Question 1

Contract law is primarily derived from statutory law.

Accepted Answer

A) True 
 B)False  False

Question 2

In order to be binding,an agreement must contain a bargain or exchange between the parties.

Accepted Answer

A) True 
 B)False  True

Question 3

Business people regularly breach contracts because the decision to breach a contract is both a business and legal decision.

Accepted Answer

A) True 
 B)False  True

Question 4

Bespoke Designs Inc.,a custom suit maker,has a contract to purchase its suiting fabric from ABC Textiles.The dye used in the most recent order of fabric from ABC appears to be slightly different from the sample agreed upon in the contract and from orders in the past and will not work with Bespoke's product line.The manufacturer insists that the material is the same as previous orders.What should Bespoke consider at this point?

Accepted Answer

A)  whether it makes business sense to sue ABC 
B)  that failure to immediately sue ABC will result in giving up its right to sue 
C)  the impact of the litigation on the industry 
D)  whether it can prove that the breach was due to negligence on the part of ABC 
A)  whether it makes business sense to sue ABC 
B)  that failure to immediately sue ABC will result in giving up its right to sue 
C)  the impact of the litigation on the industry 
D)  whether it can prove that the breach was due to negligence on the part of ABC

Question 5

Under what circumstances would a court apply the objective standard test?

Accepted Answer

A)  when deciding the amount of damages to award the winning party 
B)  if there is inequality of bargaining power between the parties 
C)  where it is unclear whether the parties intended to form a contract 
D)  if the enforcement of the contract might cause harm to a third party 
A)  when deciding the amount of damages to award the winning party 
B)  if there is inequality of bargaining power between the parties 
C)  where it is unclear whether the parties intended to form a contract 
D)  if the enforcement of the contract might cause harm to a third party

Question 6

Identify and briefly describe the objectives that owners and managers should keep in mind when dealing with a customer who is attempting to expand or restrict an existing contract.

Accepted Answer

In circumstances where a customer is att

Question 7

Which of the following is a good reason to use a contract as opposed to having a casual understanding?

Accepted Answer

A)  Casual understandings require lengthy negotiations and time to perform. 
B)  All contracts typically involve arrangements that are unlikely to be repeated. 
C)  Casual understandings are casually conducted and completed instantly. 
D)  All contracts are subject to the same set of compulsory legal rules. 
A)  Casual understandings require lengthy negotiations and time to perform. 
B)  All contracts typically involve arrangements that are unlikely to be repeated. 
C)  Casual understandings are casually conducted and completed instantly. 
D)  All contracts are subject to the same set of compulsory legal rules.

Question 8

An alternative to a contract is a casual understanding between the parties.Explain the disadvantages of casual understandings and outline the advantages of ensuring a business understanding is formalized by a contract.

Accepted Answer

Relying on casual understandings often m

Question 9

Luna Quan has been directed to attend a meeting tomorrow for the purpose of negotiating a new supply contract.It is vitally important that Luna pay particular attention during those negotiations to when simple business communications transform into legal obligations.

Accepted Answer

A) True 
 B)False

Question 10

Fatima needs to copy and bind five sets of legal submissions with beige covers,but none are left in the supply cabinet.The office manager offers to reimburse Fatima for the cost of the covers and buy her lunch from petty cash if she will dash to the nearby office supply store to buy them.Fatima agrees.What is the nature of the arrangement negotiated between Fatima and the office manager?

Accepted Answer

A)  a formal accord 
B)  an informal business arrangement 
C)  a haphazard promise 
D)  a binding agreement 
A)  a formal accord 
B)  an informal business arrangement 
C)  a haphazard promise 
D)  a binding agreement

Question 11

A business should always insist on the strict observance and enforcement of its legal rights.

Accepted Answer

A) True 
 B)False

Question 12

Issues can arise in contractual relationships that will require owners and managers to be conscious of the fact that business relationships are long-term,and so is reputation.

Accepted Answer

A) True 
 B)False

Question 13

What sequence of procedures will a court follow when asked to determine a matter involving a contractual dispute between two large corporations?

Accepted Answer

A)  review the conduct of the parties,evaluate the relevant law and the contract terms,then reach a decision 
B)  evaluate the contract terms and the conduct of the parties,then apply relevant law to arrive at a determination 
C)  review the relevant law,evaluate the conduct of the parties,then apply the contract terms to arrive at a decision 
D)  evaluate the conduct of the parties,review the contract terms,then apply the rules of law to arrive at a decision 
A)  review the conduct of the parties,evaluate the relevant law and the contract terms,then reach a decision 
B)  evaluate the contract terms and the conduct of the parties,then apply relevant law to arrive at a determination 
C)  review the relevant law,evaluate the conduct of the parties,then apply the contract terms to arrive at a decision 
D)  evaluate the conduct of the parties,review the contract terms,then apply the rules of law to arrive at a decision

Question 14

Explain the notion of equality of bargaining power and its impact on the operation of contract law.

Accepted Answer

Equality of bargaining power is the lega

Question 15

Alberta Carr,in his well-known article published in the Harvard Business Review,encouraged businesspeople to break the law to seek advantage in business negotiations.

Accepted Answer

A) True 
 B)False

Question 16

Any contract can be written or oral; each are equally enforceable.

Accepted Answer

A) True 
 B)False

Question 17

The purchase of stationery supplies from a retailer for cash,without an invoice or a receipt being provided in return,is an example of which of the following?

Accepted Answer

A)  an incomplete agreement 
B)  a formal contract 
C)  a standard form agreement 
D)  an informal agreement 
A)  an incomplete agreement 
B)  a formal contract 
C)  a standard form agreement 
D)  an informal agreement

Question 18

What is a defining characteristic of the principle of equality of bargaining power?

Accepted Answer

A)  Judicial assistance is readily available to all disadvantaged parties to a contract. 
B)  It is applied to adjust the terms so that the contract is fair and then enforces it. 
C)  It is applied to reject unfair contracts and return the parties to their prior positions. 
D)  It generally applies regardless of some distinct advantage favouring one party. 
A)  Judicial assistance is readily available to all disadvantaged parties to a contract. 
B)  It is applied to adjust the terms so that the contract is fair and then enforces it. 
C)  It is applied to reject unfair contracts and return the parties to their prior positions. 
D)  It generally applies regardless of some distinct advantage favouring one party.

Question 19

Individuals who negotiate a contract on behalf of their employer are bound to the contract along with their employer.

Accepted Answer

A) True 
 B)False

Question 20

All contracts are complex documents that must be prepared by lawyers.

Accepted Answer

A) True 
 B)False

Exam 5: An Introduction to Contracts

Contract law is primarily derived from statutory law.

In order to be binding,an agreement must contain a bargain or exchange between the parties.

Business people regularly breach contracts because the decision to breach a contract is both a business and legal decision.

Under what circumstances would a court apply the objective standard test?

Identify and briefly describe the objectives that owners and managers should keep in mind when dealing with a customer who is attempting to expand or restrict an existing contract.

Which of the following is a good reason to use a contract as opposed to having a casual understanding?

An alternative to a contract is a casual understanding between the parties.Explain the disadvantages of casual understandings and outline the advantages of ensuring a business understanding is formalized by a contract.

Luna Quan has been directed to attend a meeting tomorrow for the purpose of negotiating a new supply contract.It is vitally important that Luna pay particular attention during those negotiations to when simple business communications transform into legal obligations.

A business should always insist on the strict observance and enforcement of its legal rights.

Issues can arise in contractual relationships that will require owners and managers to be conscious of the fact that business relationships are long-term,and so is reputation.

What sequence of procedures will a court follow when asked to determine a matter involving a contractual dispute between two large corporations?

Explain the notion of equality of bargaining power and its impact on the operation of contract law.

Alberta Carr,in his well-known article published in the Harvard Business Review,encouraged businesspeople to break the law to seek advantage in business negotiations.

Any contract can be written or oral; each are equally enforceable.

The purchase of stationery supplies from a retailer for cash,without an invoice or a receipt being provided in return,is an example of which of the following?

What is a defining characteristic of the principle of equality of bargaining power?

Individuals who negotiate a contract on behalf of their employer are bound to the contract along with their employer.

All contracts are complex documents that must be prepared by lawyers.

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

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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