Question 1

As described in the text, the four forms of risk management are risk avoidance, risk elimination, risk transfer, and risk acceptance.

Accepted Answer

A) True 
 B)False

Question 2

Attila works for Epsilon Inc. The police recently became aware of illegal activities in connection with that organization. Which of the following statements is TRUE?

Accepted Answer

A)  Epsilon Inc may be charged with a "white collar crime," which is any crime that was committed by a corporate organization, rather than an individual. 
B)  Neither Attila nor Epsilon Inc can be charged with a "corporate crime" unless they broke a law that was intended to protect another corporation. 
C)  Attila may be charged with a crime, but Epsilon Inc cannot, because only a human being can be convicted of a criminal offence. 
D)  A "white collar crime" is the same thing as a "corporate crime." 
E)  Even if Attila and Epsilon Inc are convicted of crimes, they may also be sued privately. 
A)  Epsilon Inc may be charged with a "white collar crime," which is any crime that was committed by a corporate organization, rather than an individual. 
B)  Neither Attila nor Epsilon Inc can be charged with a "corporate crime" unless they broke a law that was intended to protect another corporation. 
C)  Attila may be charged with a crime, but Epsilon Inc cannot, because only a human being can be convicted of a criminal offence. 
D)  A "white collar crime" is the same thing as a "corporate crime." 
E)  Even if Attila and Epsilon Inc are convicted of crimes, they may also be sued privately.

Question 3

Which of the following statements is TRUE with respect to exclusion clauses and risk management?

Accepted Answer

A)  An exclusion clause can affect liability for property damage, but not for personal injury. 
B)  An exclusion clause can be used by a person, but not by a corporation. 
C)  An exclusion clause always shifts the risk of liability onto an insurance company. 
D)  An exclusion clause can be inserted into a contract for the sale of goods. 
E)  An exclusion clause represents a type of risk acceptance. 
A)  An exclusion clause can affect liability for property damage, but not for personal injury. 
B)  An exclusion clause can be used by a person, but not by a corporation. 
C)  An exclusion clause always shifts the risk of liability onto an insurance company. 
D)  An exclusion clause can be inserted into a contract for the sale of goods. 
E)  An exclusion clause represents a type of risk acceptance.

Question 4

A court recently found, as a matter of fact, that a party's ability to advertise was restricted. In some circumstances, such a restriction violates section 2(b) of the Charter. Ultimately, however, the court's decision did not allow the affected party to advertise as it wished. Which of the following statements may explain that end result?

Accepted Answer

A)  The court held that the restriction was an "unreasonable limitation" on the freedom of expression. 
B)  The restriction was imposed by a private party, rather than by a government actor. 
C)  The restriction was imposed by a statute and the government responsible for that statute reacted to the court's decision by invoking the residual clause. 
D)  The party was not entitled to freedom of expression because it is a company, rather than a human being. 
E)  The restriction was saved under section 15(2) of the Charter. 
A)  The court held that the restriction was an "unreasonable limitation" on the freedom of expression. 
B)  The restriction was imposed by a private party, rather than by a government actor. 
C)  The restriction was imposed by a statute and the government responsible for that statute reacted to the court's decision by invoking the residual clause. 
D)  The party was not entitled to freedom of expression because it is a company, rather than a human being. 
E)  The restriction was saved under section 15(2) of the Charter.

Question 5

Betta Inc has discovered that one of its products is potentially dangerous. It therefore pulled that product from the store shelves before any were sold. It has employed a form of risk management known as

Accepted Answer

A)  risk avoidance. 
B)  risk destruction. 
C)  risk denial. 
D)  risk acceptance. 
E)  risk reduction. 
A)  risk avoidance. 
B)  risk destruction. 
C)  risk denial. 
D)  risk acceptance. 
E)  risk reduction.

Question 6

Subordinate legislation

Accepted Answer

A)  involves a statute that was introduced to change an existing statute. 
B)  always prohibits certain forms of behaviour. 
C)  is practically necessary because it is impossible for legislators to constantly monitor all of their statutes. 
D)  is always created at the provincial level, rather than at the federal level. 
E)  always consists of bylaws. 
A)  involves a statute that was introduced to change an existing statute. 
B)  always prohibits certain forms of behaviour. 
C)  is practically necessary because it is impossible for legislators to constantly monitor all of their statutes. 
D)  is always created at the provincial level, rather than at the federal level. 
E)  always consists of bylaws.

Question 7

The notwithstanding clause

Accepted Answer

A)  is seldom used by governments because it involves a decision to override fundamental rights and freedoms. 
B)  is contained in section 1 of the Charter. 
C)  can be applied with respect to each and every the right and freedom contained in the Charter. 
D)  is applied to Canadian laws regularly. 
E)  must be re- invoked every ten years in order to remain in effect. 
A)  is seldom used by governments because it involves a decision to override fundamental rights and freedoms. 
B)  is contained in section 1 of the Charter. 
C)  can be applied with respect to each and every the right and freedom contained in the Charter. 
D)  is applied to Canadian laws regularly. 
E)  must be re- invoked every ten years in order to remain in effect.

Question 8

"Administrative law" derives its name from the fact that it is concerned with the administration of the trial courts and appellate courts.

Accepted Answer

A) True 
 B)False

Question 9

The category of public law contains

Accepted Answer

A)  constitutional law and tax law, among other things. 
B)  constitutional law and administrative law, but not tax law. 
C)  any case in which a government sues or is being sued. 
D)  criminal law, employment law, and constitutional law. 
E)  administrative law and tax law, but not criminal law. 
A)  constitutional law and tax law, among other things. 
B)  constitutional law and administrative law, but not tax law. 
C)  any case in which a government sues or is being sued. 
D)  criminal law, employment law, and constitutional law. 
E)  administrative law and tax law, but not criminal law.

Question 10

A bill to amend a business corporations statute was introduced in the House of Commons. The statute in question must be a piece of federal legislation, as opposed to provincial legislation.

Accepted Answer

A) True 
 B)False

Question 11

The Charter includes (among other things) rights regarding

Accepted Answer

A)  contracts, sexual orientation, and religion. 
B)  ownership, expression, and association. 
C)  mobility, housing, and equality. 
D)  equality based on religion, age, and ethnic origin. 
E)  Aboriginals, multiculturalism, and accommodation. 
A)  contracts, sexual orientation, and religion. 
B)  ownership, expression, and association. 
C)  mobility, housing, and equality. 
D)  equality based on religion, age, and ethnic origin. 
E)  Aboriginals, multiculturalism, and accommodation.

Question 12

Lamda Inc recently decided to use "in- house counsel." What does that phrase mean? Explain the advantages and disadvantages of the company's decision.

Accepted Answer

Businesses usually hire lawyers as the n

Question 13

An appellate court recently heard two cases. In the first, it decided that a statute was ultra vires. In the second, it decided that another statute violated the Charter. What is the significance, in each case, of section 52 of the Constitution?

Accepted Answer

The Constitution is the document that cr

Question 14

Which of the following statements is TRUE?

Accepted Answer

A)  The territories have legislatures, but not senates. 
B)  The Queen is represented by a lieutenant governor in each province and territory. 
C)  Each province has a senate. 
D)  The legislature in each and every province and territory is called the Legislative Assembly. 
E)  Parliamentary bills are always introduced in the House of Commons before being sent to the Senate. 
A)  The territories have legislatures, but not senates. 
B)  The Queen is represented by a lieutenant governor in each province and territory. 
C)  Each province has a senate. 
D)  The legislature in each and every province and territory is called the Legislative Assembly. 
E)  Parliamentary bills are always introduced in the House of Commons before being sent to the Senate.

Question 15

Sabeka Inc has discovered that one of its products may cause consumers to suffer a certain form of property damage. In response to that risk, the company has written an exclusion clause into its sales contracts. In doing so, it has adopted a form of risk management known as risk shifting.

Accepted Answer

A) True 
 B)False

Question 16

The three steps in risk management are

Accepted Answer

A)  recognition, evaluation, and insurance. 
B)  realization, response, and reaction. 
C)  identification, evaluation, and response. 
D)  assessment, formulation, and implementation. 
E)  evaluation, qualification, and litigation. 
A)  recognition, evaluation, and insurance. 
B)  realization, response, and reaction. 
C)  identification, evaluation, and response. 
D)  assessment, formulation, and implementation. 
E)  evaluation, qualification, and litigation.

Question 17

The category of private law contains

Accepted Answer

A)  contract law and property law, but not tort law, which is closely related to criminal law. 
B)  rules that govern personal matters, such as the right to privacy, but not rules that govern public matters, such as the contracts of a public company. 
C)  real estate transactions, lawsuits based on deceit, and the violation of copyrights, among other things. 
D)  contract law and tort law, but not if a government has sued or is being sued. 
E)  only those cases that the parties resolve themselves, or with the assistance of a neutral third party other than a judge. 
A)  contract law and property law, but not tort law, which is closely related to criminal law. 
B)  rules that govern personal matters, such as the right to privacy, but not rules that govern public matters, such as the contracts of a public company. 
C)  real estate transactions, lawsuits based on deceit, and the violation of copyrights, among other things. 
D)  contract law and tort law, but not if a government has sued or is being sued. 
E)  only those cases that the parties resolve themselves, or with the assistance of a neutral third party other than a judge.

Question 18

In an effort to protect its dairy industry, a provincial government passed a law that prohibits the importation or manufacture of soy milk. If a soy milk company challenges that statute on constitutional grounds, what would a court likely say?

Accepted Answer

A)  Inter- provincial trade is an issue that provinces are entitled to decide for themselves. 
B)  The statute is entirely ultra vires because federal jurisdiction over international and inter- provincial trade extends to every issue that is related to trade, including the manufacture or production of soy milk. 
C)  The statute is at least partially intra vires because provinces have the authority to regulate the production or manufacture of things like soy milk. 
D)  The federal government has jurisdiction over international trade, but not over inter- provincial trade. 
E)  because property rights are protected by the Charter, the statute is constitutionally invalid 
A)  Inter- provincial trade is an issue that provinces are entitled to decide for themselves. 
B)  The statute is entirely ultra vires because federal jurisdiction over international and inter- provincial trade extends to every issue that is related to trade, including the manufacture or production of soy milk. 
C)  The statute is at least partially intra vires because provinces have the authority to regulate the production or manufacture of things like soy milk. 
D)  The federal government has jurisdiction over international trade, but not over inter- provincial trade. 
E)  because property rights are protected by the Charter, the statute is constitutionally invalid

Question 19

Identify and briefly explain four areas of public law.

Accepted Answer

Public law is concerned with governments

Question 20

What is the residual power? What is meant by the phrase "ultra vires"? How are those two concepts related to the notion of federalism?

Accepted Answer

Canada is a federal country because it h

Exam 1: Risk Management and Sources of Law

As described in the text, the four forms of risk management are risk avoidance, risk elimination, risk transfer, and risk acceptance.

Attila works for Epsilon Inc. The police recently became aware of illegal activities in connection with that organization. Which of the following statements is TRUE?

Which of the following statements is TRUE with respect to exclusion clauses and risk management?

Betta Inc has discovered that one of its products is potentially dangerous. It therefore pulled that product from the store shelves before any were sold. It has employed a form of risk management known as

Subordinate legislation

The notwithstanding clause

"Administrative law" derives its name from the fact that it is concerned with the administration of the trial courts and appellate courts.

The category of public law contains

A bill to amend a business corporations statute was introduced in the House of Commons. The statute in question must be a piece of federal legislation, as opposed to provincial legislation.

The Charter includes (among other things) rights regarding

Lamda Inc recently decided to use "in- house counsel." What does that phrase mean? Explain the advantages and disadvantages of the company's decision.

An appellate court recently heard two cases. In the first, it decided that a statute was ultra vires. In the second, it decided that another statute violated the Charter. What is the significance, in each case, of section 52 of the Constitution?

Which of the following statements is TRUE?

Sabeka Inc has discovered that one of its products may cause consumers to suffer a certain form of property damage. In response to that risk, the company has written an exclusion clause into its sales contracts. In doing so, it has adopted a form of risk management known as risk shifting.

The three steps in risk management are

The category of private law contains

In an effort to protect its dairy industry, a provincial government passed a law that prohibits the importation or manufacture of soy milk. If a soy milk company challenges that statute on constitutional grounds, what would a court likely say?

Identify and briefly explain four areas of public law.

What is the residual power? What is meant by the phrase "ultra vires"? How are those two concepts related to the notion of federalism?

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Special Contracts: Negotiable Instruments

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Knowledge-Based Businesses and Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Doing Business in a Global Economy

Filters