Canadian Business Law Today 2nd Edition Test Bank by Ace Test Banks

Canadian Business Law Today 2nd Edition Test Bank

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TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Laws are the rules of conduct that protect the rights of individuals and businesses. 1) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-01 Laws are the rules of conduct that protect t...

2) In the business world, there are laws to protect businesses from harm. 2) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-02 In the business world, there are laws to pro...

3) A privacy policy is a list of rules of conduct for employees relating to the creation, usage,

control, and maintenance of personal information. 3) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-03 A privacy policy is a list of rules of condu...

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4) Businesses must follow the guidelines of the Personal Information Protection and

Electronic Documents Act (PIPEDA), when collecting and using personal information from their customers. 4) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-04 Businesses must follow the guidelines of the...

5) PIPEDA dictates that a business may only use the personal information it collects solely

for the purpose it collects it 5) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-05 PIPEDA dictates that a business may only use...

6) A business need only obtain consent once for the personal information it collects. 6) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-06 A business need only obtain consent once for...

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7) When drafting a privacy policy, it is important to include what information is being

collected and how it is being collected. 7) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-07 When drafting a privacy policy, it is import...

8) Business law encompasses all the laws that a business requires to form and run a

business. 8) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-02 Understand how the law plays a part in business. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-08 Business law encompasses all the laws that a...

9) Business laws are in place to protect the business, the owner, and the public. 9) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-02 Understand how the law plays a part in business. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-09 Business laws are in place to protect the bu...

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10) Laws guide the businessperson in the proper and lawful way to conduct the business. 10) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-02 Understand how the law plays a part in business. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-10 Laws guide the businessperson in the proper ...

11) Businesses must retain documents or run the risk of losing a lawsuit if they are sued. 11) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-02 Understand how the law plays a part in business. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-11 Businesses must retain documents or run the ...

12) Businesses need not retain documentation, in any case. 12) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-02 Understand how the law plays a part in business. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-12 Businesses need not retain documentation, in...

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13) A business that understands its obligations to the law and to the public, protects its rights. 13) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-02 Understand how the law plays a part in business. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-13 A business that understands its obligations ...

14) Risk management allows a business to understand and assess risks associated with doing

business. 14) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-03 Understand the importance of protecting a business with risk management. Topic : 01-03 Law and Risk Management Source : Chapter 01 Test Bank > TB 01-14 Risk management allows a business to underst...

15) Good risk management may allow a business to avoid legal consequences. 15) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-03 Understand the importance of protecting a business with risk management. Topic : 01-03 Law and Risk Management Source : Chapter 01 Test Bank > TB 01-15 Good risk management may allow a business to...

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16) Business ethics refers to the moral decisions made by the stakeholders of a business. 16) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-04 Identify how ethics plays a role in law and in business. Topic : 01-04 Business Ethics and the Law Source : Chapter 01 Test Bank > TB 01-16 Business ethics refers to the moral decision...

17) How to manage a conflict of interest with an employee is not an example of an ethical

decision. 17) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-04 Identify how ethics plays a role in law and in business. Topic : 01-04 Business Ethics and the Law Source : Chapter 01 Test Bank > TB 01-17 How to manage a conflict of interest with an...

18) How to submit information to the Canada Revenue Agency to maximize profits while

following rules is an example of an ethical decision. 18) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-04 Identify how ethics plays a role in law and in business. Topic : 01-04 Business Ethics and the Law Source : Chapter 01 Test Bank > TB 01-18 How to submit information to the Canada Reve...

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19) You need to know and understand all of the laws that pertain to your business. 19) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-05 Types, Areas, and Sources of Law in Canada Source : Chapter 01 Test Bank > TB 01-19 You need to know and understand all of the l...

20) Canada has a civil legal system and a common law legal system. 20) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-20 Canada has a civil legal system and a common...

21) Canada has two (2) types of law. 21) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-21 Canada has two (2) types of law.

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22) Public law governs the relationship between individuals. 22) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-22 Public law governs the relationship between ...

23) Public law sets the rules for the relationship between society and business. 23) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-23 Public law sets the rules for the relationsh...

24) Private law governs the relationship between individuals. 24) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-24 Private law governs the relationship between...

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25) Private law sets the rules for the relationship between society and business. 25) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-25 Private law sets the rules for the relations...

26) Public law dictates how a business resolves a dispute with the government. 26) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-26 Public law dictates how a business resolves ...

27) Businesses need not be concerned with white-collar crime. 27) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-27 Businesses need not be concerned with white-...

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28) Criminal law is designed to protect society from crimes. 28) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-28 Criminal law is designed to protect society ...

29) Criminal law is a set of rules that individuals and not businesses must obey. 29) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-29 Criminal law is a set of rules that individu...

30) Constitutional law limits the exercise of governmental power over individuals and

businesses through the protection of fundamental rights and freedoms. 30) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-30 Constitutional law limits the exercise of go...

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31) Administrative laws set out broad policy statements and establish a board commission or

agency to ensure compliance by business. 31) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-31 Administrative laws set out broad policy sta...

32) Businesses are required to follow the laws set out in administrative law statutes. 32) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-32 Businesses are required to follow the laws s...

33) In response to COVID-19 following March 2020, the federal and provincial government

enacted new administrative laws and regulations that businesses must abide by to keep Canadians and their businesses safe. 33) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-33 In response to COVID-19 following March 2020...

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34) A business may litigate a tax dispute with government in The Tax Court of Canada. 34) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-34 A business may litigate a tax dispute with g...

35) Civil or private law is also called tort law. 35) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-35 Civil or private law is also called tort law...

36) A person can be sued in civil law even if they face criminal charges. 36) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-36 A person can be sued in civil law even if th...

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37) A slip and fall outside your business is an example of civil law. 37) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-37 A slip and fall outside your business is an ...

38) In civil law, the Crown tries to prove that the accused is guilty beyond a reasonable doubt. 38) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-38 In civil law, the Crown tries to prove that ...

39) Common law is used in all courts of Canada. 39) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-39 Common law is used in all courts of Canada.

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40) Canada adopted civil law from Britain. 40) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-40 Canada adopted civil law from Britain.

41) Statute law is a set of codes, rules, and regulations that have been enacted by government. 41) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-41 Statute law is a set of codes, rules, and re...

42) Common law is case law or judge made precedent law. 42) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-42 Common law is case law or judge made precede...

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43) Stare decisis means that judges in lower courts must follow decisions from higher courts

in their provinces. 43) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-43 Stare decisis means that judges in lower cou...

44) A business can use common law as precedent to help make its decisions involving legal

risks. 44) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-44 A business can use common law as precedent t...

45) The Constitution Act 1867 outlines the executive and legislative powers of federal and

provincial governments. 45) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-06 Understand how laws are made. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-45 The Constitution Act 1867 outlines the execu...

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46) The Constitution Act 1982 entrenches the Canadian Charter of Rights and Freedoms as

well as other rights such as Aboriginal rights. 46) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-06 Understand how laws are made. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-46 The Constitution Act 1982 entrenches the Can...

47) A statute is a law enacted at the municipal, provincial, or federal level. 47) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-06 Understand how laws are made. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-47 A statute is a law enacted at the municipal,...

48) Regulations are laws developed by departments and other organizations in specific areas. 48) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-06 Understand how laws are made. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-48 Regulations are laws developed by department...

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49) A business needs to only be aware of statutes made for the province in which it does

business. 49) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-06 Understand how laws are made. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-49 A business needs to only be aware of statute...

50) Canada has three (3) branches of government. 50) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-50 Canada has three (3) branches of government.

51) The role of the judiciary is to interpret and apply the law. 51) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-51 The role of the judiciary is to interpret an...

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52) The executive branch of government has the power to make, alter, and repeal the laws. 52) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-52 The executive branch of government has the p...

53) The Municipal level of government deals with the responsibilities of a city, town, or

district such as parks, water, parking, local police. 53) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-53 The Municipal level of government deals with...

54) The executive branch of government is responsible for administering and enforcing the

laws. 54) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-54 The executive branch of government is respon...

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55) The Charter of Rights and Freedoms is a part of the Canadian Constitution and was

included in the Constitution Act in 1982. The Charter protects Canadians' fundamental freedoms that are important to every Canadian citizen, permanent resident, or newcomer in a free and democratic country. 55) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-55 The Charter of Rights and Freedoms is a part...

56) Court decisions are based on what the law says and what the evidence proves. 56) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-56 Court decisions are based on what the law sa...

57) The hierarchy of courts is the same in each province. 57) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-07 The Court System Source : Chapter 01 Test Bank > TB 01-57 The hierarchy of courts is the same in each ...

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58) Alternative Dispute Resolution is a process to resolve disputes in a way that does not

involve going to court. 58) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-58 Alternative Dispute Resolution is a process ...

59) Mediation and arbitration are examples of ADR. 59) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-59 Mediation and arbitration are examples of AD...

60) A benefit of ADR is that it creates goodwill—preserves diplomatic relationship between

the parties because they work together toward a solution both sides can live with. 60) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-60 A benefit of ADR is that it creates goodwill...

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61) ADR is usually more expensive than litigation. 61) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-61 ADR is usually more expensive than litigatio...

62) ADR maintains the privacy of the parties. 62) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-62 ADR maintains the privacy of the parties.

63) ADR is usually more time consuming than litigation. 63) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-63 ADR is usually more time consuming than liti...

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64) ADR does not increase compliance—parties are not more likely to comply with a mutual

decision. 64) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-64 ADR does not increase compliance&#8212;parti...

65) ADR is usually less private than litigation. 65) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-65 ADR is usually less private than litigation.

66) ADR is not binding on the parties. 66) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-66 ADR is not binding on the parties.

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67) ADR can harm the goodwill between the parties. 67) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-08 Define Alternative Dispute Resolution (ADR) and its benefits. Topic : 01-08 Alternative Dispute Resolution (ADR) Source : Chapter 01 Test Bank > TB 01-67 ADR can harm the goodwill between the partie...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 68) Which of the following is not required to be put into a privacy policy? 68) ______ A) A pledge to protect the client's privacy. B) Details of the impact of the information on the business. C) Details on how the information is being kept secure. D) How the information is going to be shared with third parties. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-68 Which of the following is not required to be...

69) The Personal Information Protection and Electronics Documents Act is: 69) ______ A) A federal statute that applies in all provinces. B) A federal statute that applies in none of the provinces. C) A provincial statute that applies in all provinces. D) A provincial statute that applies in one province only. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-69 The Personal Information Protection and Elec...

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70) Which of the following is an example of when business documentation is essential and

necessary to defend a lawsuit. 70) ______ A) When a patron is suing the business for a slip and fall inside the premises of the

business. B) When a successful sale transaction is closed and the contract is completed. C) When the business purchases supplies for operations. D) When the business is preparing its marketing plan. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 01-02 Understand how the law plays a part in business. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-70 Which of the following is an example of when...

71) Risk Management Components include: 71) ______ A) Avoid, transfer, mitigate, acceptance B) Transfer, accept, maximize opportunity C) Avoidance and acceptance. D) Those components that the business model created. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-03 Understand the importance of protecting a business with risk management. Topic : 01-03 Law and Risk Management Source : Chapter 01 Test Bank > TB 01-71 Risk Management Components include:

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72) Mitigation, as a risk management strategy is when: 72) ______ A) A business reduces its services in all cases. B) A business chooses not to have a contingency plan in place. C) A business creates a strategy to minimize losses or damages as a result of an

unforeseen event before it happens. D) The business does nothing. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 01-03 Understand the importance of protecting a business with risk management. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-72 Mitigation, as a risk management strategy is...

73) The difference between law and ethics is that: 73) ______ A) Law tells us what we should do and ethics tells us what we must do B) Law tells us what we must do and ethics tells us what we should do C) Law tells us what others must do and ethics tells us what we must do D) Law tells us what others should do and ethics tells us what we must do Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 01-04 Identify how ethics plays a role in law and in business. Topic : 01-04 Business Ethics and the Law Source : Chapter 01 Test Bank > TB 01-73 The difference between law and ethics is tha...

74) Which one of the following is not a business stakeholder? 74) ______ A) Customers B) Employees C) Shareholders D) Suppliers Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-04 Identify how ethics plays a role in law and in business. Topic : 01-04 Business Ethics and the Law Source : Chapter 01 Test Bank > TB 01-74 Which one of the following is not a business...

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75) Which of the following is not an area of public law? 75) ______ A) Administrative law B) Contract law C) Criminal law D) Tax law Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-05 Types, Areas, and Sources of Law in Canada Source : Chapter 01 Test Bank > TB 01-75 Which of the following is not an area of pub...

76) Which of the following is not a white-collar crime? 76) ______ A) Assault & battery B) Bankruptcy fraud C) Identity theft D) Tax evasion Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-76 Which of the following is not a white-collar...

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77) Which of the following activities does not constitute a criminal activity? 77) ______ A) A business owner forgets to advise the accountant that he or she sold an asset B) A business owner seeks insurance compensation for a property he or she lost in a

fire C) A business owner tells a friend about an undisclosed merger that will increase his or her business's value D) A business owner transfers his or her land to a related person before declaring bankruptcy Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-02 Law and the World of Business Source : Chapter 01 Test Bank > TB 01-77 Which of the following activities does not c...

78) The Simpson brothers have applied to the Liquor License Board of their province to

obtain a wine and beer license for their new restaurant. Which of the following is not true? 78) ______ A) The Board is an administrative tribunal, not a court of law B) The decisions of the Board become part of the administrative law of the province C) The Simpsons will deal with civil servants rather than elected representatives while applying for their license D) All decisions of the Board are subject to approval by the provincial legislature Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-05 Types, Areas, and Sources of Law in Canada Source : Chapter 01 Test Bank > TB 01-78 The Simpson brothers have applied to the Liq...

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79) When judges apply the principle of stare decisis in deciding a case before them they are,

in effect, applying: 79) ______ A) Civil law B) Constitutional law C) Precedent law D) Statute law Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 01-05 Identify the types, areas, and sources of law. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-79 When judges apply the principle of stare dec...

80) Which of the following statues outlines the executive and legislative powers of federal

and provincial governments? 80) ______ A) Charter of Rights and Freedoms B) Constitution Act 1867 C) Constitution Act 1967 D) Constitution Act 1982 Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-06 Understand how laws are made. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-80 Which of the following statues outlines the ...

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81) Section 91 includes: 81) ______ A) Food and Drug regulations, Competition Act B) Property law, employment standards and Income Tax Act C) Income Tax Act, Public Health and Property Tax D) All federal and provincial laws. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-81 Section 91 includes:

82) The legislative branch of government refers to which of the following? 82) ______ A) Courts and Judges B) Members of Parliament C) Prime Minister and Cabinet D) The Senate Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-82 The legislative branch of government refers ...

83) The executive branch of government refers to which of the following? 83) ______ A) Courts and Judges B) Members of Parliament C) Prime Minister and Cabinet D) The Senate Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-83 The executive branch of government refers to...

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84) The judicial branch of government refers to which of the following? 84) ______ A) Courts and Judges B) Members of Parliament C) Prime Minister and Cabinet D) The Senate Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 01-07 Understand the court system. Topic : 01-06 How Laws Are Made in Canada Source : Chapter 01 Test Bank > TB 01-84 The judicial branch of government refers to ...

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 85) Explain why PIPEDA is such an important consideration in the development of a company's privacy policy.

Question Details Accessibility : Keyboard Navigation Bloom's : Evaluate Difficulty : Medium Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-85 Explain why PIPEDA is such an important cons...

86) What are three (3) ethical decisions a business has to make?

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-86 What are three (3) ethical decisions a busin...

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87) What are the four (4) strategies for dealing with risk?

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 01-01 Understand the law's role in society. Topic : 01-01 Law in Today's Society Source : Chapter 01 Test Bank > TB 01-87 What are the four (4) strategies for dealing...

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Answer Key Test name: Chapter 01 Test Bank 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) TRUE 16) TRUE 17) FALSE 18) TRUE 19) TRUE 20) TRUE 21) TRUE 22) FALSE 23) TRUE 24) TRUE 25) FALSE 26) TRUE 27) TRUE 28) TRUE 29) FALSE 30) TRUE 31) TRUE 32) TRUE 33) TRUE 34) TRUE 35) TRUE 36) TRUE 37) TRUE 38) FALSE 39) FALSE 40) FALSE richard@qwconsultancy.com

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41) TRUE 42) TRUE 43) TRUE 44) TRUE 45) TRUE 46) TRUE 47) TRUE 48) TRUE 49) FALSE 50) TRUE 51) TRUE 52) FALSE 53) TRUE 54) TRUE 55) TRUE 56) TRUE 57) TRUE 58) TRUE 59) TRUE 60) TRUE 61) FALSE 62) TRUE 63) FALSE 64) FALSE 65) FALSE 66) FALSE 67) FALSE 68) B 69) A 70) A 71) A 72) C 73) B 74) A 75) B 76) A 77) B 78) D 79) C 80) B 81) A 82) B 83) C 84) A richard@qwconsultancy.com

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85) Short Answer

PIPEDA is privacy legislation that is required to be followed by businesses to inform the public about privacy laws, what is done with the private information, how it is stored, and whether it is shared. Aside from it being legally mandated, it is also important because of the dangers of identity theft and potential litigation against a business which does not safeguard private and confidential client information. 86) Short Answer

How to submit information to the Canada Revenue Agency regarding taxes. How to manage a conflict of interest when a new applicant for a manager job happens to be a best friend. How to deal with instructions from a CEO when instructions are unethical. 87) Short Answer

Avoid. Transfer. Mitigate. Acceptance. TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 88) Civil litigation is a form of Alternative Dispute Resolution. 88) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-01 Civil litigation is a form of Alternative Di...

89) The Desormeaux and Clendenning cases are examples of how the same set of facts can

result in both a criminal and civil matter. 89) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-02 The Desormeaux and Clendenning cases are exa...

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90) Most civil court matters are decided by having a trial. 90) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-03 Most civil court matters are decided by havi...

91) The standard of proof in a civil trial is beyond a reasonable doubt. 91) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-04 The standard of proof in a civil trial is be...

92) Mary is suing John for failing to pay for the goods he brought from her. Mary is required

to settle with John instead of going to trial. 92) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-05 Mary is suing John for failing to pay for th...

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93) Mary is suing John for failing to pay for the goods he bought from her. Mary has to prove

her case beyond a reasonable doubt. 93) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-06 Mary is suing John for failing to pay for th...

94) You believe that the Judge made an error in your case. You can have your case re-heard

by a jury. 94) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-07 You believe that the Judge made an error in ...

95) In some cases, a business person can represent themselves in a Small Claims Court. 95) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-08 In some cases, a business person can represe...

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96) A business person needs to only be aware of the levels of court in the province in which

they do business. 96) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-09 A business person needs to only be aware of ...

97) Decisions of the Supreme Court of Canada are final and can cannot be appealed. 97) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-10 Decisions of the Supreme Court of Canada are...

98) Decisions of the Supreme Court of Canada must be decided by all 9 Justices. 98) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-11 Decisions of the Supreme Court of Canada mus...

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99) A party can appeal any case in which they do not like the decision. 99) ______ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-12 A party can appeal any case in which they do...

100)

The Superior Court of each province is the highest trial court in that province. ___

100)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-13 The Superior Court of each province is the h...

101)

Provincial Court Judges in each province are appointed by the provincial government. 101) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-14 Provincial Court Judges in each province are...

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102)

Missing a limitation deadline may result in your claim being dismissed. ___

102)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-15 Missing a limitation deadline may result in ...

Each province has a uniform set of Civil Procedure Rules that must be followed in every litigation

103)

___

103)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-16 Each province has a uniform set of Civil Pro...

Documents that are labelled without prejudice for the purpose of settlement do not need to be disclosed

104)

___

104)

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105)

A mediator controls the process of the dispute resolution. ___

105)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-04 Explain Alternative Dispute Resolution. Topic : 02-04 Alternative Dispute Resolution Source : Chapter 02 Test Bank > TB 02-18 A mediator controls the process of the dispu...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 106) A settlement in a civil matter is ___

106)

___ A) mandatory B) optional C) binding D) required by the provincial civil rules Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-19 A settlement in a civil matter is

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107)

A lawsuit can have ___

107)

___ A) more than one plaintiff and defendant B) only one plaintiff and one defendant C) only a third party D) always two plaintiffs Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-20 A lawsuit can have

108)

The same set of facts ___

108)

___ A) can result in both a criminal and civil action B) must always only be based on the civil dispute C) should always have a civil and criminal component D) must require settlement between the parties Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-21 The same set of facts

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109)

An Appeal from the British Columbia Small Claims can be brought to ___

109)

___ A) any provincial court for the monetary value B) the British Columbia Supreme Court C) the Supreme Court of Canada D) the British Columbia Federal Court Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-22 An Appeal from the British Columbia Small Cl...

Mary is suing John for failing to pay for the goods valued at $20,000 and lives in Manitoba; Mary should file

110)

___

110)

___ A) In the Supreme Court of Manitoba B) In the provincial court of Manitoba C) In the Small Claims court of Manitoba D) In Federal Court Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-23 Mary is suing John for failing to pay for th...

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111)

If the losing party disagrees with the decision of the court, then they ___

111)

___ A) cannot appeal B) can have a different judge in that same level of court re-hear the case C) can appeal to the higher court D) can Immediately have their case heard at the Supreme Court of Canada Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-24 If the losing party disagrees with the decis...

112)

To have a case heard at the Supreme Court of Canada, parties ___

112)

___ A) must do nothing B) must seek leave to appeal and await the court's decision C) must file their materials for their hearing immediately D) cannot appeal to the Supreme Court of Canada unless it is a Federal matter Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-25 To have a case heard at the Supreme Court of...

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113)

A decision by a provincial Appeal Court is made by ___

113)

___ A) 1 Judge B) 2 Judges C) 3 Judges D) 5 Judges Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-26 A decision by a provincial Appeal Court is m...

114)

A party can appeal a case ___

114)

___ A) at any time B) within the prescribed time frame listed in the Rules of Civil Procedure C) within 10 days in all cases D) within 90 days in all cases Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-27 A party can appeal a case

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115)

A decision from the Federal Court ___

115)

___ A) can be appealed to the Federal Court of Appeal B) must first ask for leave to the Supreme Court of Canada C) may be appealed in the provincial courts D) may be re-heard by a different judge in the same Federal Court Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-28 A decision from the Federal Court

116)

Indigenous Courts ___

116)

___ A) Follow the same procedures as the provincial courts B) Decisions may be appealed to the Court of Appeal of the Particular province C) Are exclusively dealt with by the First Nations People D) Have the power to make laws that must be followed by Provincial Courts Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-29 Indigenous Courts

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117)

Provincial Administrative Tribunals ___

117)

___ A) hear all types of matters B) hear specialized administrative matters such as Human Rights allegations, such as

the case of O.P.T v. Presteve Foods Limited C) appeals from provincial courts D) are formed by the Federal government Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-30 Provincial Administrative Tribunals

118)

Document Disclosure means ___

118)

___ A) disclosing only the material documents B) withholding the documents that may weaken your case C) disclosing all of the documents in your possession D) promising to disclose pertinent documents at a later date just before trial Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-31 Document Disclosure means

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119)

The litigation process commences by ___

119)

___ A) serving and filing a Statement of Claim or Notice of Action B) serving a Writ of Summons C) serving and Filing Minutes of Settlement D) filing a Notice to the Court Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-32 The litigation process commences by

120)

These documents do not need to be disclosed ___

120)

___ A) documents that are solicitor client privileged B) documents that are not notarized C) all documents, including privileged documents must be disclosed D) documents that are more than 7 years old Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-33 These documents do not need to be disclosed

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121)

A mediator ___

121)

___ A) will issue a final and binding decision for the parties B) will assist in the settlement process C) will issue a decision D) will not give an opinion as to the strengths or weaknesses of the parties' position Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-04 Explain Alternative Dispute Resolution. Topic : 02-04 Alternative Dispute Resolution Source : Chapter 02 Test Bank > TB 02-34 A mediator

122)

ADR is not suitable ___

122)

___ A) where evidentiary processes are required to secure a party's rights B) where a business person has failed to obtain legal advice early on C) where mediation has failed D) where the parties wish to settle in good faith Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-05 Explain risk management and how lawyers help to resolve disputes. Topic : 02-04 Alternative Dispute Resolution Source : Chapter 02 Test Bank > TB 02-35 ADR is not suitable

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123)

Risk management for a business involves ___

123)

___ A) Obtaining legal advice as soon as possible when a dispute arises and using

mediation as a tool to resolve the issues B) Obtaining legal advice and then letting the dispute evolve in accordance with the best practices C) Preparing a plan for risk for management but not implementing it D) Contracting out of ADR procedures with suppliers Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-05 Explain risk management and how lawyers help to resolve disputes. Topic : 02-05 Risk Management and How Lawyers Help Resolve Disputes Source : Chapter 02 Test Bank > TB 02-36 Risk management for a business involves

124)

The Supreme Court of Canada hears appeals on ___

124)

___ A) Everything B) Questions of mistake of fact and mistake of law C) Questions on mistake of procedure only D) Questions of Law only Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-05 Explain risk management and how lawyers help to resolve disputes. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-37 The Supreme Court of Canada hears appeals on

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125)

Which one of the following is not a usual term for civil litigation? ___

125)

___ A) Action B) Case C) Judgment D) Lawsuit Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-38 Which one of the following is not a usual te...

Raymond, who lives in Winnipeg, appeals a trial courts' decision he lost. The highest court his case can eventually be appealed to is: 126) ___ ___ A) Federal Court of Appeal B) Manitoba Court of Appeal C) Manitoba Court of Queen's Bench D) Supreme Court of Canada

126)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-39 Raymond, who lives in Winnipeg, appeals a tr...

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Bob bought a new stereo system for $3500 from A&C Sound in Vancouver. He agreed to make monthly payments of $500 and did so for the first 2 months. He really liked the system, but did not feel like paying the balance. A&C Sound decided to sue. Their action would be in the: 127) ___ ___ A) Court of Appeal B) Provincial Court, Criminal Division C) Provincial Court, Small Claims Division D) Supreme Court

127)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-40 Bob bought a new stereo system for

In the Snazzy v James example, the Nova Scotia Court of Appeal dismissed the case. Snazzy can now: 128) ___ ___ A) Refer the action back to the Nova Scotia trial court for a new hearing B) Refer the action directly to the Supreme Court of Canada C) Seek leave from the Nova Scotia Court of Appeal for another hearing D) Seek leave to appeal from the Supreme Court of Canada

128)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-41 In the Snazzy v James example, the Nova Scot...

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129)

Which statement is correct with respect to the process of civil litigation? ___

129)

___ A) In a civil action, a plaintiff is taking action against another individual or

corporation for compensation B) In a civil action, a defendant is taking action against another individual or corporation for compensation C) In a criminal action, a defendant is taking action against an accused for compensation D) In a criminal action, a plaintiff is taking action against an accused for compensation Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-42 Which statement is correct with respect to t...

In British Columbia the amount of a monetary claim made in Small Claims Court cannot exceed?

130)

___

130)

___ A) $5000 B) $15,000 C) $25,000 D) $50,000 Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-43 In British Columbia the amount of a monetary...

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If a business person had a dispute with the Canada Revenue Agency, the court action must be heard in: 131) ___ ___ A) Federal Appeal Court B) Federal Trial Court C) Provincial Small Claims Court D) Provincial Superior Court

131)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-44 If a business person had a dispute with the ...

132)

Which document is used to commence a civil action in British Columbia? ___

132)

___ A) Notice of Application B) Notice of Civil Claim C) Statement of Claim D) Writ of Summons Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-45 Which document is used to commence a civil a...

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133)

The successful party who obtains a judgment is: ___

133)

___ A) Execution Creditor B) Execution Debtor C) Judgment Creditor D) Judgment Debtor Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-46 The successful party who obtains a judgment ...

You injured your hand when an electric shaver you bought exploded in your hand. Your lawyer is filing a claim in BC Supreme Court. The first court document your lawyer will send you a copy of is: 134) ___ ___ A) List of Documents B) Notice of Application C) Notice of Civil Claim D) Writ of Summons

134)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-47 You injured your hand when an electric shave...

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If a defendant wanted to make their own claim against a plaintiff in a BC Supreme Court action, they would need to file a:

135)

___

135)

___ A) Counter-claim B) Notice of Application C) Petition D) Statement of Claim Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-48 If a defendant wanted to make their own clai...

In British Columbia, the discovery stage of the litigation process allows the parties to examine each other under oath. This is called an: 136) ___ ___ A) Examination in Aid B) Examination for Discovery C) Examination for Documents D) Examination under Oath

136)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-49 In British Columbia, the discovery stage of ...

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137)

Which is not an example of a pre-trial application in a BC trial court? ___

137)

___ A) Application for directions B) Application for discovery of documents C) Application to add a party D) Application to find a defendant guilty Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-50 Which is not an example of a pre-trial appli...

Diane is a physical therapist who runs a small business from her home. Her long-time customer, Bob, is behind on his payments and is unhappy with the outcome of his treatment. Which of the following statements is true? 138) ___ ___ A) If her primary concern is to keep costs low, Diane should start a Small Claims action. B) If her primary concern is to deal with the matter quickly, Diane should hire a lawyer to file a claim in the superior trial court. C) If her primary concern is to resolve the issue, Diane must file a claim as alternative dispute resolution is not applicable to this type of dispute. D) If her primary claim is to keep her relationship with Bob, Diane should consider an alternative form of dispute resolution.

138)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 02-04 Explain Alternative Dispute Resolution. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-51 Diane is a physical therapist who runs a sma...

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139)

Which of the following cases would be a good one to mediate? ___

139)

___ A) Where the parties want to maintain goodwill B) Where the parties want to ensure the right to appeal C) Where the parties want to drag the matter out D) Where the parties want to have their case made public Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 02-04 Explain Alternative Dispute Resolution. Topic : 02-04 Alternative Dispute Resolution Source : Chapter 02 Test Bank > TB 02-52 Which of the following cases would be a good...

140)

What is an advantage of arbitration? ___

140)

___ A) Less expensive than litigation B) Outcomes are consistent C) Outcomes are subject to appeal D) Process is lengthy Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-04 Explain Alternative Dispute Resolution. Topic : 02-04 Alternative Dispute Resolution Source : Chapter 02 Test Bank > TB 02-53 What is an advantage of arbitration?

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141)

Which of the following is an advantage of using a form of ADR? ___

141)

___ A) Can be appealed to a Judge B) Can be resolved quicker than through litigation C) More expensive than litigation D) More time consuming than litigation Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-04 Explain Alternative Dispute Resolution. Topic : 02-04 Alternative Dispute Resolution Source : Chapter 02 Test Bank > TB 02-54 Which of the following is an advantage of us...

142)

Having a risk management plan allows a business person to: ___

142)

___ A) Manage their business activities so they never need legal advice B) Manage their business activities so they know what legal risks require legal advice C) Protect their business activities from ever needing legal advice D) Protect their business activities from ever having to do their own legal research Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-05 Explain risk management and how lawyers help to resolve disputes. Topic : 02-05 Risk Management and How Lawyers Help Resolve Disputes Source : Chapter 02 Test Bank > TB 02-55 Having a risk management plan allows a busin...

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143)

Having a risk management plan for a business will: ___

143)

___ A) Assist a business person in managing legal risks B) Ensure that a business person will never need legal advice C) Protect a business person from all litigation D) Provide a business person with all necessary legal information Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 02-05 Explain risk management and how lawyers help to resolve disputes. Topic : 02-05 Risk Management and How Lawyers Help Resolve Disputes Source : Chapter 02 Test Bank > TB 02-56 Having a risk management plan for a business...

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 144) Define Balance of Probabilities. Who has the burden?

Question Details Accessibility : Keyboard Navigation Bloom's : Evaluate Difficulty : Medium Learning Objective : 02-01 Understand the civil court systems in Canada. Topic : 02-01 The Civil Court Systems in Canada Source : Chapter 02 Test Bank > TB 02-57 Define Balance of Probabilities. Who has the...

145)

Define "leave to appeal" and provide a reason why leave may be granted.

Question Details Accessibility : Keyboard Navigation Bloom's : Evaluate Difficulty : Easy Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-58 Define &#34;leave to appeal&#34; and provide a reaso...

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What effect, if any, does a ruling of the Supreme Court of Canada have on law and society?

146)

Question Details Accessibility : Keyboard Navigation Bloom's : Analyze Difficulty : Medium Learning Objective : 02-02 Understand the hierarchy of the Canadian civil courts. Topic : 02-02 Hierarchy of the Canadian Civil Courts Source : Chapter 02 Test Bank > TB 02-59 What effect, if any, does a ruling of the Su...

Under what circumstances might documents not be disclosed in a litigation to the other side?

147)

Question Details Accessibility : Keyboard Navigation Bloom's : Evaluate Difficulty : Easy Learning Objective : 02-03 Understand the litigation process and civil court proceedings. Topic : 02-03 Understanding Civil Litigation Processes and Proceedings Source : Chapter 02 Test Bank > TB 02-60 Under what circumstances might documents not...

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Answer Key Test name: Chapter 02 Test Bank 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) FALSE 6) FALSE 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) FALSE 12) FALSE 13) TRUE 14) TRUE 15) TRUE 16) TRUE 17) TRUE 18) FALSE 19) B 20) A 21) A 22) B 23) A 24) C 25) B 26) C 27) B 28) A 29) C 30) B 31) C 32) A 33) A 34) B 35) A 36) A 37) B 38) C 39) D 40) C richard@qwconsultancy.com

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41) D 42) A 43) C 44) B 45) B 46) C 47) C 48) A 49) B 50) D 51) D 52) A 53) A 54) B 55) B 56) A 57) Short Answer

In a civil matter this is the burden of the plaintiff to prove that something has more likely than not occurred. 58) Short Answer

Permission by the three justices of the court to have a case heard. 59) Short Answer

The decisions of the Supreme Court present the core of what a democratic society requires to settle differences that affect the people of Canada. Their rulings eventually become codified, where applicable. 60) Short Answer

Solicitor-Client Privilege Litigation Privilege Without Prejudice documents

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148)

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. A person who commits a tort is called a tortfeasor. 148) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-01 Define the concept of tort law. Topic : 03-01 What Is Tort Law? Source : Chapter 03 Test Bank > TB 03-01 A person who commits a tort is called a tort...

A tort is an action committed by an individual or business that causes injury or harm to another individual or business. 149) ___ ___ ⊚ true ⊚ false

149)

To be successful in a tort action, parties must also show they had a contractual relationship.

150)

___

150)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-01 Define the concept of tort law. Topic : 03-01 What Is Tort Law? Source : Chapter 03 Test Bank > TB 03-03 To be successful in a tort action, parties m...

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151)

The burden of proof is on the plaintiff. ___

151)

152)

An intentional tort is when a business or person deliberately causes harm to another. 152) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-02 Differentiate between intentional torts and unintentional torts. Topic : 03-02 Intentional and Unintentional Torts Source : Chapter 03 Test Bank > TB 03-05 An intentional tort is when a business or pe...

153)

A business owner may be responsible for the torts committed by their employees. ___

153)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-02 Differentiate between intentional torts and unintentional torts. Topic : 03-02 Intentional and Unintentional Torts Source : Chapter 03 Test Bank > TB 03-06 A business owner may be responsible for the ...

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Business exposure involves recognizing what is a wrong action and how to avoid that exposure. 154) ___ ___ ⊚ true ⊚ false

154)

155)

A remedy is what the court awards a successful party in a lawsuit. ___

155)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-08 A remedy is what the court awards a successf...

The purpose of a remedy is to restore the injured party to the position they were in before the tort happened.

156)

___

156)

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157)

Assault is the threat of immanent battery. ___

157)

158)

False imprisonment is when you unlawfully confine a person within a specified area. 158) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-11 False imprisonment is when you unlawfully co...

A store security guard can detain a suspected shoplifter without fear of being sued for false imprisonment. 159) ___ ___ ⊚ true ⊚ false

159)

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160)

Defamation is publishing a false statement that harms a person's reputation. ___

160)

161)

Injurious falsehood is also called "slander of goods". ___

161)

To succeed in a lawsuit, a plaintiff must prove that the defendant's statement was false.

162)

___

162)

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163)

Defamatory statements made at a staff meeting are subject to absolute privilege. ___

163)

Injury to one's reputation by a false statement, where the statement is not subject to privilege, is a tort. 164) ___ ___ ⊚ true ⊚ false

164)

165)

Negligence is a careless, inadvertent, action that causes injury or harm to another. ___

165)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-18 Negligence is a careless, inadvertent, actio...

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Actions that fall below social acceptable standards, even when they are accidental, create liability for damages. 166) ___ ___ ⊚ true ⊚ false

166)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-19 Actions that fall below social acceptable st...

167)

A duty of care is owed by one individual or business to another. ___

167)

It is up to the plaintiff to prove that the defendant should have foreseen that their conduct would cause harm to the plaintiff.

168)

___

168)

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On a cold winter day, Anis slipped on the icy sidewalk at the entrance to Wes's shop. Anis injured her ankle as a result of the fall, and Wes hired a taxi to take Anis to the hospital to have her injured ankle examined. On the way to the hospital another vehicle collided with the taxi, and Anis was seriously injured. If Anis took legal action against Wes, Wes might plead voluntary assumption of risk as a defence. 169) ___ ___ ⊚ true ⊚ false

169)

Understanding the legal problems associated with your business can help avoid lawsuits.

170)

___

170)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-05 Discuss the application of risk management when dealing with torts. Topic : 03-05 Risk Management Regarding Torts Source : Chapter 03 Test Bank > TB 03-23 Understanding the legal problems associated ...

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171)

Understanding when a legal issue has arisen helps you to know when to call a lawyer. 171) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-05 Discuss the application of risk management when dealing with torts. Topic : 03-05 Risk Management Regarding Torts Source : Chapter 03 Test Bank > TB 03-24 Understanding when a legal issue has arisen ...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 172) Tort law is law related to ___

172)

___ A) Wrongdoing by a business or individual. B) Contract law C) Government conduct against a person only D) A person's conduct against another person only Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 03-01 Define the concept of tort law. Topic : 03-01 What Is Tort Law? Source : Chapter 03 Test Bank > TB 03-25 Tort law is law related to

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173)

Tort law ___

173)

___ A) is a matter of common law exclusively B) is a matter of statute law exclusively C) is a matter of equity law exclusively D) is a matter of common law, and statute law, decided by a judge Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 03-01 Define the concept of tort law. Topic : 03-01 What Is Tort Law? Source : Chapter 03 Test Bank > TB 03-26 Tort law

174)

An unintentional tort ___

174)

___ A) Is deliberate conduct on the victim B) Is reckless conduct by the victim in not protecting oneself C) Involves a mental element of intent D) Is careless, inadvertent conduct on the part of the tortfeasor. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 03-02 Differentiate between intentional torts and unintentional torts. Topic : 03-02 Intentional and Unintentional Torts Source : Chapter 03 Test Bank > TB 03-27 An unintentional tort

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175)

An intentional tort is ___

175)

___ A) careless conduct by the tortfeasor B) unintentional when done recklessly C) when a business or person does not mean to cause harm to another D) when a business or person deliberately causes harm to another Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 03-02 Differentiate between intentional torts and unintentional torts. Topic : 03-02 Intentional and Unintentional Torts Source : Chapter 03 Test Bank > TB 03-28 An intentional tort is

176)

Based on the principle of vicarious liability, a business owner ___

176)

___ A) Will not be responsible for the conduct of their employees B) Will never be responsible for their employee's criminal conduct C) Will be responsible for their employee's torts D) Will only be responsible for some torts Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 03-02 Differentiate between intentional torts and unintentional torts. Topic : 03-02 Intentional and Unintentional Torts Source : Chapter 03 Test Bank > TB 03-29 Based on the principle of vicarious liabilit...

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177)

Battery is ___

177)

___ A) Unwanted solicitation B) Unconsented contact and physical harm C) Verbal insults D) Assault Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-30 Battery is

178)

Categories of intentional torts include ___

178)

___ A) False Imprisonment, assault and battery B) Defamation, Trespass to Land, False Imprisonment, Battery and others C) Defamation and assault only D) Nuisance Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-31 Categories of intentional torts include

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179)

False Imprisonment occurs when ___

179)

___ A) The person being is held totally denied of liberty or freedom B) The person being held is denied of liberty or freedom, and, without their consent C) A defendant, without a right to arrest, and without obtaining the consent of the

person, has held that person denying their liberty and freedom totally resulting in a loss of freedom of that person D) Consent was given but the person detained has lost their freedom Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-32 False Imprisonment occurs when

180)

Passing off ___

180)

___ A) Only occurs if the product in question is a fake B) Does not occur when there has not been consent C) A defendant represents a plaintiffs' goods or services as if it were one's own

products or services and thereby confuses the public. D) Is when items are only similar but not the same Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-33 Passing off

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181)

Inducing breach of contract occurs when ___

181)

___ A) A third party is induced to break a contract B) When the plaintiff deliberately breaches a contract C) Occurs when the defendant contracts with a third party D) Occurs in minimal business relationships Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-34 Inducing breach of contract occurs when

182)

An example of the tort of interference with economic relations is ___

182)

___ A) Corporate espionage and theft B) Inducing an employee to join the defendant's business C) Creating similar advertising campaigns D) Passing off non-counterfeit goods Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-35 An example of the tort of interference with ...

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183)

Trespass to Land as an intentional tort occurs when 183)

___

___ A) A defendant has consent to enter land but has not requested access for a particular time frame. B) A defendant has unintentionally entered lands without knowledge of the boundary C) A defendant does not have implied or express consent to enter or occupy land D) When a defendant has received implied consent such as viewing an "OPEN" sign on the property Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-36 Trespass to Land as an intentional tort occu...

Alexia observed an "Open" Sign on their favourite shoe store and entered the store. This is an example of 184) ___ ___ A) Implied consent to trespass into land B) Express consent to trespass into land C) Revoked consent to trespass into land D) Permission to occupy the land

184)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-37 Alexia observed an "Open" Sign on their favo...

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Trespass to Land may be intentional or unintentional. When it is unintentional the consent is

185)

___

185)

___ A) Express B) Direct C) Implied D) Revoked Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-38 Trespass to Land may be intentional or unint...

186)

Trespass to chattels is causing ___

186)

___ A) Damage to land B) Damage to or interfering with a person's personal property. C) Another example of trespass to land without consent D) Does not include damage to chattels Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-39 Trespass to chattels is causing

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187)

Nuisance includes ___

187)

___ A) Noise, odours, trespass to land and chattels B) Noise and odours interfering with the plaintiff's reasonable enjoyment of their

property C) A condition that if it is lawful to cause noise during lawfully permissible times then a claim of nuisance may not be found by the court D) A condition that odours must stop emitting only at specific times Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-40 Nuisance includes

188)

Libel is when ___

188)

___ A) A newspaper publishes false information about a person or business B) A news reporter reports false information about a person or business intentionally C) A news reporter both reports on air and writes in the paper false information about

a person or business D) A reporter reveals correct information about a business or person on-air Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-41 Libel is when

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189)

Slander is when ___

189)

___ A) A reporter reveals correct information about a person or business on-air, verbally B) A reporter reveals incorrect information about a person or business on air intentionally C) A reporter posts correct information about a person or business on social media but does not fact check it first D) A blogger posts correct information about a person or business online Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-42 Slander is when

190)

In the tort of defamation of slander, the presumption is ___

190)

___ A) There is a presumption of injury for the plaintiff B) There is no presumption of injury on the plaintiff C) The presumption is based on the reverse onus of the defendant D) There is a presumption of injury but no damages Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-43 In the tort of defamation of slander, the pr...

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191)

Defences to defamation do not include ___

191)

___ A) Absolute privilege B) Reportage C) Fair comment D) Mistake of Fact Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-44 Defences to defamation do not include

192)

A plaintiff would not be successful in a defamation lawsuit ___

192)

___ A) If there is no presumption of injury on the plaintiff B) If the defendant showed no harm caused to the plaintiff C) If the defendant had evidence to prove the statement was true. D) If the defendant showed evidence of the statements being partly true Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-45 A plaintiff would not be successful in a def...

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193)

Invasion of privacy is ___

193)

___ A) Not a tort if carried out unintentionally B) Does not occur from eavesdropping C) Is any unreasonable interference with someone's privacy or private information. D) Is similar to defamation in its legal test Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-46 Invasion of privacy is

194)

Negligence may be found ___

194)

___ A) Where you intended to act negligently B) Where you did not intend to act negligently C) Where you acted in a premeditated manner D) Where you did nothing Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-47 Negligence may be found

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195)

In assessing liability in a negligence action, one of the tests the courts will consider is 195) ___ ___ A) The reasonable person test and whether the defendant acted reasonably B) The objective threshold test C) How the plaintiff conducted themselves D) The proximity test

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-48 In assessing liability in a negligence actio...

196)

The phrase "the tortfeasor takes the victim as they find them" means 196)

___

___ A) The defendant would be liable to pay damages only for the damages the plaintiff could prove B) The defendant is liable to pay the damages of the plaintiff if the plaintiff has any pre-existing conditions and the defendant's conduct was foreseeable to cause harm to the plaintiff C) The defendant will automatically be liable in negligence D) The defendant will not be liable in negligence Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-49 The phrase "the tortfeasor takes the victim ...

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Anis slipped and fell in front of Wes' art shop on a snowy morning. Wes had not salted the walkway in front of his shop. Wes may 197) ___ ___ A) Be found liable in negligence if Anis was injured and has damages flowing from her injuries B) Be found liable if Wes owed a duty of care and fell below the standard of care, causing Anis's injuries and subsequent damages that flow directly from her injuries and his conduct C) Not be found liable if he had shovelled the walkway, even if he did not salt it D) Wes may argue that Anis was wearing inappropriate footwear which caused her to slip and fall and Wes will not be found liable

197)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-50 Anis slipped and fell in front of

198)

In a negligence claim, the burden is on the Plaintiff to prove 198)

___

___ A) Beyond a reasonable doubt that the defendant caused the plaintiff's damages B) Beyond a reasonable doubt that the defendant fell below the standard of care C) On a balance of probabilities that the defendant owed a duty of care, fell below the standard of care, and caused damages and injury to the plaintiff D) On a balance of probabilities that the defendant fell below the standard of care, even if he did not owe a duty of care Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-51 In a negligence claim, the burden is on the ...

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199)

Contributory Negligence is when 199)

___

___ A) A plaintiff contributes to their own injuries in addition to the defendants' conduct B) Where the plaintiff is wholly at fault and their claim must fail if they have contributed to their own injuries C) Where the defendant will nonetheless be found liable for the full damages even if the plaintiff contributed to their injuries D) Where the injuries are minor and do not form part of the negligence analysis Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-52 Contributory Negligence is when

200)

Voluntary Assumption of Risk is when 200)

___

___ A) A rock climber assumes the risk injury climbing an unsafe mountain side for sport B) The defendant waives full responsibility and liability even if the defendants' services are unsafe C) The plaintiff assumes no liability for their decision to partake in risky sport or activity D) A rock climber does not sign a waiver to climb the unsafe mountain side for sport Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-53 Voluntary Assumption of Risk is when

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201)

Defences to negligence include the following, except ___

201)

___ A) Voluntary Assumption of Risk B) Contributory Negligence C) Remoteness of Damage D) Due Diligence Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-54 Defences to negligence include the following...

202)

Damages for negligence do not include ___

202)

___ A) Economic Damages B) Punitive Damages C) Non-Economic Damages D) Specific Performance Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-55 Damages for negligence do not include

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203)

Which of the following statements is correct with respect to tort law? ___

203)

___ A) An act must be intentional to be classified as a tort B) A wrongful act can be both a crime and a tort C) The main purpose of tort law is to punish a tortfeasor D) The main purpose of tort law is to deter crime Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-01 Define the concept of tort law. Topic : 03-01 What Is Tort Law? Source : Chapter 03 Test Bank > TB 03-56 Which of the following statements is correct...

204)

Which of the following is not an intentional tort? ___

204)

___ A) Assault B) Defamation C) Negligence D) Trespass Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-02 Differentiate between intentional torts and unintentional torts. Topic : 03-02 Intentional and Unintentional Torts Source : Chapter 03 Test Bank > TB 03-57 Which of the following is not an intentional...

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Tariq and Diane decided to go into partnership for a manufacturing business. Tariq raised $250,000 in start-up funds, in large part on the basis of documents that he forged. These documents purported to show that Tariq and Diane owned their factory, when in fact they merely leased it. Tariq spent all of the money on himself, and he now has no assets and has been jailed for 10 years. The creditors have contacted Diane and told her they will hold her liable for the loss. 205) ___ ___ A) Diane is both civilly and criminally liable for Tariq's actions B) Diane can argue assumption of risk in her defence of Tariq's actions C) Diane is vicariously liable for Tariq's action D) Diane is not liable as she was not aware of Tariq's actions

205)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 03-02 Differentiate between intentional torts and unintentional torts. Topic : 03-02 Intentional and Unintentional Torts Source : Chapter 03 Test Bank > TB 03-58 Tariq and Diane decided to go into partnersh...

A person sued for assault and battery cannot claim which of the following as a defence?

206)

___

206)

___ A) I didn't mean to do it B) I was only defending myself C) The injured person agreed D) The injured person consented Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-59 A person sued for assault and battery cannot...

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A bouncer who uses force to remove a patron from a bar is liable for injuries to the patron if the amount of force, given the size, strength, and amount of resistance of the patron is: 207) ___ ___ A) Excessive B) Extreme C) Predictable D) Reasonable

207)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-60 A bouncer who uses force to remove a patron ...

208)

Which of the following actions constitutes an assault? ___

208)

___ A) A bystander is struck by a ball during a soccer game B) Someone points a gun at another person who does not see the gun C) The person in the vehicle next to you makes an offensive, threatening gesture to

you D) You bump into someone in the mall Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-61 Which of the following actions constitutes a...

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A business in the service industry, may find its employees becoming involved in altercations with customers in the course of their work. Such altercations:

209)

___

209)

___ A) Are extremely rare and so are not worthy of concern B) Can lead to employees being held liable, but will not impact the business itself C) Can result in actions against the business on the basis of vicarious liability D) May be inconvenient, but do not expose the business to liability Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-62 A business in the service industry, may find...

210)

Which of the following is not an example of a business to business tort? ___

210)

___ A) Assault B) Conspiracy C) Deceit D) Intimidation Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-63 Which of the following is not an example of ...

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211)

A person could be liable for the tort of trespass for: ___

211)

___ A) Accidentally knocking down the garage in a car that is out of control B) Leaving packages in the wrong person's garage C) Leaving the wrong packages in the right person's garage D) Sleeping in the garage with the owner's permission Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-64 A person could be liable for the tort of tre...

Puna required a reference for a new job. She asked for a letter from her former employer, Alice. Alice wrote that Puna was honest, hard-working, intelligent, and a pleasant person who would do best in a job with considerable direction and supervision. Since Puna had applied for work in outside sales, she was turned down as the job needed an independent self-starter. Puna sued Alice for libel. 212) ___ ___ A) Alice can successfully raise the defence of absolute privilege B) Alice can successfully raise the defence of fair comment C) Alice can successfully raise the defence of qualified privilege D) Alice can successfully raise the defence of freedom of speech

212)

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213)

Which of the following is not a defence to defamation? ___

213)

___ A) The statement was absolute privilege B) The statement was fair comment C) The statement was qualified privilege D) The statement was FALSE Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-03 Identify the types of intentional torts. Topic : 03-03 Types of Intentional Torts Source : Chapter 03 Test Bank > TB 03-66 Which of the following is not a defence to d...

The required elements of the tort of negligence do not include which of the following?

214)

___

214)

___ A) A breach of care B) A contributory injury C) A duty of care D) A foreseeable injury Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-67 The required elements of the tort of neglige...

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215)

Which of the following situations would not lead to a claim for negligence? ___

215)

___ A) A business failed to put out a 'slippery when wet' sign after the floor was cleaned B) A business left a pipe on the front of the sidewalk next to the restaurant floor C) A customer opened a soft drink can and ingested a toxic substance D) A customer leaves the store angrily when he was told that the item he wanted is not available Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-68 Which of the following situations would not ...

Which one of the following statements about the case Donoghue v. Stevenson is false?

216)

___

216)

___ A) It says that a manufacturer is not liable for injury caused by its product B) It says that a manufacturer is liable for injury caused by its product C) It set a precedent in the law of negligence D) It set the test to determine that a duty is owed to public Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-69 Which one of the following statements about ...

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Which of the following statements is the test used by the courts to determine if a duty of care was owed? 217) ___ ___ A) Would an average person have acted like that in these circumstances B) Would an average person have foreseen that type of injury C) Would a reasonable person have acted like that in these circumstances D) Would a reasonable person have foreseen that type of injury

217)

218)

With regard to the law of negligence, which of the following is false? 218)

___

___ A) If the court finds that the plaintiff was 40 percent responsible and the defendant was 60 percent responsible for the loss suffered by the plaintiff, the plaintiff cannot recover more than 60 percent in damages from the defendant B) If you hurt someone and are sued for negligence, a possible defence is that you didn't intend to hurt the person C) Some occupiers' liability acts set the standard of care owed by the occupiernamely, to take reasonable care that any person is reasonably safe D) To win his action in negligence, a plaintiff must prove, among other things, that the defendant owed the plaintiff a duty of care Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-71 With regard to the law of negligence, which ...

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219)

Which of the following statements with regard to the tort of negligence is false? ___

219)

___ A) A possible defence to the plaintiff's claim of negligence is that the plaintiff

volunteered to take the risk B) If a person is injured by a defective product that he himself did not purchase, he can sue the manufacturer for negligence C) If physical injury can be foreseen as the result of a person's negligence, this person will be liable for all the injury suffered although the person injured was unusually weak and infirm D) If the court finds contributory negligence, the defendant has no liability at all Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 03-04 Consider the defences to unintentional torts. Topic : 03-04 Unintentional Torts and Their Defences Source : Chapter 03 Test Bank > TB 03-72 Which of the following statements with regar...

As a form of risk management, you would know when to seek legal advice if you believed your business was about to be involved in a tort action. You know that prior to the meeting you have tried to minimize the risk. Which of the following is not a risk management tool? 220) ___ ___ A) Anticipating and assessing possible legal risks involved in your business actions B) Assessing the possible legal risks after an action has been commenced against you C) Understanding the statutes involved in your business and jurisdiction D) Understanding what questions need to be asked of the lawyer

220)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 03-05 Discuss the application of risk management when dealing with torts. Topic : 03-05 Risk Management Regarding Torts Source : Chapter 03 Test Bank > TB 03-73 As a form of risk management, you would know...

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 221) Adam is an employee of a grocery store. He stocks shelves. One afternoon as he was restocking the shelves in the condiment aisle, a patron of the store, careened into him with his grocery cart, knocking Adam to the floor and with him several items from the shelves. Adam, upset, reacted by shoving the patron who slipped and fell on some mustard, and broke his leg on impact with the floor. Is this an intentional tort Adam carried out? If so, which one? Will Adam's employer be vicariously liable if criminal charges are laid against Adam?

Susan, a residential tenant was evicted by her landlord Niko. During the move out, Susan, upset, decided that she would remove all of the light fixtures attached to the electrical wiring. Has Susan committed a tort? If so, which one?

222)

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223)

Define Passing Off

Amani is an employee of a university working in the records department. Her partner, Alex, asked if she would look up and photocopy the records and transcripts of one Alex's friends, so that he could use those against him. If Amani does this, what tort is she committing? Would she be found liable?

224)

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Answer Key Test name: Chapter 03 Test Bank 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) TRUE 12) FALSE 13) TRUE 14) TRUE 15) FALSE 16) FALSE 17) TRUE 18) TRUE 19) TRUE 20) TRUE 21) TRUE 22) TRUE 23) TRUE 24) TRUE 25) A 26) D 27) D 28) D 29) C 30) B 31) B 32) C 33) C 34) A 35) A 36) C 37) A 38) C 39) B 40) B richard@qwconsultancy.com

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41) B 42) B 43) A 44) D 45) C 46) C 47) B 48) A 49) B 50) B 51) C 52) A 53) A 54) D 55) D 56) B 57) C 58) C 59) A 60) A 61) C 62) C 63) A 64) B 65) C 66) D 67) B 68) D 69) A 70) C 71) B 72) D 73) B 74) Short Answer

Adam has carried out the tort of battery. Adam's employer will be vicarious liable both civilly and criminally for Adam's conduct. 75) Short Answer

Susan has committed the tort of trespass to chattel. The chattel belongs to the landlord and not Susan. Her removal of the light fixtures attached to the wiring would be considered a trespass to chattel and thus an intentional tort. 76) Short Answer

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Falsely representing to the public another company's product or service as your own. 77) Short Answer

Amani would be committing the tort of intrusion upon seclusion. She would likely be found liable because she had no basis to search for those records, and precedent would support a finding of liability.

225)

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. Professionals have a fiduciary duty to their clients. 225) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-01 Professionals have a fiduciary duty to their...

Professionals can reduce their potential liability by having a well-drafted retainer agreement.

226)

___

226)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-02 Professionals can reduce their potential lia...

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A well drafted retainer agreement can exclude a professional from claims for professional negligence.

227)

___

227)

An engineer made a serious design error when designing a bridge. The bridge collapsed and a pedestrian who was crossing the bridge at the time was seriously injured. The pedestrian will be successful in a suit against the engineer in negligence if the engineer failed to meet the standard of the reasonable person when he designed the bridge. 228) ___ ___ ⊚ true ⊚ false

228)

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The Canada Consumer Product Safety Act (CCPSA) deals with strict laws on consumer product safety

229)

___

229)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-02 Product and Manufacturers' Liability Source : Chapter 04 Test Bank > TB 04-05 The Canada Consumer Product Safety Act (CCPS...

230)

Occupiers' Liability standard of care differs from situation to situation ___

230)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-06 Occupiers Liability standard of care

231)

Consumer Protection legislation imposes labelling regulations on manufacturers. ___

231)

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Consumer Protection legislation defines danger to human health or safety as an existing or potential unreasonable hazard from the use of a product.

232)

___

232)

233)

Occupiers can be the owners of property that others may come onto. ___

233)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-03 Understand occupiers' liability as a tort. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-09 Occupiers can be the owners of property that...

Occupiers have an obligation to ensure their premises are safe and the standard of care will depend on the situation. 234) ___ ___ ⊚ true ⊚ false

234)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-03 Understand occupiers' liability as a tort. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-10 Occupiers have an obligation to ensure their...

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Occupiers' liability acts protect an owner from being held responsible for a legal action by a trespasser.

235)

___

235)

236)

Customers who come into your store during business hours are invitees. ___

236)

237)

Owners have no legal responsibility to a licensee. ___

237)

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A licensee is a person or organization that enters the land of the occupier with permission.

238)

___

238)

A business person has a high standard of care to ensure their premises are safe for invitees.

239)

___

239)

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 240) Fiduciary duty includes concepts such as ___

240)

___ A) Loyalty B) Trustworthiness C) Trust, honesty, loyalty, responsibility, and good faith. D) Liability Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-16 Fiduciary duty includes concepts such as

241)

The following factors may establish negligence in a fiduciary duty, except ___

241)

___ A) The professional holds a position of power B) There is a client - professional relationship and a duty of care C) There was no breach in the standard of care required D) There was a breach in the standard of care required Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-17 The following factors may establish negligen...

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A lawyer has been sued by a client for breach of contract because they failed to give proper advice. 242) ___ ___ A) The client will not be successful even if the client provided explicit instructions to the lawyer B) The client will not be successful if the retainer agreement stipulates that there was no guarantee for success. C) The client will be successful if the lawyer has not performed the legal services at the standard of a reasonable lawyer D) Proving negligence against the lawyer shall be difficult because there is no fiduciary relationship

242)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-18 A lawyer has been sued by a client for breac...

243)

Which of the following is NOT an example of negligence in fiduciary duty 243)

___

___ A) A lawyer writing an offer to settle on the instruction of a client after advising of the risk B) A doctor falsifying records C) A dentist who is inebriated on the date of surgery D) An accountant who fails to include receipts in a corporate tax filing Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-19 Which of the following is NOT an example of ...

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Andrew, a lawyer, failed to do a proper title search of a property that resulted in his clients' actually owning only two-thirds of the property that they thought they had bought. 244) ___ ___ A) Andrew will be held against the standard of a reasonable lawyer B) Andrew's conduct will be measured by Andrew's particular circumstances in conducting himself in that manner C) Andrew's conduct will be measured against the reasonable person D) Andrew's conduct will be measured against any other profession

244)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-20 Andrew, a lawyer, failed to do a proper titl...

245)

Examples of regulations the CCPSA deals with include the following EXCEPT ___

245)

___ A) Warning signs B) Advertising C) Storage and transporting D) Contracts Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-02 Product and Manufacturers' Liability Source : Chapter 04 Test Bank > TB 04-21 Examples of regulations the CCPSA deals with...

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The case of Hollis v. Dow Corning Corp., 1995 4 SCR 634, a Supreme Court of Canada case dealing with product defects, deals with

246)

___

246)

___ A) Negligent advertisement of services B) Product defect C) Post-surgery risks D) Procedural law Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-02 Product and Manufacturers' Liability Source : Chapter 04 Test Bank > TB 04-22 The case of Hollis v. Dow Corning Corp., 199...

247)

Manufacturers have a duty of care for the following EXCEPT, ___

247)

___ A) No defects in their products B) Warning to the consumer if there is a product defect C) Risk avoidance to make products safe for use D) Negligence of any practitioner that does not relate to product defect Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-02 Product and Manufacturers' Liability Source : Chapter 04 Test Bank > TB 04-23 Manufacturers have a duty of care for the fo...

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Which of the following is NOT required to be successful in a claim under Occupier's Liability? 248) ___ ___ A) The occupier has not made all reasonable attempts to keep the property safe. B) The injury was because of the negligence of the occupier C) The injury was because of the negligence of the plaintiff D) The individual suffered damages as a result of the injury

248)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-24 Which of the following is NOT required to be...

An occupier may be held liable for the injuries and damages of the following, EXCEPT

249)

___

249)

___ A) A trespasser B) A licensee C) An invitee D) A trespasser, licensee, invitee, when the occupier has taken all reasonable

measures to advise of the dangers to site Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-25 An occupier may be held liable for the injur...

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250)

An example of an invitee includes the following, EXCEPT ___

250)

___ A) An electrical contractor carrying out repairs B) A cable technician installing fibre optic cable on property C) A municipal worker providing maintenance on a water main on the property D) A visitor who was not invited Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-26 An example of an invitee includes the follow...

251)

For the purposes of professional liability, a professional is anyone with ___

251)

___ A) Knowledge or experience that is widely available B) Knowledge or experience that most people have C) Knowledge or experience that is not widely available D) Knowledge or experience in a particular field Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-27 For the purposes of professional liability, ...

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252)

A professional's liability can be based on ___

252)

___ A) Contract or fiduciary duty B) Contract, tort or fiduciary duty C) Contract or tort D) Fiduciary duty or tort Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-28 A professionals liability

An accounting firm made serious errors in providing audited financial statement to ABC Limited. These statements are used by management, shareholders, and potential shareholders. 253) ___ ___ A) Potential shareholders who relied on these statements may succeed in suing the accounting firm in contract if the accounting firm has not acted according to the reasonable-person standard B) Potential shareholders who relied on these statements may succeed in suing the accounting firm in negligence if the accounting firm has not acted according to the reasonable-person standard C) Potential shareholders who relied on these statements may succeed in suing the accounting firm in negligence if the accounting firm has not acted according to the standard set for accounting firms D) Potential shareholders who relied on these statements may succeed in suing the accounting firm in contract if the accounting firm has not acted according to the standard set for accounting firms

253)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Hard Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-29 An accounting firm made serious errors in pr...

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George was having a Stanley Cup party. He purchased various food items so his guests could make their own sandwiches. One of these items was Hanes ketchup, which George had transferred to a bowl to make it easier for his guests to use. One guest, James, made himself a sandwich using that ketchup. He warned others not to use the ketchup as he said his sandwich tasted funny. James became quite ill and had to go to the hospital. It was determined that the original ketchup bottle was contaminated before George bought it. George had just bought it that day from his corner store, which had obtained it from its distributor ABC Ltd., which had bought it directly from the manufacturer, Hanes Co. Based on this scenario, which of the following is true? 254) ___ ___ A) James could successfully sue ABC Ltd., for negligence as the distributor of the product B) James could successfully sue George for negligence because George bought the ketchup C) James could successfully sue the corner store for negligence as the seller of the product D) James could successfully sue Hanes Co., for negligence as the manufacturer of the ketchup

254)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-02 Product and Manufacturers' Liability Source : Chapter 04 Test Bank > TB 04-30 George was having a Stanley Cup party. He pu...

255)

In Canada, manufacturers of goods that are inherently dangerous must: ___

255)

___ A) Warn customers and take all possible steps to ensure product is safe B) Warn customers and take all reasonable steps to ensure product is safe C) Warn customers but take no possible steps to ensure product is safe D) Warn customers but take no reasonable steps to ensure product is safe Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-02 Product and Manufacturers' Liability Source : Chapter 04 Test Bank > TB 04-31 In Canada, manufacturers of goods that are i...

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256)

Which of the following is true with regard to the liability of an occupier of land? ___

256)

___ A) An occupier does not owe a duty to "licencees" B) The standard of care is set by a federal statute and is the same for all provinces C) The standard of care is set by provincial statute and may be different in each

province D) A tenant cannot be liable; only the owner can be sued Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 04-03 Understand occupiers' liability as a tort. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-32 Which of the following is true with regard t...

As an occupier of premises, a businessperson should know that they have a legal responsibility to keep their premises safe. Which of the following best describes the categories this responsibility extends to?

257)

___

257)

___ A) Invitees and licensees B) Invitees and trespassers C) Invitees, licensees, and trespassers D) Invitees, licensees, but not trespassers Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 04-03 Understand occupiers' liability as a tort. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-33 As an occupier of premises, a businessperson...

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In the case of Crocker v Sundance, Mr. Crocker was an invitee to the ski resort. The Supreme Court of Canada held that as an invitee: 258) ___ ___ A) Mr. Crocker was responsible for his own injuries because he was intoxicated and Sundance owed him no duty of care B) Mr. Crocker was partially responsible for his own injuries because he was intoxicated and Sundance owed him no duty of care C) Sundance was responsible for his injuries because he was intoxicated and Sundance owed him a duty of care D) Sundance was partially responsible for his injuries because he was intoxicated and Sundance owed him a duty of care

258)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 04-03 Understand occupiers' liability as a tort. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-34 In the case of Crocker v Sundance, Mr. Crock...

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 259) What is the legal test for establishing professional liability?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 04-01 Understand professional liability and how it relates to the tort of neglig Topic : 04-01 What Is Professional Liability? Source : Chapter 04 Test Bank > TB 04-35 What is the legal test for establishing prof...

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260)

What is the legal test to prove occupiers' liability?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 04-03 Understand occupiers' liability as a tort. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-36 What is the legal test to prove

Provide an example of when a trespasser may be legally entitled to trespass onto property.

261)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 04-03 Understand occupiers' liability as a tort. Topic : 04-03 Occupiers' Liability as a Tort Source : Chapter 04 Test Bank > TB 04-37 Provide an example of when a trespasser may ...

Padma found a penny inside her bottle of Antihistamine, produced by a well-known pharmaceutical company. Does this company have liability because of this oversight? If so, explain why.

262)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 04-02 Understand the implications of product liability for manufacturers. Topic : 04-02 Product and Manufacturers' Liability Source : Chapter 04 Test Bank > TB 04-38 Padma found a penny inside her bottle of Ant...

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Laura is a lawyer. Her client, ABC Co., a business registered in Ontario, is being sued for fraud. Laura does not disclose to the client that she does not have litigation experience or competent knowledge to represent the fraud case. Is Laura breaching her fiduciary duty owed to the client?

263)

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Answer Key Test name: Chapter 04 Test Bank 1) TRUE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) FALSE 12) TRUE 13) FALSE 14) TRUE 15) TRUE 16) C 17) C 18) C 19) A 20) A 21) B 22) C 23) D 24) C 25) D 26) D 27) D 28) B 29) C 30) D 31) B 32) C 33) C 34) D 35) Short Answer

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1. One individual within the relationship is a professional, meaning that they hold a duty of care. 2. The professional is in a position of power or trust and the client/patient relies on that professional. 3. There is a breach of that duty of care where client/patient suffered a loss because the professional did not meet or fell below the standard of care set by the profession. 4. The professional did not reasonably foresee the loss suffered by the client/patient because of their professional conduct. 36) Short Answer

1. The occupier has not made all reasonable attempts to keep the property safe. 2. The injury was as a result of the negligence of the occupier. 3. The individual suffered damages as a result of the injury 37) Short Answer

When a guest has been invited for dinner onto the property. 38) Short Answer

Yes, there may be a finding of liability because of this oversight given the law of product liability. Manufacturers owe a duty of care to ensure that their products are fit for sale. A penny would not be appropriate in a bottle filled with medicine. 39) Short Answer

Laura may be in breach of her fiduciary duty to the client as she does not have the competency to act in that area of law and has failed to disclose that to the client rendering the client at risk of her lack of competency. Ultimately the four-part test would have to be met.

264)

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. Contracts are the most common and basic legal document used by a business. 264) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-01 Know what a contract is. Topic : 05-01 What Is a Contract? Source : Chapter 05 Test Bank > TB 05-01 Contracts are the most common and basic lega...

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Contract law deals with the legal principles and rules that allow enforceable agreements to be created.

265)

___

265)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-01 Know what a contract is. Topic : 05-01 What Is a Contract? Source : Chapter 05 Test Bank > TB 05-02 Contract law deals with the legal principles...

There are no exceptions to the substantive aspects of contracts within the control of the parties. 266) ___ ___ ⊚ true ⊚ false

266)

267)

A contract is formed when there is a meeting of the minds. ___

267)

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268)

Businesses use contracts to buy and sell goods and services. ___

268)

269)

A contract can exist in either a written, verbal, or implied form. ___

269)

270)

A simple agreement between friends is an enforceable contract. ___

270)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-02 Know what separates a contract from an agreement. Topic : 05-02 Contract vs. Simple Agreement Source : Chapter 05 Test Bank > TB 05-07 A simple agreement between friends is an enf...

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Keeping a contract short is the best way to avoid legal disputes arising from the contract.

271)

___

271)

Express terms are those terms negotiated specifically by the parties and specified in the contract. 272) ___ ___ ⊚ true ⊚ false

272)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-02 Know what separates a contract from an agreement. Topic : 05-02 Contract vs. Simple Agreement Source : Chapter 05 Test Bank > TB 05-09 Express terms are those terms negotiated spe...

Implied terms are those terms not specifically negotiated by the parties but are implied in the contract.

273)

___

273)

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Implied terms are those terms negotiated specifically by the parties and specified in the contract. 274) ___ ___ ⊚ true ⊚ false

274)

Express terms are those terms not specifically negotiated by the parties but are implied in the contract.

275)

___

275)

276)

A contract is a business's basic protection in a commercial transaction. ___

276)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-03 Know why contracts are useful and needed. Topic : 05-03 Why Are Contracts Needed? Source : Chapter 05 Test Bank > TB 05-13 A contract is a businesss basic

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277)

Each province has enacted statute law to govern all business contract disputes. ___

277)

278)

The courts generally presume parties intend to be legally bound by a contract. ___

278)

If you enter into a valid contract that was not in your best interest, the Court will assist you in getting out of the contract. 279) ___ ___ ⊚ true ⊚ false

279)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-03 Know why contracts are useful and needed. Topic : 05-03 Why Are Contracts Needed? Source : Chapter 05 Test Bank > TB 05-16 If you enter into a valid contract that was ...

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280)

Basic contract law does not apply to online contracts. ___

280)

281)

Basic contract law does apply to online contracts. ___

281)

282)

International e-commerce contracts are not valid in Canada. ___

282)

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All levels of Canadian government are working on laws to recognize e-commerce contracts as valid enforceable contracts.

283)

___

283)

284)

The person making an offer is the offeror. ___

284)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-21 The person making an offer is the offeror.

285)

An offer is one element of a contract negotiation. ___

285)

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286)

The person receiving an offer is the offeror. ___

286)

287)

Enticements used to get the party to negotiate may not be enforceable. ___

287)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-04 Recognize the differences between an invitation to treat and an offer. Topic : 05-04 Before the Contract: Invitation to Treat Source : Chapter 05 Test Bank > TB 05-24 Enticements used to get the party to negotia...

288)

There are four (4) requirements to contract formation. ___

288)

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289)

An offer specifies the parties involved, the product, and the price. ___

289)

290)

An offer is when both parties understand and agree to the terms of a contract. ___

290)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-27 An offer is when both parties understand and...

291)

Acceptance is when one party agrees to the terms of the offer. ___

291)

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292)

Acceptance must be communicated by the offeree to the offeror. ___

292)

Susan offered to pay $500 for a ring that Donna has agreed to sell to her. Each woman has given consideration to the other for her promise. 293) ___ ___ ⊚ true ⊚ false

293)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-30 Susan offered to pay 500 for a ring that Do...

294)

Parties to a contract must intend to create legally binding obligations. ___

294)

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295)

Unless otherwise stated acceptance of an offer can be by any reasonable method. ___

295)

Under the Electronic Commerce Act, acceptance occurs when the offeror receives and opens the email. 296) ___ ___ ⊚ true ⊚ false

296)

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Mary loves to shop online, particularly from one online retailer. She recently purchased two items that were sent to her home. She contacted the company and wanted to return the items. The Company said "You clicked the 'I agree' button. We do not accept returns." Mary should be able to successfully argue that there was no contract as she did not agree to the "no return" policy. 297) ___ ___ ⊚ true ⊚ false

297)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-34 Mary loves to shop online, particularly from...

Jonah agrees not to sue Natsumi for having crashed into his car if she agrees to pay for his repairs. Since he promised only not to do something that he could have done, he has not given consideration for her promise to pay. 298) ___ ___ ⊚ true ⊚ false

298)

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Amir agrees to clear out Brad's basement, but no price is set at the time. Brad argues, once Amir has done the work, that since no price was agreed upon, he should pay only a reasonable price and not the excessive amount stated in the bill presented to him by Amir. He is right. 299) ___ ___ ⊚ true ⊚ false

299)

300)

An option is not a valid form of contract. ___

300)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-07 Recognize what option agreements are. Topic : 05-07 Option Agreements Source : Chapter 05 Test Bank > TB 05-37 An option is not a valid form of contract.

301)

An option agreement does not require consideration. ___

301)

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Zahra enters into an agreement with Madrigal that, for $2,000, gives her the right to agree to purchase Madrigal's screen printing business within the next 30 days for $50,000. If Zahra decides to buy, they agree that the $2,000 will be the down payment on the purchase price. This agreement is an option. 302) ___ ___ ⊚ true ⊚ false

302)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 05-07 Recognize what option agreements are. Topic : 05-07 Option Agreements Source : Chapter 05 Test Bank > TB 05-39 Zahra enters into an agreement with Madrigal...

Judges may add express terms to a contract to give meaning to the words in the contract.

303)

___

303)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-08 Understand the express and implied terms of a contract. Topic : 05-08 Terms of Contracts Source : Chapter 05 Test Bank > TB 05-40 Judges may add express terms to a contract t...

304)

Having contracts reduced to writing is a form of risk management. ___

304)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-41 Having contracts reduced to writing is a for...

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 305) A contract is ___

305)

___ A) An exchange of promises. B) An exchange of the meeting of the minds in a negotiation. C) An exchange of promises between two or more parties which can be enforced by

the court. D) A codified agreement. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-01 Know what a contract is. Topic : 05-01 What Is a Contract? Source : Chapter 05 Test Bank > TB 05-42 A contract is

306)

From a risk management perspective, contracts ___

306)

___ A) Must always be in writing. B) Never need to be in writing. C) May sometimes require being in written form. D) Always require a combination of verbal and written form. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-01 Know what a contract is. Topic : 05-01 What Is a Contract? Source : Chapter 05 Test Bank > TB 05-43 From a risk management perspective, contract...

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307)

Enforceable contracts between parties ___

307)

___ A) Do not need to contain particular provisions. B) May contain any provisions the parties wish to contract for within the limits of the

law. C) May be restricted in situations where a dispute arises because of the nature of provisions included. D) May be limitless. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-01 Know what a contract is. Topic : 05-01 What Is a Contract? Source : Chapter 05 Test Bank > TB 05-44 Enforceable contracts between parties

308)

The person receiving an offer is ___

308)

___ A) The person making the invitation to treat B) The offeror C) The offeree D) The recipient Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-45 The person receiving an offer is

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309)

An offer is a ___

309)

___ A) A valid contract formation B) An invitation to treat C) A willingness to form a contract D) An offer in the negotiation of a contract Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-46 An offer is a

310)

An invitation to treat is ___

310)

___ A) An offer B) A willingness to enter into a contract C) A valid contract formation D) An advertisement Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-04 Recognize the differences between an invitation to treat and an offer. Topic : 05-04 Before the Contract: Invitation to Treat Source : Chapter 05 Test Bank > TB 05-47 An invitation to treat is

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311)

Consideration is ___

311)

___ A) Always a sum of money B) Never a sum of money C) Never accepted by way of silence D) The value one is willing to pay or receive for the promise agreed to in an offer. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-48 Consideration is

312)

A counter offer ___

312)

___ A) Creates a new offer. B) Maintains the existing offer C) Simply adds conditions to the existing offer D) Creates a new contract Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-49 A counter offer

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Andy offers to sell his car to Bob, but Bob needs to arrange financing, so Andy says he will give Bob three days to do so. 313) ___ ___ A) Andy can revoke the offer before the three days are up. B) Andy cannot revoke the offer before the three days are up. C) The contract has been formed based on the offer that Andy made. D) Bob has given consideration.

313)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-50 Andy offers to sell his car to Bob, but Bob ...

Jill has been negotiating the purchase of a speedboat with Sandi for the last two weeks. Two days ago, she emailed Sandi, saying "I won't go any higher than $8,000 and that includes the trailer. Take it or leave it, but that's my final offer." Sandi sent an email the same day that said "I will accept $8,000, but not including the trailer." 314) ___ ___ A) There is no counteroffer. B) There is no contract between Jill and Sandi. C) There is a contract between Jill and Sandi. D) There is acceptance and thus a binding agreement.

314)

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315)

The post box rule ___

315)

___ A) is the exception to the rule that once communication of acceptance to an offer is received, that is when the contract is formed. B) is the exception to the rule that consideration must be given before a contract can be formed. C) is the rule used to calculate the number of days before explicit acceptance is provided. D) is the rule that applies to sharing the formally executed documents. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-06 Know how valid consideration and intention affect a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-52 The post box rule

316)

Under the Electronic Commerce Act, acceptance occurs when ___

316)

___ A) When the offeree receives the email. B) When the email is opened by the recipient. C) When the offeror sends the email. D) When the offeree sends the email. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-53 Under the Electronic Commerce Act, acceptanc...

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317)

Quantum meruit means ___

317)

___ A) Paying as much as the buyer wishes to pay. B) Paying as much as is demanded. C) Paying as much is deserved. D) Paying a sum that is contracted for. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-06 Know how valid consideration and intention affect a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-54 Quantum meruit means

318)

A gratuitous promise and consideration are ___

318)

___ A) Different concepts B) The same concepts C) Intertwined in the execution of a valid contract D) Similar concepts Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-55 A gratuitous promise and consideration are

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319)

In business relationships, the courts ___

319)

___ A) Will presume that parties have an intention to enter into a contact. B) Will not presume that parties have an intention to enter into a contract. C) Will always find that a contract was formed. D) Will, on the basis of at least one party's attestation presume that the contract was

formed. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-06 Know how valid consideration and intention affect a contract. Topic : 05-06 Beyond the Basics: Completeness, Revocation, Communication, Promises, Special Situation Source : Chapter 05 Test Bank > TB 05-56 In business relationships, the courts

320)

In a contract between family members the courts ___

320)

___ A) Will presume that the parties intended to contract B) Will not automatically presume that the parties intended to contract C) Will consider the contract as valid because it is executed between family members D) Will ignore that there was ever a contractual intent between the parties Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-06 Know how valid consideration and intention affect a contract. Topic : 05-06 Beyond the Basics: Completeness, Revocation, Communication, Promises, Special Situation Source : Chapter 05 Test Bank > TB 05-57 In a contract between family members the cou...

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321)

In an option agreement the parties ___

321)

___ A) Are bound to contract in the future because of a promise made. B) Are never bound if the elements of a valid contract are not present. C) Must create a separate agreement that they agree to agree D) Must promise to provide consideration at a later date. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-07 Recognize what option agreements are. Topic : 05-07 Option Agreements Source : Chapter 05 Test Bank > TB 05-58 In an option agreement the parties

322)

An option agreement is ___

322)

___ A) Never enforceable B) Enforceable when separate consideration is paid to the offeree. C) Is not a valid contract. D) Always enforceable. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-07 Recognize what option agreements are. Topic : 05-07 Option Agreements Source : Chapter 05 Test Bank > TB 05-59 An option agreement is

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323)

Express terms in a contract are ___

323)

___ A) Clear and unambiguously written in the contract B) Clear and unambiguously verbalized in a verbal contract C) Encompass the entirety of the contract with no other terms D) Are not capable of enforcement if the interpreting the terms is challenging Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-08 Understand the express and implied terms of a contract. Topic : 05-08 Terms of Contracts Source : Chapter 05 Test Bank > TB 05-60 Express terms in a contract are

324)

Implied terms in a contract ___

324)

___ A) Are tangible terms. B) Are not contractual obligations. C) Are sometimes added to give meaning to a contract. D) Are never enforceable because they are not written. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-08 Understand the express and implied terms of a contract. Topic : 05-08 Terms of Contracts Source : Chapter 05 Test Bank > TB 05-61 Implied terms in a contract

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325)

The courts may add implied terms to a contract ___

325)

___ A) Sparingly and only to give effect to the express terms of a contract. B) Always add implied terms to a contract even if those terms change the express

intent of the parties. C) When it is necessary in order to make an unenforceable contract, enforceable. D) Only if the parties to the contract consent. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-08 Understand the express and implied terms of a contract. Topic : 05-08 Terms of Contracts Source : Chapter 05 Test Bank > TB 05-62 The courts may add implied terms to a contra...

326)

Contracts may be ___

326)

___ A) Verbal and written and include electronic contracts B) Verbal, written and implied C) Verbal and written within the same contract D) Verbal Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-63 Contracts may be

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327)

A contract for the purchase of land may be ___

327)

___ A) Verbal B) Verbal or written C) Written only D) Implied Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-64 A contract for the purchase of land may be

328)

Contracts may be verbal, except for 328)

___

___ A) Contracts where the promises are not required to be performed within a year of the execution of the contract B) Purchase of sale of goods C) Purchase of services D) Purchase of a coffee Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-65 Contracts may be verbal, except for

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329)

The parole evidence rule stands for ___

329)

___ A) The legal principle that what is in writing stands and no other provisions may be added at a later date by oral communication. B) Oral revisions to a written contract are permissible and enforceable. C) Written revisions to an oral contract are enforceable. D) Evidence of an oral contract will be limited to the evidence the parties may supply. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-66 The parole evidence rule stands for

330)

Contracts for the purchase and sale of land ___

330)

___ A) May be oral B) Must be in writing C) May be both oral and written D) May be in writing if possible Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-67 Contracts for the purchase and sale of land

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331)

Contracts for the lease of land are ___

331)

___ A) Required to be verbal and in writing. B) Required to be in writing to be enforceable. C) Required to be under a particular form and content of contract. D) Required to include particular terms and conditions. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-68 Contracts for the lease of land are

332)

Contracts for guarantees ___

332)

___ A) Are an exemption of the Parole Evidence Rule B) Are required under the Parole Evidence Rule C) Apply to the Postal Box Rule D) Are not always enforceable. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-69 Contracts for guarantees

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333)

Contracts in standard form ___

333)

___ A) Favour the party who drafted the contract. B) Do not favour the party who drafted the contract. C) Are not enforceable because of who is favoured. D) Are always enforceable under the concept of buyer beware. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-70 Contracts in standard form

334)

Electronic contracts are ___

334)

___ A) Enforceable always B) Enforceable only if in particular form C) Are valid only if they contain the Functional Equivalency Rules D) Are not valid even if they contain the Functional Equivalency Rules Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-71 Electronic contracts are

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335)

The Functional Equivalency Rules include ___

335)

___ A) Rules that the electronic documents shall be supplied in non-electronic form for review by the consumer B) Rules that once a buyer clicks accept all terms on the e-commerce website that the buyer is in fact bound. C) Rules that include the necessity for the consumer to relay that they wish to have the written equivalent of the contract. D) Rules that dictate the form and content of a contract. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-72 The Functional Equivalency Rules include

336)

The Electric Commerce Act, 2000 ___

336)

___ A) Regulates all contracts. B) Regulates electronic contracts. C) Regulates only particular types of commerce transactions. D) Regulates all commerce transactions. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-73 The Electric Commerce Act, 2000

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337)

Contract law is ___

337)

___ A) A legal framework for equitable contracts. B) A legal framework within which a contract is created. C) A legal framework for all contracts. D) Statute based. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-01 What Is a Contract? Source : Chapter 05 Test Bank > TB 05-74 Contract law is

Malika and Rima are negotiating the purchase of a property with Rashid. Malika offers Rashid $600,000.00 but Rashid fires back with, "I will only accept $650,000.00. Malika does not respond and walks away. 338) ___ ___ A) This is a valid contract formation. B) This is a valid offer and counteroffer example. C) This negotiation contains implied terms. D) Rima accepted Rashid's offer when she did not object.

338)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-75 Malika and Rima are negotiating the purchase...

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James says he would like to buy Mike's motorbike for $3,000. Mike responds by saying he would accept $4,000 given all the work he has put into it. James says "Ok. I'll give that. Here's $2,000 now, and I'll pay the balance in two instalments." 339) ___ ___ A) This is a contract B) This is not a contract C) This is an offer D) This is an acceptance

339)

You have an agreement with a friend to meet for coffee after class. Your friend does not show up. You had turned down an opportunity to work and as a result lost 8 hours of wages. You decide to sue your friend. Which of the following statements is true? 340) ___ ___ A) You and your friend have a valid contract that the courts would enforce B) You and your friend have a valid contract that the courts would not enforce C) You and your friend have a simple agreement that the court would enforce D) You and your friend have a simple agreement that the court would not enforce

340)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 05-02 Know what separates a contract from an agreement. Topic : 05-02 Contract vs. Simple Agreement Source : Chapter 05 Test Bank > TB 05-77 You have an agreement with a friend to meet ...

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In Canada, the objective of the Uniform Electronic Commerce Act ( UECA) is primarily to:

341)

___

341)

___ A) Define what constitutes a privacy violation in a contract B) Make electronic contracts as binding on parties as written ones C) Provide remedies for internet commerce and breach of contract D) Restrict internet gambling and online purchases Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-03 Know why contracts are useful and needed. Topic : 05-03 Why Are Contracts Needed? Source : Chapter 05 Test Bank > TB 05-78 In Canada, the objective of the Uniform Elec...

342)

Which one of the following is an offer as opposed to an "invitation to treat"? ___

342)

___ A) A display of goods on the shelves of Safeway B) A notice posted on Kijiji "I'll pay $100 to whoever finds and returns my lost black

lab puppy" C) A sweater displayed in the window of a shop with the price tag attached and showing D) A notice in an email "15% off the price of all tablets until January" Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 05-04 Recognize the differences between an invitation to treat and an offer. Topic : 05-04 Before the Contract: Invitation to Treat Source : Chapter 05 Test Bank > TB 05-79 Which one of the following is an offer as op...

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343)

Which of the following is not a requirement for a valid contract? ___

343)

___ A) Acceptance B) Consideration C) Intention D) Writing Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-80 Which of the following is not a requirement ...

344)

Which of the following is a requirement for a valid contract? ___

344)

___ A) Acceptance B) Fairness C) Implied D) Writing Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-81 Which of the following is a requirement for ...

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Mr. Kyriacou went into a supermarket where he saw a new kind of toothpaste on a shelf, ticketed at $2.69. He decided to try it, so he took it to the checkout and placed it on the moving counter. The staff member at the checkout rang up the sale, took Mr. Kyriacou's money, put the toothpaste in a bag, and handed it with the receipt and the change to Mr. Kyriacou. A contract was formed when: 345) ___ ___ A) Mr. Kyriacou paid for the toothpaste B) Mr. Kyriacou picked up the toothpaste C) The supermarket employee put the toothpaste on display for Mr. Kyriacou to see D) The supermarket employee rang in the sale and took Mr. Kyriacou's money

345)

On June 1, the Mega Marketing Research Firm sent out a mail survey to 5,000 potential customers of Mega's client company. The survey stated that everyone who completed the survey and mailed it back would receive a prize. Mega did not expect everyone to respond to the survey and had only 1,000 prizes on hand for the respondents. On July 14, Sam mailed back his response and eagerly awaited his prize. On July 15, Mega sent out the last prize it had. Sam's response arrived on July 16. It was the 1001st response, and Mega wrote back telling Sam that because all the prizes were gone, he would not be able to have one. 346) ___ ___ A) A valid contract was formed between Mega and Sam. B) Mega had essentially revoked its offer before Sam accepted. C) Mega may assert that silence is not acceptance and Sam did not communicate his acceptance on time. D) No contract was formed here as there was no communication of Sam's acceptance before Mega's offer lapse.

346)

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347)

Which of the following statements is incorrect with respect to an offer? ___

347)

___ A) It must be in writing B) It must contain all major terms C) It must contain a willingness to be bound D) It must not contain uncertainties Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-84 Which of the following statements is incorre...

348)

Which of the following would best satisfy the requirements for a valid offer? ___

348)

___ A) I'll give you $300 for your bike and maybe more if it is fast B) I'll give you $15 for your laptop C) I'll pay $150 for a printer, the model is yet to be determined D) I'll pay $150 for a laptop, the model is yet to be determined Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-85 Which of the following would best satisfy th...

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James offered to sell the vehicle for $20,000 "offer to remains open until noon on Thursday, April 1, 2017." Which one of the following situations will not end the offer? 349) ___ ___ A) A counter-offer from the offeree B) An expiration of the time to accept before offeree accepts C) James sells the vehicle to another purchaser D) James falls ill and suddenly dies

349)

350)

Which of the following will not end an offer? ___

350)

___ A) Offer lapses B) Offeree makes counter-offer C) Offeror dies D) Offeror sells to another Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-87 Which of the following will not end an offer...

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351)

A gratuitous promise is: ___

351)

___ A) A gift that creates contractual obligations B) A legal obligation to do what is promised C) A promise where no legal obligation is created D) An arrangement that the courts will enforce Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-88 A gratuitous promise is:

352)

Quantum meruit means: ___

352)

___ A) A meeting of the minds B) A decision to stand on C) An agreement with no expectation of payment D) What one has earned Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-06 Know how valid consideration and intention affect a contract. Topic : 05-06 Beyond the Basics: Completeness, Revocation, Communication, Promises, Special Situation Source : Chapter 05 Test Bank > TB 05-89 Quantum meruit means:

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Which of the following is incorrect with respect to intention to enter into a valid contract? 353) ___ ___ A) Courts apply the reasonable stated intention of the parties in a contract B) Courts protect reasonable expectations of parties in a contract C) Intention is presumed in commercial contracts D) Intention is presumed in family contracts

353)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-90 Which of the following is incorrect with res...

If you pay $2,000 for a 60-day option on a business that is offered for sale at $400,000, which of the following is true?

354)

___

___ A) You have agreed to accept the offer of the business within the 60-day period B) You have entered into two contracts, one for time and one for the purchase of business C) You have entered into a contract that allows you to get your money back if you don't accept after the 60 days D) You have purchased a 60-day period of time within which you may or may not accept the offer Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 05-05 Understand the elements of a contract. Topic : 05-05 Introduction to Contract Requirements: Offer, Acceptance, Consideration, Intention Source : Chapter 05 Test Bank > TB 05-91 If you pay 2,000 for a 60-day option on a b...

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355)

Which of the following contracts needs to be in writing? ___

355)

___ A) Contract for the purchase and sale of a business B) Contract for the purchase and sale of cell phones C) Contract for the purchase and sale of land D) Contract for the purchase and sale of a motor vehicle Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-92 Which of the following contracts needs to be...

356)

Which of the following statements regarding online transactions is true? ___

356)

___ A) Clicking "I Accept" may constitute valid acceptance of a contract B) Common law has set precedents for entering into contracts online C) Entering into contracts online negates the need to satisfy all elements of a contract D) Electronic contracts are unenforceable unless also reduced to writing Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-93 Which of the following statements regarding ...

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357)

With regard to online contracts, which of the following statements is most accurate? 357) ___ ___ A) Consumers may have to resolve their disputes in a foreign jurisdiction B) Consumers will not be held liable for terms that they did not actually read C) Electronic documents are unenforceable unless in writing D) Electronic documents are effective when the consumer receives a copy

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-94 With regard to online contracts, which of th...

358)

Electronic commerce (E-commerce) legislation consists of: ___

358)

___ A) Laws specifying the jurisdiction that will apply to an online contract dispute B) Laws specifying the regulation of digital communication between businesses C) Laws specifying the regulations and restrictions for Internet communication between businesses D) Laws specifying the time and place of an electronic contract formation Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-95 Electronic commerce (E-commerce) legislation...

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 359) Annie and Ravi are a couple domiciled in Toronto. They hired a contractor to renovate their kitchen. The contractor provided a written estimate which contained terms and conditions, but the contractor otherwise did not provide a written contract to the couple. The contractor was given a deposit of $5,000.00 based on the specifications in the written quotation. The contractor was scheduled to start work on November 2, 2020; the contractor never showed up. Has a valid contract been formed here? If so, what kind is it? Verbal or written? What damages, if any, would Annie and Ravi be entitled to?

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 05-09 Understand the oral, written, and electronic forms for contracts. Topic : 05-09 Oral, Written, or Electronic Contracts Source : Chapter 05 Test Bank > TB 05-96 Annie and Ravi are a couple domiciled in Tor...

Explain why the court is loath to add in terms and conditions to parties' contract and sparingly does so in terms of adding in implied terms?

360)

Question Details Accessibility : Keyboard Navigation Bloom's : Evaluate Difficulty : Easy Learning Objective : 05-08 Understand the express and implied terms of a contract. Topic : 05-08 Terms of Contracts Source : Chapter 05 Test Bank > TB 05-97 Explain why the court is loath to add in ter...

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Please consider the following scenarios and answer as to whether each is either an offer, acceptance, counter offer, or rejection. Some may contain more than one element.

361)

1. Lucy offers to Robert her laptop for $1,200 and Robert accepts to purchase it so long as it is functional when she delivers it to him. This is an example of? 2. Henrietta is negotiating with Xi the purchase of Xi's BMW. Xi advises Henrietta that he is willing to sell it for $20,000. Henrietta fires back, "I will give you, $15,000.00". Xi does not respond and he walks away. This is an example of? 3. Two days later, Xi telephones Henrietta and says to her, I accept your offer. Henrietta replies, "My counter offer expired, I will only purchase it for $13,000.00. Is there a contract forming here based on offer and acceptance?

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 05-03 Know why contracts are useful and needed. Topic : 05-03 Why Are Contracts Needed? Source : Chapter 05 Test Bank > TB 05-98 Please consider the following scenarios and ...

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Answer Key Test name: Chapter 05 Test Bank 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) FALSE 12) FALSE 13) TRUE 14) FALSE 15) TRUE 16) FALSE 17) FALSE 18) TRUE 19) FALSE 20) TRUE 21) TRUE 22) TRUE 23) FALSE 24) TRUE 25) TRUE 26) TRUE 27) TRUE 28) TRUE 29) TRUE 30) TRUE 31) TRUE 32) TRUE 33) FALSE 34) FALSE 35) FALSE 36) TRUE 37) FALSE 38) FALSE 39) FALSE 40) FALSE richard@qwconsultancy.com

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41) TRUE 42) C 43) C 44) B 45) C 46) D 47) B 48) D 49) A 50) A 51) B 52) A 53) D 54) C 55) A 56) A 57) C 58) B 59) B 60) A 61) C 62) A 63) A 64) C 65) A 66) A 67) B 68) B 69) B 70) B 71) C 72) A 73) B 74) B 75) B 76) A 77) D 78) B 79) B 80) D 81) A 82) D 83) C 84) A richard@qwconsultancy.com

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85) C 86) C 87) D 88) C 89) D 90) D 91) D 92) C 93) A 94) A 95) D 96) Short Answer

Yes, there is a valid contract as there was an offer, acceptance, consideration and a meeting of the minds. Also, there was capacity and legality. It may be that the quotation is the written document, or it may be that the court would rule this to be a verbal document if there was evidence to support that the price was also quoted verbally along with other details. Annie and Ravi have the option of suing the contractor to recover their $5000.00. 97) Short Answer

The court will not interfere with the original intent of the parties. The court may imply terms in the contract to permit the exercise and function of provisions that would otherwise not be capable of execution because of a missing condition, or other element that would give life to the provision. Only in these circumstances would the court intervene. 98) Short Answer

1. Lucy has made an offer; Robert has accepted the offer but has attached a condition to the offer which makes his statements a counteroffer. If Lucy accepts, then a contract may be formed if consideration is also present. 2. Xi made an offer. Henrietta made a counteroffer. Xi's silence is not acceptance but may construed as rejection; note that there are no conditions attached and no details on what acceptance or consideration should look like, or when acceptance shall take place. The test is one of reasonableness. 3. There is no contract forming or formed here. Henrietta and Xi continue to simply make offers and counter offers to each other but there is no clear meeting of the minds or any concrete acceptance of terms.

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362)

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. A voidable contract is one that never existed. 362) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-01 Know what problems can arise in forming a contract. Topic : 06-01 What Causes Problems in Contract Formation? Source : Chapter 06 Test Bank > TB 06-01 A voidable contract is one that never existe...

363)

Legality is a contractual element that allows the contract to be evaluated by society. 363) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-02 Understand the effect a problem in formation will have on a contract. Topic : 06-02 Introduction to Formation Problems in Contracts: Legality, Capacity, Voluntariness Source : Chapter 06 Test Bank > TB 06-02 Legality is a contractual element that allow...

Capacity is the contractual element to protect a vulnerable person from being taken advantage of. 364) ___ ___ ⊚ true ⊚ false

364)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-03 Capacity is the contractual element to prote...

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365)

Minors are bound to contracts for discretionary spending ___

365)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-02 Understand the effect a problem in formation will have on a contract. Topic : 06-02 Introduction to Formation Problems in Contracts: Legality, Capacity, Voluntariness Source : Chapter 06 Test Bank > TB 06-04 Minors are bound to contracts for discretion...

366)

A court will not enforce a contract that is against public policy. ___

366)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-03 Recognize the two ways legality can render a contract void. Topic : 06-03 Beyond the Basics: Legality Source : Chapter 06 Test Bank > TB 06-05 A court will not enforce a contract that is ...

If a contract conflicts with the interests of society it is against public policy and not enforceable. 367) ___ ___ ⊚ true ⊚ false

367)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-03 Recognize the two ways legality can render a contract void. Topic : 06-03 Beyond the Basics: Legality Source : Chapter 06 Test Bank > TB 06-06 If a contract conflicts with the interests o...

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When a party is not capable of understanding a contract, they may lack the required element of capacity. 368) ___ ___ ⊚ true ⊚ false

368)

369)

Forcing someone into a contract makes the purpose of the contract illegal. ___

369)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-08 Forcing someone into a contract makes the pu...

You can enforce a contract with a friend for not paying the amount owed during a poker game.

370)

___

370)

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371)

Public policy can change over time and make a once illegal contract legal. ___

371)

Although some acts may not be illegal, the courts will not enforce a contract that is against public policy. 372) ___ ___ ⊚ true ⊚ false

372)

Courts are required to enforce contracts that are not illegal but are merely against public policy.

373)

___

373)

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374)

Courts will enforce contracts that are not illegal but merely against public policy. ___

374)

375)

The parties to a contract must be capable of understanding what they are getting into. 375) ___ ___ ⊚ true ⊚ false

376)

Each province has a statute that determines the age of majority. ___

376)

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377)

Generally, contracts with minors are enforceable. ___

377)

378)

Even reasonable contracts with minors are unenforceable. ___

378)

If a minor purchased a computer on monthly payments, capacity allows a minor to get out of a contract but keep the goods. 379) ___ ___ ⊚ true ⊚ false

379)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-18 If a minor purchased a computer on monthly p...

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380)

Corporations may have limited capacity to enter into contracts. ___

380)

381)

Labour unions may have limited capacity to enter into contracts. ___

381)

382)

Enemy aliens may have limited capacity to enter into contracts. ___

382)

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383)

Aboriginal peoples may have limited capacity to enter into contracts. ___

383)

When deciding whether to end a contract, a court will examine why a party entered into a contract. 384) ___ ___ ⊚ true ⊚ false

384)

If the subject matter of a contract was destroyed prior to contract formation, the contract is voidable.

385)

___

385)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-24 If the subject matter of a contract was dest...

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A person signing a contract can avoid the consequences if they have not been careless and the mistake is a serious one. 386) ___ ___ ⊚ true ⊚ false

386)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-25 A person signing a contract can avoid the co...

Purposely making a false statement to induce another into a contract is fraudulent misrepresentation.

387)

___

387)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-26 Purposely making a false statement to induce...

Purposely making a false statement to induce another into a contract is innocent misrepresentation.

388)

___

388)

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389)

Rescission and damages are remedies for innocent misrepresentation. ___

389)

390)

The same remedies are available for both fraudulent and innocent misrepresentation. 390) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-29 The same remedies are available for both fra...

The duty of utmost good faith requires parties in a special relationship to make full disclosure before entering into a contract. 391) ___ ___ ⊚ true ⊚ false

391)

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In online transactions, suppliers have a duty to disclose terms that a reasonable person may not expect in a contract. 392) ___ ___ ⊚ true ⊚ false

392)

393)

The party relying on an exemption clause only need prove it is reasonable. ___

393)

It is up to the dominant contracting party to overcome the presumption of undue influence.

394)

___

394)

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Having the other party to a contract obtain independent legal advice prior to signing the contract will rebut the presumption of undue influence. 395) ___ ___ ⊚ true ⊚ false

395)

Duress is coercing a party into entering a contract through threat or the use of harm to the person. 396) ___ ___ ⊚ true ⊚ false

396)

Duress is a form of threat that forces a person into entering a contract against their will.

397)

___

397)

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398)

A contract made under the threat of violence to the person is void. ___

398)

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 399) A void contract ___

399)

___ A) Is one that never existed. B) Allows a party to get out of the contract. C) Allows a party to change the terms of the contract D) Is an enforceable contract, nonetheless. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-01 Know what problems can arise in forming a contract. Topic : 06-01 What Causes Problems in Contract Formation? Source : Chapter 06 Test Bank > TB 06-38 A void contract

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400)

A voidable contract ___

400)

___ A) Allows the parties to enforce it if they wish B) Does not permit enforcement because it does not exist. C) Does not exist from the outset. D) Is valid only if there is consent between the parties. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-01 Know what problems can arise in forming a contract. Topic : 06-01 What Causes Problems in Contract Formation? Source : Chapter 06 Test Bank > TB 06-39 A voidable contract

401)

To be wilfully blind means 401)

___

___ A) To lack capacity and deliberately choose to not make reasonable inquiries into a matter. B) To lack capacity. C) To be negligent. D) To be reckless. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-01 Know what problems can arise in forming a contract. Topic : 06-01 What Causes Problems in Contract Formation? Source : Chapter 06 Test Bank > TB 06-40 To be wilfully blind means

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402)

Intoxication may void a contract ___

402)

___ A) because of the party's state of drunkenness they did not know what they were doing. B) because they prefer to end the contract and claim intoxication after a week has lapsed. C) because the sober party was not aware that the other party was drunk because they did not appear to be so. D) if there is a mitigating circumstance. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-01 Know what problems can arise in forming a contract. Topic : 06-01 What Causes Problems in Contract Formation? Source : Chapter 06 Test Bank > TB 06-41 Intoxication may void a contract

403)

To enter into a contract freely means ___

403)

___ A) To do so voluntarily B) To have capacity C) To have legal capacity D) To not be a minor Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-02 Understand the effect a problem in formation will have on a contract. Topic : 06-02 Introduction to Formation Problems in Contracts: Legality, Capacity, Voluntariness Source : Chapter 06 Test Bank > TB 06-42 To enter into a contract freely means

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404)

Amara and Joseph enter into a contract for the purchase and sale of illicit drugs. ___

404)

___ A) This contract is legal because it is a private contract. B) This contract is illegal and therefore unenforceable because illicit drugs are

involved. C) This contract is voidable. D) This contract is valid. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-43 Amara and Joseph enter into a contract for t...

405)

If a contract is against public policy ___

405)

___ A) The court will render the contract void and refuse to enforce it. B) The court will uphold the contract as enforceable. C) The court will not interfere and will dismiss the lawsuit. D) The contract is voidable. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-44 If a contract is against public policy

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406)

A voidable contract means that ___

406)

___ A) A person lacking capacity is permitted to determine if the contract will be

voidable. B) A person lacking capacity may determine if the contract will be void. C) A person lacking capacity will have the ultimate decision for whether the contract is breached. D) A person lacking in capacity may breach without consequence. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-45 A voidable contract means that

407)

In Canada, the age of majority is ___

407)

___ A) 25 B) 18 C) 16 D) 21 Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-46 In Canada, the age of majority is

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408)

An apprenticeship contract with a minor is ___

408)

___ A) Enforceable B) Unenforceable C) Void D) Is a contract lacking capacity Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-47 An apprenticeship contract with a minor is

409)

Contracts with minors for necessaries are ___

409)

___ A) Voidable B) Void ab initio C) Not enforceable D) Enforceable Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-48 Contracts with minors for necessaries are

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An intoxicated person who does not try to set aside the contract upon becoming sober will be 410) ___ ___ A) Entitled to claim duress. B) Entitled to claim mistake. C) Bound by the contract. D) Not bound by the contract.

410)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-49 An intoxicated person who does not try to se...

411)

There are two types of mistake of contract ___

411)

___ A) Mistake as to terms and conditions B) Mistake as to terms and subject matter C) Mistake as to conditions and subject matter D) Mistake as to warranties Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-50 There are two types of mistake of contract

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412)

Mistake is ___

412)

___ A) A lack of consideration as to the contract between the parties. B) A mistake in the negotiation between the parties. C) A mistake about the terms of the contract. D) A mistake about the warranties of the contract. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-51 Mistake is

413)

The legal test to determine mistake is ___

413)

___ A) Reasonable person test B) Subjective reasonable person test C) Wilful blindness test D) Remoteness test Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-52 The legal test to determine mistake is

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A remedy the court uses to correct a typographical error in a contract is an example of what 414) ___ ___ A) Rescission of contract. B) Breach of Contract C) Rectification D) Voiding the contract

414)

What may a party argue when they are unaware of the nature of a contract and want it set aside? 415) ___ ___ A) Non est factum B) Caveat Emptor C) Non Suit D) Avoidance

415)

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416)

Unjust enrichment ___

416)

___ A) Is cured by voiding the contract. B) Is an equitable concept. C) is when one party to a contract mistakenly gives a benefit to the other party. D) Is when one party to a contract deliberately gives a benefit to the other party. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-55 Unjust enrichment

417)

Misrepresentation ___

417)

___ A) Does not make the contract fatal. B) Is a set of facts that are spoken that are not true C) Is a set of facts that are written that are not true D) Is a false statement of fact that induces the other party into the contract. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-56 Misrepresentation

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418)

A misrepresentation must be ___

418)

___ A) the statements that were made as details in the negotiations B) the statements that were not known to be false by the contracting party C) the statement that induced the party to enter into the contract. D) statements that were not part of the conditions or terms of a contract. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-57 A misrepresentation must be

419)

Damages possible for fraudulent misrepresentation include ___

419)

___ A) Restitution, damages and punitive damages B) Damages C) Rescission and damages D) Revocation Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-58 Damages possible for fraudulent misrepresent...

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420)

Suppliers in online contractual transactions ___

420)

___ A) Have special duties when dealing with customers B) Do not have special duties when dealing with customers. C) Have no standard at law in so far with how they deal with customers D) Are not subject to contract law. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-59 Suppliers in online contractual transactions

421)

An exemption clause is ___

421)

___ A) An attempt to limit liability under a contract. B) A way for the supplier to manage risk. C) A way for a seller to forbid liability legally. D) A way for a consumer to sue. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-60 An exemption clause is

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422)

Undue influence is presumed for certain relationships of trust and confidence, such as 422) ___ ___ A) Family B) Family, a person is in dire straits C) Friends and family D) Skilled persons, family and persons in dire straits

Which of the following will not impact the voluntariness of one party's agreement to the contract? 423) ___ ___ A) Fairness B) Misrepresentation C) Mistake D) Undue influence

423)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-02 Understand the effect a problem in formation will have on a contract. Topic : 06-02 Introduction to Formation Problems in Contracts: Legality, Capacity, Voluntariness Source : Chapter 06 Test Bank > TB 06-62 Which of the following will not impact the v...

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424)

Which of the following is not a requirement for a valid contract? ___

424)

___ A) Capacity B) Fairness C) Legality D) Voluntariness Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-02 Understand the effect a problem in formation will have on a contract. Topic : 06-02 Introduction to Formation Problems in Contracts: Legality, Capacity, Voluntariness Source : Chapter 06 Test Bank > TB 06-63 Which of the following is not a requirement ...

425)

When a court determines that a contract is illegal the court will: 425)

___

___ A) Declare the contract void and put the parties back into the position they were before the contract B) Declare the contract void and not offer any assistance to the parties C) Declare the contract voidable and treat it like any other breach of contract D) Declare the contract voidable and put the parties back into the position they were before the contract Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-03 Recognize the two ways legality can render a contract void. Topic : 06-03 Beyond the Basics: Legality Source : Chapter 06 Test Bank > TB 06-64 When a court determines that a contract is i...

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426)

Which of the following is against public policy? ___

426)

___ A) Hiring someone to clean your house B) Hiring someone to make a false insurance claim C) Hiring someone to steal a car D) Hiring someone to marry your son Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-65 Which of the following is against public pol...

427)

Which of the following would not be considered a necessary? ___

427)

___ A) Bus fare B) Clothing C) Food D) Television Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-66 Which of the following would not be consider...

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428)

In which of the following situations can a minor end a contract with no liability? ___

428)

___ A) A contract for a future vacation B) A contract for the medical services C) A contract for the purchase of clothes D) A contract for the rent on an apartment Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-67 In which of the following situations can a m...

429)

A person claiming insanity to set aside a contract must show that: ___

429)

___ A) The insanity was a permanent condition B) The insanity was only temporary C) The other person was not aware of the insanity D) The other person knew of the insanity Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-68 A person claiming insanity to set aside a co...

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430)

Which of the following groups does not have a limit on their capacity to contract? ___

430)

___ A) Aboriginal people B) Corporations C) Minors D) Women Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-69 Which of the following groups does not have ...

Marta and Janiqa entered into a contract for the purchase of a used vehicle. Marta thinks she is selling her 2010 Kia Soul and Janiqa thinks she is selling her 2012 Audi. This is an example of:

431)

___

431)

___ A) Duress B) Mistake C) Misrepresentation D) Undue Influence Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-70 Marta and Janiqa entered into a contract for...

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Marta and Janiqa both agree on a sale price for the vehicle of $8000. They reduce their contract to writing and incorrectly put the price at $800. The usual remedy by a court in this situation is:

432)

___

432)

___ A) Ratification B) Rectification C) Rescission D) Repudiation Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-71 Marta and Janiqa both agree on a sale price ...

Abir thinks he is selling an ordinary painting for $50. Bill knows that he is in fact buying something by Robert Bateman. The legal effect of this contract is:

433)

___

433)

___ A) Enforceable B) Unenforceable C) Void D) Voidable Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-72 Abir thinks he is selling an ordinary painti...

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Andy agrees to sell his painting to Bill. At the time the contract is made, the painting is destroyed by fire. The legal effect of this contract is: 434) ___ ___ A) Enforceable B) Unenforceable C) Void D) Voidable

434)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-73 Andy agrees to sell his painting to Bill. At...

435)

Which of the following is not a requirement to prove non est factum? ___

435)

___ A) The signer could not read the contract B) The signer was not careless in signing the contract C) The subject matter was exactly what the signer believed it to be D) The subject matter was not what the signer believed it to be Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-74 Which of the following is not a requirement ...

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Abir thinks he has agreed to paint Bill's portrait for $500, not including canvass and paints. Bill thinks the $500 price covers both labour and materials. If neither party's interpretation is reasonable OR both are equally reasonable, the legal effect of this contract is: 436) ___ ___ A) Enforceable B) Unenforceable C) Void D) Voidable

436)

437)

A person can use mistake as a defence to void a contract dispute if: ___

437)

___ A) The mistake is about the subject matter B) The mistake is a typographical error in the contract C) The mistake is that both parties have changed their mind D) The mistake is unknown to both when they signed the contract Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-76 A person can use mistake as a defence to voi...

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Both parties have signed an agreement regarding the purchase and sale of a new vehicle. Which of the following would allow the contract to be set aside on the basis of misrepresentation? 438) ___ ___ A) The misrepresentation must have been in writing. B) The misrepresentation must have been made knowingly. C) The misrepresentation must have been a false statement. D) The misrepresentation must have induced the party to buy the vehicle.

438)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-77 Both parties have signed an agreement regard...

John and Mary are thinking of buying a house. They see one they like and arrange to view it. The current owner, Emelda shows them over the house stating, "I've owned this house for 20 years, and it is completely sound. There are no problems." In fact, as John and Mary discover later, the house is infested with termites. If Emelda did not know there were termites, this would be an example of: 439) ___ ___ A) Duress B) Fraudulent misrepresentation C) Innocent misrepresentation D) Undue influence

439)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 06-05 Understand why a mistake may have no effect on contract formation. Topic : 06-05 Mistake Source : Chapter 06 Test Bank > TB 06-78 John and Mary are thinking of buying a house...

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John and Mary are thinking of buying a house. They see one they like and arrange to view it. The current owner, Emelda shows them over the house stating, "I've owned this house for 20 years, and it is completely sound. There are no problems." In fact, as John and Mary discover later, the house is infested with termites. If Emelda did know there were termites and was desperate to sell, this would be an example of: 440) ___ ___ A) Duress B) Fraudulent misrepresentation C) Innocent misrepresentation D) Undue influence

440)

441)

If the court determines that there was undue influence in a contract, then that contract

is: ___

441)

___ A) Illegal B) Legal C) Void D) Voidable Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-80 If the court determines that there was undue...

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Johann is at his doctor's office getting a check-up after a health scare. He tells his doctor that he needs to sell his vehicle. His doctor tells him he will buy it for $10,000. Johann was going to list it for $15,000.00, but feels obligated to sell to his doctor. This is an example of: 442) ___ ___ A) Duress B) Fraudulent misrepresentation C) Innocent misrepresentation D) Undue influence

442)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-81 Johann is at his doctors office

443)

Which of the following is an example of duress? ___

443)

___ A) Dave won't sell his computer to Tom unless Tom pays more B) Dave tells Tom that he sold the computer to someone else C) Tom threatens to destroy Dave's computer if he won't sell it to him D) Tom wants to buy Dave's computer and Dave sells it to someone else Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-82 Which of the following is an example of dure...

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 444) Alvin retains Hoda, a stockbroker, to immediately purchase 20 thousand shares in INC Co. a new pharmaceutical company, because he has insider information that the stock price is about to increase tenfold. Alvin and Hoda have a contract for Hoda's services as his investor. Is this transaction and thus contract, a lawful one, based on your knowledge that insider trading is unlawful?

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-83 Alvin retains Hoda, a stockbroker, to immedi...

Explain the necessaries of life and why a minor may be bound by contracts for the necessaries of life.

445)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 06-04 Know what effect the capacity of another party has on a contract. Topic : 06-04 Beyond the Basics: Capacity and Voluntariness Source : Chapter 06 Test Bank > TB 06-84 Explain the necessaries of life and why a mi...

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Compare and contrast innocent misrepresentation and fraudulent misrepresentation and discuss why the remedies would be different based on your reasoning and understanding of the law thus far.

446)

Question Details Accessibility : Keyboard Navigation Bloom's : Analyze Difficulty : Medium Learning Objective : 06-06 See the difference in the three types of misrepresentation. Topic : 06-06 Misrepresentation, Undue Influence, and Duress Source : Chapter 06 Test Bank > TB 06-85 Compare and contrast innocent misrepresentat...

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Answer Key Test name: Chapter 06 Test Bank 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) TRUE 12) FALSE 13) FALSE 14) TRUE 15) TRUE 16) FALSE 17) FALSE 18) FALSE 19) TRUE 20) TRUE 21) TRUE 22) TRUE 23) TRUE 24) FALSE 25) TRUE 26) TRUE 27) FALSE 28) FALSE 29) FALSE 30) TRUE 31) TRUE 32) FALSE 33) TRUE 34) TRUE 35) TRUE 36) TRUE 37) FALSE 38) A 39) A 40) A richard@qwconsultancy.com

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41) B 42) A 43) B 44) A 45) A 46) D 47) A 48) D 49) C 50) B 51) C 52) A 53) C 54) A 55) C 56) C 57) C 58) C 59) A 60) A 61) D 62) A 63) B 64) B 65) D 66) D 67) A 68) D 69) D 70) B 71) B 72) A 73) C 74) C 75) C 76) A 77) D 78) C 79) B 80) D 81) D 82) C 83) Short Answer richard@qwconsultancy.com

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The contract would not be enforceable if Hoda refused to purchase the shares knowing that she would be in legal trouble because it was based on an insider tip. A component for a valid contract is that of legality; a contract may not be enforced by the courts if it is for an unlawful purpose. 84) Short Answer

The necessaries of life include such items as rent, school supplies, a job, clothing for work, and so on. A minor who intends to work or attend schooling and who wishes to contract for the purpose of obtaining goods to fulfil either of those two purposes, shall be bound by contracts entered into even though a minor as a matter of public policy and as a matter of ensuring that a seller has security against breach. Given the ease of a minor walking away from a contract without liability, for policy reasons, necessaries of life and items contracted for by a minor shall bind the minor. 85) Short Answer

Innocent misrepresentation is when a party has mistakenly made statements without their knowledge as to the mistake, which induces a party into a contract. A contract may be void based on this type of misrepresentation. Fraudulent misrepresentation, however, is when a party has knowingly made false statements to induce the other into the contract. The remedies include damages and suing the offending party for the tort of deceit. The reason why the remedies are different rests on the intent and maliciousness of the party who tried to benefit from the misrepresentations against the innocent party. The courts will not permit the offending party with making false statements to induce innocent victims into contracts to their detriment and thus permits damages to be claimed for losses arising out of the fraudulent misrepresentations. TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 447) Obligations under a contract are ended when each party has performed or completed their obligations. 447) ___ ___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-01 Understand the obligations owed by each party during the life and performa Topic : 07-01 Performance of Contracts Source : Chapter 07 Test Bank > TB 07-01 Obligations under a contract are ended when ...

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A discharge of a contract occurs when one party has completed its obligations to the satisfaction of the other party. 448) ___ ___ ⊚ true ⊚ false

448)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-02 Know what problems can arise in performing a contract. Topic : 07-02 Introduction to Discharge of Contracts Source : Chapter 07 Test Bank > TB 07-02 A discharge of a contract occurs when one pa...

A contract is discharged when each party has completed its obligations to the satisfaction of the other party.

449)

___

449)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-02 Know what problems can arise in performing a contract. Topic : 07-02 Introduction to Discharge of Contracts Source : Chapter 07 Test Bank > TB 07-03 A contract is discharged when each party has...

Only an innocent party to a breach of contract has legal rights for a remedy to repair the breach. 450) ___ ___ ⊚ true ⊚ false

450)

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451)

There are five (5) ways that a contract can come to an end. ___

451)

452)

Parties can agree to end their contract in the agreement itself. ___

452)

Parties can agree to end their contract only by signing another separate contract stating the end date.

453)

___

453)

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454)

A condition is a minor term of a contract. ___

454)

455)

A condition is an essential term of a contract. ___

455)

456)

Parties can end their contract by substituting a new agreement for the original one. ___

456)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-10 Parties can end their contract by substituti...

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Parties can insert an option to terminate in their contract which allows them to end the contract. 457) ___ ___ ⊚ true ⊚ false

457)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-11 Parties can insert an option to terminate in...

Frustration will end a contract only when the parties are aware that an event could occur prior to entering into the contract.

458)

___

458)

If all your reasonable expectations under a contract have been met, then the contract has been ended by operation of law. 459) ___ ___ ⊚ true ⊚ false

459)

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Breach of contract will end a contract when the essential terms of a contract have been breached.

460)

___

460)

Breach of contract will end a contract when a minor term of a contract has been breached.

461)

___

461)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-15 Breach of contract will end a contract when ...

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Derrick offered to purchase Perry's vehicle for $3,050 cash, with Perry to deliver the vehicle the next Wednesday, at which time Derrick would pay the $3,050. On the Wednesday, when Perry did not deliver, Derrick went to Perry's home, and found him in his garden. Derrick offered Perry the money, but Perry refused, saying that he had changed his mind, and did not wish to sell his automobile. If Derrick had offered Perry exactly $3,050 in cash, he had made a valid tender of performance. 462) ___ ___ ⊚ true ⊚ false

462)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-16 Derrick offered to purchase Perry...

When one party has performed almost all their obligations under the contract, substantial performance may end the contract.

463)

___

463)

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Substantial performance occurs when the parties only have one condition left to complete on a contract.

464)

___

464)

Tender of performance is when a party is ready, willing, and able to perform its obligations and attempts to do so.

465)

___

465)

466)

A duty of good faith is implied in contract performance. ___

466)

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467)

Parties have a duty of good faith in contracts for the purchase and sale of insurance. 467) ___ ___ ⊚ true ⊚ false

468)

A duty of good faith imposes a duty to loyalty on parties to a contract. ___

468)

Chris, a carpenter, entered into a contract with Doug for the construction of a garage on Doug's property for $5,000. Chris had constructed all of the garage, except the door, when he refused to complete the contract. Chris has substantially performed his part of the agreement, and would be entitled to payment of the contract price, less the amount necessary to finish the building. 469) ___ ___ ⊚ true ⊚ false

469)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-23 Chris, a carpenter, entered into a contract ...

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Accord and satisfaction is when the parties agree to end the contract on terms different than those in their contract.

470)

___

470)

Novation is when a new party is substituted for one of the original parties with the consent of all the parties.

471)

___

471)

472)

Novation is when one party to a contract is replaced with a new party. ___

472)

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A clause in a contract that says the contract will end when a certain condition is not met is a condition subsequent. 473) ___ ___ ⊚ true ⊚ false

473)

474)

Self-induced frustration will end a contract. ___

474)

Frustration occurs when the operation of law makes performance of the obligations under the contract illegal. 475) ___ ___ ⊚ true ⊚ false

475)

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Statute law has modified the common law approach to allow recovery of losses that occurred from frustration. 476) ___ ___ ⊚ true ⊚ false

476)

Ken entered into a contract with Chris to haul gravel into his large tandem truck from Chris's gravel pit to a building site some three miles away distant, at $60 per load. Before Ken was to begin performance, his truck was destroyed in a serious traffic accident. Ken need not perform the contract as the contract was frustrated by the destruction of the truck. 477) ___ ___ ⊚ true ⊚ false

477)

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In March, Ken entered into an agreement with Bernadette whereby Ken would rent Bernadette his cottage for one week in July. In May earlier that same year, Ken negligently caused significant fire damage to the cottage while roasting marshmallows over a roaring fire in the cottage fireplace. As a result, the cottage was inhabitable for six months. Ken can successfully assert that this agreement is frustrated. 478) ___ ___ ⊚ true ⊚ false

478)

When a party misses a limitation period, the contract can come to an end by operation of law. 479) ___ ___ ⊚ true ⊚ false

479)

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480)

Damages is a remedy that is in the form of money. ___

480)

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. Since this is a breach of a condition of the contract, Benny is released from any obligations he has under the contract, and the contract is at an end. 481) ___ ___ ⊚ true ⊚ false

481)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-35 Marnie fails to deliver any of the fruit pie...

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Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. If Benny really wanted the pies and felt that Marnie would be able to meet her commitments, he could choose to treat the breach of condition as if it were a breach of warranty. 482) ___ ___ ⊚ true ⊚ false

482)

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. If Benny treated Marnie's failure to perform as a breach of warranty, the contract would not end but, to the extent that Marnie's breach had caused him injury, she would have to pay Benny damages. 483) ___ ___ ⊚ true ⊚ false

483)

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Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. Antoine is in breach of contract. 484) ___ ___ ⊚ true ⊚ false

484)

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. The circumstances indicate express repudiation by Antoine. 485) ___ ___ ⊚ true ⊚ false

485)

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Helen offered to sell her 10-speed touring bicycle to Jane for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Jane received a long distance telephone call from Helen, in which Helen advised Jane that she had decided not to sell the bicycle on her return. Jane was disappointed as a similar bicycle on the market would cost her at least $250. She decided to wait until Helen returned then urge her to go through with the sale. Before Helen reached home, her bicycle was stolen and never found. Helen's decision not to proceed with the sale was an express repudiation of the contract. 486) ___ ___ ⊚ true ⊚ false

486)

Guthrie Caterers failed to turn up as contracted to cater George and Susan's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. This was an implied repudiation since Guthrie did not contact George and Susan and actually tell them, "We will not be catering your wedding." 487) ___ ___ ⊚ true ⊚ false

487)

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Guthrie Caterers failed to turn up as contracted to cater George and Susan's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. There was an express repudiation of the contract when Guthrie failed to arrive when and where it should have. 488) ___ ___ ⊚ true ⊚ false

488)

Minor terms that would normally be considered warranties can be stated as conditions in a contract. 489) ___ ___ ⊚ true ⊚ false

489)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-43 Minor terms that would normally be considere...

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Minor terms that would normally be considered warranties cannot be stated as conditions in a contract.

490)

___

490)

Major terms that would normally be considered conditions can be stated as warranties in a contract. 491) ___ ___ ⊚ true ⊚ false

491)

Major terms that would normally be considered conditions cannot be stated as warranties in a contract.

492)

___

492)

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A clause in a contract that specifies the amount of damages due from a breach is a limitation of liability clause.

493)

___

493)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-47 A clause in a contract that specifies the am...

A clause in a contract that specifies the amount of damages due from a breach is a liquidated damages clause.

494)

___

494)

A clause in a contract places a limit on the amount of damages due from a breach is a liquidated damages clause. 495) ___ ___ ⊚ true ⊚ false

495)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-49 A clause in a contract places a limit on the...

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A legal remedy is an order that court is entitled to issue when an innocent party to a contract sues for breach. 496) ___ ___ ⊚ true ⊚ false

496)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-50 A legal remedy is an order that court is ent...

497)

A court will award damages for unforeseen losses from a breach of contract. ___

497)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-51 A court will award damages for unforeseen lo...

498)

Damages will not be awarded in a breach of contract if the losses were too remote. 498) ___ ___ ⊚ true ⊚ false

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An award of damages is for actual losses and not any emotional consequences caused to the innocent party. 499) ___ ___ ⊚ true ⊚ false

499)

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre and nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. Barnum is entitled to treat Mario's actions as a breach of his contract. 500) ___ ___ ⊚ true ⊚ false

500)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-54 Mario, a professional entertainer, entered i...

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Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre and nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. Barnum may request the court to issue an injunction to prevent Mario from performing at the competitor's opera house. 501) ___ ___ ⊚ true ⊚ false

501)

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The court may also order Mario to continue to perform at Barnum's theatre because he had promised to work only for him. 502) ___ ___ ⊚ true ⊚ false

502)

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503)

An injunction is a discretionary remedy. ___

503)

504)

Courts will order equitable remedies for all breaches of contract. ___

504)

When you return an item you have purchased and get your money back your contract has been rescinded. 505) ___ ___ ⊚ true ⊚ false

505)

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Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre and nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The monetary amount that Barnum would be entitled to receive as compensation from Mario would be the amount of the loss that Mario could reasonably have foreseen at the time that the contract was entered into by the parties. 506) ___ ___ ⊚ true ⊚ false

506)

In an e-contract dispute, the Courts will determine the forum to be used based on a "balance of convenience." 507) ___ ___ ⊚ true ⊚ false

507)

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A "balance of convenience" means that the courts will use the forum with the most substantial and real connection to the issue. 508) ___ ___ ⊚ true ⊚ false

508)

Parties to an e-contract generally have the same legal remedies as traditional contracts.

509)

___

509)

510)

Jurisdiction and governing law are issues that arise in breaches of e-contracts. ___

510)

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Provincial consumer protection legislation provides clarity with e-contracts for a business to consumer transaction.

511)

___

511)

Provincial consumer protection legislation provides clarity with e-contracts for a business to business transaction.

512)

___

512)

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 513) Performance is ___

513)

___ A) When the contract is complete. B) When the contract is discharged. C) When a party's contractual obligations are completed to the satisfaction of the

other party. D) When obligations under the contract are carried out. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-01 Understand the obligations owed by each party during the life and performa Topic : 07-01 Performance of Contracts Source : Chapter 07 Test Bank > TB 07-67 Performance is

514)

A breach occurs ___

514)

___ A) When both parties fail to perform their obligations under a contract. B) When a party has failed to perform their obligations under the contract to the

reasonable satisfaction of the other party. C) When a party has fulfilled all of the obligations in objective reasonable manner. D) When a party has fulfilled only some of the obligations. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-01 Understand the obligations owed by each party during the life and performa Topic : 07-01 Performance of Contracts Source : Chapter 07 Test Bank > TB 07-68 A breach occurs

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515)

A contract may end by ___

515)

___ A) Termination B) Performance, agreement, frustration, termination, breach C) Performance, agreement, frustration, operation of law, breach D) Agreement, frustration, performance Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-01 Understand the obligations owed by each party during the life and performa Topic : 07-01 Performance of Contracts Source : Chapter 07 Test Bank > TB 07-69 A contract may end by

516)

Reasonable expectations under a contract means ___

516)

___ A) In light of the conditions of the contract, what a party might expect B) In light of the warranties under the contract and performance of same, what a

reasonable person might expect C) In light of all of the terms in the contract, what a reasonable person would expect for performance D) In light of the implied terms of the agreement, whether a reasonable person would deem the contract complete. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-02 Know what problems can arise in performing a contract. Topic : 07-02 Introduction to Discharge of Contracts Source : Chapter 07 Test Bank > TB 07-70 Reasonable expectations under a contract mea...

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517)

The reasonable person test, is used by the courts ___

517)

___ A) To adjudicate on the basis of the reasonable expectations of an objective person based on society's views. B) To adjudicate on the basis of the reasonable expectations of the contracting parties through a subjective lens. C) To adjudicate and assess performance on the basis of what the reasonable objective expectations of performance would be in order to have a uniform legal application. D) To measure completion of a contract. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 07-02 Know what problems can arise in performing a contract. Topic : 07-02 Introduction to Discharge of Contracts Source : Chapter 07 Test Bank > TB 07-71 The reasonable person test, is used by the c...

518)

An option to terminate means ___

518)

___ A) The contract is void. B) The contract is breached. C) The parties have a right to discharge their agreement without liability if they

follow the process in the agreement. D) The contract is frustrated. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-72 An option to terminate means

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519)

Frustration means ___

519)

___ A) Termination of a contract by agreement. B) An unforeseen event making it impossible to perform a contract ends the contract

by frustration. C) A contract terminated by operation of law. D) A breach for reasons of unreasonableness. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-73 Frustration means

520)

Substantial performance ___

520)

___ A) Is when the parties have not completed major terms of the contract. B) Is when the contract is complete. C) Is when the parties have completed all but a minor term of the contract. D) Is when the parties execute a tender of performance. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-74 Substantial performance

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521)

Bhasin v. Hrynew, 2014 SCC 71 stands for ___

521)

___ A) A party shall not lie or mislead another about one's contractual performance. B) It requires loyalty to be formed between the contracting parties. C) Good faith means substantial performance. D) Duty of good faith means telling the other party everything. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-75 Bhasin v. Hrynew, 2014 SCC 71 stands for

522)

Gratuitous waiver is ___

522)

___ A) Novation B) Gratuitous promise C) The release by one party of the other party from performing their contractual

obligations. D) Always binding. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-76 Gratuitous waiver is

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523)

Condition precedent is ___

523)

___ A) A clause in a contract that the contract will end if a condition is met. B) A provision that is included to void a contract generally. C) A clause in a contract that says the contract will end when a certain condition is

not met D) A provision used to define the parties' obligations. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-77 Condition precedent is

524)

Frustration ___

524)

___ A) Occurs when an obligation is not met but permits the contract to continue. B) Is when an unforeseen event outside of the control of any of the parties makes the

contract impossible to perform. C) Is a breach of contract that gives rise to damages to the injured party and liability against the offending party. D) Is when the contract may continue following the unforeseen event. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-78 Frustration

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An assignment into bankruptcy can relieve a party from performance of a contract, EXCEPT 525) ___ ___ A) Student loan debts which have to be repaid. B) Student credit card debt. C) Parking tickets. D) Contracts formed under the Sale of Goods Act.

525)

526)

Down payments and deposits are different because ___

526)

___ A) The court treats the purpose of the deposit as a forfeitable sum of money. B) The court has decided that a deposit works to secure the services of the other party

and not as a pre-payment. C) Down payments are not part of the contract price. D) Deposits are merely consideration. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-80 Down payments and deposits are different bec...

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527)

A warranty is ___

527)

___ A) An implied term. B) A condition to be met. C) Is a minor term in a contract. D) A major term in a contract. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-81 A warranty is

528)

Section 5 of the Limitations Act, 2002 permits ___

528)

___ A) A party to file a claim upon discovery of the loss, injury or damage B) Always within 2 years of the date of the injury regardless of discovery C) A claim to be issued only if there is damage discovered. D) A claim to be issued only if there is injury. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-82 Section 5 of the Limitations Act, 2002 permi...

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529)

Repudiation before the date fixed for performance is ___

529)

___ A) Implied breach B) Anticipatory breach C) Frustration D) Breach of warranty Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-83 Repudiation before the date fixed for perfor...

530)

A limitation of liability clause is ___

530)

___ A) A clause in the contract that acts like an exclusion clause. B) A clause in a contract that limits the amount of damages because of a breach. C) A clause that removes liability entirely by ending the contract. D) A clause that renders the contract frustrated. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-84 A limitation of liability clause is

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531)

An indemnification clause is when a contract is breached. ___

531)

___ A) Is a promise to exclude liability. B) Is a promise to be liable to perform on the contract. C) Is a promise by one party to pay for the damages incurred by another party when a

contract is breached. D) Is a promise to ensure the continuity of the contract despite any breach. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-85 An indemnification clause is when a contract...

532)

What is the purpose for an award of damages after a breach has occurred? ___

532)

___ A) The purpose is to ensure that the contract is performed after the breach has

occurred. B) The purpose is to punish the wrongdoer. C) The purpose is to prevent repudiation. D) The purpose for an award of damages in a breach of contract is to put the innocent party in the same position it would have been in if the contract had been performed. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-86 What is the purpose for an award of damages ...

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Mr. Chow wishes to sue Ms. Tham in Small Claims court and obtain an injunction due to the alleged nuisance Ms. Tham is causing. Mr. Chow

533)

___

533)

___ A) Can successfully bring an injunctive remedy to the Small Claims Court. B) Cannot ask for injunctive relief in the Small Claims Court. C) Can ask for injunctive relief if the amount of the claim is under $35,000.00. D) Can ask for injunctive relief also if he is claiming for monetary relief in the form

of damages. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-87 Mr. Chow wishes to sue Ms. Tham in Small Cla...

534)

What is the purpose of punitive damages in a breach of contract claim? 534)

___

___ A) To put the plaintiff in the same position that they were in prior to the breach. B) The purpose for an award of punitive damages in a breach of contract is to punish the party who breached the contract. C) To permit the defendant to avoid performance of the contract. D) Entirely only a public policy category of damage. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-88 What is the purpose of punitive damages in a...

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535)

Specific performance and injunctions are extraordinary types of relief awarded ___

535)

___ A) When financial damages and monetary compensation cannot adequately

compensate the victim. B) When financial damages do not exist as a damage claim. C) without limit so long as they are claimed. D) When specific performance is possible. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-89 Specific performance and injunctions are ext...

536)

The legal test for the remoteness of damages includes the following, except ___

536)

___ A) Did the damages arise naturally from the breach B) Was it in the reasonable contemplation of the parties as the probable result of the

breach? C) Were there any mitigation provisions in the contract? D) Where there any special circumstances communicated or obvious to the parties at the time of contract formation? Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-90 The legal test for the remoteness of damages...

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A person can be compensated for the loss of profit caused by a breach of contract, and this is called 537) ___ ___ A) Losses B) Damages C) Expectation Damages D) Reliance Damages

537)

538)

The concept of mitigating damages and its relation to a damages award is explained as 538) ___ ___ A) Doing more than is necessary which may absolve the defendant of damages. B) Doing what is necessary. C) An innocent party to a breach of contract may be awarded less damages if they have not taken steps to mitigate the breach of contract. D) Doing nothing

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539)

Rescission is ___

539)

___ A) To restore the defendant to its original position. B) To restore the injured party to its original position. C) Rescission means to restore the parties to their original position. D) Common law remedy of damage Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-93 Rescission is

540)

Which of the following is not a way to end a contract? ___

540)

___ A) Agreement B) Breach C) Frustration D) Obligations of Law Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 07-01 Understand the obligations owed by each party during the life and performa Topic : 07-01 Performance of Contracts Source : Chapter 07 Test Bank > TB 07-94 Which of the following is not a way to end a...

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The contract between Bayson's Department Store and Clemson's Manufacturing contains a clause that allows either party to end the contract on 60 days' notice and the payment of liquidated damages, which are set at a reasonable amount. This clause is a(n): 541) ___ ___ A) Condition subsequent clause B) Force majeure clause C) Frustration of contract clause D) Option to terminate

541)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 07-02 Know what problems can arise in performing a contract. Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-95 The contract between Bayson...

542)

Which of the following is not required for a breach of contract to end the contract? 542) ___ ___ A) Breach of a condition B) Breach of all terms C) Breach of essential terms D) Breach of a warranty

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-05 Recognize the differences between a breach of warranty and a breach of con Topic : 07-05 Beyond the Basics: Breach of Contract Source : Chapter 07 Test Bank > TB 07-96 Which of the following is not required for a...

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Carmel agreed to paint Jane's house for $4,000, inside and out. Normally, it would have cost Jane $6,500 but Carmel felt sorry for her because she was a single mother with four children and not much money, so he decided to give her a good deal. When Carmel had painted everything except the kitchen ceiling, Arthur asked him to go on a fishing holiday, and Carmel, who was rather irresponsible, decided he had done enough painting. He left a note for Jane saying "You've had more than your money's worth with what I've done already. I'll expect your cheque for $4,000 to be at my office when I return in two or three weeks." Which of the following statements is correct? 543) ___ ___ A) Carmel abandoned the contract before he had completed performance and is not entitled to any money since he has breached the contract B) Carmel is entitled to $4,000, less what it costs Jane to finish having the kitchen ceiling painted, since he has substantially performed the contract C) Carmel is entitled to the full amount of $4,000 since he has, in fact, done at least $4,000 worth of work, and he should get that on a quantum meruit basis D) The court will order specific performance of the contract and Carmel will have to complete the painting for the agreed-upon $4,000

543)

As a general rule, a contract must be fully performed before any payments are made. Which is an exception to this rule? 544) ___ ___ A) Conditions B) Incapacity C) Operation of law D) Substantial performance

544)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-03 Examine the effect a problem in performance will have on a contract. Topic : 07-03 Beyond the Basics: Performance Source : Chapter 07 Test Bank > TB 07-98 As a general rule, a contract must be fully ...

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Which of the following type of contract does not have a duty of good faith in performance?

545)

___

545)

___ A) Contract for home insurance B) Contract to purchase a cell phone C) Contract for tenders D) Contract for employment termination Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-03 Examine the effect a problem in performance will have on a contract. Topic : 07-03 Beyond the Basics: Performance Source : Chapter 07 Test Bank > TB 07-99 Which of the following type of contract does...

546)

Which of the following is not a discharge of a contract by agreement? ___

546)

___ A) Accord and satisfaction B) Novation C) Operation of Law D) Substituted agreement Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-100 Which of the following is not a discharge of...

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In the contract between Gamil's Building Materials store and Hightrees Logging and Lumber Company for the supply of lumber, there is a clause that allows either party to end the contract on 10 days' notice should actions of logging protesters on Hightrees property bring logging operations to a temporary halt. This clause is a(n): 547) ___ ___ A) Condition subsequent clause B) Force majeure clause C) Frustration of contract clause D) Option to terminate

547)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-101 In the contract between Gamil...

548)

Clauses in a contract that specify when the obligations begin is a(n): ___

548)

___ A) Condition precedent clause B) Condition subsequent clause C) Frustration of contract clause D) Option to terminate Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-102 Clauses in a contract that specify when the ...

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Clauses in a contract that specify that a certain event will end the contract before completion is a(n):

549)

___

549)

In which of the following situations is it likely that the court will release a party from their contractual obligations? 550) ___ ___ A) Performance of the contract was significantly more difficult than expected by one party B) Performance of the contract was significantly more expensive than expected by one party C) Performance of the contract was impossible because a party's subsequent actions made it impossible for that party to perform D) Performance of the agreement was prevented after the destruction of the object of the contract by a third party

550)

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251 | P a g e

Paul ordered a motor bike from Moto-Haus. He had reviewed all the specifications and told the salesperson of his final choice. When the bike arrived, Paul found that it did not live up to the fuel efficiency that he expected or that was claimed in the brochure. He took the bike back to Moto-Haus, and demanded the return of his money, which was refused. Paul would be best advised to treat the contract as: 551) ___ ___ A) at an end and sue for breach of condition B) at an end and sue for breach of warranty C) ongoing and sue for breach of condition D) ongoing and sue for breach of warranty

551)

You are very excited as you enter the car lot to purchase your first new vehicle. You have your heart set on a red one. After lots of negotiation you sign a contract for a small red vehicle. You return to the lot 2 weeks later to pick up your new vehicle and are surprised to see a small rusty brown car. You are not happy and the dealer tells you that the rust brown is a type of red and that is what your contract states. You tell him the contract is wrong and you walk away. You can successfully sue for breach if you can show that the colour red was: 552) ___ ___ A) A condition B) A condition precedent C) An implied warranty D) A warranty

552)

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Mr. Wicks, a plumber, had a contract to repair a slow leak in a toilet at Dr. Bone's medical clinic. Because it had to be done when no patients were there, Mr. Wicks agreed to come on a Saturday. However, when he got there, he found a notice on the door saying "Got a chance for a free trip to Hawaii. Come next Saturday at the same time. Thanks. Dr. Bone." Mr. Wicks did not turn up the next Saturday and, when Dr. Bone called to find out why, Mr. Wicks said that he had promised to take his wife shopping that day, and he doubted if he would be able to find the time in the future. 553) ___ ___ A) Dr. Bone breached the contract on the first Saturday B) Mr. Wicks breached the contract on the second Saturday C) Neither man has breached the contract; it is simply suspended D) The contract was not breached since it was frustrated on the first Saturday because Dr. Bone. could not be there

553)

554)

Which of the following is not a clause that can limit a party's exposure to damage? 554) ___ ___ A) Exclusion clause B) Indemnification clause C) Limitation of liability clause D) Liquidated damages clause

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-108 Which of the following is not a clause that ...

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Which of the following clauses will require you to pay all the losses incurred by another party in a contract?

555)

___

555)

___ A) Exclusion clause B) Indemnification clause C) Limitation of liability clause D) Liquidated damages clause Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-109 Which of the following clauses will require ...

Which of the following is not a legal remedy available in a breach of contract lawsuit?

556)

___

556)

___ A) Damages B) Injunction C) Mitigation D) Specific performance Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 07-06 Understand the remedies that can be applied to a breach of contract. Topic : 07-06 Remedies for Breach of Contract Source : Chapter 07 Test Bank > TB 07-110 Which of the following is not a legal remedy...

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Which of the following is not an equitable remedy available in a breach of contract lawsuit? 557) ___ ___ A) Damages B) Injunction C) Quantum meruit D) Specific performance

557)

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 558) Company A leased a 2000 sq. foot premises for $10,000 per month on a ten-year lease. In year two of the lease, the provincial government issued a stay-at-home order due to COVID-19 resulting in most non-essential businesses, like Company A's, to shut down indefinitely. Company A breached the lease by failing to pay rents for the period of April 2020 to September 2020. On October 1st, 2020, the landlord evicted Company A by way of a Sheriff who posted a notice and changed the locks. Company A sued the landlord claiming frustration and on account of COVID-19, it was not permitted to be open to the public to earn revenue and in turn pay rents under the contract. What do you think, applying the legal doctrine of frustration, a court may determine in this case? The lease did not have a force majeure provision.

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-112 Company A leased a 2000 sq. foot premises fo...

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255 | P a g e

Fatima contracted with James for the purchase of one bushel of Ontario green beans to be delivered within 48 hours. After 24 hours, James contacted Fatima and advised that green beans were not possible, but he could deliver one bushel of brussel sprouts instead. Fatima consented to the switch. What is this an example of, and would this contract be enforceable?

559)

Tomas was injured in a car accident which resulted in his falling into a coma. They had been hit by a car while crossing the street and the car had fled; the driver was later arrested. This event happened in 2018. It is now 2021 and Tomas has finally awakened from his coma. Does Tomas have the lawful right to sue the driver after waking up or is he statute barred as a result of the Limitations Act, 2002?

560)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 07-04 Describe the ways that a party can exit a contract, with or without conseq Topic : 07-04 Beyond the Basics: Agreement, Frustration, and Operation of Law Source : Chapter 07 Test Bank > TB 07-114 Tomas was injured in a car accident which re...

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Answer Key Test name: Chapter 07 Test Bank 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) TRUE 12) FALSE 13) FALSE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) TRUE 21) TRUE 22) FALSE 23) TRUE 24) TRUE 25) TRUE 26) TRUE 27) FALSE 28) FALSE 29) TRUE 30) TRUE 31) TRUE 32) FALSE 33) TRUE 34) TRUE 35) TRUE 36) TRUE 37) TRUE 38) FALSE 39) TRUE 40) TRUE richard@qwconsultancy.com

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41) FALSE 42) TRUE 43) TRUE 44) FALSE 45) TRUE 46) FALSE 47) FALSE 48) TRUE 49) FALSE 50) TRUE 51) FALSE 52) TRUE 53) FALSE 54) TRUE 55) TRUE 56) FALSE 57) FALSE 58) FALSE 59) TRUE 60) TRUE 61) TRUE 62) TRUE 63) TRUE 64) TRUE 65) TRUE 66) FALSE 67) C 68) B 69) C 70) C 71) C 72) C 73) B 74) C 75) A 76) C 77) C 78) B 79) A 80) B 81) C 82) A 83) B 84) B richard@qwconsultancy.com

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85) C 86) D 87) B 88) B 89) A 90) C 91) C 92) C 93) C 94) D 95) D 96) D 97) B 98) D 99) B 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112)

C A A B D B A A B B C A Short Answer The student should address at the outset if there is a valid contract, and if the legal doctrine of frustration could apply, especially in the absence of a force majeure provision in the lease agreement. The answer here is that Company A would have to honor the contract and pay its leases, despite any government induced shut down. Quite simply, there is no force majeure provision absolving the Company from liability. The court would find for the landlord. Short Answer This is an example of novation of contract given that there was a change in the subject matter of the contract - a material term - and that there was consent between the contracting parties. The contract would be valid. 113)

114)

Short Answer

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Tomas may, through medical evidence, assert that he was not aware of his injury, losses or damages resulting from the car accident until he awoke from his coma. Relying on section 5 of the Limitations Act, 2002, and the discoverability principles, he could successfully bring a lawsuit which will not likely be found to be out of time. TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 561) A business should be aware of both federal and provincial employment law legislation. 561) ___ ___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-01 Understand the definition of employment law. Topic : 08-01 What Is Employment Law? Source : Chapter 08 Test Bank > TB 08-01 A business should be aware of both federal a...

562)

A business only needs to be aware of the rights of their employees. ___

562)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-01 Understand the definition of employment law. Topic : 08-01 What Is Employment Law? Source : Chapter 08 Test Bank > TB 08-02 A business only needs to be aware of the rig...

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563)

Legislation requires an employer to provide a wage and safe working conditions. ___

563)

Employment legislation sets out minimum requirements in all employment relationships.

564)

___

564)

565)

Employment contracts can override the standards of employment legislation. ___

565)

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566)

Having a human resource management team is part of a risk reduction plan. ___

566)

Understanding employment law can provide a safe work environment for your business.

567)

___

567)

568)

Understanding employment law is the key to being a "great place to work." ___

568)

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You have allegations about an employee's conduct and then discover some possible errors in her work. You would prefer that she resign instead of having to fire her. The best outcome for all would be to tell her that if she does resign you will not involve the police. 569) ___ ___ ⊚ true ⊚ false

569)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-01 Understand the definition of employment law. Topic : 08-01 What Is Employment Law? Source : Chapter 08 Test Bank > TB 08-09 You have allegations about an

570)

An employee works in exchange for money and benefits. ___

570)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-10 An employee works in exchange for money and ...

An employer provides direction, supervision, and resources to do the job in exchange for money. 571) ___ ___ ⊚ true ⊚ false

571)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-11 An employer provides direction, supervision,...

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263 | P a g e

Independent contractors work for themselves and agree to provide specific service to another. 572) ___ ___ ⊚ true ⊚ false

572)

573)

Independent contractors are involved in the operations of the business. ___

573)

574)

Employees and independent contractors are treated the same at law ___

574)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-14 Employees and independent contractors are tr...

richard@qwconsultancy.com

264 | P a g e

Employment law is an area of law that governs the relationship between a business and its employees. 575) ___ ___ ⊚ true ⊚ false

575)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-15 Employment law is an area of law that govern...

While employers must ensure that they conduct their management without discrimination, there is also an obligation on all employers to ensure that employees do not behave in a discriminatory manner between one another in the workplace. 576) ___ ___ ⊚ true ⊚ false

576)

An employer may dismiss an employee for any reason unless it violates human rights legislation. 577) ___ ___ ⊚ true ⊚ false

577)

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All workers, regardless of occupation, have the same rights under employment standards legislation.

578)

___

578)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-18 All workers, regardless of occupation, have ...

579)

Employers must provide a safe work environment for all employees. ___

579)

Employers should be familiar with labour standards outlined in the Canada Labour Code. 580) ___ ___ ⊚ true ⊚ false

580)

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Employers regulated by the federal government are required to follow the rules set out by the Canadian Human Rights Commission. 581) ___ ___ ⊚ true ⊚ false

581)

582)

Al employers are required to provide a workplace free of harassment. ___

582)

Employment contracts outline the duties and responsibilities of both the employer and the employee. 583) ___ ___ ⊚ true ⊚ false

583)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-23 Employment contracts outline the duties and ...

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584)

Employment contracts for an indefinite period of time can be oral. ___

584)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-24 Employment contracts for an indefinite perio...

585)

Restrictive covenants are required clauses in all employment contracts. ___

585)

A restrictive covenant is a necessary clause for an employer who wants to protect trade secrets.

586)

___

586)

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A restrictive covenant in a contract can prohibit an employee from competing with his ex-employer for a certain period after the employee has left the business. 587) ___ ___ ⊚ true ⊚ false

587)

A restrictive covenant in a contract cannot prohibit an employee from competing with his ex-employer for a certain period after the employee has left the business. 588) ___ ___ ⊚ true ⊚ false

588)

A restrictive covenant in a contract can prevent an ex-employee from soliciting or dealing with customers of the business. 589) ___ ___ ⊚ true ⊚ false

589)

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A restrictive covenant in a contract cannot prevent an ex-employee from soliciting or dealing with customers of the business. 590) ___ ___ ⊚ true ⊚ false

590)

591)

An employer needs "just cause" to terminate an employee. ___

591)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-31 An employer needs &#34;just cause&#34; to terminate ...

592)

Employers are required to give reasons when dismissing an employee. ___

592)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-32 Employers are required to give reasons when ...

richard@qwconsultancy.com

270 | P a g e

Having a policy involving progressive discipline will not assist when dismissing employees.

593)

___

593)

594)

An incompetent employee can be dismissed without notice. ___

594)

595)

Termination pay and severance pay are the same types of pay. ___

595)

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596)

Severance pay is payment when an employee loses their job due to being laid off. ___

596)

597)

A collective agreement is a form of contract between the employees and the employer. 597) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-37 A collective agreement is a form of contract...

A group of employees at your Lumber Yard business want to form a union. The employees must first establish a union, or invite an existing union to accept them as members before they may request that you bargain collectively.

598)

___

598)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-38 A group of employees at your Lumber Yard bus...

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The Labour Relations Board determines the appropriateness of the bargaining unit before it certifies the union as the bargaining representative of the employees.

599)

___

599)

Employees in a bargaining unit represented by a trade union are not permitted to negotiate with their employer on an individual basis.

600)

___

600)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-40 Employees in a bargaining unit represented b...

601)

Collective bargaining is the process of negotiating for a union contract. ___

601)

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If a collective agreement is negotiated by the union and the employer, it will be binding on the employees as well.

602)

___

602)

A strike is a withdrawal of services by the union workers when no collective agreement is in place.

603)

___

603)

604)

Arbitration may be used by any parties facing a strike situation. ___

604)

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Union employees will give notice of a legal strike if the bargaining process breaks down.

605)

___

605)

Union employees will give notice of a wildcat strike if the bargaining process breaks down. 606) ___ ___ ⊚ true ⊚ false

606)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-46 Union employees will give notice of a wildca...

607)

Employers can lockout their employees during the collective bargaining process. ___

607)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-47 Employers can lockout their employees during...

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275 | P a g e

A lockout is when unionized workers take sudden, unofficial action during their employment.

608)

___

608)

When collective bargaining negotiations break down between a union and its employer company, the union can call a lawful strike of its members. Picket lines can be set up at the entrance to the workplace. If the strike is lawful, the pickets may block the roadway into the workplace. 609) ___ ___ ⊚ true ⊚ false

609)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-49 When collective bargaining negotiations brea...

610)

A strike is when employers prevent employees from entering the worksite. ___

610)

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611)

A lockout is when employers prevent employees from entering the worksite. ___

611)

612)

Arbitration involves a final and binding decision made by an arbitrator. ___

612)

Conciliation requires that the parties agree to be bound by the resolution of the conciliator.

613)

___

613)

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Mediation involves a neutral third party assisting the parties to come to their own resolution.

614)

___

614)

615)

Mediation is often used in union-management disputes. ___

615)

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 616) Employment legislation ___

616)

___ A) Seeks to permit the parties to set the standards for the length of notice based on the contract. B) Sets the maximum standards for the length of notice. C) Sets the minimum standards for the length of notice. D) Does not set standards for the length of notice. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-01 Understand the definition of employment law. Topic : 08-01 What Is Employment Law? Source : Chapter 08 Test Bank > TB 08-56 Employment legislation

617)

An independent contractor ___

617)

___ A) Is on payroll B) Gets paid only for the work that they do and sets their own schedule C) is not required to provide their own tools D) has the employer calculate tax remittances and make payments on their behalf. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-57 An independent contractor

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618)

What are the areas of workplace law? ___

618)

___ A) Common law and the law of equity B) Regulatory law C) Labour law, common law and regulatory law D) Constitutional law and regulatory law Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-58 What are the areas of workplace law?

619)

A kitchen installer who works for many companies is ___

619)

___ A) An employee B) An independent contractor C) A union employee D) Both an employee and an independent contractor Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-59 A kitchen installer who works for many compa...

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620)

An insurance adjustor who works for one company is ___

620)

___ A) An employee B) An independent contractor C) Both an employee and independent contractor D) Neither an employee nor an independent contractor but a freelance volunteer Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-60 An insurance adjustor who works for one comp...

621)

The Canada Labour Code is ___

621)

___ A) Provincial legislation which governs employee rights B) Legislation which governs human rights issues C) Federal legislation which governs labour standards D) Federal legislation which governs human rights violations Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-61 The Canada Labour Code is

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If a private business wishes to enforce a vaccination policy with the threat of dismissal if not adhered to, the employee

622)

___

622)

___ A) Can decline with no consequence B) Can decline and sue the business C) Cannot do anything if the policy is a part of the business structure D) Must get vaccinated Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-62 If a private business wishes to enforce a va...

623)

Businesses should be aware of vaccine policies and mandates from the government

for ___

623)

___ A) Protection against liability and not adhering to the law B) Protection to ensure insurance policies will provide coverage C) This has nothing to do with risk management and a business may make its own

choice D) Adherence to the law, the safety of employees and contractors, and to ensure compliance with company policies for health and safety as a risk management tool Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-63 Businesses should be aware of vaccine polici...

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Collecting, using, or disclosing personal information in ways that are unlawful is an example of what? 624) ___ ___ A) A violation of a Human Rights Code provision B) A violation of privacy and PIPEDA C) A violation of federal law D) A violation of company policy only

624)

625)

Employment contracts must ___

625)

___ A) In writing B) Verbal C) In writing or verbal D) Always in writing Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-65 Employment contracts must

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626)

Employment contracts for a fixed period of one year or more must ___

626)

___ A) In writing B) Can be verbal C) Can be verbal or in writing D) Can only be in writing Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-66 Employment contracts for a fixed period of o...

627)

A restrictive covenant ___

627)

___ A) Must set out the work schedule of the employee B) Can set out how much the employee will get paid C) Can set out conditions and promises of the employee regarding the business. D) Can apply only to independent contractors Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-67 A restrictive covenant

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628)

An employee can be dismissed ___

628)

___ A) at any time B) only within the parameters of their contract C) Only within the parameters of the Canada Labour Code D) Only within the parameters of the employment standards act of the relevant

province Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-68 An employee can be dismissed

629)

Wrongful dismissal is ___

629)

___ A) Demotion to a lower position B) Dismissal without just cause or notice C) Dismissal with cause D) Dismissal without notice Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-69 Wrongful dismissal is

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630)

Constructive dismissal is when ___

630)

___ A) Dismissal without notice B) Dismissal without cause C) Dismissal with cause D) An employer unilaterally changes the employees working conditions without their

consent. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-70 Constructive dismissal is when

The Canada Labour Code permits employees who believe they were unjustly enriched to do the following EXCEPT 631) ___ ___ A) Request in writing a written statement from their employer providing reasons for the dismissal. B) File a complaint alleging unjust dismissal. C) Request in writing the reasons for dismissal and file a complaint alleging unjust enrichment within 90 days of the date of dismissal D) Do nothing because the employee has no rights against the employer per the Act.

631)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-71 The Canada Labour Code permits employees who...

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632)

Termination pay is ___

632)

___ A) provided in place of notice B) will be paid depending on the circumstances of the employee C) Is a lump sum payment to the employee D) Is never given to an employee Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-72 Termination pay is

633)

A union is ___

633)

___ A) A labour board B) An optional membership of employees C) A collection of employees in an organization that form together to protect their

rights and interests. D) Government mandated association of employees Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-73 A union is

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If an employer refuses to voluntarily bargain with the chosen bargaining agent of the employees, 634) ___ ___ A) The bargaining agent must be certified by the government before the employees may form a contract. B) The bargaining agent must be certified by the Labour Relations Board before it may require the employer to engage in collective bargaining. C) The employees may immediately engage in a lawful strike action. D) The employer may force the employees to be terminated.

634)

635)

In a regular certification ___

635)

___ A) Only 1/3 of the employees agree to be represented by the union. B) 2/4 of the employees agree to be represented by the union. C) Anyone who wishes to be represented by the union shall form a union. D) The union must show that a majority of the employees in the bargaining unit wish

to be represented by the union. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-75 In a regular certification

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636)

Both the employer and the union ___

636)

___ A) Must agree on the conditions of employer and employee relations B) Do not need to agree on the employer and employee relations C) Need only strike a balance in terms of the employee and employer relations D) May only agree on some issues but not all issues Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-76 Both the employer and the union

637)

If there is a collective agreement in place ___

637)

___ A) A strike is illegal B) A strike is legal C) A wildcat strike is legal D) A walkout is legal Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-77 If there is a collective agreement in place

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638)

A strike ___

638)

___ A) Is a work stoppage or a slow - down in work B) Is a refusal by the employee to abide by Labour laws C) Is an opportunity for an employer to reduce wages D) Can apply to any employer and employee relationship even if not unionized Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-78 A strike

639)

Contractual disputes between unions and management are ___

639)

___ A) Usually resolved by binding arbitration B) Always resolved by arbitration C) Always resolved by mediation D) Always resolved internally Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-79 Contractual disputes between unions and mana...

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640)

Labour disputes may arise because ___

640)

___ A) The company and the union disagree on fair wages B) An employee refuses to abide by union policy C) An employee has violated company policy D) A union rep does not abide by policy Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-80 Labour disputes may arise because

641)

Which of the following is an employee versus an independent contractor? 641)

___

___ A) A transcriptionist who works from home for a variety of medical specialists B) A wedding planner with a variety of clients who decides when and where she will work C) A part-time accountant who works when needed and sets her own hours D) A college student who works for 10 hours a week as a file clerk in an office Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-81 Which of the following is an employee versus...

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Which of the following employers would be covered by provincial-not federalemployment legislation?

642)

___

642)

___ A) Air Canada B) Canada Post C) Ford Canada D) Royal Bank of Canada Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-82 Which of the following employers would be co...

Which of the following is a protection for employees under Employment Standards legislation? 643) ___ ___ A) Employment insurance B) Licensing notice C) Notice for dismissal without cause D) Strike notice

643)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-83 Which of the following is a protection for e...

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A restrictive covenant that prevents a departing employee from initiating contact with the former employer's customers for a specified period of time post-employment is known as a 644) ___ ___ A) Non-contact clause B) Non-competition clause C) Non-disclosure clause D) Non-solicitation clause

644)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-84 A restrictive covenant that prevents a depar...

A restrictive covenant that prevents a departing employee from revealing a former employer's customers trade secret is known as a:

645)

___

645)

___ A) Non-contact clause B) Non-competition clause C) Non-disclosure clause D) Non-solicitation clause Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-85 A restrictive covenant that prevents a depar...

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646)

Which of the following is not a general ground for disciplinary action? ___

646)

___ A) Incompetence B) Frustration C) Misconduct D) Negligence Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-86 Which of the following is not a general grou...

647)

Which of the following may not be grounds for dismissal? ___

647)

___ A) Being late for work B) Disobeying a supervisor C) Using alcohol at work D) Using drugs at work Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-87 Which of the following may not be grounds fo...

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Under the Canada Labour Code, an adjudicator in a termination dispute can render decisions. Which of the following is not a likely decision an adjudicator can make? 648) ___ ___ A) Advise the employer to reinstate the employee with pay B) Advise the employer to reinstate the employee without pay C) Advise the employer to terminate the employee without pay D) Advise the employer to terminate the employee and file a wrongful dismissal action

648)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-88 Under the Canada Labour Code, an adjudicator...

An employee whose hours of work are unilaterally reduced from 40 hours to 28 hours per week may have a claim against the employer based on: 649) ___ ___ A) Constructive dismissal B) Failure to mitigate C) Unjust dismissal D) Wrongful dismissal

649)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 08-05 Explain the concepts of unjust (wrongful) dismissal and the grounds for di Topic : 08-05 Wrongful Dismissal and the Grounds for Dismissal Source : Chapter 08 Test Bank > TB 08-89 An employee whose hours of work are unilater...

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Which of the following actions would constitute a legal strike while no collective agreement is in force?

650)

___

650)

___ A) A refusal by employer to allow employees onto the job site B) A slowdown of work by employees C) A walkout by employees without warning D) Employees take action without notice Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-90 Which of the following actions would constit...

651)

Which of the following is not required during the collective bargaining process? ___

651)

___ A) Both employer and employee must bargain in good faith B) Parties must have their agreement ratified by both employers and employees C) Employer must agree to the terms requested by the employee D) Parties must make reasonable efforts to reach an agreement Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-91 Which of the following is not required durin...

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652)

Arbitrators 652)

___

___ A) Are expected to hold a hearing to investigate the circumstances surrounding a dispute B) Are expected to make orders that are final but can be appealed to the court C) Are prohibited from directly examining witnesses surrounding a dispute D) Are restricted to determining disputes that arise out of violations of the collective agreement Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 08-06 Understand collective bargaining and labour disputes. Topic : 08-06 Unions: Collective Bargaining and Labour Disputes Source : Chapter 08 Test Bank > TB 08-92 Arbitrators

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 653) Explain the different characteristics between an independent contractor and employee in light of the obligations an employer may have to each.

Question Details Accessibility : Keyboard Navigation Bloom's : Evaluate Difficulty : Easy Learning Objective : 08-02 Describe the relationship between employer and employee. Topic : 08-02 The Employer and Employee Relationship Source : Chapter 08 Test Bank > TB 08-93 Explain the different characteristics betwee...

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Amara works at Company X - a bakery. They have trouble following employer rules, often attend at work late and use unsafe practices. They also fail to cooperate with other staff. Would they be terminated with cause in such a scenario, and would the employer be justified to terminate their employment based on Government of Canada guidelines?

654)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 08-03 Understand labour laws, regulations, and employer(s) rights in Canada. Topic : 08-03 Workplace Laws, Regulations, and Employer/Employees' Rights in Canada Source : Chapter 08 Test Bank > TB 08-94 Amara works at Company X - a bakery. They ha...

Why might restrictive covenants be an important tool in employment contracts? Identify at least two examples of how they can be used in an employment contract in your answer.

655)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 08-04 Understand an employment contract. Topic : 08-04 Employment Contracts Source : Chapter 08 Test Bank > TB 08-95 Why might restrictive covenants be an import...

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Answer Key Test name: Chapter 08 Test Bank 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) TRUE 9) FALSE 10) TRUE 11) TRUE 12) TRUE 13) FALSE 14) FALSE 15) TRUE 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) TRUE 21) TRUE 22) TRUE 23) TRUE 24) TRUE 25) FALSE 26) TRUE 27) TRUE 28) FALSE 29) TRUE 30) FALSE 31) FALSE 32) FALSE 33) FALSE 34) TRUE 35) FALSE 36) TRUE 37) TRUE 38) TRUE 39) TRUE 40) TRUE richard@qwconsultancy.com

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41) TRUE 42) TRUE 43) TRUE 44) TRUE 45) TRUE 46) FALSE 47) TRUE 48) FALSE 49) FALSE 50) FALSE 51) TRUE 52) TRUE 53) FALSE 54) TRUE 55) FALSE 56) C 57) B 58) C 59) B 60) A 61) C 62) C 63) D 64) B 65) C 66) D 67) C 68) A 69) B 70) D 71) D 72) A 73) C 74) B 75) D 76) A 77) A 78) A 79) A 80) A 81) D 82) C 83) C 84) D richard@qwconsultancy.com

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85) C 86) B 87) A 88) D 89) A 90) B 91) C 92) A 93) Short Answer

An employer has different obligations depending on whether one is a contractor or an employee. A contractor who is independent will have the power to set their own hours, hire their own staff, provide their own tools, be responsible for their own staff, and generally identifies a separate entity from the employer. Also, an independent contractor is required to fulfil their own tax obligations for filing and directly make payment remittances. An employee on the other hand does not have the same independence and the employee is controlled by the employer in the sense that their job duties are dictated by the employer, they can only work for that employer and not multiple employers at the same time; they cannot hire their own staff and the employer is responsible for tax remittances and payments. In law, the significance of the differences between the two rests in the liability an employer may have to third parties, among other things. 94) Short Answer

Amara will most likely be terminated if they do not change their behavior. The Labour Code has guidelines for the employers and employees which set out the standards and expectations for each providing for a uniform interpretation of the basic responsibilities and rights of employees. In this case their behavior has identified a lack of regard for the employer, and they could be terminated with cause - legally. 95) Short Answer

A restrictive covenant is a provision or provisions that outline restrictions, promises or options in a contract. One example of a restrictive covenant to protect the employer involves intellectual property. Another example may be to ensure that the employee does not disclose confidential information about business practices or client information. An employment contract ought to be comprehensive to protect both the company and the employee and to ensure that there are restrictions and guidelines for the employee to abide by, as well as for the employer to abide by.

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TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 656) Private property is that property owned by the government and available to the general public to use. 656) ___ ___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-01 Understand the definition of property law. Topic : 09-01 What Is Property Law? Source : Chapter 09 Test Bank > TB 09-01 Private property is that property owned by t...

Public property is that property owned by the government and available to the general public to use. 657) ___ ___ ⊚ true ⊚ false

657)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-01 Understand the definition of property law. Topic : 09-01 What Is Property Law? Source : Chapter 09 Test Bank > TB 09-02 Public property is that property owned by th...

658)

The city sidewalk in front of your store is your private property. ___

658)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-01 Understand the definition of property law. Topic : 09-01 What Is Property Law? Source : Chapter 09 Test Bank > TB 09-03 The city sidewalk in front of your store is ...

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659)

Real property is land and anything attached to it. ___

659)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-02 Explain real, personal, and intellectual property. Topic : 09-02 What Is Real, Personal, and Intellectual Property? Source : Chapter 09 Test Bank > TB 09-04 Real property is land and anything attached ...

660)

Personal property is referred to as a tangible chattel. ___

660)

661)

Personal property is referred to as an intangible chattel. ___

661)

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662)

Tangible property can be touched and moved. ___

662)

663)

Intangible property can be touched and moved ___

663)

664)

Tangible property cannot be touched or moved. ___

664)

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665)

Intangible property cannot be touched or moved ___

665)

666)

Your cell phone is an example of intangible property. ___

666)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 09-02 Explain real, personal, and intellectual property. Topic : 09-02 What Is Real, Personal, and Intellectual Property? Source : Chapter 09 Test Bank > TB 09-11 Your cell phone is an example of intangible ...

667)

Your business's reputation and goodwill is a form of intangible personal property. ___

667)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 09-02 Explain real, personal, and intellectual property. Topic : 09-02 What Is Real, Personal, and Intellectual Property? Source : Chapter 09 Test Bank > TB 09-12 Your businesss reputation and

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Intellectual property is a type of personal property resulting from an individual's creative activities.

668)

___

668)

Fixtures are chattels that become part of the real property when permanently affixed to land. 669) ___ ___ ⊚ true ⊚ false

669)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-14 Fixtures are chattels that become part of th...

Fee simple ownership includes the right to exclusive possession and use of land for an indefinite period of time. 670) ___ ___ ⊚ true ⊚ false

670)

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Ownership of real property in Canada is recorded using either a registry system or a land titles system. 671) ___ ___ ⊚ true ⊚ false

671)

The registry system records the documents that have been registered against real property and does not confirm ownership.

672)

___

672)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-17 The registry system records the documents th...

673)

The land titles system of registration guarantees the accuracy of title to real property. 673) ___ ___ ⊚ true ⊚ false

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674)

Purchase and sale of real property is exempt from provincial and municipal taxes. ___

674)

675)

Governments may limit the types of structures that can be built on real property. ___

675)

Zoning regulations determine whether real property can be used for operating a business.

676)

___

676)

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677)

Mortgagor is the person who borrows the money. ___

677)

Registration of a mortgage protects a mortgagee's priority in the event a second mortgage is registered against the land.

678)

___

678)

The amortization period is the length of time it takes to repay a mortgage loan in full on a payment schedule. 679) ___ ___ ⊚ true ⊚ false

679)

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680)

A mortgage must be paid in full at the end of the loan term. ___

680)

Foreclosure is a remedy that allows a mortgagee to obtain title to real property if the mortgagor has defaulted. 681) ___ ___ ⊚ true ⊚ false

681)

682)

One remedy available to a mortgagee upon default is a judicial sale. ___

682)

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A lease is a contract that sets out the terms and conditions for the rental of real property.

683)

___

683)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-28 A lease is a contract that sets out the term...

684)

A periodic tenancy is a lease for a specified period of time. ___

684)

A lease gives a tenant possession of the property while the landlord maintains ownership.

685)

___

685)

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A gross lease is one in which the tenant pays a fixed amount as rent as well as a percentage of the landlord's operating expenses.

686)

___

686)

687)

A gross lease is one in which the tenant pays a fixed amount as rent on a regular basis. 687) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-32 A gross lease is one in which the tenant pay...

688)

A net lease is one in which the tenant pays a fixed amount as rent on a regular basis 688) ___ ___ ⊚ true ⊚ false

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689)

Commercial leases can be either a net lease or a gross lease. ___

689)

A sublet is when the tenant allows another person to occupy their leased premises during the term of the lease.

690)

___

690)

An assignment is when the tenant allows another person to occupy their leased premises during the term of the lease.

691)

___

691)

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A sublet is when the tenant transfers the tenancy to another person for the remaining term of the lease. 692) ___ ___ ⊚ true ⊚ false

692)

An assignment is when the tenant transfers the tenancy to another person for the remaining term of the lease.

693)

___

693)

694)

An assignor is a person who transfer rights to an assignee under an assignment. ___

694)

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695)

An assignee is a person who transfer rights to an assignor under an assignment. ___

695)

696)

An assignee is a person who receives rights from an assignor under an assignment. 696) ___ ___ ⊚ true ⊚ false

697)

An assignor is a person who receives rights from an assignee under an assignment. 697) ___ ___ ⊚ true ⊚ false

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698)

A landlord can evict a tenant for breaching an obligation under a lease. ___

698)

699)

A landlord cannot evict a tenant for breaching an obligation under a lease. ___

699)

700)

A bailor is the person who owns the property under a bailment ___

700)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-05 Distinguish between types of bailment of personal property. Topic : 09-05 Personal Property Source : Chapter 09 Test Bank > TB 09-45 A bailor is the person who owns the property...

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701)

A bailee is the person who owns the property under a bailment ___

701)

702)

A bailor is the person in temporary possession of the property under a bailment. ___

702)

703)

A bailee is the person in temporary possession of the property under a bailment. ___

703)

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704)

A rental of personal property is an example of bailment for reward. ___

704)

The reasonable person test is used to determine the level of care required by a bailee in bailment for reward. 705) ___ ___ ⊚ true ⊚ false

705)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-05 Distinguish between types of bailment of personal property. Topic : 09-05 Personal Property Source : Chapter 09 Test Bank > TB 09-50 The reasonable person test is used to determ...

The transfer of possession of goods from one person to another for the purpose of offering the goods for sale is an example of bailment by consignment.

706)

___

706)

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When a bailor pays a bailee to repair personal property, a bailment for services is created.

707)

___

707)

In a bailment for services, the bailee has an obligation to look after the property as if it were his or her own. 708) ___ ___ ⊚ true ⊚ false

708)

709)

Personal property can be used a security for a loan. ___

709)

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710)

A lease of goods is a bailment. ___

710)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-05 Distinguish between types of bailment of personal property. Topic : 09-05 Personal Property Source : Chapter 09 Test Bank > TB 09-55 A lease of goods is a bailment.

711)

Registration is required to protect a person's copyright. ___

711)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-56 Registration is required to protect a person...

712)

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Fair dealing permits the use or copying of copyrighted material for specific purposes such as research and review. 713) ___ ___ ⊚ true ⊚ false

713)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-58 Fair dealing permits the use or copying of c...

714)

Registration of a trademark in Canada is required for protection. ___

714)

715)

Registration of a trademark is valid for 15 years. ___

715)

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Patent is the exclusive right to produce, market, and sell a new, useful, and unobvious invention. 716) ___ ___ ⊚ true ⊚ false

716)

A patent gives its owner the exclusive right to use the patented invention for a period of 20 years from the date of the application. 717) ___ ___ ⊚ true ⊚ false

717)

A licensor can give a licensee a grant to use intellectual property in exchange for a royalty.

718)

___

718)

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The Industrial Design Act protects a unique shape, pattern, or element of design of a product. 719) ___ ___ ⊚ true ⊚ false

719)

The word(s) "Registered" or "Rd" must be marked on an industrial design in order to have full protection. 720) ___ ___ ⊚ true ⊚ false

720)

A trade secret refers to confidential information regarding a product or production process that has a commercial value to the owner.

721)

___

721)

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722)

Confidential information is protected in Canada by registration. ___

722)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-67 Confidential information is protected in Can...

723)

A nondisclosure agreement is a method of protecting confidential information. ___

723)

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 724) Property law is the area of law that refers to the rights and responsibilities we have over 724) ___ ___ A) Personal Property B) Real Property C) Intangible property only D) Real and personal property which includes intangible property Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-01 Understand the definition of property law. Topic : 09-01 What Is Property Law? Source : Chapter 09 Test Bank > TB 09-69 Property law is the area of law that refers ...

725)

An interest in property determines whether an individual or organization ___

725)

___ A) Owns the item B) Has the right to possession of the item and the right to transfer an interest in the

item C) Has the right to stop another from using the item D) Owns an item, has the right to possession of the item, has the right to transfer an interest in the item, or has the right to stop someone else from using the item or occupying a space. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-01 Understand the definition of property law. Topic : 09-01 What Is Property Law? Source : Chapter 09 Test Bank > TB 09-70 An interest in property determines whether a...

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726)

Tangible property is ___

726)

___ A) A house B) A toothbrush C) A computer code D) An idea you have Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 09-02 Explain real, personal, and intellectual property. Topic : 09-02 What Is Real, Personal, and Intellectual Property? Source : Chapter 09 Test Bank > TB 09-71 Tangible property is

727)

Intellectual property is a form of ___

727)

___ A) Tangible property B) Intangible property C) Real Property D) Chattel Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-02 Explain real, personal, and intellectual property. Topic : 09-02 What Is Real, Personal, and Intellectual Property? Source : Chapter 09 Test Bank > TB 09-72 Intellectual property is a form of

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728)

Ownership over a right to stop using a trademark is an example of what? ___

728)

___ A) Tangible property B) Intangible property C) Real Property D) Chattels Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 09-02 Explain real, personal, and intellectual property. Topic : 09-02 What Is Real, Personal, and Intellectual Property? Source : Chapter 09 Test Bank > TB 09-73 Ownership over a right to stop using a trade...

729)

The right to sell, lease or use the property as a security is ___

729)

___ A) A lease ownership B) A security C) Fee Simple ownership D) A mortgage Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-74 The right to sell, lease or use the property...

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730)

A corporation intending to own land ___

730)

___ A) Must have provincial license for the purpose of owning land B) Need not have provincial license for ownership of land because of the registry

system C) Need not have provincial license for ownership of land because of the land titles system of registration D) Requires permission to be obtained from the federal government to own land Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-75 A corporation intending to own land

731)

The registry system ___

731)

___ A) Guarantees the accuracy of the title to real property. B) Does not guarantee the accuracy of title to real property. C) Is simply a repository. D) Includes all registrations of property across Canada. Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-76 The registry system

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732)

Who may be responsible for environmental problems on land? ___

732)

___ A) Owner B) Provincial government C) Federal government D) Municipality where land is situated Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-77 Who may be responsible for environmental pro...

733)

A mortgage is ___

733)

___ A) A debt which is secured by the real property to ensure repayment of the loan B) An unsecured debt owed to the mortgagor by the owner C) A line of credit registered to title of the property D) A loan Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-78 A mortgage is

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734)

Mortgagee is ___

734)

___ A) The bank B) The owner C) The third-party lender who promises a loan D) The insurer Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-79 Mortgagee is

735)

The Torrens System is also ___

735)

___ A) The Registry B) The Land Titles System C) The Leasing System D) The Borrowing mechanism Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-80 The Torrens System is also

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736)

The Land Registry system ___

736)

___ A) Always secures the title of the property B) Never secures the title of the property C) Does not guarantee the accuracy of the title of ownership D) Always guarantees that title is properly registered Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-81 The Land Registry system

737)

Capital gains will be paid ___

737)

___ A) If the property is sold and it is capital property B) When the property is purchased C) If the property is not capital property D) If there is more than one buyer to the property Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-82 Capital gains will be paid

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738)

If a party defaults on a mortgage payment ___

738)

___ A) The mortgagee may demand payment in full at the time of the default. B) New payment arrangements may be made to retain the mortgage. C) The bank may immediately sue the mortgagor. D) The bank may immediately sell the property. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-83 If a party defaults on a mortgage payment

739)

An acceleration clause permits ___

739)

___ A) The mortgagor to sell the property immediately. B) The mortgagee to sell the property immediately. C) The mortgagor to relinquish liability. D) The mortgagee to demand immediate payment of the full amount of the loan in the

event of a default. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-84 An acceleration clause permits

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740)

A fixed tenancy is ___

740)

___ A) A short-term lease for an indefinite period of time. B) A lease for a defined period of time. C) A lease for an indefinite period of time. D) Absolute lease ownership which does not expire. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-85 A fixed tenancy is

741)

A periodic tenancy ___

741)

___ A) Is non-renewable B) Is governed by legislation exclusively C) Is automatically renewed until notice is given terminate it. D) Does not terminate Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-86 A periodic tenancy

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742)

A lease gives a tenant ___

742)

___ A) Both possession and ownership of the property. B) Absolute ownership of the property. C) Use of the property. D) Limited use of the property as defined in a lease. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-87 A lease gives a tenant

743)

A net lease ___

743)

___ A) Is a lease that is not taxed. B) Is a lease that requires the tenant only to pay sales tax each month. C) Is a lease in which the tenant pays a fixed amount as rent and a percentage of the

landlord's operating expenses. D) Is one in which the landlord solely pays the operating expenses. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-88 A net lease

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744)

Quiet enjoyment is ___

744)

___ A) The right of sub-lessees to not be interfered with. B) The right of the other lessors not to be interfered with. C) The right of the lessor not to be interfered with. D) The right of the lessee to occupy and use the premises without interference from

the landlord. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-89 Quiet enjoyment is

745)

A right of distress is ___

745)

___ A) a remedy available to the tenant to prevent the landlord from entry. B) a landlord's remedy to immediately evict a tenant. C) a landlord remedy available only via court order. D) a remedy available to a commercial landlord to seize and dispose of a tenant's

assets for nonpayment of rent. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-90 A right of distress is

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746)

A bailment occurs ___

746)

___ A) When one party gives another party temporary possession of a good or chattel for a specific purpose. B) When one party gives another party permanent possession of a good or chattel. C) When one party gives another party shared possession of a good or chattel. D) When one party gives another an intangible item. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-05 Distinguish between types of bailment of personal property. Topic : 09-05 Personal Property Source : Chapter 09 Test Bank > TB 09-91 A bailment occurs

747)

The value of intellectual property ___

747)

___ A) Is not capable of being measured with value. B) Is the total sum of the use it affords the bailee. C) Is the use of the property provided by the owner. D) Is the ownership and control rights it provides to the owner. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-92 The value of intellectual property

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748)

___ A) Protects the tangible idea itself. B) Protects the idea itself. C) Protects the expression of an idea through an original piece of work but not the

idea itself. D) Protects the expression of an idea of an original piece of work but only if that work is kept private. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-93 Copyright protects

749)

Copyrighted material created during employment ___

749)

___ A) Belongs to the author even if a contract is created with the employer. B) Generally, belongs to the employer though the author has moral rights to the

copyright. C) Always belongs to the author. D) Never belongs to the employer. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-94 Copyrighted material created during employme...

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750)

A trademark protects ___

750)

___ A) Only colours B) Inventions C) Ideas D) Terms, symbols and designs that identify a product or a company. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-95 A trademark protects

751)

A license ___

751)

___ A) Confers a right to use only trademarked intellectual property. B) Allows a person to use protected intellectual property for a specified term and

specified use. C) Allows a person to use protected intellectual property indefinitely. D) Allows a person ownership rights over the intellectual property. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-96 A license

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752)

The Patent Act ___

752)

___ A) Requires that a patent must be registered if it is to be protected in Canada. B) Does not require registration for protection in Canada. C) Requires that a patent must be registered to be protected anywhere in the world. D) Requires that the patent must be registered to be protected in North America. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-97 The Patent Act

753)

Which of the following is not considered personal property? ___

753)

___ A) Chattels B) Goods C) Fixture D) Movables Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 09-02 Explain real, personal, and intellectual property. Topic : 09-02 What Is Real, Personal, and Intellectual Property? Source : Chapter 09 Test Bank > TB 09-98 Which of the following is not considered per...

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754)

Which is the greatest interest a person can have in land? ___

754)

___ A) Fee simple B) Homestead estate C) Leasehold estate D) Life estate Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-99 Which is the greatest interest a person can ...

The Land Titles System is different than the Registry System because the Land Title System: 755) ___ ___ A) Does not affect the title B) Does not confirm title C) Guarantees title D) Is a depository for documents

755)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-100 The Land Titles System is different than the...

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Mortgage agreements usually have conditions as part of their terms. What is not a condition usually found in a mortgage agreement?

756)

___

756)

___ A) To make monthly payments on time B) To ensure that property taxes are paid each year C) Not to commit waste D) Not to re-mortgage without consent Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-101 Mortgage agreements usually have conditions ...

When a default occurs, the mortgagee will likely want to realize on the security in the quickest suitable manner, which is: 757) ___ ___ A) Discharge B) Foreclosure C) Power of sale D) Sale

757)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 09-04 Understand the rights and obligations under a commercial lease. Topic : 09-04 Use of Real Property Source : Chapter 09 Test Bank > TB 09-102 When a default occurs, the mortgagee will li...

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Maja rents a commercial storage space every summer to store her possessions while she is not at school. She pays the storage fees by cheque each month to the owner of the facility. Maja is: 758) ___ ___ A) A subtenant B) An assignor C) In a fixed tenancy D) In a periodic tenancy

758)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 09-05 Distinguish between types of bailment of personal property. Topic : 09-05 Personal Property Source : Chapter 09 Test Bank > TB 09-103 Maja rents a commercial storage space every ...

759)

All of the following are remedies belonging exclusively to the landlord, except: ___

759)

___ A) Action on the covenant B) Distress C) Distrain D) Quiet possession Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 09-05 Distinguish between types of bailment of personal property. Topic : 09-05 Personal Property Source : Chapter 09 Test Bank > TB 09-104 All of the following are remedies belonging ...

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760)

When a bailor's goods are not returned or are returned in a damaged condition, the: 760) ___ ___ A) bailee's liability will be limited by the existence of an exemption clause B) bailee will not be liable if it was a gratuitous bailment as there was no consideration C) bailor must prove that a bailment existed and show his loss D) bailor must satisfy the court that the standard of care was not maintained

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-105 When a bailors goods are not

761)

Which of the following is an example of a bailment for reward? ___

761)

___ A) Amara gives her friend a shovel B) Amara gets her friend to water her plant while she is on vacation C) Amara leaves her watch at the jeweler so he can fix it D) Amara rents a car for the weekend Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-106 Which of the following is an example of a ba...

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In an action for infringement of intellectual property, which of the following remedies would a plaintiff not ask for? 762) ___ ___ A) Accounting B) Damages C) Injunction D) Specific performance

762)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-107 In an action for infringement of intellectua...

Abdul worked as an employee of MegaByte Industries, a computer conglomerate. As part of his job, he produced a unique program for routing emergency calls to the appropriate public emergency services departments. There is no written employee contract dealing with ownership of the program. This program can be: 763) ___ ___ A) Copyrighted only by MegaByte B) Copyrighted only by Abdul C) Patented only by MegaByte D) Patented only by Abdul

763)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-108 Abdul worked as an employee of MegaByte Indu...

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Bell Canada created an extremely attractive, totally new design for a touch-tone keypad for use in all its new cell phone. Bell wishes to protect the design. It should do so under: 764) ___ ___ A) the Copyright Act B) the Industrial Design Act C) the Patent Act D) the Trade-marks Act

764)

Luciana applied for a patent in May 2012, which was granted the same month. The patent will expire in: 765) ___ ___ A) May 2017 B) May 2022 C) May 2027 D) May 2032

765)

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766)

Which of the following is an example of an industrial design? ___

766)

___ A) Coco-cola bottle B) Kleenex tissue C) Nike D) UPS Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-111 Which of the following is an example of an i...

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 767) Considering the Copyright Act, why is it permissible for Alexa to publish a culmination of Shakespeare's most popular plays into one anthology with a foreword written by her?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Hard Learning Objective : 09-06 Explain the importance of intellectual property in carrying on a business. Topic : 09-06 Intellectual Property Source : Chapter 09 Test Bank > TB 09-112 Considering the Copyright Act, why is it per...

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Section 29 of the Copyright Act permits an exception for the use of copyrighted material by third parties, known as Fair Dealing. You are an instructor of Business Law and you recently found a text resource which you believe is invaluable for your students because it incorporates legislative analysis with expert opinion on Passing Off. Using the six-part analysis of the Supreme Court of Canada case of CCH Canadian Ltd v. Law Society of Upper Canada, 2004 SCC 13, what might your argument be in support of your right to use the text for educational purposes?

768)

Zander purchased his home in 2018. His remaining mortgage is valued at $220, 679.03. He has missed 8 consecutive mortgage payments. What remedies are available to the lender in this situation?

769)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 09-03 Explain ownership rights of real property. Topic : 09-03 Real Property Source : Chapter 09 Test Bank > TB 09-114 Zander purchased his home in 2018. His remai...

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Answer Key Test name: Chapter 09 Test Bank 1) FALSE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) FALSE 12) TRUE 13) TRUE 14) TRUE 15) TRUE 16) TRUE 17) TRUE 18) TRUE 19) FALSE 20) TRUE 21) TRUE 22) TRUE 23) TRUE 24) TRUE 25) TRUE 26) TRUE 27) TRUE 28) TRUE 29) FALSE 30) TRUE 31) FALSE 32) TRUE 33) FALSE 34) TRUE 35) TRUE 36) FALSE 37) FALSE 38) TRUE 39) TRUE 40) FALSE richard@qwconsultancy.com

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41) TRUE 42) FALSE 43) TRUE 44) FALSE 45) TRUE 46) FALSE 47) FALSE 48) TRUE 49) TRUE 50) TRUE 51) TRUE 52) TRUE 53) TRUE 54) TRUE 55) FALSE 56) FALSE 57) TRUE 58) TRUE 59) FALSE 60) TRUE 61) TRUE 62) TRUE 63) TRUE 64) TRUE 65) TRUE 66) TRUE 67) FALSE 68) TRUE 69) D 70) D 71) B 72) B 73) B 74) C 75) A 76) B 77) A 78) A 79) A 80) B 81) D 82) A 83) A 84) D richard@qwconsultancy.com

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85) C 86) C 87) D 88) C 89) D 90) D 91) A 92) D 93) C 94) B 95) D 96) B 97) A 98) C 99) A 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112)

C D C A D C D D A B D A Short Answer The Copyright Act affords protections to registered material for a period of fifty years. Given that Shakespeare's material was written and published more than 50 years prior to Alexa's anthology, it follows that her anthology would not be a copyright violation. Short Answer Fair dealing is an exception which permits for a variety of different uses, otherwise protected material from being used by a third party and disseminated. In this example, the use would be for educational purposes. According to the Supreme Court in CCH Canadian Ltd. V. Law Society of Upper Canada, the court identified six considerations when assessing whether the use would fall under the fair dealing exception. A fair dealing exception would permit use without consequence, and as such it would be important to forge the argument that the text was being used for the purpose of exemplifying to the students the significant practical application of the doctrine of Passing Off as analyzed via case law historically; further the argument should include an explanation as to the effect of the dealing on the work, identifying there would be no adverse effect; an argument could also include that the nature of the work itself is useful and an important teaching tool, and so forth. 113)

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Short Answer The bank would have several remedies including, power of sale, foreclosure on the property given particular time frames being met, and judicial sale. The lender would be entitled to sell the property to recoup the monies loaned and any excess monies would pay out fees and the residue given to Zander. 114)

770)

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. A sole proprietorship is one person carrying on business alone. 770) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-01 Understand the various forms of business organization for carrying on busi Topic : 10-01 Forms of Business Organization Source : Chapter 10 Test Bank > TB 10-01 A sole proprietorship is one person carrying...

771)

A sole proprietor is responsible for all debt and liabilities of the business. ___

771)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-01 Understand the various forms of business organization for carrying on busi Topic : 10-01 Forms of Business Organization Source : Chapter 10 Test Bank > TB 10-02 A sole proprietor is responsible for all deb...

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772)

Partners share ownership and responsibilities of the business. ___

772)

The type of business formation you chose can depend upon the nature and size of the business. 773) ___ ___ ⊚ true ⊚ false

773)

774)

Some business formations are more regulated than others. ___

774)

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775)

A sole proprietorship is the simplest form of business formation. ___

775)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-02 Explain the nature of carrying on a business as a sole proprietor. Topic : 10-02 Sole Proprietorships Source : Chapter 10 Test Bank > TB 10-06 A sole proprietorship is the simplest form o...

776)

A sole proprietor does not need legal assistance to register a proprietorship. ___

776)

777)

A sole proprietor makes all the decisions and receives all the benefits. ___

777)

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Unlimited liability means all business and personal assets may be at risk for a business liability.

778)

___

778)

779)

A sole proprietor does not have the responsibility of vicarious liability. ___

779)

780)

A sole proprietor is personally responsible for damages caused by employees. ___

780)

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781)

One disadvantage for a sole proprietor is profits are taxed at their personal tax rate. 781) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-02 Explain the nature of carrying on a business as a sole proprietor. Topic : 10-02 Sole Proprietorships Source : Chapter 10 Test Bank > TB 10-12 One disadvantage for a sole proprietor is pr...

782)

Starting a sole proprietorship can be as simple as filing a form and paying a fee. ___

782)

783)

Joint ventures are governed by applicable provincial legislation. ___

783)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-14 Joint ventures are governed by applicable pr...

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784)

A teaming arrangement is another name for a contractual joint venture. ___

784)

785)

A teaming arrangement is another name for an equity joint venture. ___

785)

786)

Partnerships are governed by federal legislation. ___

786)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-17 Partnerships are governed by federal legisla...

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787)

You can become a partner without knowing it. ___

787)

Sal and Amir opened up an accounting business together. They shared office space and administrative staff. However, they had separate clients. If Sal cheats on his client, then Amir is not responsible. 788) ___ ___ ⊚ true ⊚ false

788)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-19 Sal and Amir opened up an accounting busines...

General partners are not agents for each other for the purpose of the business of the partnership. 789) ___ ___ ⊚ true ⊚ false

789)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-20 General partners are not agents for each oth...

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790)

A partner is not personally liable for the debts and obligations of the other partners. 790) ___ ___ ⊚ true ⊚ false

Ali is a limited partner in a partnership. On Tuesday, the general partner, Rob was absent, and Ali had to make the decision to sign the supplier agreement to ensure that deliveries were made. Sal revoked his limited liability status when he made a decision to take control. 791) ___ ___ ⊚ true ⊚ false

791)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-22 Ali is a limited partner in a partnership. O...

Limited liability partnerships (LLP) are suitable forms of organization for professionals such as accountants and lawyers.

792)

___

792)

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In an accounting limited liability partnership (LLP) the partnership is liable for the negligence of a partner in the performance of his or her professional duties. 793) ___ ___ ⊚ true ⊚ false

793)

794)

A corporation is one of the most common business formations in Canada. ___

794)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-25 A corporation is one of the most common busi...

795)

A business can incorporate either provincially or federally. ___

795)

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359 | P a g e

796)

A federal corporation has the right to carry on business on any province or territory. 796) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-27 A federal corporation has the right to carry...

A corporation wishing to do business in more than one province must register federally.

797)

___

797)

798)

Incorporating documents set out the purpose of the business. ___

798)

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799)

"Manufacturing" is an example of a distinctive element in a corporate name. ___

799)

800)

"Design and Build" is an example of a descriptive element in a corporate name. ___

800)

Where an investor is offered either common or preference shares in a corporation on otherwise equally satisfactory terms, the investor who seeks to have their voice heard in management will choose to invest in common shares. 801) ___ ___ ⊚ true ⊚ false

801)

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802)

Common shares have the right to vote and may receive dividends. ___

802)

803)

Preferred shares have the right to vote and may receive dividends. ___

803)

804)

Shareholders have a limited role in the management of the corporation. ___

804)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-35 Shareholders have a limited role in the mana...

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362 | P a g e

Shareholders and directors of a corporation both have personally limited liability as against the liabilities of the corporation, but shareholders have their liability even more limited than do the directors. 805) ___ ___ ⊚ true ⊚ false

805)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-36 Shareholders and directors of a corporation ...

In order for a director of a corporation to show that they can rely on the defence of due diligence, they must exercise only the duty of care of a reasonable person.

806)

___

806)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-37 In order for a director of a corporation to ...

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In order for a director of a corporation to show that they can rely on the defence of due diligence, they must be knowledgeable of the prevailing environmental standards and must take clear action to prevent, report, review, and respond to danger. 807) ___ ___ ⊚ true ⊚ false

807)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-38 In order for a director of a corporation to ...

808)

A shareholders' agreement can be used to determine aspects of corporate governance. 808) ___ ___ ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-39 A shareholders agreement can

Many small family businesses that incorporate are considered to be private or closely held corporations. 809) ___ ___ ⊚ true ⊚ false

809)

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810)

The greatest advantage to incorporation is the limited liability of the shareholders. ___

810)

811)

Federally incorporated businesses get global recognition. ___

811)

812)

A corporation is the least expensive business formation to create. ___

812)

richard@qwconsultancy.com

365 | P a g e

813)

Franchisor is the person granting the rights under the franchise agreement. ___

813)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-07 Describe a franchise arrangement. Topic : 10-07 Franchises Source : Chapter 10 Test Bank > TB 10-44 Franchisor is the person granting the rights...

814)

Franchisee is the person granting the rights under the franchise agreement. ___

814)

815)

Franchisor is the person receiving the rights under the franchise agreement. ___

815)

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366 | P a g e

816)

Franchisee is the person receiving the rights under the franchise agreement. ___

816)

Franchise is a contractual business arrangement where a franchisor grants a franchisee the right to operate a similar business. 817) ___ ___ ⊚ true ⊚ false

817)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-07 Describe a franchise arrangement. Topic : 10-07 Franchises Source : Chapter 10 Test Bank > TB 10-48 Franchise is a contractual business arrangem...

818)

There is some provincial legislation ensuring fair dealing in franchise arrangements. 818) ___ ___ ⊚ true ⊚ false

richard@qwconsultancy.com

367 | P a g e

A franchisee must follow the specific instructions of the franchise agreement or risk losing the business. 819) ___ ___ ⊚ true ⊚ false

819)

820)

The franchisee is dependent upon the franchisor and treated like an employee. ___

820)

821)

The franchisee is independent from the franchisor and is not a partner or employee. 821) ___ ___ ⊚ true ⊚ false

richard@qwconsultancy.com

368 | P a g e

822)

The franchisor controls the operating procedures and methods of the business. ___

822)

The franchisor receives a percentage of the franchisee's business as payment for the franchise. 823) ___ ___ ⊚ true ⊚ false

823)

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369 | P a g e

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 824) A partnership is ___

824)

___ A) A corporation carrying on business with a view to a profit. B) Two or more sole practitioners working in the same office who sometimes share

profits on projects. C) Two or more people carrying on business together with a view to sharing profits. D) One person carrying out business who intends to find a partner in the future. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-01 Understand the various forms of business organization for carrying on busi Topic : 10-01 Forms of Business Organization Source : Chapter 10 Test Bank > TB 10-55 A partnership is

825)

Two or more businesses carrying on an activity for a specified period of time is ___

825)

___ A) A joint venture B) A partnership C) A service contract D) A limited partnership Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-01 Understand the various forms of business organization for carrying on busi Topic : 10-01 Forms of Business Organization Source : Chapter 10 Test Bank > TB 10-56 Two or more businesses carrying on an activi...

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370 | P a g e

826)

One advantage for a sole proprietor is ___

826)

___ A) Profits are taxed at the personal tax rate and taxed only once. B) Profits are taxed lower than their personal tax rate. C) Profits are not taxed at all. D) Profits are taxed at the corporation tax rate. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-02 Explain the nature of carrying on a business as a sole proprietor. Topic : 10-02 Sole Proprietorships Source : Chapter 10 Test Bank > TB 10-57 One advantage for a sole proprietor is

827)

A corporation is ___

827)

___ A) A separate legal entity distinct from its owners. B) very much like a sole proprietorship. C) very much formed like a general partnership. D) formed like a limited partnership. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-58 A corporation is

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371 | P a g e

828)

An equity joint venture ___

828)

___ A) Is a separate legal entity to which the individual parties contribute capital. B) Is not a separate legal entity. C) Is exactly like a partnership. D) Is exactly like a corporation. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-59 An equity joint venture

829)

A contractual joint venture ___

829)

___ A) Is based on a written agreement between the parties. B) Is based on a verbal agreement between the parties. C) Is based on either a verbal or written agreement but not both. D) Is never based on a verbal agreement. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-60 A contractual joint venture

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372 | P a g e

830)

A contractual joint venture can be seen ___

830)

___ A) As a partnership. B) As an equity venture. C) As a limited partnership. D) As a corporation. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-61 A contractual joint venture can be seen

831)

In order not to be seen as a partnership, the parties in a joint venture ___

831)

___ A) need to register it under the Partnership Act. B) need do nothing as the legislation defines. C) must specifically state this in their contract. D) need to apply for a court order. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-62 In order not to be seen as a partnership, th...

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373 | P a g e

832)

A partnership is ___

832)

___ A) A group of people carrying on business together with the purpose of making a profit. B) A group of people sharing office space. C) A group of independent contractors contributing to a project. D) One person who is working at a company to assist on a project who intends to make a profit. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-63 A partnership is

833)

Unless there is a written agreement ___

833)

___ A) A partnership is subject to the legislation governing partnerships. B) A partnership may exist by verbal agreement only. C) A partnership may not exist in the absence of a written agreement. D) A partnership will be subject to court determination. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-64 Unless there is a written agreement

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374 | P a g e

834)

The provisions of the Partnership Act ___

834)

___ A) Do not apply even if there is a dispute as to the validity of the partnership

agreement between the partners. B) Do not supersede the terms of a partnership agreement, unless terms are missing from the agreement. C) Supersede the terms of a partnership agreement with respect to the rights and obligations of the partners to one another. D) Must always be adhered to by the partnership whether there is a written agreement or not in so far as payment terms. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-65 The provisions of the Partnership Act

835)

A partnership agreement ___

835)

___ A) Can modify legislative requirements for partnerships. B) Cannot modify legislative requirement for partnership. C) May only modify legislative requirements in part. D) Requires a court order to modify legislative requirements. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-66 A partnership agreement

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375 | P a g e

836)

Each partner ___

836)

___ A) Is not vicariously liable for the torts committed by the other partners, depending on the circumstance. B) May be vicariously liable if the partner had knowledge of the tort. C) Is vicariously liable for the torts committed by the other partners. D) Is never vicariously liable under any scenario Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-67 Each partner

837)

A limited partner ___

837)

___ A) Is only responsible for the amount of their investment into the partnership. B) Carries the same weight and responsibility as all the other partners. C) Is responsible and liable only in so far as the work that they had carriage of. D) Is not liable or responsible for the partnership in any scenario. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-68 A limited partner

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376 | P a g e

838)

A limited partner ___

838)

___ A) Cannot make management decisions. B) Can make management decisions. C) Can draw any sum of capital out of the partnership at any time D) Cannot in any way control the partnership even if they have invested. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-69 A limited partner

839)

A corporation is ___

839)

___ A) a separate entity with the legal abilities of a natural person. B) not a separate entity with the legal abilities of a natural person. C) an entity which is limited to the persons who control it. D) an entity similar to a sole proprietorship. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-70 A corporation is

richard@qwconsultancy.com

377 | P a g e

840)

A corporation ___

840)

___ A) May not have both a number or a name. B) May have both a number or a name, or both. C) May only have a name. D) May only have a number. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-71 A corporation

841)

When choosing a specific name for a corporation ___

841)

___ A) There is no limitation as to the name that can be registered. B) It must contain elements that are distinctive and descriptive. C) It need not contain elements that are distinctive. D) It may not be descriptive. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-72 When choosing a specific name for a corporat...

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378 | P a g e

842)

Shares represent ___

842)

___ A) A shareholders' ownership interest in a corporation. B) A director's interest in a corporation. C) The ability to direct the corporation. D) The ability to sell the corporation. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-73 Shares represent

843)

Aleksander has 100 common shares in company X and Arta has 100 preferred shares. 843) ___ ___ A) Aleksander may receive his dividend before Arta. B) Aleksander may not receive his dividend before Arta. C) Neither Aleksandra nor Arta have voting rights. D) Arta has voting rights.

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-74 Aleksander has 100 common shares in company ...

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379 | P a g e

844)

Preferred shares 844)

___

___ A) Give the owner no right to vote but they will receive dividends before common shareholders. B) Give the owner a right to vote. C) Give the owner a right to receive dividends when all other shareholders receive their dividends. D) Do not give the right to vote nor does the owner receive dividends sooner than common shares. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-75 Preferred shares

845)

Dividends 845)

___

___ A) Are a method of distributing the profits earned by a corporation to shareholders. B) Are a type of share. C) Are a type of ownership in the corporation. D) Are a type of power conferred upon shareholders. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-76 Dividends

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380 | P a g e

846)

Shareholders ___

846)

___ A) Have ownership in the corporation but not the business or assets of the

corporation. B) Have no ownership in the corporation. C) Have ultimate controlling rights over the corporation. D) Have regulatory rights over the corporation. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-77 Shareholders

847)

Directors' priority is to act ___

847)

___ A) In the best interests of the shareholders. B) In the best interest of the corporation. C) In the best interest of other shareholders. D) In the best interests of their employees. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-78 Directors priority is to

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381 | P a g e

848)

Shareholders ___

848)

___ A) Appoint the directors who in turn appoint the officers of the corporation. B) Appoint the officers of the corporation. C) Appoint other shareholders in the corporation. D) Appoint the employees in the corporation. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-79 Shareholders

849)

Officers of a corporation ___

849)

___ A) Have the same fiduciary duty as directors of a corporation. B) Do not have a fiduciary duty. C) Have a limited fiduciary duty. D) Have the same fiduciary duty as the lawyers who advise them. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-80 Officers of a corporation

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382 | P a g e

850)

Shareholder agreements are ___

850)

___ A) Useful devices to protect the interests of minority shareholders in small private corporations. B) Not permissible in a corporate structure. C) Not useful to protect the interests of any shareholder as they carry liabilities. D) Useful devices to protect the interest of majority shareholders. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-81 Shareholder agreements are

851)

If a corporation sells shares to the general public ___

851)

___ A) It is a public corporation B) It is a private corporation C) It is neither public nor private D) Then the sale triggers the public nature of the corporation. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-82 If a corporation sells shares to the general...

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383 | P a g e

852)

Authorized capital is ___

852)

___ A) The number and class of dividends B) The number and class of shares C) The number and class of director controls D) The number and class of shareholders Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-83 Authorized capital is

853)

Ontario Form 2 is ___

853)

___ A) The registration of a corporation name under the Business Names' Act B) The registration of the provincial incorporation documents C) The registration of the intent to incorporate provincially D) The registration of a federal incorporation Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-84 Ontario Form 2 is

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384 | P a g e

854)

The Canada Business Incorporation Act is ___

854)

___ A) A provincial statute B) A provincial guideline on legislation C) A federal statute D) A Municipal ordinance Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-85 The Canada Business Incorporation Act is

855)

A corporation ceases to exist ___

855)

___ A) It does not cease to exist. B) When the shareholders die. C) When the directors die. D) When the owner who first registered the corporation dies. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-86 A corporation ceases to exist

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385 | P a g e

856)

Which of the following is not a method of carrying on business? ___

856)

___ A) Joint venture B) Partnership C) Partnership of corporations D) Sole proprietorship Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 10-01 Understand the various forms of business organization for carrying on busi Topic : 10-01 Forms of Business Organization Source : Chapter 10 Test Bank > TB 10-87 Which of the following is not a method of ca...

857)

Which of the following is not a concern for a sole proprietor? ___

857)

___ A) Complying with income tax regulations B) Filing annual reports C) Following government regulations D) Meeting local zoning bylaws Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-02 Explain the nature of carrying on a business as a sole proprietor. Topic : 10-02 Sole Proprietorships Source : Chapter 10 Test Bank > TB 10-88 Which of the following is not a concern for ...

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386 | P a g e

Which of the following is not an issue typically addressed in a joint venture agreement?

858)

___

858)

___ A) Allocations of profit and loss B) Capital contributions and financing C) Dispute resolution procedures D) Filing annual reports Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-89 Which of the following is not an issue typic...

The partnership form of business organization should be entered into with caution because:

859)

___

___ A) a third party may claim damages against the partnership for injury incurred as the result of any tort committed by a partner B) partners may leave the firm to avoid debts or claims against the partnership C) the admission of a new partner to the firm does not automatically render the new partner liable for the existing debts of the partnership D) the firm will be bound to perform any contract entered into by a partner with third parties Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-90 The partnership form of business organizatio...

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387 | P a g e

860)

A fiduciary duty in partnership does not require which of the following? ___

860)

___ A) Partners must act in their clients' best interest B) Partners must disclose a conflict of interest C) Partners must not compete with the partnership D) Partners must take personal advantage of partnership information Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-91 A fiduciary duty in partnership does not req...

861)

Which of the following is true about a partnership? 861)

___

___ A) A limited partnership is an arrangement in which a partner can limit her liability to her investment B) A partnership is formed when the parties intend to create it C) General partners are not agents of the partnership and the other partners D) Sharing of gross profits is sufficient evidence of a partnership Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-92 Which of the following is true about a partn...

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388 | P a g e

862)

Which of the following is true about a limited partnership? ___

862)

___ A) A limited partner cannot become a general partner without consent of the all other partners. B) Limited partners may draw against capital, prior to dissolution, only up to the amount of their own contribution to capital. C) Only a general partner may actively transact business. D) Only a limited partner may actively transact business. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-04 Explain the differences between a general partnership and a limited partne Topic : 10-04 Partnerships Source : Chapter 10 Test Bank > TB 10-93 Which of the following is true about a limit...

863)

Which of the following is not a method of incorporation? ___

863)

___ A) Certificate of incorporation B) Federal patent C) Letters Patent D) Memorandum of association Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-94 Which of the following is not a method of in...

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389 | P a g e

864)

Which of the following is an example of equity financing by a corporation? ___

864)

___ A) Issuing capital B) Issuing dividends C) Issuing loans D) Issuing shares Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-05 Explain the nature of a corporation and the advantages or disadvantages of Topic : 10-05 Corporations Source : Chapter 10 Test Bank > TB 10-95 Which of the following is an example of equi...

865)

The greatest control over the acts of a corporation may be exercised by the: ___

865)

___ A) Board of directors B) Bond holders C) Majority owners of common shares D) Majority owners of preferred shares Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-96 The greatest control over the acts of a corp...

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390 | P a g e

Those persons legally responsible for the execution of management of a corporation are the: 866) ___ ___ A) Directors B) Employees C) Officers D) Shareholders

866)

867)

The concept of fiduciary duty applies to: ___

867)

___ A) Corporate officers B) Directors C) Employees D) Shareholders Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-98 The concept of fiduciary duty applies to:

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391 | P a g e

868)

In which of the following relationship is a fiduciary duty owed? ___

868)

___ A) Directors to corporation B) Directors to employees C) Directors to security holders D) Directors to shareholders Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-99 In which of the following relationship is a ...

869)

Which of the following is an example of a breach of fiduciary duty? ___

869)

___ A) Directors refuse to declare dividends B) Director operates a business in competition with corporation C) Officers refuse to declare dividends D) Shareholder operates a business in competition with corporation Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-100 Which of the following is an example of a br...

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392 | P a g e

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 870) Alvin is a limited partner in ABC Partnership. He has invested $300,000.00 in the partnership through his corporation XYC Corp. It has come to Alvin's attention that Mary, one of the partners, encumbered the partnership into a debt valued at $1 million. The lender wants to be paid as soon as possible, but the partnership does not have the full sum. Will all of Alvin's invested sum be used to pay the lender to avoid legal action by the lender, or simply a portion of it?

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Easy Learning Objective : 10-02 Explain the nature of carrying on a business as a sole proprietor. Topic : 10-02 Sole Proprietorships Source : Chapter 10 Test Bank > TB 10-101 Alvin is a limited partner in ABC Partnershi...

Coraline owns 200 Common Shares in ABC Corp. They also own 100 Preferred Shares in ABC Corp. Coraline wants to be able collect her dividend on the 200 Common Shares sooner than the Preferred Shares, because she owns more and the return will be higher. Coraline is thinking of using her voting rights afforded under the Common Shares to initiate a vote for Common Shares to be paid the dividend at the same time. Why might she do this, and what permits her to do this?

871)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 10-03 Explain the nature of a joint venture. Topic : 10-03 Joint Ventures Source : Chapter 10 Test Bank > TB 10-102 Coraline owns 200 Common Shares in ABC Corp....

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393 | P a g e

Rosalie is a sole proprietor running a business under her first and last names: Rosalie Ubuktu Florist. By virtue of adding the word Florist to her first and last name, has Rosalie violated the Business Names Act which requires registration if the business name is something other than just the first and last name of the person running it?

872)

Spiros is thinking of whether he should incorporate his construction design business provincially or federally. They currently reside in Ontario, but they intend to open divisions in British Columbia and Nova Scotia. They also hope to start a division in New York State, USA at some point in the future. What do you advise Spiros and why?

873)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 10-06 Describe the roles of shareholders, directors, and officers of a corporati Topic : 10-06 Ownership and Management Source : Chapter 10 Test Bank > TB 10-104 Spiros is thinking of whether he should inco...

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394 | P a g e

Answer Key Test name: Chapter 10 Test Bank 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) FALSE 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) TRUE 16) FALSE 17) FALSE 18) TRUE 19) FALSE 20) FALSE 21) FALSE 22) TRUE 23) TRUE 24) FALSE 25) TRUE 26) TRUE 27) TRUE 28) FALSE 29) TRUE 30) FALSE 31) TRUE 32) TRUE 33) TRUE 34) FALSE 35) TRUE 36) TRUE 37) FALSE 38) TRUE 39) TRUE 40) TRUE richard@qwconsultancy.com

395 | P a g e

41) TRUE 42) TRUE 43) FALSE 44) TRUE 45) FALSE 46) FALSE 47) TRUE 48) TRUE 49) TRUE 50) TRUE 51) FALSE 52) TRUE 53) TRUE 54) TRUE 55) C 56) A 57) A 58) A 59) A 60) A 61) A 62) C 63) A 64) A 65) B 66) A 67) C 68) A 69) A 70) A 71) B 72) B 73) A 74) B 75) A 76) A 77) A 78) B 79) A 80) A 81) A 82) A 83) B 84) A richard@qwconsultancy.com

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85) C 86) A 87) C 88) B 89) D 90) C 91) A 92) A 93) C 94) B 95) D 96) A 97) A 98) B 99) A 100) B 101) Short Answer

The limited partner is limited in liability to the sum of money invested into the partnership. Alvin therefore, having invested $300,000.00 into the partnership may see that his invested sum is used to pay down the loan and he cannot refuse or object to that. However, Alvin will not be responsible for the remaining $700,000.00 which needs to be repaid. Short Answer It's not certain whether she could succeed, but Coraline certainly has the power to vote - using her Common Shares - on a motion to permit the dividends on those shares to be paid at the same time as the Preferred Shares given that Preferred Shares are paid out faster. Coraline owns more Common Shares than Preferred Shares meaning that she would be expected to get a larger return. Her Common Shares permit her to vote on motions and other shareholder business including when dividends can be issued, so long as a motion on this question has been initiated. 102)

Short Answer Yes, under these circumstances, Rosalie would have had to register the name Rosalie Ubuktu Florist because they chose to add the word Florist to the business name. Sole Proprietors do not need to register the name if it is solely their first and last name. 103)

Short Answer If Spiros wishes to expand his Ontario business nationwide in Canada, or at least in two other additional provinces to start, he is best to incorporate Federally despite the additional cost. This will make it far easier for him to carry out business in those provinces, and also ensure that the name of his corporation is registered in those provinces, preventing others from registration. Having a federal corporation also provides global recognition which may assist him when he chooses to expand in the United States. 104)

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397 | P a g e

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 874) The federal Bank Act regulates all federally chartered Canadian and foreign subsidiary banks. 874) ___ ___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-01 Understand the different financial institutions to which businesses have a Topic : 11-01 Financial Institutions Source : Chapter 11 Test Bank > TB 11-01 The federal Bank Act regulates all federally...

875)

Businesses and banks have an agreement between them for financial services. ___

875)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-01 Understand the different financial institutions to which businesses have a Topic : 11-01 Financial Institutions Source : Chapter 11 Test Bank > TB 11-02 Businesses and banks have an agreement betwe...

Merchants pay a fee to a credit card issuer in order to participate in a credit or debit card network. 876) ___ ___ ⊚ true ⊚ false

876)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-01 Understand the different financial institutions to which businesses have a Topic : 11-01 Financial Institutions Source : Chapter 11 Test Bank > TB 11-03 Merchants pay a fee to a credit card issuer ...

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398 | P a g e

877)

The Bills of Exchange Act governs credit cards. ___

877)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-02 Understand electronic commercial transactions. Topic : 11-02 Electronic Commercial Transactions Source : Chapter 11 Test Bank > TB 11-04 The Bills of Exchange Act governs credit car...

878)

Electronic commercial transactions allow for a cashless business. ___

878)

879)

It may be less expensive for a business to accept cash over a credit card. ___

879)

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399 | P a g e

880)

The law governing negotiable instruments is the Bills of Exchange Act. ___

880)

881)

A cheque is a bill of exchange drawn against a bank and payable on demand. ___

881)

882)

Credit and debit cards are bills of exchange. ___

882)

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400 | P a g e

The federal Bills of Exchange Act does not govern the use of credit and debit cards in Canada. 883) ___ ___ ⊚ true ⊚ false

883)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-02 Understand electronic commercial transactions. Topic : 11-02 Electronic Commercial Transactions Source : Chapter 11 Test Bank > TB 11-10 The federal Bills of Exchange Act does not g...

The federal government has enacted a voluntary "Code of Conduct for the Credit and Debit Card Industry in Canada." 884) ___ ___ ⊚ true ⊚ false

884)

885)

A business can borrow money by entering into a loan agreement. ___

885)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-03 Explain the financing of business operations. Topic : 11-03 Financing Operations and Creditors' Rights Source : Chapter 11 Test Bank > TB 11-12 A business can borrow money by entering into...

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401 | P a g e

Debt financing is borrowing the money for a period of time and repaying the original amount plus interest at the end of the term. 886) ___ ___ ⊚ true ⊚ false

886)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-03 Explain the financing of business operations. Topic : 11-03 Financing Operations and Creditors' Rights Source : Chapter 11 Test Bank > TB 11-13 Debt financing is borrowing the money for a ...

Equity financing is borrowing the money for a period of time and repaying the original amount plus interest at the end of the term.

887)

___

887)

888)

Debt financing is accomplished by selling shares in a company. ___

888)

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402 | P a g e

889)

Debt financing is accomplished by borrowing capital and buying shares ___

889)

890)

A bank may lend money without security only if the loan is low risk. ___

890)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-04 Understand the remedies available to secured and unsecured creditors. Topic : 11-04 Secured Creditors Source : Chapter 11 Test Bank > TB 11-17 A bank may lend money without security only ...

If a debtor breaches a loan agreement and there is no security, the lender may personally sue the debtor.

891)

___

891)

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403 | P a g e

892)

Debt financing is best for short-term money needs. ___

892)

893)

Equity financing is best for short-term money needs. ___

893)

894)

Debt financing is best for long-term capital needs. ___

894)

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404 | P a g e

895)

Equity financing is best for long-term capital needs. ___

895)

Financial institutions are in the business of lending money and the debtor's ability to repay is their primary concern. 896) ___ ___ ⊚ true ⊚ false

896)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-04 Understand the remedies available to secured and unsecured creditors. Topic : 11-04 Secured Creditors Source : Chapter 11 Test Bank > TB 11-23 Financial institutions are in the business o...

To help ensure the repayment of a loan a financial institution will want security against the loan.

897)

___

897)

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405 | P a g e

898)

A security interest is an interest in personal property that secures payment of a debt. 898) ___ ___ ⊚ true ⊚ false

A security agreement sets out the rights, obligations, and remedies available to both parties. 899) ___ ___ ⊚ true ⊚ false

899)

900)

A secured creditor has priority over other general creditors. ___

900)

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406 | P a g e

901)

Floating charges allow the debtor to dispose of, replace, and add to assets. ___

901)

The primary purpose of the Personal Property Security Act is to have one place for processing security interests. 902) ___ ___ ⊚ true ⊚ false

902)

903)

A creditor must register the interest in the PPSR in order to perfect their security. ___

903)

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407 | P a g e

A security interest is attached on creation of the security instrument and perfected upon either registration or possession by the creditor.

904)

___

904)

A guarantor agrees to pay the debt of another person if that person defaults on payments to the lender.

905)

___

905)

906)

A guarantor agrees to be responsible along with the debtor on payments to the lender. 906) ___ ___ ⊚ true ⊚ false

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408 | P a g e

907)

A guarantee must be in writing to be enforceable. ___

907)

Offering an investor common voting shares in your company is a form of equity financing.

908)

___

908)

909)

Crowd funding is a growing popular way to raise funds through the Internet. ___

909)

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409 | P a g e

910)

Crowd funding allows a business greater access to a pool of investors. ___

910)

Both levels of government provide small businesses with funding and tax incentives programs. 911) ___ ___ ⊚ true ⊚ false

911)

The role of a trustee in bankruptcy is to work with the debtor to prepare a proposal for the creditors. 912) ___ ___ ⊚ true ⊚ false

912)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-39 The role of a trustee in bankruptcy is to wo...

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410 | P a g e

Creditors must accept the proposal for repayment put forth by a debtor under the Bankruptcy and Insolvency Act.

913)

___

913)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-40 Creditors must accept the proposal for repay...

914)

Creditors may reject a debtor's restructuring proposal and force him into bankruptcy. 914) ___ ___ ⊚ true ⊚ false

Debtors are allowed to retain some basic assets such a clothing, furniture, and tools of the trade. 915) ___ ___ ⊚ true ⊚ false

915)

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411 | P a g e

Where a formal proposal made by a debtor is rejected by his or her unsecured creditors, the debtor is deemed to have made an assignment in bankruptcy.

916)

___

916)

917)

A debtor can be forced into bankruptcy. ___

917)

A person who knows they are about to become bankrupt can transfer assets to family members to avoid those assets going to creditors. 918) ___ ___ ⊚ true ⊚ false

918)

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412 | P a g e

Secured creditors may take possession of the secured goods and sell them to pay the debt. 919) ___ ___ ⊚ true ⊚ false

919)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-06 Understand the ranking of creditors in a bankruptcy. Topic : 11-06 Creditors in a Bankruptcy Source : Chapter 11 Test Bank > TB 11-46 Secured creditors may take possession of the...

920)

A person may be discharged from bankruptcy within one year. ___

920)

___ ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-06 Understand the ranking of creditors in a bankruptcy. Topic : 11-06 Creditors in a Bankruptcy Source : Chapter 11 Test Bank > TB 11-47 A person may be discharged from bankruptcy w...

If a court discharges the debtor from bankruptcy without conditions, the creditors may object and request that conditions be imposed. 921) ___ ___ ⊚ true ⊚ false

921)

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413 | P a g e

A receivership involves creditors applying to the court to have a receiver appointed to control the business and property of the debtor for their benefit. 922) ___ ___ ⊚ true ⊚ false

922)

If on bankruptcy the bankrupt's cash account rests at zero, even secured creditors will receive nothing. 923) ___ ___ ⊚ true ⊚ false

923)

Any Canadian corporation with outstanding issues of bonds may avail itself of the Companies' Creditors Arrangement Act, rather than make an assignment in bankruptcy under the Bankruptcy and Insolvency Act. 924) ___ ___ ⊚ true ⊚ false

924)

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414 | P a g e

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 925) Financial Institutions consist of ___

925)

___ A) Only federally chartered banks. B) Trust companies and credit institutions. C) Chartered banks, insurance companies, trust companies and credit companies are

all considered financial institutions. D) Payday loan banks Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-01 Understand the different financial institutions to which businesses have a Topic : 11-01 Financial Institutions Source : Chapter 11 Test Bank > TB 11-52 Financial Institutions consist of

926)

The Bills of Exchange Act section 16 deals with ___

926)

___ A) A bill of exchange which stipulates an unconditional order in writing by one person to another to demand payment at a future point in time. B) A promise to pay that need not be in writing. C) A promise to waive payment so long as it is in writing D) Provincial regulation on the exchange of money and promises to repay. Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-02 Understand electronic commercial transactions. Topic : 11-02 Electronic Commercial Transactions Source : Chapter 11 Test Bank > TB 11-53 The Bills of Exchange Act section 16 deals w...

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415 | P a g e

927)

The Payment Card Network Act covers ___

927)

___ A) Electronic payments for credit and debit cards B) Electronic payments not including payment cards C) Exchange of sums of money not in payment card form D) An unequivocal promise to repay a loan electronically Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Medium Learning Objective : 11-02 Understand electronic commercial transactions. Topic : 11-02 Electronic Commercial Transactions Source : Chapter 11 Test Bank > TB 11-54 The Payment Card Network Act covers

A financial institution may be willing to lend money to a business on an unsecured basis. This is known as 928) ___ ___ A) An unsecured loan B) A secured loan C) A debt refinancing arrangement D) A mortgage

928)

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416 | P a g e

When an investor receives ownership interest in the company in exchange for capital given to buy shares, this is known as 929) ___ ___ A) Financing B) Investing C) Equity financing D) Debt financing

929)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-03 Explain the financing of business operations. Topic : 11-03 Financing Operations and Creditors' Rights Source : Chapter 11 Test Bank > TB 11-56 When an investor receives ownership interest...

930)

Insolvency occurs when ___

930)

___ A) A business is maxed out and not able to meet any of its debts B) A business is not able to meet any debts. C) A business that owes more than $1000 and is not able to meet its monthly debt

payments D) A business that is in debt but still able to meet its debts Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-57 Insolvency occurs when

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417 | P a g e

931)

The purpose of the Bankruptcy and Insolvency Act ___

931)

___ A) Is to punish debtors for taking in excess debt B) Is to legally prevent a debtor from taking on further debt C) Is to ensure creditors realize when debtors are insolvent and cannot pay debts and

to rehabilitate the debtors D) Is to legally prevent debtors from borrowing Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-58 The purpose of the Bankruptcy and Insolvency...

932)

Bankruptcy as a term is ___

932)

___ A) A financial state B) A legal term C) Both a financial and legal term D) A legislative descriptor Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-59 Bankruptcy as a term is

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418 | P a g e

If a proposal is made to the creditors on behalf of the debtor and it is accepted by the creditors 933) ___ ___ A) The debtor may still go into bankruptcy B) The debtor remains insolvent C) The debtor's debt is restructured and so long as the proposal is honoured, the debtor will not go into bankruptcy D) The creditors may remove their proposal and assign the debtor into bankruptcy at a later date despite repayment

933)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-60 If a proposal is made to the creditors on be...

934)

An assignment into bankruptcy occurs ___

934)

___ A) when a debtor puts his property into the hands of a trustee in bankruptcy B) when a debtor refuses to pay creditors C) when the creditors do not accept payment D) when the Act requires it to Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-61 An assignment into bankruptcy occurs

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419 | P a g e

935)

There are various forms of creditors in a bankruptcy procedure. In priority list, they

are ___

935)

___ A) Preferred creditors, secured creditors and unsecured creditors B) First to register creditors, unsecured creditors, secured creditors C) Secured creditors, preferred creditors, and unsecured creditors. D) Preferred and unsecured creditors Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-06 Understand the ranking of creditors in a bankruptcy. Topic : 11-06 Creditors in a Bankruptcy Source : Chapter 11 Test Bank > TB 11-62 There are various forms of creditors in a ba...

936)

To petition a debtor into bankruptcy, a creditor has to ___

936)

___ A) Obtain a court order B) Inform the Trustee in Bankruptcy C) Inform the debtor in writing D) Inform the debtor's financial institutions in writing Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-06 Understand the ranking of creditors in a bankruptcy. Topic : 11-06 Creditors in a Bankruptcy Source : Chapter 11 Test Bank > TB 11-63 To petition a debtor into bankruptcy, a cred...

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420 | P a g e

937)

To get a receiving order, a creditor must show ___

937)

___ A) The debtor has failed to make payments to that creditor B) The debtor was more than $1000 in debt and has committed an act of bankruptcy

under the act. C) The debtor has made more than one late payment on account D) The debtor retained their car and clothing Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-06 Understand the ranking of creditors in a bankruptcy. Topic : 11-06 Creditors in a Bankruptcy Source : Chapter 11 Test Bank > TB 11-64 To get a receiving order, a creditor must sh...

938)

Fraudulent preference means ___

938)

___ A) Paying one creditor first instead of the others B) Transferring ownership of an asset to another property prior to bankruptcy C) Paying only some creditors D) Transferring property after the insolvency proceedings occurred Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-65 Fraudulent preference means

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421 | P a g e

Which of the following is not a provincial or federally registered financial institution?

939)

___

939)

___ A) Bank of Montreal B) Caisse Populaire C) Money Mart D) VanCity Savings Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-01 Understand the different financial institutions to which businesses have a Topic : 11-01 Financial Institutions Source : Chapter 11 Test Bank > TB 11-66 Which of the following is not a provincial o...

940)

Which of the following are not negotiable instruments? ___

940)

___ A) Bill of sale B) Certified cheque C) Cheques D) Promissory note Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : Easy Learning Objective : 11-02 Understand electronic commercial transactions. Topic : 11-02 Electronic Commercial Transactions Source : Chapter 11 Test Bank > TB 11-67 Which of the following are not negotiable in...

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422 | P a g e

You want your new company to move toward cashless transactions. You know that this method has grown enormously in Canada and you feel confident that it will work for you. Which of the following statements is false with respect to cashless transactions? 941) ___ ___ A) E-banking has reduced the use of cheques in Canada B) Credit cards are protected by the Bills of Exchange Act C) Debit cards are not protected by the Bills of Exchange Act D) Merchants pay a fee to a card issuer to participate in electronic payments

941)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-02 Understand electronic commercial transactions. Topic : 11-02 Electronic Commercial Transactions Source : Chapter 11 Test Bank > TB 11-68 You want your new company to move

942)

Which of the following is not an example of debt financing? ___

942)

___ A) Borrowing money from a bank pursuant to a loan agreement B) Borrowing money from a credit union pursuant to a loan agreement C) Selling preferred shares pursuant to a loan agreement D) Selling personal property pursuant to a loan agreement Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-03 Explain the financing of business operations. Topic : 11-03 Financing Operations and Creditors' Rights Source : Chapter 11 Test Bank > TB 11-69 Which of the following is not an example of ...

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423 | P a g e

943)

Which of the following is an example of equity financing? ___

943)

___ A) Borrowing money from a bank B) Borrowing money from a credit C) Selling preferred shares D) Selling personal property Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-03 Explain the financing of business operations. Topic : 11-03 Financing Operations and Creditors' Rights Source : Chapter 11 Test Bank > TB 11-70 Which of the following is an example of equi...

944)

In which of the following is a chattel given as security by a debtor to a creditor? 944)

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___ A) A business person assigns his business inventory to the bank where he borrowed $25,000 B) A business person borrows $25,000 from the bank and signs a personal guarantee C) A musician pawns his electric guitar D) A musician takes his guitar to a consignment shop Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-04 Understand the remedies available to secured and unsecured creditors. Topic : 11-04 Secured Creditors Source : Chapter 11 Test Bank > TB 11-71 In which of the following is a chattel given...

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Which of the following is not part of the process necessary to create a security interest under the Personal Property Security Act?

945)

___

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___ A) Debtor provides a security interest B) Debtor registers the security transaction C) Parties perfect the secured interest D) Parties enter into a security agreement Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-04 Understand the remedies available to secured and unsecured creditors. Topic : 11-04 Secured Creditors Source : Chapter 11 Test Bank > TB 11-72 Which of the following is not part of the pr...

946)

Which of the following statements is false? ___

946)

___ A) A guarantee must be in writing B) A guarantor agrees to pay if debtor defaults C) A guarantor agrees to pay along with the debtor D) A guarantor must agree to any changes in the guarantee Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-04 Understand the remedies available to secured and unsecured creditors. Topic : 11-04 Secured Creditors Source : Chapter 11 Test Bank > TB 11-73 Which of the following statements is false?

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947)

Which of the following statements is false? 947)

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___ A) a bankrupt can be fined for his actions leading to bankruptcy, and a "proposal" can stave off bankruptcy. B) a receiving order or a voluntary assignment will create a bankruptcy. C) bankruptcy is a federal matter, and inspectors are appointed by creditors. D) bankruptcy is a provincial matter, and inspectors are appointed by creditors. Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-74 Which of the following statements is false?

When a debtor voluntarily gives his property over to a trustee in bankruptcy, this is referred to as a(n) 948) ___ ___ A) act of bankruptcy B) assignment into bankruptcy C) fraudulent preference D) fraudulent conveyance

948)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-75 When a debtor voluntarily gives his property...

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Where an act of bankruptcy has occurred under the Bankruptcy and Insolvency Act, who may file a petition for a receiving order? 949) ___ ___ A) Any creditor B) Any creditor owed in excess of $100 C) Any secured creditor D) The debtor

949)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Easy Learning Objective : 11-06 Understand the ranking of creditors in a bankruptcy. Topic : 11-06 Creditors in a Bankruptcy Source : Chapter 11 Test Bank > TB 11-76 Where an act of bankruptcy has occurred unde...

Preferred creditors, secured creditors, and unsecured creditors are three basic classes of creditors in a bankruptcy procedure. What is their priority in the proceeding? 950) ___ ___ A) Preferred, secured, and unsecured B) Preferred, unsecured, and secured C) Secured, preferred, and unsecured D) Secured, unsecured, and preferred

950)

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 951) A business should have multiple payment options available to clients to make it easier to conduct business. What types of payment arrangements, from those available, should a company consider employing in addition to cheques or cash?

If a business uses crowd funding as a source to raise capital in the form of an investment for growth, would the funds be considered gifts, equity, loans, or business income, pursuant to the CRA and why should a business be weary when crowd funding leads to capital usually spent on paying expenses, as opposed to raising profit?

952)

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : Medium Learning Objective : 11-04 Understand the remedies available to secured and unsecured creditors. Topic : 11-04 Secured Creditors Source : Chapter 11 Test Bank > TB 11-79 If a business uses crowd funding as a source...

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1. Jerry is in debt $3,000 and he has two credit cards each of which are maxed out. Is Jerry insolvent? 2. If Jerry's creditor to whom he owes the $3,000.00 chose to petition him into bankruptcy for non payment of two monthly payments, could they? 3. If Jerry proposed a payment agreement by way of a proposal in bankruptcy, does the creditor have to accept it?

953)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Medium Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-80 1. Jerry is in debt 3,000 and he has two cr...

ABC Co. is a partnership comprised of two corporations. Corporation A is insolvent in that it owes approximately $450,000 and has approximately $10,000 in its general bank account. A creditor is seeking repayment on the $450,000 due to an acceleration clause in the mortgage contract. This sum of money pertains to a mortgage on a piece of land owned by Corporation A. Corporation A decides to transfer the land it owns to Corporation B because the directors fear that the creditor will petition corporation A into bankruptcy, and Corporation A wishes to prevent the creditors from seizing the land. Having knowledge of partnerships and how they work, would the creditor be legally entitled to state a claim against ABC Co. partnership for the sum of the $450,000.00 to recover what it is owed, despite the potential fraudulent conveyance?

954)

Question Details Accessibility : Keyboard Navigation Bloom's : Apply Difficulty : Hard Learning Objective : 11-05 Describe insolvency and bankruptcy and the procedures involved. Topic : 11-05 Insolvency and Bankruptcy Source : Chapter 11 Test Bank > TB 11-81 ABC Co. is a partnership comprised of two co...

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Answer Key Test name: Chapter 11 Test Bank 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) FALSE 10) TRUE 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) FALSE 16) FALSE 17) TRUE 18) TRUE 19) TRUE 20) FALSE 21) FALSE 22) TRUE 23) TRUE 24) TRUE 25) TRUE 26) TRUE 27) TRUE 28) TRUE 29) TRUE 30) TRUE 31) TRUE 32) TRUE 33) FALSE 34) TRUE 35) TRUE 36) TRUE 37) TRUE 38) TRUE 39) TRUE 40) FALSE richard@qwconsultancy.com

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41) TRUE 42) TRUE 43) TRUE 44) TRUE 45) FALSE 46) TRUE 47) TRUE 48) TRUE 49) TRUE 50) TRUE 51) TRUE 52) C 53) A 54) A 55) A 56) C 57) C 58) C 59) B 60) C 61) A 62) C 63) A 64) B 65) B 66) C 67) A 68) B 69) C 70) C 71) A 72) B 73) C 74) D 75) B 76) A 77) C 78) Short Answer

Electronic payments have become popularized as a result of e-commerce legislation which provides safety, and more recently, the pandemic. A business should offer versatility including the ability to accept cheques, credit card payments, debit card payments, electronic payments and cash. 79) Short Answer richard@qwconsultancy.com

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The CRA considers monies raised via crowd funding, generally, as business income. If a business has entered into contracts with third parties for the purpose of raising capital for the growth of the business, there will likely be no argument to claim that these were merely loans, as loans are subject to income tax, as well. Funding may be accumulated for the purpose of investing in a labour force or equipment, neither of which may instantly yield any profit return, and as such, a business using this type of funding resource ought to have documentation in place to identify its expenditures for taxation purposes. 80) Short Answer

1. Yes, Jerry is insolvent. 2. Yes, the creditor could petition Jerry into bankruptcy. 3. No, the creditor does not have to accept it. 81) Short Answer

Yes. Because there is a partnership between Corporation 1 and Corporation 2 and because Corporation 2 owns the land after the conveyance, the creditor could petition the partnership into bankruptcy in order to recover the debt amount, regardless of which corporate partner currently holds legal title over it. If on the other hand, Corporation 1 had transferred the land to a spouse or friend, the creditor could sue Corporation 1 for the fraudulent conveyance, as opposed to recovering it any other way directly from the spouse or the friend to whom it was transferred.

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