Ch. 2 - Human Rights Legislation Skill: Applied Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

149)

The term “law” may be defined in a variety of ways. Explain.

Answer: Students should note that it is not possible to define law in a single, all-inclusive way, and

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that philosophers have been trying to define law for centuries. Students should identify the different ways in which law has been defined. In particular, law has been defined in moral terms (natural law theorists), defined by looking at its source (legal positivists), and defined in practical terms (legal realists). For purposes of studying business law, law can be defined as the body of rules that can be enforced by the courts or by other government agencies. Students ought to recognize that this definition of law has limitations, as it does not suggest what is just or moral.

Diff: 1 Type: ES Page Ref: 21 Topic: Ch. 2 - What Is Law? Skill: Applied Objective: Chapter 2: 1. Define”law” and identify the types of law that exist in Canada.

Bloom's Taxonomy: Knowledge

Explain the relationship between common law and equity in the development of our legal system.

150)

Answer: The student should relate how equity developed and why. The inadequacies of the common law led to the need for equity. Problems with the common law included that stare decisis caused stagnation, and the remedies provided in common law were inadequate. This led to people petitioning the king for relief. Eventually this was taken over by the chancellor, and the Court of Chancery developed. The body of law called equity was developed by the Court of Chancery. It supplements the common law. Eventually the courts merged, but not the separate bodies of law.

Diff: 2 Type: ES Page Ref: 27 Topic: Ch. 2 - Sources of Law Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge 15)

“In our modern legal system, the term ‘equity' is synonymous with fairness.” Discuss the

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accuracy of this statement.

Answer: Students should point out that equity is that body of law developed by the Courts of Chancery and may or may not be fair in modern terms. The student should comment on the inadequacies of the common law, including the use of stare decisis causing the development of common law to stagnate, and inadequate common law remedies. This led to people petitioning the king for relief. This was taken over by the chancellor and eventually the Court of Chancery developed. Equity then is the body of law developed by the Court of Chancery and it was intended to supplement the common law. Equity does not mean fairness, but that body of law developed in the Courts of Chancery, and it may or may not be considered fair by today's standards. The two courts' structures were merged, but not the bodies of law.

Diff: 3 Type: ES Page Ref: 27 Topic: Ch. 2 - Equity Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge

Explain the relationship between statutes, equity, and common law in our legal system, including a brief discussion on the historical development of these three major aspects of our law.

152)

Answer: Students should explain how equity and common law are judge-made law and that statutes are made by parliament or by the provincial legislatures. They should also explain that equity was created as a supplement to the common law to overcome its harshness and rigidity. Since parliament is supreme, its acts override judge-made law, and therefore statutes override common law and equity. If there is no overriding statute, a judge will apply either equity or common law, depending on the subject matter and what is asked for in a given case. The constitutional authority of the body passing the statute with reference to the Constitution Act, 1867 and the Charter will determine its validity. The statute will normally only override judge-made law if its provisions are specific and unambiguous.

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Diff: 2 Type: ES Page Ref: 27 Topic: Ch. 2 - Sources of Law Skill: Applied Objective: Chapter 2: 3. Identify the sources of Canadian law.

Bloom's Taxonomy: Knowledge 153)

Explain the role the British North America Act played in Canada's constitutional history.

Answer: Students should describe the nature of Canada's constitution and the place of the BNA Act in it. They should point out that Canada has a constitution similar to Great Britain's, that it is unwritten in the sense that it is not contained in just one document, and that all of the great English constitutional traditions are also part of our constitution. These traditions include the rule of law, the Magna Carta, and the supremacy of parliament. Students should also state that the BNA Act was an act of the British Parliament, that it created Canada as a federal Dominion, that its primary significance today is that it divides powers between the federal and provincial governments, and that today it is called the Constitution Act, 1867.

Students' answers should show that they know not only what the BNA Act is but also how it relates to the other elements of Canada's constitution and the overall nature of that constitution.

Diff: 1 Type: ES Page Ref: 29 Topic: Ch. 2 - Confederation Skill: Applied Objective: Chapter 2: 4. Isolate the three elements of Canada's Constitution.

Bloom's Taxonomy: Knowledge

154)

Discuss the constitutional rigidity created by the 1867 division of powers and the means used

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by the federal and provincial governments to overcome this.

Answer: Students should describe how the Constitution Act, 1867 assigns different powers to the federal government (under s. 91) and to the provincial governments (under s. 92). The key to this question is a discussion of the prohibition on direct delegation. Students should explain how indirect delegation can be used to overcome the problems this creates. Agreements to share powers, such as transfer-payment schemes, should also be discussed. Good students will also raise the possibility of constitutional amendment and the amendment process. Students should refer to certain historical examples, such as employment insurance.

Diff: 3 Type: ES Page Ref: 31 Topic: Ch. 2 - Constitution and Division of Powers Skill: Applied Objective: Chapter 2: 5. Explain how legislative power is divided in Canada.

Bloom's Taxonomy: Knowledge

15)

Compare and contrast provincial and federal passage of bills.

Answer: Students should summarize the traditional passage of bills from both a provincial and a federal perspective, making note of key differences. Provincially, bills are introduced in the Legislative Assembly with a first reading (usually without debate), followed by a second reading (and debate), then review (and possible amendment) by the Committee of the Whole, and a third reading (with final debate and vote). Mention should be made of the requirement of royal assent by the Lieutenant-Governor, noting that some legislation is effective immediately while other legislation is not effective until later proclamation. Federally, the process is similar, but not identical. Students should point out that federal bills are subject to three readings in each of two houses (the House of Commons and the Senate), that there are variations involving review by Committee, and that royal assent for federal legislation is by the Governor General.

Diff: 2 Type: ES Page Ref: 37

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Topic: Ch. 2 - Legislative Power Skill: Applied Objective: Chapter 2: 6. Detail how legislation is created in the parliamentary system.

Bloom's Taxonomy: Knowledge

Discuss the significance of the passage of the Charter of Rights and Freedoms in Canada's legal system.

156)

Answer: Before the Charter, there were few restrictions on government because of supremacy of parliament. There was a desire for overall entrenched rights that controlled the actions of government, government officials, and agents including the police. It is important that they indicate that the Charter only applies directly to governments but indirectly affects individuals' relations with each other because provincial and federal human rights legislation and other statutes must conform to the Charter. They should show that the Charter shifts power to the courts, that parliament is no longer supreme, but also that there is an exception with the notwithstanding clause.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

157)

Discuss any limitations on the application of the Charter of Rights and Freedoms.

Answer: Here students are expected to discuss the three major limitations on the Charter (Sections 33, 32, and 1), but also to explain how those limitations work with respect to the application of the Charter in our courts. They should indicate that the purpose of the Charter was to limit the power of government. Section 32 limits the application of the rights and freedoms specified in the Charter to the federal and the provincial governments. The Charter applies to legislation, regulations, and

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bylaws passed by all levels of government, and it also applies to actions by government officials carrying out their official functions. The Charter applies to all representatives of

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the government exercising statutory authority, including police and other law enforcement bodies.

The Charter does not apply to private relations between individual persons. Section 33 allows parliament or legislatures through legislation to override Section 2 and Sections 7 to 15. These are important provisions of the Charter. To override the Charter in this way, they must clearly state that the provision applies notwithstanding the specific provision of the Charter. This may be repeated every 5 years.

Section 1 allows reasonable exceptions to the application of the rights and freedoms listed. They must be reasonably necessary (justified) and must not go further than necessary to accomplish their reasonable goal. Therefore, the rights and freedoms set out in the Charter are not absolute.

Diff: 2 Type: ES Page Ref: 39 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 7. Describe the rights and freedoms protected by the Charter of Rights and Freedoms.

Bloom's Taxonomy: Knowledge

158) Discuss why it is important for businesspeople to become familiar with the human rights legislation in force in your province.

Answer: Students should identify the federal legislation and the legislation currently in force in your province. The protected areas (such as services, employment practices, etc.) should be outlined, and examples of prohibited grounds of discrimination should also be raised. Students should explain how the duty to accommodate those facing discrimination applies, along with exceptions to this rule (e.g., bona fide occupational requirements, etc.). Students' answers should reveal that they understand compliance with such legislation should be regarded as a necessary cost of doing Objective:Chapter2:8.Listtheareasandgroundsuponwhichhumanrightslegislationprohibits discrimination.

Bloom'sTaxonomy:Knowledge

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business.

Diff: 1 Type: ES Page Ref: 53 Topic: Ch. 2 - Human Rights Legislation Skill: Applied 159) Explain the role of human rights tribunals.

Answer: Both the federal and the provincial governments have set up special human rights tribunals authorized to hear complaints of human rights violations, to investigate, and, where appropriate, to impose significant sanctions and remedies. There are time limits to consider: a complaint before the CHRC, for example, must be filed within 12 months of the alleged incident. The Commission then proceeds to attempt settlement of the complaint through conciliation and investigation. If all else fails, a tribunal hearing is convened.

Diff: 2 Type: ES Page Ref: 53 Topic: Ch. 2 - Charter of Rights and Freedoms Skill: Applied Objective: Chapter 2: 8. List the areas and grounds upon which human rights legislation prohibits discrimination.

Bloom's Taxonomy: Knowledge

Business Law in Canada, 11e (Yates) Chapter 12 Employment

1)

Why is the distinction between employment and an independent contract important?

Diff:1Type:MCPageRef:381

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1.

A) An independent contractor cannot be sure that he will be paid.

2.

B) An employee has the right to wages.

3.

C) An employee can bind the employer in a contract he enters into on behalf of the employer.

4.

D) An employer may be held responsible for torts committed by the employee.

5.

E) Employees can withdraw their services.

Answer: D

Diff:1Type:MCPageRef:381

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Topic: Ch. 12 - What Is Employment?

Skill: Recall Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors. Bloom's Taxonomy: Knowledge

2)

Which of the following is a true statement about the employer-employee relationship?

1.

A) The critical factor in this relationship is control. That is, the employer tells the employee not only what to do but also how to do it.

2.

B) An employee for a company could not also be an agent at the same time for the company.

3.

C) One responsibility of an employer is to provide the employee with lifetime work availability.

4.

D) An employee does not owe a fiduciary duty to his or her employer.

5.

E) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.

Answer: A Diff: 2 Type: MC Page Ref: 381 Topic: Ch. 12 - What Is Employment?

Skill: Recall Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.

Bloom's Taxonomy: Knowledge

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3)

Which of the following is true with regard to employment law?

1.

A) The traditional test for determining whether or not a person is an employee is to assess the degree of control. That is, an employee could be told not only what to do but how to do it.

2.

B) Employees are allowed to strike only when the employer refuses to honour the collective agreement (a rights dispute).

3.

C) A lockout is action taken by employees to prevent their employer from operating as normal.

4.

D) Constructive dismissal refers to a breach of the employment contract by the employer in which the employer discovered the employee had committed theft.

5.

E) If a worker is injured on the job, he can sue the employer for any injuries he may have suffered.

Answer: A Diff: 2 Type: MC Page Ref: 381 Topic: Ch. 12 - What Is Employment?

Skill: Recall Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors. Bloom's Taxonomy: Knowledge Which of the following statements more accurately describes an employee rather than an independent contractor?

4)

1.

A) The person is an essential part of an employer's organization.

2.

B) The person provides his/her own tools.

3.

C) The person is free to represent others in the same business.

4.

D) The person determines his/her own work schedule

5.

E) The person has a high level of financial risk.

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Answer: A Diff: 1 Type: MC Page Ref: 381 Topic: Ch. 12 - What Is Employment?

Skill: Recall Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.

Bloom's Taxonomy: Knowledge

5)

Which of the following is not one of the obligations that an employee has to the employer?

1.

A) Competence

2.

B) Skill

3.

C) Be honest and courteous

4.

D) Follow all orders no matter how unreasonable

5.

E) Loyalty

Answer: D Diff: 1 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

6)

Mr. Koff, a former policeman, was hired to do investigations for the stock exchange. All those

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hired in this capacity were required to take and pass a course. When it was determined that Koff had cheated on the course's examination, he was fired. Koff, who was not covered by a collective agreement, sued for wrongful dismissal. If the court holds that the employer had cause for dismissal, Koff will be entitled to damages equivalent to which of the following?

1.

A) The amount that would have been paid during a reasonable notice period less any amount received from other employment, E.I., etc.

2.

B) The amount of pay that would have been received in one pay period (e.g., one month if paid monthly)

3.

C) Two weeks' pay, the statutory minimum

4.

D) Reasonably unmitigable losses

5.

E) Nothing

Answer: E Diff: 1 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

If former employees are sued, it is usually for breach of information.

, or for disclosing confidential

7)

1.

A) employment contract

2.

B) notice periods

3.

C) restrictive covenants

4.

D) fiduciary duty

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5.

E) confidence

Answer: E Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

In RBC Dominion Securities Inc. v. Merrill Lynch, virtually all of the investment advisors at the RBC branch left without notice and went to work for a competitor, Merrill Lynch. What did the Court determine?

8)

1.

A) Merrill Lynch and its manager were found jointly and severally liable, as the manager had induced the breach of the duty not to compete unfairly.

2.

B) RBC was found liable for inducement of breach of contract.

3.

C) Merrill Lynch and its manager were not liable, since no notice of termination was required.

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4.

D) RBC investment advisors were not in violation of their fiduciary duty to RBC, and were not required to provide notice of termination.

5.

E) Fiduciary duties cannot arise in the context of a mere employment relationship.

Answer: A Diff: 2 Type: MC Page Ref: 396 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

On Friday afternoon, Frieda was told not to return to work because her job was gone. If her employer is in a non-unionized business and had no just cause to dismiss her, which of the following is true?

9)

1.

A) The amount of notice to be given her is limited to the employment contract.

2.

B) The amount of notice could be set out in the employment contract, and that amount would override the amount set by the common law, unless it was less than the minimum amount set out in the Employment Standards Act (or Code).

3.

C) Additional notice must be given even if the employer pays her an amount of money equivalent to the amount of money she would have earned during the notice period.

4.

D) If the employee sues for wrongful dismissal and the court has to determine the appropriate notice period, it would consider, among other things, her sex and religion.

5.

E) She can elect to have a notice period or to take money in lieu of notice.

Answer: B Diff: 2 Type: MC Page Ref: 383 Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Topic:Ch.12-TheLawofEmploymentSkil:Applied

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Bloom's Taxonomy: Knowledge In which of the following situations will Smith be responsible for the tortious conduct of Jones?

10)

1.

A) Jones is an independent contractor installing drywall for Smith's grocery store.

2.

B) Jones is a computer programmer working for Ace Computer Ltd. and is installing new software for Smith's department store.

3.

C) Jones is a self-employed vacuum cleaner salesman and Smith manufactures one of the lines he carries.

4.

D) Jones is a salesperson for Watson's Warehouse visiting Smith's Grocery Store Ltd.

5.

E) Jones is a secretary working in Smith's office.

Answer: E Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

Which one of the following is just cause for dismissal?

1)

1.

A) Absenteeism twice in the last year

2.

B) Tardiness once in the last two years

3.

C) Refusal to work in an unsafe work environment

4.

D) Habitual negligence or incompetence

5.

E) No work to do

Diff:2Type:MCPageRef:383

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Answer: D

Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

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?

12)

1.

A) Drew must be punctual and obedient.

2.

B) Drew owes the employer a fiduciary duty (i.e., a duty to serve the employer's interests above his own).

3.

C) The employer cannot terminate Drew's employment unless Drew does something wrong.

4.

D) The employer owes Drew not only pay, but also some direction.

5.

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).

Answer: C Diff: 3 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's

Diff:2Type:MCPageRef:383

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Taxonomy: Knowledge Which of the following is correct with respect to restrictive covenants included in employment contracts?

13)

1.

A) Such restrictive covenants are always void and have no place in employment contracts.

2.

B) Such restrictive covenants are enforceable in court if reasonable and not against the public interest.

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3.

C) A void restrictive covenant destroys the whole contractual relationship and neither party has any obligations under the agreement.

4.

D) For such a clause to be valid, it is only necessary to show that it was needed to protect the employer's interest.

5.

E) The imposition of such a restriction is at the option of the employer and the employee has no say in the matter.

Answer: B Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

Which of the following statements is correct with respect to the employer's liability for the conduct of the employee?

14)

1.

A) The employer is always liable for the wrongful conduct of his employee.

2.

B) An employer is only liable for the wrongful conduct of his employee that takes place during the course of the employment.

3.

C) If a person is injured by an employee acting in the course of the job, that person must sue the employer, not the employee.

4.

D) Any employee can bind an employer in contract.

Topic:Ch.12-TheLawofEmploymentSkil:Recal

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5.

E) All employees are agents of the employer.

Answer: B Diff: 2 Type: MC Page Ref: 383

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Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Which of the following would end the employment relationship by breach, thereby possibly giving rise to a claim for damages for wrongful dismissal?

15)

1.

A) The employee is told he will no longer be needed at the end of the period of employment specified in the contract (e.g., one year).

2.

B) The employee is told he will no longer be needed at the completion of the specific job he was hired to do (e.g. paint a bridge).

3.

C) The employee is asked to leave because he consistently comes to work late as a result of frequent morning traffic jams.

4.

D) The employee is asked to leave immediately because a downturn in the economy has resulted in no work for him to do.

5.

E) The employee is asked to leave after he refuses to do a reasonable but unpleasant task that is part of his employment, when another more junior employee could have been asked to do it.

Answer: D Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

16)

For the past seven years, Hudson has worked as vice-president in charge of personnel (a S k il l:

nToopnic¬: uCnh.io12n-pThoesLiatw ioonf)Em foprloyMmoenutntain Enterprises Ltd. As part of a corporate reorganization, the d i r e Re c a l

c t o r s of the company decided to downgrade Hudson's position to manager of personnel.

Hudson is very upset at this change and consequently refuses to go along with it. Because of his

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refusal, the company dismisses him immediately without any notice or pay in lieu thereof. If Hudson sues for wrongful dismissal, which one of the following statements indicates the most likely outcome of the case?

1.

A) The company will win because non-union employees are always subject to dismissal without notice, because there is no collective agreement.

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2.

B) The company will win because Hudson's refusal constituted cause.

3.

C) The company will win because they dismissed him, rather than saying he was "fired."

4.

D) Hudson will win because the company breached the employment contract and he does not have to accept that breach.

5.

E) Hudson will win because an employer owes its employees a job, unless the employee is convicted of a theft.

Answer: D Diff: 3 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

Which of the following is a false statement about the employer-employee relationship?

17)

1.

A) The critical factor in this relationship is control; the employer tells the employee not only what to do but also how to do it.

2.

B) An employee for a company could also be an agent for the company.

3.

C) One responsibility of an employer is to provide the employee with a safe workplace.

4.

D) An employee sometimes owes a fiduciary duty to his or her employer.

5.

E) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.

Topic:Ch.12-TheLawofEmploymentSkil:Recal

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Answer: E Diff: 2 Type: MC Page Ref: 383

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Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

18)

With regard to employment law, which of the following is false?

1.

A) An employee must be punctual and obedient.

2.

B) The common law provides that an employee who wants to quit his job because he wants to take another owes his employer reasonable notice.

3.

C) The most common remedy awarded by the courts in wrongful dismissal cases is reinstatement (i.e., the employer responsible for the wrongful dismissal must take the employee back).

4.

D) An employee badly injured on the job can make a claim against a fund of money provided by employers who are obligated by law to contribute.

5.

E) A unionized employee does not negotiate personally with the employer for his or her employment contract.

Answer: C Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Mr. Lopez, the owner of the firm, had a large family. His six children were all in their late teens or early twenties and were in school or had jobs. However, in the summer of 2016, two of the six got laid off and the other four were having trouble finding work. Lopez spent ten days reorganizing his firm to find jobs for his family. He decided that the foreman at the plant, Mr. Wedman (who had been with the firm for twelve years, seven as foreman) could go back to being a carpenter to make room for his oldest son, who had management experience. There was no written employment 19)

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contract with Wedman. On Friday afternoon, Lopez called Wedman into the office and told him that on Monday he would return as a carpenter and that he would be under the direction of his son.

Wedman said he didn't want to be a carpenter or under the direction of his son and wouldn't do it.

Lopez dismissed him immediately with no severance pay. Which of the following is true?

1.

A) Lopez had just cause for dismissing Wedman, namely, for disobedience.

2.

B) Lopez can fire Wedman for any reason and owes him nothing because Wedman is not protected by a union.

3.

C) Lopez can fire Wedman for any reason and owes him nothing because Wedman is not protected by a written contract.

4.

D) Lopez can't fire Wedman at all if the real purpose of firing him is to make room for his son.

5.

E) Wedman could sue for wrongful dismissal because he was fired from his job when he refused to return as a carpenter instead of as foreman.

Answer: E Diff: 3 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Which one of the following is not just cause for dismissal?

20)

1.

A) Serious absenteeism

2.

B) Consistent tardiness

3.

C) Open disobedience

4.

D) Habitual negligence or incompetence

5.

E) No work to do

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Answer: E Diff: 1 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Which of the following statements is false with respect to the employee's obligation to give the employer notice upon quitting?

21)

1.

A) An employee is not obligated to give the employer notice where the employer gives the employee unreasonable or dangerous orders.

2.

B) The employee is not obligated to give notice to the employer and can leave the job immediately if working conditions are unreasonably dangerous and the employer refuses to take reasonable steps to correct them.

3.

C) The employee can refuse to give notice and leave immediately if the employer involves the employee in immoral or illegal activities.

4.

D) The employee can leave immediately without notice if he has a better job to go to.

5.

E) The employee is obligated to give reasonable notice unless there is just cause for leaving.

Answer: D Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

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Which one of the following is correct with respect to employee rights?

2)

1.

A) Interactions between employees and their employers outside the workplace cannot constitute employment-related harassment.

2.

B) All employers in public or private sectors now have an obligation to balance their workforce so that an equal number of men and women are employed.

3.

C) Where an employer violates the human rights of an employee, that employee must be prepared to sue to enforce those rights.

4.

D) Mandatory retirement at 65 has been abolished by the Supreme Court of Canada.

5.

E) There is a duty imposed on the employer to take reasonable steps to accommodate disabled employees.

Answer: E Diff: 3 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge Which of the following statements is correct with respect to remedies for wrongful dismissal?

23)

1.

A) The court will usually order the employer to take the employee back.

2.

B) The damages that are payable to the employee are calculated on the basis of what the employee would have received had he been given reasonable notice whether he gets another job or not.

3.

C) If the employee gets another job within the period of notice he should have received, that will affect the amount of damages he will receive.

4.

D) The court will issue an injunction to prevent the employer from hiring someone else to take the employee's place.

5.

E) It is up to the employee to determine the amount of notice he should have been given.

Answer: C

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Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge Vanessa had been a waitress at Joe's Good Eats for seven years. There had always been differences between Vanessa and Joe because they had radically different views on politics, religion, and sports, but he had always overlooked these differences because he liked her and she was a good waitress. However, one busy day with the restaurant full of customers, he began ranting about city politics. Vanessa whispered, “Please, Joe, you know I don't agree.” It ended with Joe yelling, “I've had it with your radical ideas. Get out!” So Vanessa left. The employees at Joe's were not unionized. If Vanessa sues for unlawful dismissal, she will be entitled to damages equivalent to which of the following?

24)

1.

A) The amount that would have been paid during a reasonable notice period less any amounts received from other employment

2.

B) The amount of pay received in one pay period (e.g., one month if paid monthly)

3.

C) One week's pay (the statutory minimum)

4.

D) Nothing

5.

E) Her regular pay until she finds another job

Answer: A Diff: 3 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

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25) In the case of Herff Jones Canada Inc. v. Todd, the Court considered a clause in a sales representative's contract that prohibited the representative from working for a competitor for four years. What did the Court hold?

1.

A) The covenant was enforced, despite been overly excessive, on the basis of the principle of the freedom to contract.

2.

B) The covenant was enforced because it was reasonable between the parties and reasonable with regard to the public interest.

3.

C) The covenant was void because such provisions are in restraint of trade and therefore automatically illegal.

4.

D) The covenant was unenforceable because it was not under seal.

5.

E) The covenant was unenforceable because such covenants demand independent legal advice prior to execution and none was obtained.

Answer: B Diff: 2 Type: MC Page Ref: 385 Topic: Ch. 10 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

26) When an employer demotes an employee or otherwise unilaterally changes the nature of the job, this may constitute , and the employee may be able to sue for wrongful dismissal.

1.

A) fiduciary duty

2.

B) constructive dismissal

3.

C)just cause

4.

D) reasonable notice

5.

E) wrongful dismissal

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Answer: B Diff: 2 Type: MC Page Ref: 383 Topic: Ch. 10 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

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In Dowling v. Ontario (Workplace Safety and Insurance Board), the Court had to determine whether the employee’s dishonest conduct constituted just cause for termination. What did the Court find?

27)

1.

A) Summary dismissal was a proportionate response given the acts of misconduct and the context of the employee's position, which required honesty and impartiality.

2.

B) Summary dismissal was unreasonable: only the most egregious acts of dishonesty can ever amount to just cause.

3.

C) Summary dismissal is never justified; reasonable notice is always required for reasons of public policy.

4.

D) Summary dismissal is always appropriate, for even minor acts of dishonesty, regardless of the circumstances.

5.

E) Summary dismissal can be appropriate, but only in circumstances where the employee has demonstrated incompetence.

Answer: A Diff: 2 Type: MC Page Ref: 389 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom’s Taxonomy: Knowledge When are included in the original employment contract, committing the employee not to work in a particular geographical area or a particular industry after leaving the position, they have to specify a reasonable time and area.

28)

1.

A) provisions

2.

B) restrictive covenants

3.

C) special rules

4.

D) working conditions

5.

E) employment restrictions

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Answer: B Diff: 1 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Jeff had worked for Sweetums Candy Shoppe for the last 12 years. His boss came in one morning and told Jeff that although he had always been a great employee, he was being let go for financial reasons. He gave Jeff only 2 weeks' notice. Jeff checked his employment contract and verified that the agreement provided that only 2 weeks' notice was required. Under the terms of the employment standards legislation, Jeff is entitled to a minimum of 8 weeks' notice. If Jeff sues for wrongful dismissal, what is the Court likely to find?

29)

1.

A) The contractual term overrides the common law and statutory provisions by virtue of the freedom to contract. Jeff would lose his lawsuit.

2.

B) The contractual term does not comply with the legislation, so the Court would substitute the minimum notice period set out in the statute. Jeff would be entitled to 8 weeks' notice.

3.

C) Jeff is not entitled to any notice. When a business runs into financial difficulty, that it considered just cause to terminate an employee.

4.

D) Jeff is entitled to the amount set out in the legislation, plus any amount specified in the contract. Jeff should have been given 10 weeks' notice.

5.

E) The contractual term does not comply with the legislation, so it is void. The Court would award damages calculated on the basis of a reasonable amount of notice.

Answer: E Diff: 3 Type: MC Page Ref: 383 Topic: Ch. 12 - The Law of Employment

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Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge To avoid a complaint of gender discrimination, an employer should do all of the following

30)

except 1.

A) permit an employee to breastfeed in the workplace.

2.

B) refrain from asking women in job interviews whether they are pregnant or plan to have children.

3.

C) ensure that there are an equal number of female and male employees employed by the business.

4.

D) accommodate a pregnant woman with respect to her pregnancy.

5.

E) reward men and women equally when doing equivalent jobs.

Answer: C Diff: 2 Type: MC Page Ref: 401 Topic: Ch. 10 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

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?

31)

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1.

A) Such behaviour is regrettable, but not actionable under the Canadian Human Rights Act.

2.

B) Such behaviour constitutes discrimination on the basis of gender but, unless the employer actively encouraged this conduct, the employer cannot be liable.

3.

C) Such behaviour constitutes discrimination on the basis of gender and, under the Canadian Human Rights Act, the employer was liable for such acts.

4.

D) Such behaviour is juvenile, but the employee is contributorily liable, as she must have encouraged the attention in some way.

5.

E) Such behaviour does not constitute discrimination, so the employee's only recourse is a tort law action.

Answer: C Diff: 3 Type: MC Page Ref: 406 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

32) If the place of employment is not unionized and there are no provisions in the employment contract concerning termination of employment, which of the following would not be within the rights of the employer and therefore actionable by the employee?

1.

A) An employee is dismissed for incompetence and is given neither notice nor pay in lieu of notice.

2.

B) An employee is dismissed because he refused to do a job to which he had just been demoted and he is given reasonable pay in lieu of notice.

3.

C) An employee is dismissed because his employer doesn't like his disposition and he is given reasonable pay in lieu of notice.

4.

D) An employee is dismissed because he was found stealing goods from his employer and he is given neither notice nor pay in lieu of notice.

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5.

E) An employee is dismissed because there is no more work to do and he is given neither notice or pay in lieu of notice.

Answer: E Diff: 3 Type: MC Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

(Modify this question for your province.) To which legislation would a person turn when they have been discriminated against when seeking employment?

3)

1.

A) Bill of Rights

2.

B) Human Rights Code

3.

C) Labour Relations Code

4.

D) Charter of Rights and Freedoms

5.

E) Employment Standards Act

Answer: B Diff: 2 Type: MC Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

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Which of the following is correct with respect to human rights in the field of employment?

34)

1.

A) If provincial human rights legislation does not extend human rights protection to same-sex couples, the employer can be sure that discriminatory practices in that area will not be actionable.

2.

B) If an employee becomes disabled, the employer has no further obligation to that employee and can fire him.

3.

C) While an employer cannot discriminate against a prospective employee on the basis of colour, religion, or sex, they can refuse to hire a disabled person.

4.

D) While an employer must ensure that managers do not discriminate or harass, they have no control over or obligations for the actions of other employees.

5.

E) Employers have an obligation to accommodate, within reason, the religious beliefs of their employees by, for example, rescheduling shifts to allow for religious holidays.

Answer: E Diff: 3 Type: MC Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

Federal and provincial human rights legislation cover all of the following issues except

35)

1.

A) harassment.

2.

B) disabled workers.

3.

C) pay equity.

4.

D) affirmative action.

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5.

E) minimum wage.

Answer: E Diff: 2 Type: MC Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

Keeping in mind both the common law rules governing employment and the legislation passed to improve the position of employees, indicate which of the following statements is false with regard to employment law.

36)

1.

A) Employment standards legislation in each province sets out some minimum standards with regard to such matters as wages, hours of work, termination, etc.

2.

B) Statute law allows workers to unionize without interference by the employer.

3.

C) When a worker is injured on the job and would have a claim under the Workers' Compensation Act, he has the option of claiming under the Actor directly suing the employer.

4.

D) The case law provides that an employee is entitled to reasonable notice, and what is reasonable is based on the character of the work, how long the employee has worked there, the worker's age, and the job market.

5.

E) An employer owes an employee reasonable notice and an employee also owes the employer notice if he or she wants to leave.

Answer: C Diff: 3 Type: MC Page Ref: 401

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Topic: Ch. 10 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge Which one of the following statements is true with respect to workers' compensation?

37)

1.

A) A worker who is injured on a job that is covered by the Workers' Compensation Acthas the choice of either suing his employer or claiming under the Act with regard to that injury.

2.

B) A worker who is injured on a job that is covered by the Workers' Compensation Actcannot sue his employer over the injury regardless of whether he makes a claim under the Act or not.

3.

C) All of the funds used to pay for injuries suffered on the job come from a fund paid into by the government and employees.

4.

D) While job-related injuries are covered under the Workers' Compensation Act, illness that results from work is strictly the employee's own problem.

5.

E) All employers pay similar premiums no matter how dangerous the job.

Answer: B Diff: 2 Type: MC Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge Which one of the following statements about the compensation insurance scheme under the Workers' Compensation Act is false?

38)

1.

A) Businesses covered by the Actare required to contribute to a no-fault fund that is used to pay for job-related accidents and diseases.

2.

B) If the injury is caused by the worker's own careless conduct, he will still receive compensation under the Act.

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3.

C) When a worker is injured on the job through the fault of someone other than his employer, he cannot claim under the Workers' Compensation Act

4.

D) Legislation sets rates of compensation to be paid for different types of injuries.

5.

E) Employers pay different premiums depending on the nature and danger of the industry.

Answer: C Diff: 2 Type: MC Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge Which of the following statements is correct with respect to workers’ compensation?

39)

1.

A) Workers' compensation is a voluntary system in place whereby employers, should they so desire, participate in an insurance program covering accidents that take place on the job.

2.

B) Workers' compensation in each province is a compulsory program whereby certain employers participate in an insurance program covering accidents and disease arising from the job.

3.

C) If an employee is hurt on the job and it is his own fault, he will not be covered by workers' compensation.

4.

D) The workers' compensation system is totally financed through government grants.

5.

E) When an employee is injured on the job, the workers' compensation system gives that employee the choice of claiming workers' compensation or suing the employer or fellow employee who caused the injury.

Answer: B Diff: 2 Type: MC Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment

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Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

Which of the following is an unfair labour practice?

40)

1.

A) A union representative has a conversation with an employee about joining the union.

2.

B) An employer threatens to have an employee fired if he joins a union.

3.

C) An employee is required to join a union as a condition of employment.

4.

D) An employer pays higher wages as part of his annual wage increase, as a union is trying to organize his employees.

5.

E) An employer starts another unrelated business that is non-union, as a union tries to organize his employees at the present location.

Answer: B Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

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Which of the following statements describes picketing?

41)

1.

A) Strikers gathered at a place of business can prevent people from doing business with employer.

2.

B) Picketing is permissible only when contract negotiations are taking place and there is no lawful strike mandate.

3.

C) Picketing must be peaceful and merely communicate information.

4.

D) Courts or labour relations boards cannot restrict picketing even when regulations are violated.

5.

E) Picketing is permissible where workers cease working because of a dispute over the interpretation of a term of their collective agreement.

Answer: C Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge The certification process was introduced to solve which of the following kinds of disputes?

42)

1.

A) Jurisdictional dispute

2.

B) Rights dispute

3.

C) Interest dispute

Topic:Ch.12-ColectiveBargaining Skil:Recal

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4.

D) Recognition dispute

5.

E) Commercial disputes

Answer: D Diff: 1 Type: MC Page Ref: 411

Topic:Ch.12-ColectiveBargaining Skil:Recal

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Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions. Bloom’s Taxonomy: Knowledge

The employee’s right to strike is limited to which of the following types of

43)

disputes?

1.

A) Jurisdictional dispute

2.

B) Rights dispute

3.

C) Interest dispute

4.

D) Recognition dispute

5.

E) Commercial disputes

Answer: C Diff: 1 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of

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labour unions. Bloom’s Taxonomy: Knowledge

Collective agreements must have provisions in them providing for the arbitration of which of the following kinds of disputes?

4)

1.

A) Jurisdictional dispute

2.

B) Rights dispute

3.

C) Interest dispute

4.

D) Recognition dispute

5.

E) Commercial disputes

Answer: B

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Diff: 1 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge Eastside Nurseries Ltd., which had long been a family business, was faced with a demand by its workers that it recognize their new organization, a union, for the purposes of collective bargaining. The union was certified by the appropriate governmental board as the bargaining agent for this bargaining unit, but the parties could not reach an agreement as to what should be included in the new collective agreement. Eventually Eastside Nurseries locked out the employees.

This sort of dispute is called 45)

1.

A) a jurisdictional dispute.

2.

B) a recognition dispute.

3.

C) an arbitration dispute.

4.

D) an interest dispute.

5.

E) a rights dispute.

Answer: D Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

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The process by which a third party imposes a solution to a dispute on the employer and union is called 46)

1.

A) binding arbitration.

2.

B) certification.

3.

C) conciliation.

4.

D) job action.

5.

E) mediation.

Answer: A Diff: 1 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge Bruce was a union representative working for Ace Manufacturing Co. The union and management had just concluded a collective agreement that set out terms under which certain functions of the plant would be computerized. A few months after the agreement was signed, the management started installing the computers, and in the process laid off three people who were no longer required. This in fact was exactly what Bruce had taken great care to prevent by the provisions that were included in the collective agreement. The management was in clear violation of these terms. Bruce called the members of the union out on strike and set up a picket line that effectively shut down the plant. Which of the following is true with regard to the legal position of the parties?

47)

1.

A) The picket line has the legal right to physically block people from the plant if they are not persuaded to turn back.

2.

B) The management was in the wrong and would be unsuccessful in getting an injunction to stop the strike and picketing.

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3.

C) The union was right in objecting to the layoffs, but it should have followed the grievance procedures in the collective agreement. Their strike is illegal.

4.

D) In this type of dispute, the workers can slow down and disrupt production, but they can't walk off the job.

5.

E) If the workers disagreed with the layoffs, management could lock them out.

Answer: C Diff: 3 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining

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SOkbijlel c: tiAvep: pClhiaepdter 12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

Smith is an employee of ABC Company and wants to persuade the other employees to join a union and become certified, because the wages paid by ABC are less than those that would be paid in a union plant. ABC Company does not want a union. Which of the following is ABC permitted to do?

48)

1.

A) ABC can fire Smith.

2.

B) ABC can increase the wages paid to the employees, thus eliminating the major reason for having the union.

3.

C) ABC can tell the employees that it cannot afford to pay union wages and, if forced to, will go out of business, as long as that statement is true and not threatening or intimidating.

4.

D) ABC can form its own company organization for workers and have it certified.

5.

E) ABC can transfer Smith to another plant.

Answer: C Diff: 3 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge Which of the following statements is correct with respect to the process by which a union organizes the workforce of an employer?

49)

1.

A) An employer can refuse to recognize a trade union or have any dealings with it.

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Obj e2 ct.iv e:BC)haApteurn1i2o: 4n.D ceasncrcibaelcl otlhecetiveembaprlgoayineingesanidt ehxapslainotrhgearnoliezoefdlaboouutruonnionsst. rike to force the employer to Bloom'sTarxeocnoom y : K no w l e dg gniz e an dedeal with that trade union.

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3.

C) In most provinces, a trade union must receive government certification through an employee voting process before it has the right to represent the employees in dealings with the employer.

4.

D) The employer can refuse to have anything to do with the union even after the union has successfully completed the certification process.

5.

E) Once the union has been certified, the employer must consent to what the union demands in the new contract.

Answer: C Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Which of the following is not an unfair labour practice?

50)

1.

A) A union representative threatens to have an employee beaten if he fails to join the union.

2.

B) An employer threatens to have an employee fired if he joins a union.

3.

C) An employee is required to join a union as a condition of employment.

4.

D) An employer pays higher wages when he learns that a union is trying to organize his employees, with the intention of persuading the employees they don't need a union.

5.

E) An employer threatens to start another business that is non-union and transfer all the work to that business.

Answer: C Diff: 2 Type: MC Page Ref: 401 Topic: Ch. 12 - Collective Bargaining

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Skill: Applied

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Objective:Chapter12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

Which of the following statements is correct with respect to the bargaining process in collective bargaining?

51)

1.

A) Employers are required to bargain in good faith, which means that they must be prepared to compromise when their initial offer is refused.

2.

B) Once notice has been given by either side, bargaining must commence within the time specified in statute, unless they agree otherwise.

3.

C) Once the employer and the union representatives have completed a collective agreement and signed it, it is binding on all parties. No further steps have to be ta ken.

4.

D) Once a union has been certified as the legal bargaining agent of the employees, they are the ones in control of when bargaining takes place. They are the only ones who can give notice to commence bargaining.

5.

E) Once a union has been certified, the employer must agree to whatever they represent as the contents of the first contract.

Answer: B Diff: 3 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Which of the following statements is correct with respect to the process of conciliation/mediation?

52)

1.

A) Conciliation/mediation is a process by which a third party is chosen by the government

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to impose a settlement on the parties.

2.

B) Conciliation/mediation is a process by which a third party is chosen by the parties to impose a settlement on the parties.

Topic:Ch.12-ColectiveBargaining Skil:Recal

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Obje3 ct.iv e:CC)haCpo tenr c12i:l4ia.tDieosncr/ibm e ecodlieacttivio enbairsgaainp ingroacndesexspb laiyn tw hehrioclehoaflapbeorusrounnioinss. chosen by either the Bloom'sTagxoonvoemryn:K no w e l d g e me nt or the parties, who then tries to bring the parties to an agreement.

4.

D) The conciliator or mediator's recommendations cannot be ignored by the parties.

5.

E) This refers to the requirement that the parties bargain in good faith to reach a contract.

Answer: C Diff: 3 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Which of the following statements is correct with respect to the operation of the collective agreement?

53)

1.

A) All disputes arising out of the enforcement of the collective agreement that cannot be settled by negotiation must be handled by conciliation/mediation.

2.

B) All disputes arising out of the enforcement of the collective agreement that cannot be settled by negotiation must be handled by arbitration or another agreed-upon method.

3.

C) Mediation is a process whereby the mediator/conciliator will hear both sides of the dispute and make a decision binding on the parties.

4.

D) Arbitration is a process whereby the mediator/conciliator will hear both sides of the dispute and try to persuade the parties to come to an agreement.

5.

E) It is unlawful to include in a collective agreement a provision whereby a new employee must become a member of the union.

Answer: B

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Diff: 2 Type: MC Page Ref: 411

Topic:Ch.12-ColectiveBargaining Skil:Recal

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Objective:Chapter12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

In which of the following situations would it be legal for the employees to strike?

54)

1.

A) The A.F.I.O. was approached by a group of employees working for Ace Manufacturing Ltd. to see if they would organize the work force and unionize it. When the employer discovered this, he fired that group of workers and the rest went out on strike.

2.

B) The A.F.I.O., the properly certified bargaining agent for the employees of Ace Manufacturing Ltd., demanded an unreasonably high wage settlement from the employer, which would bankrupt the firm if accepted. The employer refused to agree to this and the employees went out on strike.

3.

C) A collective agreement was in place between Ace Manufacturing and its employees, and that contract was blatantly breached by the employer, resulting in the employees going out on strike.

4.

D) Ace Manufacturing made armaments and some were sold to South Africa. When the employees found this out, they went out on strike, demanding that the practice stop.

5.

E) The employer introduced some new policies into the plant that, while they did not violate the terms of the collective agreement in place, were very much resented by the workforce.

The employees then participated in a deliberate process of sabotage and slowdown to show their displeasure.

Answer: B Diff: 3 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

5)

Which of the following statements is correct with respect to picketing?

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1.

A) Lawful picketing is the process whereby striking employees forcefully prohibit others from doing business with their employer.

Topic:Ch.12-ColectiveBargaining Skil:Recal

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Obj e2 ct.iv e:BC)haLpatewr f12u:l4.pDic eskceritbiencgolilescttivheebaprrgoacine ingssanw dh exeprlaeinbythesrtorilekionf g labeom urpunl oionyse. es attempt to persuade people Bloom's Tanxoontotm y: K n ow l e d g e odo business with their employer.

3.

C) Lawful picketing is an accepted form of protest by workers whether or not a lawful strike is in process.

4.

D) Lawful picketing can take place during a rights dispute or a recognition dispute.

5.

E) Lawful picketing cannot take place during a lockout, only during a lawful strike. Answer:

B Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

A difference of opinion between an employer and a union in the interpretation of terms in their existing contract is called 56)

1.

A) an interest dispute.

2.

B) a rights dispute.

3.

C) certification.

4.

D) a jurisdictional dispute.

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5.

E) a conciliation procedure.

Answer: B Diff: 1 Type: MC Page Ref: 411

Topic:Ch.12-ColectiveBargaining Skil:Recal

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Objective:Chapter12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

The only kind of disagreement between union and employer that can lead to a lawful strike is called 57)

1.

A) an interest dispute.

2.

B) a rights dispute.

3.

C) certification.

4.

D) a jurisdictional dispute.

5.

E) a conciliation procedure.

Answer: A Diff: 1 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

The process by which a particular union achieves the status of bargaining agent for a group of employees is called 58)

1.

A) binding arbitration.

2.

B) certification.

Diff:1Type:MCPageRef:411

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Objective:Chapter12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

3.

C) conciliation.

4.

D) job action.

5.

E) arbitration.

Answer: B

Diff:1Type:MCPageRef:411

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Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

The explosive confrontations between management and workers attempting to organize themselves to offset the power of the employer led most governments to pass laws that would create and maintain labour peace. Which of the following is false with regard to collective bargaining legislation?

59)

1.

A) Employers can block their workers from organizing themselves as a union as long as they do not use violence or the threat of violence.

2.

B) Once a union is certified, the union worker will not bargain for his contract; the union will have a bargaining agent who has the authority to negotiate for a contract that will bind all the union workers in that bargaining unit.

3.

C) It is an unfair labour practice for an employer to threaten to fire a worker for joining the union.

4.

D) A contract approved by both the employer and the union is called a collective agreement, and it must set out the method for the settlement of disputes that might arise under the agreement.

5.

E) A lockout is an action taken by the employer to prevent workers from working and earning a wage.

Answer: A Diff: 3 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

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Bloom's Taxonomy: Knowledge Which of the following is correct with respect to the law of collective bargaining?

60)

1.

A) All employees have the right to individually choose whether they will become members of a union when they are hired.

2.

B) A union shop requires that employees become members of the union when they are hired.

3.

C) The public has a legal obligation to honour a properly constituted picket line during a lawful strike or lockout.

4.

D) Under the Charter of Rights and Freedoms, all employees have the right to belong to trade unions and to strike.

5.

E) Employees can strike only where the employer has clearly breached the terms of the collective agreement.

Answer: B Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Benoit goes to pick up a shipment from a supplier, but when he arrives, he finds the unionized employees who work there are on strike. Benoit is unsure about whether he can, or should, cross the picket line. Which of the following statements is true?

61)

1.

A) Benoit has no legal obligation to honour the picket line.

2.

B) Benoit is prohibited from doing business with an employer involved in a strike.

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3.

C) Benoit is free to continue doing business with the employer, but the employer will face serious fines for continuing to operate during a strike.

4.

D) Benoit has the legal right to cross the picket line, but if he is injured by those on strike, he will have no recourse against them.

5.

E) Benoit must cross the picket line, otherwise the supplier can sue him under the Canada Labour Code.

Answer: A Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

When new employees are required to join a union within a specified period of time, this is referred to as 62)

1.

A) a closed shop.

2.

B) a union shop.

3.

C) an agency shop.

4.

D) the rand formula.

5.

E) a check-off provision.

Answer: B Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining

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Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge Elad starts a brand new job. Lena, his new co-worker, is showing him around. Lena informs Elad that she is a union member and is required to pay dues and to maintain her membership. Elad is certain that he was told he did not need to join the union. What arrangement is in place?

63)

1.

A) Closed shop

2.

B) Agency shop

3.

C) Rand formula

4.

D) Maintenance of membership

5.

E) Check-off provision

Answer: D Diff: 2 Type: MC Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Dismissal without reasonable notice must be based on employee wrongdoing or a failure to perform the job.

64)

Answer: TRUE

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Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

65)

An employer is responsible for all torts committed by his employee.

Answer: FALSE Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

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An employer is responsible for only those torts committed by an employee that take place while the employee is doing what he is employed to do.

6)

Answer: Diff: 2 Type:TF Page Ref: 383 Topic: Ch. 12-The Law of Employment Skill: Recall Objective: Chapter 12:2. Detail common law obligations of employers and employees.

Bloom’s Taxonomy: Knowledge

Only employers are responsible for torts committed by their employees during the course of the employment.

67)

Answer: Diff: 3 Type:TF Page Ref: 383 Topic: Ch. 12-The Law of Employment Skill: Applied Objective: Chapter 12:2. Detail common law obligations of employers and employees.

Bloom’s Taxonomy: Knowledge An employer is vicariously liable for the torts committed on the job by employees and independent contractors.

68)

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Answer: Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12-The Law of Employment Skill: Recall Objective: Chapter 12:2. Detail common law obligations of employers and employees.

Bloom’s Taxonomy: Knowledge

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When an employee is dismissed for just cause, the employer need give the employee only two months' notice or the equivalent pay in lieu of that notice.

69)

Answer: Diff: 2 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

When an employee is dismissed for just cause, he is entitled to reasonable notice or pay in lieu of notice.

70)

Answer: Diff: 2 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

71)

Not only must a non-competition clause be reasonable between the parties, but the party

trying to enforce it must show that the clause is necessary to protect some proprietary interest.

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Answer: Diff: 3 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

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Bloom's Taxonomy: Knowledge

Employees cannot gather information, copy customer lists, or solicit customers before termination.

72)

Answer: Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

When there is constructive dismissal, the employee has an obligation to mitigate, possibly to the extent of accepting a new position offered by the employer.

73)

Answer: Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

74)

An employee who is also a fiduciary may be subject to certain obligations toward an

Topic:Ch.12-TheLawofEmploymentSkil:Recal

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employer only through special provisions in their employment contract.

Answer: Diff: 2 Type: TF Page Ref: 383

Topic:Ch.12-TheLawofEmploymentSkil:Recal

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Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

An employer is only free to terminate the employment relationship for just cause as long as sufficient notice is given.

75)

Answer: Diff: 2 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Swearing at the employer has been determined to be serious misconduct sufficient to justify dismissal of an employee.

76)

Answer: Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

7)

When an employer simply runs out of work for the employee to do, or runs into financial

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difficulties, this is just cause for termination.

Answer: Diff: 2 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

When there is a serious breach of the employment contract by the employer, the employees are entitled to leave work without notice.

78)

Answer: Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

79)

As managers and other executives owe a fiduciary duty to their employer, they may find

themselves somewhat restricted in what they can do even after they leave their employment.

Answer: Diff: 1 Type: TF Page Ref: 383

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Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge Ordinary employees do not have a fiduciary duty and, unless there is a valid restrictive covenant in their employment contract preventing them from doing so, they are free to compete with their former employer as soon as they leave.

80)

Answer: Diff: 1 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Under vicarious liability, the employer will not escape liability if the employee negligently hurts the plaintiff while “on a frolic of his own.”

81)

Answer: Diff: 2 Type: TF Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

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Any contractual term of employment that does not comply with the minimum standards set out in the Employment Standards Act is a nullity.

82)

Answer: TRUE Diff: 3 Type: TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

83)

There is a constitutional right to belong to a union, to strike, and to bargain collectively.

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Answer: FALSE Diff: 2 Type:TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge

Trade unions are exempt from human rights legislation because labour statutes are designated as primacy legislation.

84)

Answer: FALSE Diff: 2 Type:TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge

The Employment Standards Act sets a maximum amount of notice or pay in lieu of notice that an employer has to give an employee upon dismissal.

85)

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Answer: FALSE Diff: 3 Type:TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge

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It is up to the labour relations board to determine how much notice must be given when an employee is dismissed.

86)

Answer: Diff: 2 Type: TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

When one employee sexually harasses another, the only recourse available to the victim is to sue the harassing employee.

87)

Answer: Diff: 2 Type: TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

When an employee leaves the job because of constructive dismissal, his only recourse is to complain to the appropriate human rights tribunal.

8)

Answer:

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Diff: 2 Type: TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

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89)

Both employers and employees pay employment insurance premiums.

Answer: Diff: 2 Type:TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge

Workers’ compensation benefits are only available where the employee has been injured because of the fault of the employer.

90)

Answer: Diff: 3 Type:TF Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge

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A majority of the employees in a workplace must always vote in favour of union organization before certification will be granted.

91)

Answer: Diff: 1 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall

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Objective:Chapter12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

92)

Mediation is third-party intervention in the negotiation process to force an agreement.

Answer: FALSE Diff: 1 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

93)

Certification is notice to a labour relations board that the union intends to go on strike.

Answer: Diff: 2 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge Topic:Ch.12-ColectiveBargaining Skil:Recal

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Objective:Chapter12:5.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

94)

Trade unions' activities are controlled by the courts.

Answer: FALSE Diff: 2 Type: TF Page Ref: 411

Topic:Ch.12-ColectiveBargaining Skil:Recal

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Objective:Chapter12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

95)

A union shop requires that employees become members of the union when they are hired.

Answer: TRUE Diff: 1 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Union employees have a legal obligation to honour (that is, not cross) a properly constituted picket line during a lawful strike or lockout.

96)

Answer: FALSE Diff: 1 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

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Objective:Chapter12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

A lockout involves picketing employees prohibiting both management and other employees from crossing the picket line.

97)

Answer: FALSE Diff: 2 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining

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SOkbijlel:ctRivee:cCahlalpter 12:4.Describecolectivebargainingandexplaintheroleoflabourunions.Bloom's Taxonomy:Knowledge

While a lockout can only take place during the collective bargaining process when there is no contract in force, the employees can also legally strike when the employer breaches a term of a collective agreement that is in force.

98)

Answer: Diff: 3 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Mediation involves a process whereby some third party tries to help the conflicting parties reach an agreement.

9)

Answer: Diff: 1 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

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tiv'es:CThaaxptoerno 12:m 4.yD elceodlegcteive bargainingandexplaintheroleoflabourunions.Bloom'sTaxonomy:Knowledge BOlbojoecm : eKscnroibw

A certified union has exclusive rights to represent the employees, and individual bargaining unit employees are no longer free to enter into separate contractual arrangements with their employer.

10)

Answer:

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Diff: 3 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

The Wagner Act outlawed the practice of collective bargaining and prohibited trade unions from going on strike.

10)

Answer: Diff: 3 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

102)

Unionized employees can be dismissed without notice if there is no work to do.

Answer: Diff: 2 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining

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Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Trade unions were once considered illegal organizations with no status separate from their membership.

103)

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Answer: TRUE Diff: 2 Type: TF Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom’s Taxonomy: Knowledge

104)

How can you distinguish between an employee and an

independent contractor.

Answer: Diff: 1 Type: ES Page Ref: 381 Topic: Ch. 12-What Is Employment?

Skill: Applied

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Objective: Chapter 12:1. Distinguish employees, agents, and independent contractors. Bloom’s Taxonomy: Knowledge

What is the significance of determining that an employment relationship exists, aside from the statutory significance, employment insurance benefits, workers’ compensation benefits, etc.?

105)

Answer: Diff: 1 Type: ES Page Ref: 381 Topic: Ch. 12-What Is Employment?

Skill: Applied Objective: Chapter 12:1. Distinguish employees, agents, and independent contractors.

Bloom’s Taxonomy: Knowledge

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“When one person does work for another, they can be either an agent, an independent contractor, or an employee.” Discuss the accuracy of this statement.

106)

Answer: Diff: 2 Type: ES Page Ref: 381 Topic: Ch. 12 - What Is Employment?

Skill: Applied Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors. Bloom's Taxonomy: Knowledge

107)

Indicate three responsibilities of an employer in an employment relationship.

Answer: Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

108)

Indicate three obligations of an employee in an employment relationship.

Answer: Diff: 1 Type: ES Page Ref: 383

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Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge 109)

Indicate under what circumstances an employer can dismiss an employee.

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Answer: Diff: 3 Type: ES Page Ref: 383 Topic: Ch. 10 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Discuss the remedies for the employee in a wrongful dismissal action as well as any obligations the employee may have in this action.

10)

Answer: Diff: 2 Type: ES Page Ref: 383 Topic: Ch. 10 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Discuss fully the issues for employers regarding what constitutes reasonable notice for the termination of their employees.

1)

Answer: Topic:Ch.10-TheLawofEmploymentSkil:Recal

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Diff: 2 Type: ES Page Ref: 383

Topic:Ch.11-TheLawofEmploymentSkil:Recal

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Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge 12)

Indicate what kinds of restrictions there are on an employer's right to dismiss an employee.

Answer: Diff: 2 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

13)

Under what circumstances can an employee be terminated without notice?

Answer: An employee can be terminated without notice for just cause.

Diff: 2 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's

Topic:Ch.12-TheLawofEmploymentSkil:Recal

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Taxonomy: Knowledge

14)

What constitutes “just cause”?

Answer: Diff: 2 Type: ES Page Ref: 383

Topic:Ch.13-TheLawofEmploymentSkil:Recal

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Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Joe had worked for Sam's Manufacturing Company for ten 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.

15)

Answer: Diff: 2 Type: ES Page Ref: 383 Topic: Ch. 10 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

Joe worked for Sam in Sam's Manufacturing Plant as a supervisor for five years, and for five years prior to that had been foreman. Because of a reorganization, the position of supervisor was eliminated and Joe was reassigned to his old job as night foreman. He refused to take it and sued for wrongful dismissal. What would be the outcome?

16)

Answer: Diff: 3 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's

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Taxonomy: Knowledge If Craig sued Steve for wrongful dismissal and it was established that Craig was not given the proper notice that he was entitled to, what factors would the courts take into consideration in assessing the damages he's awarded?

17)

Answer: Diff: 2 Type: ES Page Ref: 383

Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

18)

Explain when an employer can be held liable for the wrongful acts of an employee.

Answer: Diff: 2 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Recall Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

“Joe was working for Sam, using his own car to deliver manufactured parts for Sam's business to a client. In the process, Joe was involved in an automobile accident, causing injury to George, a stranger. In these circumstances, George's only recourse is against the employer.”

19)

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Discuss the accuracy of this statement.

Answer: Diff: 3 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

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Joe was an employee of Sam's and was using his own car to deliver manufactured goods to a client. Since the client was in Ajax, the same area where his girlfriend lived, he took time out to visit her for lunch. As he approached her house, he was involved in an automobile accident with George. George sued both Joe and his employer. Explain the likely outcome.

120)

Answer: Diff: 3 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

12)

Joe was a self-employed insurance broker. His client, Sam, wished to purchase home

insurance. As was his normal practice, Joe got into his car and drove past Sam's house to determine if all was as stated by the client. In the process of doing so, he struck a pedestrian crossing the street in a crosswalk because he was distracted by his examination of the house. The injured pedestrian sued not only Joe, the insurance broker, but the client as well. Explain the likely outcome. Answer: Diff: 3 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

12)

Indicate how much notice an employee is entitled to when being dismissed.

Topic:Ch.10-TheLawofEmploymentSkil:Recal

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Answer: Diff: 1 Type: ES Page Ref: 383 Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

Joe had been working for Sam in a supervisory position for 14 years when Sam called him into the office, told him that he didn't have any more work for him to do, and told him that he would be expected to be off the job and the relationship terminated by the end of the month (1-1/2 weeks away). During his 14 years of employment, Joe had worked in a number of positions, but when he assumed his most recent supervisory position one year prior, he had signed an agreement stating that he was only entitled to one week's notice. This agreement also provided him with a substantial raise. Discuss the legal position of the parties.

123)

Answer: Diff: 3 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees. Bloom's Taxonomy: Knowledge

124)

Why should employers avoid the temptation to make an employee so uncomfortable he will

quit?

Answer: Diff: 2 Type: ES Page Ref: 383

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Topic: Ch. 12 - The Law of Employment Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge Prejudice or bias exercised against a person or class for the purpose of correcting a pattern of discrimination against another person or class is known as .

125)

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Answer: Diff: 1 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

The correction of employment situations where there has been a tradition of racial or gender imbalance is known as .

126)

Answer: employment equity Diff: 2 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

“If the Employment Standards Act (or its equivalent in your jurisdiction) states that an employee who has worked for a specific length of time is entitled to up to eight weeks' notice, and the employee you wish to dismiss has worked for that long, you can be sure that's all the notice or pay in lieu of notice that you have to give that employee.” Discuss the accuracy of this statement.

127)

Answer: The Employment Standards Act sets a minimum, and if the common law of reasonable notice is greater than this, the common law obligation will prevail.

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Diff: 3 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge 128)

Give examples of three areas of employment relations that have been controlled by

legislation.

Answer: Wages, hours of work, termination, employment standards, discrimination, child labour, workers' compensation, health and safety, and employment insurance have been controlled by legislation.

Diff: 1 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

129)

Give examples of three areas that are controlled by the employment standards legislation.

Answer: Hours of work, notice upon termination, minimum wage, overtime, pregnancy leaves, and adoption leaves are controlled by employment standards legislation.

Diff: 2 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment

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Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge Explain how the Workers' Compensation Act modifies the common law position of injured workers.

130)

Answer: This is a no-fault insurance scheme where injured workers claim against an insurance fund rather than suing the employer or the employees who may have caused the injury. The worker gives up the right to any compensation from the employer or other employees.

Diff: 2 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment

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Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge

What is the effect if a contractual term does not comply with the minimum standards set out in employment standards legislation?

13)

Answer: Diff: 2 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Recall Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom’s Taxonomy: Knowledge

132)

What is the three-part test used to evaluate if an occupational

requirement is justified?

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Answer: Diff: 3 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom’s Taxonomy: Knowledge

13)

Which level of government has the authority to pass collective bargaining

type legislation?

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions. Bloom’s Taxonomy: Knowledge

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134)

What is the significance of a union becoming certified?

Answer: Diff: 1 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions. Bloom’s Taxonomy: Knowledge 135)

How is certification obtained?

Answer: Diff: 3 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions. Bloom’s Taxonomy: Knowledge

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136)

Give three example of unfair labour practices on the part of the employer.

Answer: Diff: 2 Type: ES Page Ref: 411

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Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

137)

Joe was an employer. He heard that his employees were considering joining a union, which

would then be certified. He called them together and stated that if he had to pay union wages, he couldn't keep the business going and would probably have to close it down. The union immediately complained that he had committed an unfair labour practice. Explain the legal position of the parties. Answer: Diff: 3 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

138)

Distinguish between arbitration and conciliation or mediation.

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining

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Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge 139)

What is the minimum period of time for which a completed collective agreement can be in

force?

Answer: One year Diff: 1 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Indicate what is meant by the following terms: union shop, closed shop, agency shop, check¬off, and maintenance of membership.

140)

Answer:

Diff: 3 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall

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Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

14)

Distinguish between a strike and a lockout.

Answer: Diff: 1 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge 142)

What conditions must be met first before employees can go out on strike?

Answer: Diff: 1 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge 143)

Distinguish between a rights dispute and an interest dispute.

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Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

“Lawful picketing allows employees to block others from entering their employer's place of business.” Explain the accuracy of this statement.

14)

Answer: Picketing only allows for the picketer to try to persuade others from entering those premises. No physical force can be used to block others from entering.

Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

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145)

Explain why picketing can be effective.

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom’s Taxonomy: Knowledge

146)

What is meant by secondary picketing?

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 11 - Collective Bargaining Skill: Recall Objective: Chapter 11:4. Discuss the funding of a corporation.

Bloom’s Taxonomy: Knowledge

“Once a picket line is properly set up, no one can cross it.” Explain the accuracy of this statement.

147)

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Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom’s Taxonomy: Knowledge

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What significant differences are there between the rights associated with public sector employees and those associated with private sector unionized employees?

148)

Answer: Diff: 3 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

149)

What obligations does a union have towards its membership?

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

150)

Distinguish between the terms bargaining agent and bargaining unit.

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining

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Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge 15)

To what does the term “check-off provision” refer?

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

152)

Explain what it means to bargain “in good faith.”

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

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153)

To what does the term “grievance process” refer?

Answer: Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge Picketing by striking employees not just of their own workplace but also of other locations where the employer carries on business is known as .

154)

Answer: secondary picketing Diff: 1 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

An option in a collective agreement enabling employees to retain the right not to join the union, though they are still required to pay union dues, is known as .

15)

Answer: the rand formula (or agency shop) Diff: 2 Type: ES Page Ref: 411

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Topic: Ch. 12 - Collective Bargaining Skill: Recall Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Discuss why it is significant to find that an employment relationship exists and how such a relationship is determined.

156)

Answer: Diff: 1 Type: ES Page Ref: 381 Topic: Ch. 12 - What Is Employment?

Skill: Applied Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.

Bloom's Taxonomy: Knowledge

157)

Discuss the termination of employees and the notice to which they are entitled.

Answer: Diff: 1 Type: ES Page Ref: 383 Topic: Ch. 12 - The Law of Employment

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Skill: Applied Objective: Chapter 12: 2. Detail common law obligations of employers and employees.

Bloom's Taxonomy: Knowledge

There are significant examples of statutes that interfere with the free contractual nature of the employment relationship or otherwise compensate for the inadequacies of the protections given to employees under the common law. Discuss several examples of these statutes in terms of the objectives to be accomplished and whether these objectives have been met.

158)

Answer: Diff: 2 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment.

Bloom's Taxonomy: Knowledge

Discuss developments in human rights law as they relate to the area of employment. In your answer, refer to judicial decisions.

159)

Answer: Diff: 3 Type: ES Page Ref: 401 Topic: Ch. 12 - Legislation Impacting Employment Skill: Applied Objective: Chapter 12: 3. Outline the purpose of various statutes impacting employment. Bloom's Taxonomy: Knowledge

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Discuss the organization process imposed by labour statutes. In your discussion, comment on the objectives of the legislation and whether those objectives have been met.

160)

Most people feel that the objective of the legislation should be to be as fair as possible to both the employer and employees. But if the objective was to prevent the violence and confrontation, then this certification process has gone a long way to accomplishing that goal.

Diff: 2 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

Discuss the role of strikes, lockouts, and picketing, and whether or not they have any place in our present society.

16)

Diff: 3 Type: ES Page Ref: 411 Topic: Ch. 12 - Collective Bargaining Skill: Applied Objective: Chapter 12: 4. Describe collective bargaining and explain the role of labour unions.

Bloom's Taxonomy: Knowledge

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Chapter 16 Sales and Consumer Protection Learning Objectives

•

Outline the purpose of the Sale of Goods Act

•

Explain the relationship between title and risk and outline the rules for determining who has title.

Examine the rights and obligations of buyers and sellers Describe the remedies of buyers and sellers upon default Explain what consumer protection legislation is and why it exists Review the Competition Act and other federal consumer protection legislation Review the areas of consumer protection covered by provincial legislation Identify the main forms of negotiable instruments and explain their basic characteristics

• • • • • •

Discussion OUTLINE THE PURPOSE OF THE SALE OF GOODS ACT

The law of contracts established a series of rules and concepts designed to govern the agreements between parties in a general way. As with most general principles, however, it became necessary to modify them in special situations. The Sale of Goods Act (SGA) was intended to provide missing terms in contracts for the sale of goods when the parties had neglected to supply sufficient details themselves.

However, the important themes in contract law of the freedom of the contracting parties to govern their own activities and the principle of caveat emptor were carried through in the Sale of Goods Act. The parties were given the power to contract out of the provisions contained in that legislation simply by stating another intention in their agreement. In most commercial agreements the parties almost invariably contract out of the provisions of the SGA, choosing instead to fashion their own bargain.

By operation of Section 2 of the SGA, the Act only applies where a sale is involved (both title and possession of the goods will transfer) and the sale is of a good (as opposed to services). There must be some sort of monetary consideration that is paid as well. Some jurisdictions still require the contract to be in writing.

EXPLAIN THE RELATIONSHIP BETWEEN TITLE AND RISK AND OUTLINE THE RULES FOR DETERMINING WHO HAS TITLE

An important aspect of the Sale of Goods Act is to determine who bears the risk when goods are destroyed or damaged and the basic principle is that risk follows title (although the parties can agree otherwise if they so wish such as with CIF, FOB and COD contracts). The transfer of title (ownership) is determined by a series of rules set out in the Sale of Goods Act dealing with different situations.

Rule 1 states that where the goods are specified and in a deliverable state, title transfers when the contract is made. Rule 2 - where something has to be done to those goods to put them into a deliverable state, title transfers when the changes are made and the buyer receives notice. Rule 3 - where the goods have to be weighed or measured first, title transfers when the weighing and measuring takes place and notice is given to the buyer. Rule 4 - when goods are taken on approval, title transfers upon approval being communicated, after a reasonable time or after the buyer acts in some way to those goods inconsistent with the seller’s continued title. Rule 5 deals with future goods or goods not yet manufactured. Title in this

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Chapter 16: Sales and Consumer Protection case transfers when the goods are selected and unconditionally appropriated to the contract with the assent of the other parties. (It must be noted that assent is something quite different than the notice discussed in Rule 2 and 3 above.)

Personal Property Security Act provisions can also impact on title. Ownership is an interest that can be perfected by possession or registration.

EXAMINE THE RIGHTS AND OBLIGATIONS OF BUYERS AND SELLERS

The Sale of Goods Act contains a number of conditions and warranties that are included in the contract unless the parties agree otherwise. There are provisions that the person who sold those goods must have the right to sell them, that they will be free of liens and encumbrances and that the buyer will obtain quiet possession. Goods bought by sample must match the sample. When goods are bought by description, the goods must match the description and be free from any defect that would render them unmerchantable. Most sales of manufactured goods qualify as sales by description.

When a buyer purchases goods for a specific purpose relying on the statements of a salesperson, there is an implied condition in the contract that the goods will be reasonably fit for that special purpose. When goods are bought by sample, the goods delivered must substantially match the sample and be free from any hidden defect that would render them unmerchantable. When the parties don’t agree on a price, the Act imposes an obligation to pay a reasonable price for the goods.

DESCRIBE THE REMEDIES OF BUYERS AND SELLERS UPON DEFAULT

When there has been a default and the seller still has possession of the goods, he can retain them as an unpaid seller’s lien, even though title may have transferred.

Even if the goods are in transit he can stop and recover them providing they have not yet reached the buyer. Under the Bankruptcy and Insolvency Act, in certain circumstances the seller can retake goods from the defaulting buyer even after delivery. Generally speaking sellers are much better off if they can sue for the price of the goods rather than suing for damages. The seller can sue for the price of the goods except where the buyer was entitled to refuse delivery because he had not yet received title, payment was not yet due or the goods were defective in some way. Such refusal to accept delivery may still constitute a breach of contract on the part of the buyer, but the will only be required to pay damages rather than pay for the price of the goods (unless specific performance is ordered).

The buyer has the same kind of remedies that are available in a breach of contract action. If there has been misrepresentation, fraudulent or innocent, the remedies available under that heading apply. A problem that may be encountered where the buyer suffers extensive damages is that the seller need only pay if the possibility of those damages was reasonably foreseeable at the time they entered into the contract.

EXPLAIN WHAT CONSUMER PROTECTION LEGISLATION IS AND WHY IT EXISTS

The provisions of the Sale of Goods Act and other statutes are designed to provide protection to consumers in relation to the quality or title of the goods they purchase. Other consumer protection legislation extends the responsibility of the merchant and manufacturer for the products they produce themselves and also controls their activities by prohibiting unacceptable practices in the merchandising process such as false and misleading advertising. When the products are essentially hazardous, there is a duty to warn the user of the hazard.

Where misleading statements are made by the seller or seller’s representative, those statements are incorporated into the contract. Legislation has been introduced to control door-to-door sales, referral selling, unsolicited credit cards, tax refund loans, etc. In loan transactions there is a requirement to disclose the

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Instructor’s Manual for Business Law in Canada, 12th Edition actual amount owed as well as the actual interest rate to be paid. The courts are empowered to overturn unconscionable transactions. Debt collection and credit reporting practices are also regulated.

REVIEW THE COMPETITION A CT AND OTHER FEDERAL CONSUMER PROTECTION LEGISLATION

REVIEW THE AREAS OF CONSUMER PROTECTION COVERED BY PROVINCIAL LEGISLATION

IDENTIFY THE MAIN FORMS OF NEGOTIABLE INSTRUMENTS AND

The Competition Bureau is an independent agency that administers and enforces the federal Competition Act. The purpose of the Competition Act is to promote fair competition in the marketplace. Some practices are deemed criminal in nature, while others are deemed civil and allow for remedies directly to those harmed.

Federal legislation also provides for the control of dangerous products, including food and drugs, prohibits misleading and deceptive statements and controls practices that interfere with the free market system such as price-fixing and monopolies. Today’s consumer protection legislation also provides information services for the consumer.

Provincial Legislation addresses such common consumer issues as: regulation of gift cards, door-to-door sales, referral selling, pay day loans, and debt collection.

In addition, there are many government and non- government agencies that distribute information to consumers and hear consumer complaints.

Negotiable instruments are regulated by the federal Bills of Exchange Act and can take the form of cheques, bills of exchange or promissory notes. Cheques and bills of exchange involve the drawer ordering another to pay a third party, whereas a promissory note is simply a promise to another by the maker to pay a specific amount. Negotiable instruments are enforceable by an innocent holder in due course against the drawer as well as endorsers on the instrument.

EXPLAIN THEIR BASIC CHARACTERISTICS

Answers to Questions 1. Explain the purpose of the Sale of Goods Act in relation to the obligations of the parties to a sale of goods transaction.

The purpose of the Sale of Goods Act is to supply the terms in a contract that parties may leave out and that can be implied from the circumstances. The Act sets out what terms will normally be implied, but in general the parties can specifically overrule these implied terms by stating otherwise in the contract.

2. What three conditions must be met before the Sale of Goods Act applies to a transaction?

Firstly, the subject matter of the contract must be classifiable as a good rather than a service or real property. Secondly, the transfer of those goods must be anticipated by the contract (a sale) and thirdly the transaction must involve the transfer of money (monetary consideration).

3. What is the distinction between a sale and an agreement to sell? What is the significance of that distinction?

A sale refers to those situations where title and property in the goods are transferred immediately.

When either the title or property is to be transferred sometime in the future it is referred to as an agreement to sell. Since risk normally follows the title, an agreement to sell will leave the risk of loss with the seller. A sale usually transfers the risk immediately to the buyer. The traditional law just stated has been deeply affected by the Personal Property Security Act concept of a security interest.

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Chapter 16: Sales and Consumer Protection 4. When does the risk transfer to the buyer in a sale of goods transaction? Explain the exceptions to this general rule.

The general rule is that risk follows title. However, this general rule can be overridden firstly by the parties in a C.I.F (cost, insurance and freight) contract which places the risk on the seller during shipping even though title may have already transferred. Secondly, F.O.B. (free on board) contracts make the seller responsible for those goods until they are placed on board the carrier chosen for transport. Thirdly, C.O.D (cash on delivery) contracts leave both the proprietary interest in the goods and the risk associated with them with the seller until payment.

5. What is a bill of lading? How can it affect who bears the risk in a sale of goods transaction?

The seller names itself as the party entitled to receive the goods at their destination on the shipping receipt. The seller then maintains control of the goods, as well as title and risk, as the buyer would not be entitled to receive the goods until the seller gives permission to the shipper to deliver to the buyer.

6. Indicate when title transfers in the following situations: (a) when the contract for sale is unconditional and the goods involved are in a deliverable state at the time the purchase is made.

This is Rule No. 1 and property passes to the buyer at the time the contract is made. (b) when the subject of the contract involves specific goods to which the seller is obligated to do something, such as repair, clean or modify, in order to get them in a deliverable state.

This involves Rule No. 2. The property in the goods only transfers when the thing required has been done and the buyer has notice of it. (c) when the contract for sale involves specific, identified goods which must be weighed or measured before being given to the buyer.

This is Rule No. 3 and property passes when the act required to be done is done and the buyer has notice of it. (d) when the goods are delivered to the buyer on approval.

This is Rule No. 4 and title transfers (1) when the buyer gives approval or acts toward the goods as if they are accepted and (2) if the buyer doesn’t act as though they are approved or accepted, but retains the goods, title transfers after a reasonable time. (e) when goods purchased by description have not been selected, separated out, or manufactured, at the time the sales contract is entered into.

Property in the goods transfers when the goods have been unconditionally appropriated to the contract by one of the parties with the assent of the other.

7. The Sale of Goods Act imposes terms relating to goods matching samples or descriptions and meeting standards of fitness, quality and title. Explain the nature of these implied terms and their effect on the parties. Indicate which terms are conditions and which are warranties.

Explain the significance of the distinction.

If a condition has been breached, this is an important term of the contract and it allows the victim of the breach to discharge that contract. If a warranty has been breached, the victim of the breach must continue performance, but has the right to sue for compensation. One section of the Sale of Goods Act implies a term in the contract that it shall be a condition of the contract that the seller will have the right to sell the goods at the time the proprietary right is transferred. Another term

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Instructor’s Manual for Business Law in Canada, 12th Edition implies that there shall be a warranty in the contract that the seller will provide quiet possession of the goods, meaning the buyer will be allowed to use the goods free of interference. It is stated that there is an implied warranty in the contract that the seller will provide goods free of any charge or encumbrance meaning no one else will have an interest in those goods. Another term stipulates that the goods delivered must match the description or illustration provided. If the goods delivered are substantially different this would be grounds for discharging the contract. Another section of the Act says that the goods provided must be of merchantable quality, that is, free of any defect that would have persuaded the buyer not to purchase them at the agreed price had they known of that defect.

Similarly, when a buyer has relied on the skill and ability of a salesman in determining whether those goods are suitable for a particular purpose, the goods must be suitable for that purpose. When the purchase of the goods is by sample, the bulk of the goods must match the quality of the sample inspected. The goods must be free from any defect that would render them unmerchantable.

8. Explain what <merchantable quality= means.

This means that the product must be free of any defect that would have persuaded the buyer not to purchase the product at the agreed on price.

9. Explain the effect of an exemption clause included in a contract that is inconsistent with the terms set out in the Sale of Goods Act. Since the parties to a contract have the right to override the provisions set out in the Sale of Goods Act, a carefully worded exculpatory clause will have the effect of eliminating the implied conditions and warranties relating to fitness and quality. The actual effect of the exculpatory clauses must be viewed in the context of provincial consumer protection laws to determine whether they may override this general rule.

10. Explain the rights of the seller when the buyer of goods: (a)

becomes insolvent Generally all contractual remedies are available and so the seller would have the right to sue either for the price of the goods delivered or for damages depending on whether title has transferred.

(b)

defaults on the contract of sale while the goods are still in the hands of the seller Under these circumstances the seller has an unpaid seller’s lien against the goods and can retain them and eventually sell them depending on the specific contractual provisions.

(c)

defaults after the goods have been given to a third party to deliver, but before they are received by the buyer While the goods are in the hands of a shipper, as long as they have not yet reached the buyer, the seller has the right to stop those goods and reclaim them while they are in transit (stoppage in transitu). Note that under the Bankruptcy and Insolvency Act, under certain circumstances the seller can even retake those goods from the defaulting buyer after delivery.

(d)

becomes bankrupt after the goods have been delivered Under the Bankruptcy and Insolvency Act the seller can recover the goods delivered within 30 days of that bankruptcy so long as they haven’t been resold to someone else.

11. Explain why a seller of goods might be less likely to sue for damages than for price.

It might be difficult to establish that any damages have been suffered. In the context of the duty to mitigate damages, it would be difficult to claim for lost profits if the goods can be sold at the same price to someone else.

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Chapter 16: Sales and Consumer Protection 12. Under what circumstances may a buyer refuse delivery of goods?

The buyer may refuse delivery before property in the goods has passed, before payment is due or when the seller has breached some condition of the contract.

13. The Sale of Goods Act in each province implies certain terms into contracts of sale relating to the fitness and quality of the product. Some Canadian jurisdictions make these provisions mandatory in consumer transactions. Explain the situation in your jurisdiction.

In B.C. the parties are not permitted to contract out of (including exculpatory clauses eliminating liability) those sections dealing with fitness and quality. In New Brunswick and Saskatchewan, however, special legislation has been passed imposing conditions of durability for the goods.

14. Describe the practices controlled by the Competition Act and explain how that control is accomplished.

The legislation not only controls monopolies, mergers, price-fixing, etc. but also such practices as misleading advertising, double-pricing and bait and switch.

15. How does the concept of privity of contract limit the effectiveness of many consumer protection provisions? How have some jurisdictions overcome this problem?

Since a contract creates rights and responsibilities between the initial parties to it, outsiders or third parties can’t make claims under the original contractual relationship. Therefore consumer protection provisions relevant to contracts don’t extend protection to outsiders or third parties. This problem can be overcome by suing in tort rather than contract, but when this is done, fault must be demonstrated. The provinces of New Brunswick and Saskatchewan have extended contractual protection beyond the immediate parties to the contract in their legislation dealing with requirements of fitness and quality. In addition some courts have been willing to find separate contracts existing between the manufacturer and the ultimate consumer because of the advertising claims made, thereby avoiding the privity problem. These are referred to as collateral contracts.

16. What common law provisions are available to protect consumers from unscrupulous business practices?

Aside from the straight breach of contract remedies, the consumer would also have a remedy in tort against the manufacturer. Unfortunately, in order to succeed in tort it has been necessary to prove that the manufacturer was at fault or negligent. This was often difficult to do. Today some courts are willing to find collateral contracts existing between manufacturers and consumers, thereby avoiding the fault problem in tort law.

17. Describe the methods outlined in federal and provincial consumer protection statutes to control businesses with a tendency to abusive practices. Discuss the effectiveness of these tactics.

Several different tactics have been utilized to control specific types of businesses and specific types of abuse in the consumer protection field. Often the practices are either prohibited or controlled by legislation as discussed above. However, the consumer protection agencies established by legislation can be helpful in other ways. They can provide information to consumers with regard to their rights and may assist the consumer in pursuing those rights. They may educate consumers and, in some situations, they have information gathering powers and other powers in relationship to the businesses themselves4in fact becoming a control agency.

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Instructor’s Manual for Business Law in Canada, 12th Edition 18. Identify the legislation in effect in your jurisdiction that offers relief to victims of unconscionable transactions.

The Unconscionable Transactions Act (or its equivalent, depending on jurisdiction) has been designed to release parties from unfair contracts they have entered into because of an inequality in the bargaining positions of the two parties or when one party has been taken advantage of because of a weakness such as desperation, poverty or mental infirmity short of incapacity. The courts have the power under this legislation to interfere with the resulting contract to the point of setting it aside or modifying its terms including ordering a refund of the money. In British Columbia and Newfoundland the governments can actually initiate an action against a merchant on behalf of the consumer and carry it through.

19. What statutory provisions have been introduced throughout Canada to control door-to- door selling, referral selling and other potentially abusive practices?

In some provinces legislation is incorporated in consumer protection acts and in other provinces in separate legislation. Usually they impose a cooling-off period giving consumers a certain amount of time to change their minds about purchases and requiring the door-to- door seller to be registered.

Similarly, referral selling has been controlled in most provinces and in some provinces prohibited altogether. There are many examples of other practices that are controlled in various jurisdictions.

Some provinces have brought in legislation controlling specific types of businesses (e.g. tax refund loan businesses).

20. What services are provided to consumers through organizations set up by the federal and provincial governments? Discuss whether these services are adequate.

These bodies can hear and investigate complaints, seize records, search premises, suspend licenses, etc. They often provide information services for consumers and can also provide the consumer in some situations with help to pursue the remedies provided in the legislation. The federal Office of Consumer Affairs has even become involved in some provincial consumer matters.

21. Distinguish among a cheque, a bill of exchange, and a promissory note.

A bill of exchange is an instrument where one person orders another to pay a third party. A cheque is a bill of exchange drawn on a bank. Thus a person with an account at a bank orders the bank to pay some third party. A promissory note involves only two parties and is a promise by one person to pay another at some point in the future. A bill of exchange can be used to transfer funds or as a method of creating credit if it is made payable some time in the future. A cheque is generally not used to grant credit since it is payable on demand. A promissory note is just a method of creating credit.

22. Explain how the position of a holder in due course compares to the position of an assignee of contractual rights.

When contractual rights are assigned, the assignee takes subject to the rights between the initial parties.

Any defense that is good against the original creditor is good against the assignee as well. That is not true with negotiable instruments. An innocent holder in due course is in a better position than the person from whom the instrument was obtained. The position of a holder in due course differs from that of an assignee of contractual rights in that the former is not subject to the rights or equities between the initial parties.

23. Explain the nature of an endorsement and its significance on a negotiable instrument.

Endorsement consists of a signature and words on the back of the negotiable instruments. There are different kinds of endorsement but normally this is done to add the credit of the endorser to the instrument so that if it is not honoured the holder can turn to the endorser for payment.

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Chapter 16: Sales and Consumer Protection 24. Explain why online transactions do not involve negotiable instruments. What has taken their place?

Negotiable instruments cannot be created or transferred online since their essential nature is a unique written document. Debit cards, credit cards, and other forms of electronic money have taken their place.

Solutions to Cases 1. Resch v. Canadian Tire Corporation, 2006 CanLII 11930 (ON SC), 17 BLR (4th) 301.

Mr. Resch or the injured boy’s mother could sue on behalf of the boy, as <next friend=. The action would be for breach of contract and in negligence for product liability against the dealer and in negligence for product liability against the manufacturer. Consumer protection legislation should be examined to see if it gives a statutory contractual claim against the manufacturer and a collateral contract could also be pleaded. The claim against the dealer may be complicated in tort if Canadian Tire Corporation did an intermediate inspection of the bike. The court found that the boy was not a <buyer= within the Sale of Goods Act, because he was an infant and lacked capacity, so implied conditions and warranties from the Act were not available to him.

2. R. v. Stucky, Ont. C.A., per Weiler and Gillese J.J.A., 2009 ONCA 151 (CanLII), 240 CCC(3d) 141.

The Court of Appeal overturned the conviction under section 52 and ordered a new trial. The court stated, <.. .to satisfy the mens rea component of s.52 offences ..., the Crown must prove beyond a reasonable doubt that an accused had knowledge of the false or misleading character of the representations, or was reckless in that regard.= The court made passing reference to provisions of the Consumer Reporting Act dealing with false or misleading representations. The court held that there must be a real and substantial connection to Canada in order to apply the Competition Act to acts involving foreign victims.

3. Behiel v. Primco Limited, 2011 SKQB 65 (CanLII) The defendant was informed that the plaintiffs had children. While the scratches did not come from the children, the defendant should assume that the flooring would have furniture on it. It is likely the plaintiff would be successful in this action.

4. Muskoka Fuels v. Hassan Steel Fabricators Limited, 2011 ONCA 355 (CanLII) The court found that the implied condition of merchantability found in the Sale of Goods Act was breached. Damages in the sum of $71,589.34 were upheld and Muskoka obtained its costs both at trial and on appeal.

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