Question 1

What is the distinction between civil liability and criminal liability as it relates to environmental damage caused by a corporation?

Accepted Answer

A civil liability is liability towards a

Question 2

When protecting corporate creditors, how does the "maintenance of capital test" differ from the "solvency test"?

Accepted Answer

A)  It is the only one found in the CBCA. 
B)  It is the one which has a "capital fund" to preserve. 
C)  They are similar but referred to differently in different provinces. 
D)  Simply a matter of legal jurisdiction over type of corporation. 
E)  It is less restrictive on the payment of dividends. 
A)  It is the only one found in the CBCA. 
B)  It is the one which has a "capital fund" to preserve. 
C)  They are similar but referred to differently in different provinces. 
D)  Simply a matter of legal jurisdiction over type of corporation. 
E)  It is less restrictive on the payment of dividends.

Question 3

According to the CBCA, the rule that "if a corporation's charter is filed in a government office and available to the public for examination, then third parties are deemed to have notice of its contents", is

Accepted Answer

A)  binding on all contracting parties. 
B)  only to be applied in cases where it can be used against the corporation. 
C)  established in most legal jurisdictions throughout Canada. 
D)  abolished. 
E)  only to be enforced by federally incorporated businesses. 
A)  binding on all contracting parties. 
B)  only to be applied in cases where it can be used against the corporation. 
C)  established in most legal jurisdictions throughout Canada. 
D)  abolished. 
E)  only to be enforced by federally incorporated businesses.

Question 4

The reasons that directors and senior officers need to be held personally liable for the crimes committed by a corporation include all EXCEPT:

Accepted Answer

A)  Some closely held corporations are run by shrewd crooks trying to hide behind the corporate veil. 
B)  Some corporations would view a fine as simply a "license" to do it again. 
C)  Some corporations are but a "shell", so when faced with a large fine simply go out of business and reorganize into another corporation. 
D)  This is an effective deterrent against corporate crime. 
E)  Criminal acts have corporate liability limitations as outlined in the CBCA. 
A)  Some closely held corporations are run by shrewd crooks trying to hide behind the corporate veil. 
B)  Some corporations would view a fine as simply a "license" to do it again. 
C)  Some corporations are but a "shell", so when faced with a large fine simply go out of business and reorganize into another corporation. 
D)  This is an effective deterrent against corporate crime. 
E)  Criminal acts have corporate liability limitations as outlined in the CBCA.

Question 5

The corporation is being charged by the government for a toxic spill. Bernard is the only engineer on the board of directors thought to have expertise in this area. Which of the following is NOT one of the elements to be considered in assessing a director's defence of having shown "due diligence"?

Accepted Answer

A)  The corporate officer in charge was fully apprised of the system and had reported back periodically to the board. 
B)  Bernard immediately took action when he received notice the system failed. 
C)  Environmental agency circulars were received and read regularly. 
D)  The board reviewed each officer's report and felt they could place reliance on them. 
E)  The pollution prevention system was in place and was being supervised. 
A)  The corporate officer in charge was fully apprised of the system and had reported back periodically to the board. 
B)  Bernard immediately took action when he received notice the system failed. 
C)  Environmental agency circulars were received and read regularly. 
D)  The board reviewed each officer's report and felt they could place reliance on them. 
E)  The pollution prevention system was in place and was being supervised.

Question 6

Jack is entering into a contract with Benson Corporation. Jack is obliged to make inquiries into the decision making process of the corporation to ensure that the contract it is entering into with the corporation is one that has been approved by the corporation per se.

Accepted Answer

A) True 
 B)False

Question 7

When it comes to damage of the environment, any person who actually commits an offence is personally liable

Accepted Answer

A)  provided he had no significant roll in controlling what happened. 
B)  provided he had no knowledge of the offence. 
C)  even if a senior officer ordered him to perform. 
D)  provided he was not acting within the scope of his authorised activities. 
E)  if there was no direct participation in the offence. 
A)  provided he had no significant roll in controlling what happened. 
B)  provided he had no knowledge of the offence. 
C)  even if a senior officer ordered him to perform. 
D)  provided he was not acting within the scope of his authorised activities. 
E)  if there was no direct participation in the offence.

Question 8

Hazel was deliberately cheated by a clerk at the Hamilton Bay Corp. Can the corporation be found guilty of a criminal offence?

Accepted Answer

A)  Yes, there is vicarious liability to the corporation. 
B)  Yes, since the clerk was an employee working at her job at the time. 
C)  No, because she was a low- level employee. 
D)  Yes, since there is obviously a "directing mind" in this act. 
E)  No, since corporations cannot be criminally found guilty. 
A)  Yes, there is vicarious liability to the corporation. 
B)  Yes, since the clerk was an employee working at her job at the time. 
C)  No, because she was a low- level employee. 
D)  Yes, since there is obviously a "directing mind" in this act. 
E)  No, since corporations cannot be criminally found guilty.

Question 9

The indoor management rule requires that directors not disclose publicly what each director said at directors' meetings.

Accepted Answer

A) True 
 B)False

Question 10

Does purchasing adequate insurance coverage absolve a corporation from liability for environmental damage caused by their corporation?

Accepted Answer

The corporation would remain liable as i

Question 11

A corporation is liable for an unauthorized act of a corporate officer

Accepted Answer

A)  provided everything appears to be regular on its face. 
B)  especially where he acts outside his normal and usual authority. 
C)  provided it is not expressly prohibited in the charter. 
D)  especially when a contracting third party has read or knows of the restriction. 
E)  even if the third party notes suspicious circumstances. 
A)  provided everything appears to be regular on its face. 
B)  especially where he acts outside his normal and usual authority. 
C)  provided it is not expressly prohibited in the charter. 
D)  especially when a contracting third party has read or knows of the restriction. 
E)  even if the third party notes suspicious circumstances.

Question 12

What is a mens rea offence?

Accepted Answer

An offence where the

Exam 29: The External Responsibilities of a Corporation

What is the distinction between civil liability and criminal liability as it relates to environmental damage caused by a corporation?

When protecting corporate creditors, how does the "maintenance of capital test" differ from the "solvency test"?

According to the CBCA, the rule that "if a corporation's charter is filed in a government office and available to the public for examination, then third parties are deemed to have notice of its contents", is

The reasons that directors and senior officers need to be held personally liable for the crimes committed by a corporation include all EXCEPT:

The corporation is being charged by the government for a toxic spill. Bernard is the only engineer on the board of directors thought to have expertise in this area. Which of the following is NOT one of the elements to be considered in assessing a director's defence of having shown "due diligence"?

Jack is entering into a contract with Benson Corporation. Jack is obliged to make inquiries into the decision making process of the corporation to ensure that the contract it is entering into with the corporation is one that has been approved by the corporation per se.

When it comes to damage of the environment, any person who actually commits an offence is personally liable

Hazel was deliberately cheated by a clerk at the Hamilton Bay Corp. Can the corporation be found guilty of a criminal offence?

The indoor management rule requires that directors not disclose publicly what each director said at directors' meetings.

Does purchasing adequate insurance coverage absolve a corporation from liability for environmental damage caused by their corporation?

A corporation is liable for an unauthorized act of a corporate officer

What is a mens rea offence?

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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