Question 1

A business that neglects to protect its intellectual property may have its ideas taken with impunity by a competitor.

Accepted Answer

A) True 
 B)False  True

Question 2

In every type of business dispute resolution,Canadian law requires that a judge must decide the amount of the loss to prevent hard feelings between the parties and allow the business relationship to be maintained.

Accepted Answer

A) True 
 B)False  False

Question 3

I'mNottaSoSmart Inc.overlooked the proper registration of its patent for a unique relay component used in its new software before release for public sale.A year later it discovered a competitor had used the component in its just-released patented software.Which of the following best describes the consequences to the competitor for its actions?

Accepted Answer

A)  Unprotected intellectual property can be used with impunity. 
B)  Theft of business property is a criminal offence. 
C)  Patent law infringements are punishable offences. 
D)  Losses due to theft of business property are recoverable. 
A)  Unprotected intellectual property can be used with impunity. 
B)  Theft of business property is a criminal offence. 
C)  Patent law infringements are punishable offences. 
D)  Losses due to theft of business property are recoverable. A

Question 4

Which of the following best defines business law?

Accepted Answer

A)  legal responsibility for the occurrence of an event causing loss 
B)  rules governing commercial relationships and the enforcement of rights 
C)  rules governing procedures involved when one person sues another 
D)  rules providing members of a society with established rights 
A)  legal responsibility for the occurrence of an event causing loss 
B)  rules governing commercial relationships and the enforcement of rights 
C)  rules governing procedures involved when one person sues another 
D)  rules providing members of a society with established rights

Question 5

Olivia is suing a supplier for breach of contract.Assuming she is successful,what remedy might she expect to receive from the court?

Accepted Answer

A)  restitution 
B)  punitive damages based on the seriousness of the contract breach 
C)  aggravated damages 
D)  a sum of money that will put her in the position that she would have been had the contract been fulfilled 
A)  restitution 
B)  punitive damages based on the seriousness of the contract breach 
C)  aggravated damages 
D)  a sum of money that will put her in the position that she would have been had the contract been fulfilled

Question 6

Which of the following best exemplifies a protective element of Canadian law?

Accepted Answer

A)  It seeks to make those who break the law accountable. 
B)  It sets rules in order to encourage complexity. 
C)  It sets rules in order to encourage complacence. 
D)  It provides rules that prohibit making commitments. 
A)  It seeks to make those who break the law accountable. 
B)  It sets rules in order to encourage complexity. 
C)  It sets rules in order to encourage complacence. 
D)  It provides rules that prohibit making commitments.

Question 7

In what way is SPAM different from marketing?

Accepted Answer

A)  SPAM is solicited by the recipient. 
B)  SPAM is electronic messaging that is unsolicited by the recipient. 
C)  SPAM is customized to the recipient for maximum effectiveness. 
D)  SPAM is expensive because it is directed to a large number of recipients. 
A)  SPAM is solicited by the recipient. 
B)  SPAM is electronic messaging that is unsolicited by the recipient. 
C)  SPAM is customized to the recipient for maximum effectiveness. 
D)  SPAM is expensive because it is directed to a large number of recipients.

Question 8

How does a legal contract contribute to a business relationship?

Accepted Answer

A)  It contributes uncertainty of liability in the relationship. 
B)  It defines the moral principles and values of the relationship. 
C)  It provides principles of paramount to govern the relationship. 
D)  It gives structure,predictability,and security to the relationship. 
A)  It contributes uncertainty of liability in the relationship. 
B)  It defines the moral principles and values of the relationship. 
C)  It provides principles of paramount to govern the relationship. 
D)  It gives structure,predictability,and security to the relationship.

Question 9

Organic Veggies'4'U Inc.has entered into a one-year,extendable supplier contract with EcoWise Fertilizers Ltd.for the delivery of 1.5-ton pallets of worm castings fertilizer at a price of $2,000 per ton in March and June.What type of role do contract law and its contributions to the establishment of this business relationship have?

Accepted Answer

A)  a facilitating role,providing definition,context,and certainty 
B)  an ethical role,facilitating better environmental practices 
C)  a litigation role,defining clear areas of liability for breach 
D)  a governing role,providing a comprehensive action plan 
A)  a facilitating role,providing definition,context,and certainty 
B)  an ethical role,facilitating better environmental practices 
C)  a litigation role,defining clear areas of liability for breach 
D)  a governing role,providing a comprehensive action plan

Question 10

The creation of complexity in business relationships is one of the most important contributions the law can make to the commercial arena.

Accepted Answer

A) True 
 B)False

Question 11

Lawsuits come to court for either of two reasons: there is a dispute about the facts that actually occurred or there is a dispute about the way the law treats the parties.Describe the role and obligations of the judge,including what details must be considered and what must be proven to the court to allow it to reach a decision resolving the dispute.

Accepted Answer

The role of the judge is to review the c

Question 12

Groot Industries Inc.requires more space in order to expand its business.Which of the following is a legal decision that Groot Industries Inc.must now undertake?

Accepted Answer

A)  who should be hired to construct a new building 
B)  whether its new premises will be regulated by health and fire regulations 
C)  whether to buy,build,or lease additional premises 
D)  whether to obtain insurance for its new premises 
A)  who should be hired to construct a new building 
B)  whether its new premises will be regulated by health and fire regulations 
C)  whether to buy,build,or lease additional premises 
D)  whether to obtain insurance for its new premises

Question 13

Briefly describe how the law of contract facilitates commercial activity.

Accepted Answer

The law of contract provides a way for p

Question 14

Which of the following is NOT an objective of business law?

Accepted Answer

A)  protection of business ideas and tangible property 
B)  ensuring losses are borne by those who cause them 
C)  imposition of fines on those who breach contracts 
D)  facilitating planning by ensuring compliance with commitments 
A)  protection of business ideas and tangible property 
B)  ensuring losses are borne by those who cause them 
C)  imposition of fines on those who breach contracts 
D)  facilitating planning by ensuring compliance with commitments

Question 15

What is the main goal of the Canadian legal system?

Accepted Answer

A)  to facilitate commerce and mediation of disputes 
B)  to facilitate arbitration and free trade 
C)  to facilitate free trade and planning for the future 
D)  to facilitate planning,protection,dispute resolution,and justice 
A)  to facilitate commerce and mediation of disputes 
B)  to facilitate arbitration and free trade 
C)  to facilitate free trade and planning for the future 
D)  to facilitate planning,protection,dispute resolution,and justice

Question 16

Liability between parties engaged in a contractual business relationship refers specifically to the legal responsibility of one party to the other for any event or loss that may occur due to breach of the contract.

Accepted Answer

A) True 
 B)False

Question 17

Why might an employer prefer to pay a severance package to an employee rather than fire the employee outright?

Accepted Answer

The time and money saved in avoiding a c

Question 18

Which of the following best describes the nature of the mediation process?

Accepted Answer

A)  submission to litigation of the dispute before a judge in court 
B)  negotiated resolution with the assistance of a neutral person 
C)  submission to an arbitrator's binding decision to resolve a dispute 
D)  renegotiation of the contract with the assistance of a judge 
A)  submission to litigation of the dispute before a judge in court 
B)  negotiated resolution with the assistance of a neutral person 
C)  submission to an arbitrator's binding decision to resolve a dispute 
D)  renegotiation of the contract with the assistance of a judge

Question 19

One of the goals of Canadian law is to ensure that losses are paid for by the parties responsible for creating them.

Accepted Answer

A) True 
 B)False

Question 20

A legal risk management plan involves a business strategy that may require legal supervision to reduce the probability and severity of loss.

Accepted Answer

A) True 
 B)False

Exam 1: Knowledge of Law As a Business Asset

A business that neglects to protect its intellectual property may have its ideas taken with impunity by a competitor.

In every type of business dispute resolution,Canadian law requires that a judge must decide the amount of the loss to prevent hard feelings between the parties and allow the business relationship to be maintained.

Which of the following best defines business law?

Olivia is suing a supplier for breach of contract.Assuming she is successful,what remedy might she expect to receive from the court?

Which of the following best exemplifies a protective element of Canadian law?

In what way is SPAM different from marketing?

How does a legal contract contribute to a business relationship?

The creation of complexity in business relationships is one of the most important contributions the law can make to the commercial arena.

Groot Industries Inc.requires more space in order to expand its business.Which of the following is a legal decision that Groot Industries Inc.must now undertake?

Briefly describe how the law of contract facilitates commercial activity.

Which of the following is NOT an objective of business law?

What is the main goal of the Canadian legal system?

Liability between parties engaged in a contractual business relationship refers specifically to the legal responsibility of one party to the other for any event or loss that may occur due to breach of the contract.

Why might an employer prefer to pay a severance package to an employee rather than fire the employee outright?

Which of the following best describes the nature of the mediation process?

One of the goals of Canadian law is to ensure that losses are paid for by the parties responsible for creating them.

A legal risk management plan involves a business strategy that may require legal supervision to reduce the probability and severity of loss.

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

An Introduction to Contracts

Forming Contractual Relationships

The Terms of a Contract

Non-Enforcement of Contracts

Termination and Enforcement of Contracts

Introduction to Tort Law

The Tort of Negligence

Other Torts

The Agency Relationship

Business Forms and Arrangements

The Corporate Form: Organizational Matters

The Corporate Form: Operational Matters

Introduction to Property Law

Intellectual Property

Real Property

The Employment Relationship

Terminating the Employment Relationship

Professional Services

The Sale of Goods

Consumer Protection and Competition Law

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

Insurance

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