Question 1

The category of public law contains

Accepted Answer

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

Question 2

A triple ionized defraculator (or "TID," as people in the industry call it) is a special type of equipment used in a small number of mining operations.The market for TIDs is very narrow.Queensway Inc, which is located in Calgary, is one of only three TID manufacturers in the world, and within Canada, only five mining companies purchase and use TIDs.Four years ago, the Province of Alberta imposed a 10% "green tax" on the sale of every TId.During that period, Queensway paid the province a total of $2 000 000.As the Province expected, however, Queensway passed the burden of the "green tax" onto its customers by simply adding 10% to the purchase price of each TId.Which of the following statements is most likely TRUE?

Accepted Answer

A) The doctrine of "federal paramountcy" will require the Province to pay part of the "green tax" over to the federal government. 
B) Because the division of powers gives the provinces jurisdiction over "mines and minerals," the tax is valid as long as Queensway did not sell a TID to a customer outside of Canada. 
C) Because of the principle that "the law operates on substance - not form," the tax is valid as long as all of Queensway's customers are located in Alberta. 
D) Even though the customers actually paid for the tax, Queensway will be entitled to recover the $2 000 000 from the Province if a court holds that the tax was unconstitutional. 
E) A court will hold that the "green tax" was not a true tax because the Province did not provide anything of value in exchange for it. 
A) The doctrine of "federal paramountcy" will require the Province to pay part of the "green tax" over to the federal government. 
B) Because the division of powers gives the provinces jurisdiction over "mines and minerals," the tax is valid as long as Queensway did not sell a TID to a customer outside of Canada. 
C) Because of the principle that "the law operates on substance - not form," the tax is valid as long as all of Queensway's customers are located in Alberta. 
D) Even though the customers actually paid for the tax, Queensway will be entitled to recover the $2 000 000 from the Province if a court holds that the tax was unconstitutional. 
E) A court will hold that the "green tax" was not a true tax because the Province did not provide anything of value in exchange for it.

Question 3

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) A "white collar crime" is the same thing as a "corporate crime." 
D) Attila may be charged with a crime, but Epsilon Inc cannot, because only a human being can be convicted of a criminal offence. 
E) Even if Attila and Epsilon Inc are convicted of crimes, they may also be sued privately if their actions also amounted to torts committed against other individuals. 
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) A "white collar crime" is the same thing as a "corporate crime." 
D) Attila may be charged with a crime, but Epsilon Inc cannot, because only a human being can be convicted of a criminal offence. 
E) Even if Attila and Epsilon Inc are convicted of crimes, they may also be sued privately if their actions also amounted to torts committed against other individuals.

Question 4

Because of the need to ensure that the fundamental rules for governing the country are kept up to date, the Constitution (unlike most statutes) is quite easily amended.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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) Because property rights are protected by the Charter, the statute is constitutionally invalid. 
B) Inter-provincial trade is an issue that provinces are entitled to decide for themselves. 
C) The federal government has jurisdiction over international trade but not over inter-provincial trade. 
D) 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. 
E) The statute is at least partially intra vires because provinces have the authority to regulate the production or manufacture of things like soy milk within the province, but the law may be constitutionally ultra vires because it interferes with the federal jurisdiction over inter-provincial trade, or mobility rights under the Charter. 
A) Because property rights are protected by the Charter, the statute is constitutionally invalid. 
B) Inter-provincial trade is an issue that provinces are entitled to decide for themselves. 
C) The federal government has jurisdiction over international trade but not over inter-provincial trade. 
D) 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. 
E) The statute is at least partially intra vires because provinces have the authority to regulate the production or manufacture of things like soy milk within the province, but the law may be constitutionally ultra vires because it interferes with the federal jurisdiction over inter-provincial trade, or mobility rights under the Charter.

Question 7

Statutes may be created at either the federal level or at the provincial (or territorial) level.In either event, the rules and procedures are much the same.There are, however, some differences in terms of the people, processes, and types of laws that are involved.Identify and briefly explain those differences.

Accepted Answer

The differences can be discussed under t

Question 8

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

Accepted Answer

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

Question 9

Civitas Inc sells widgets.The company recently complained in court that it was being prevented from using a particular type of advertisement.In some circumstances, such a restriction violates section 2(b) of the Charter.Ultimately, however, the court upheld the restriction and prevented Civitas Inc from advertising as it wished.Which of the following statements may explain that end result?

Accepted Answer

A) 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. 
B) The party was not entitled to freedom of expression because it is a company rather than a human being. 
C) The court held that the restriction was an "unreasonable limitation" on the freedom of expression. 
D) The restriction was saved under section 15(2) of the Charter. 
E) The restriction was imposed by a contract that Civitas Inc created with another private corporation. 
A) 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. 
B) The party was not entitled to freedom of expression because it is a company rather than a human being. 
C) The court held that the restriction was an "unreasonable limitation" on the freedom of expression. 
D) The restriction was saved under section 15(2) of the Charter. 
E) The restriction was imposed by a contract that Civitas Inc created with another private corporation.

Question 10

Which of the following statements is TRUE with respect to administrative law?

Accepted Answer

A) Administrative law is concerned with the behaviour of public officials and therefore is not particularly important to business people. 
B) Because of the Constitution, administrative law applies at the federal and provincial levels but not at the municipal level 
C) Administrative law affects the government but not private individuals or corporations. 
D) Administrative law is the law by which the decisions of government-appointed decision-makers and government-appointed tribunals are reviewed by the courts. 
E) Administrative law is usually classified as a branch of criminal law. 
A) Administrative law is concerned with the behaviour of public officials and therefore is not particularly important to business people. 
B) Because of the Constitution, administrative law applies at the federal and provincial levels but not at the municipal level 
C) Administrative law affects the government but not private individuals or corporations. 
D) Administrative law is the law by which the decisions of government-appointed decision-makers and government-appointed tribunals are reviewed by the courts. 
E) Administrative law is usually classified as a branch of criminal law.

Question 11

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

Accepted Answer

A) Incorporation is irrelevant to risk management because corporations cannot be held liable. 
B) Incorporation increases the risk of liability because a shareholder of a corporation is personally liable for all of the corporation's torts. 
C) Incorporation completely eliminates the risk of liability because the government is responsible for a corporation's debts. 
D) Incorporation reduces the risk of liability because the doctrine of limited liability usually means that a corporation's debts must be paid by the corporation and not by the people who run the corporation. 
E) Incorporation spreads the risk of liability because if one corporation becomes liable, every other corporation in the same province may be required to pay the debt. 
A) Incorporation is irrelevant to risk management because corporations cannot be held liable. 
B) Incorporation increases the risk of liability because a shareholder of a corporation is personally liable for all of the corporation's torts. 
C) Incorporation completely eliminates the risk of liability because the government is responsible for a corporation's debts. 
D) Incorporation reduces the risk of liability because the doctrine of limited liability usually means that a corporation's debts must be paid by the corporation and not by the people who run the corporation. 
E) Incorporation spreads the risk of liability because if one corporation becomes liable, every other corporation in the same province may be required to pay the debt.

Question 12

What are the main differences between a tort and a crime? Can the same event ever give rise to both a tort and a crime? Explain your answer.

Accepted Answer

A tort is an offence against a particula

Question 13

The law can affect a business both positively and negatively.It often prohibits actions that otherwise would be possible.However, it sometimes permits parties to do something that they could not otherwise do.

Accepted Answer

A) True 
 B)False

Question 14

Sigma Corp manufactures widgets.It has discovered a design defect that creates a risk that one or more widgets may cause property damage.Briefly explain how the company could manage that risk by shifting it.Identify a potential cost of shifting the risk.

Accepted Answer

Risk management often has both a front e

Question 15

Bastarache & Michel is a law firm in your province.Although it occasionally has clients from other jurisdictions, the vast majority of its work comes from within your province.Your legislature recently enacted a statute that imposes a 5% tax on the "sale of professional services, including … legal services." As that wording suggests, the statute treats Bastarache & Michel as the taxpayer, even if the firm adds the cost of the tax onto the fees that it charges to its clients.The new tax is probably intra vires and valid because most professionals provide services in only one province.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is TRUE with respect to indirect taxation?

Accepted Answer

A) The issue of indirect taxation arises in connection with municipalities. 
B) A province can impose an indirect tax because of the doctrine of "residual powers." 
C) An indirect tax is always ultra vires because of the constitutional principle that requires governments to act in an "open and straightforward manner." 
D) An indirect tax is a tax that was created by subordinate legislation. 
E) The federal government can impose an indirect tax, but a provincial government cannot do so. 
A) The issue of indirect taxation arises in connection with municipalities. 
B) A province can impose an indirect tax because of the doctrine of "residual powers." 
C) An indirect tax is always ultra vires because of the constitutional principle that requires governments to act in an "open and straightforward manner." 
D) An indirect tax is a tax that was created by subordinate legislation. 
E) The federal government can impose an indirect tax, but a provincial government cannot do so.

Question 17

Jahume Ltd operates as an Internet service provider.It has retained Alison to work as in-house counsel.Following an increasingly common trend, this means that she will work for the company from her own home, rather than from a traditional law firm office.

Accepted Answer

A) True 
 B)False

Question 18

Kane Media Inc wants to start a new radio station.The government has refused to grant a licence.Kane Media Inc believes that the government's position is blatantly discriminatory.Nevertheless, it cannot rely on the Charter of Rights and Freedoms, which was intended to protect the fundamental rights and freedoms of people, and which does not apply in favour of companies.

Accepted Answer

A) True 
 B)False

Question 19

A town called Malice has undertaken a risk management study in an effort to minimize its exposure to legal liability.Since it is a form of government, and therefore a public body, it wants to know if it ever needs to worry about private law.Provide an answer to that question.

Accepted Answer

Private law is concerned with the rules

Question 20

Glimmer Co recently received a tax assessment with which it disagrees.It does not believe that it should be required to pay the full amount of the demand.If it challenges the assessment, the case will fall into the category of "public law" even though the company is a private corporation.

Accepted Answer

A) True 
 B)False

Exam 1: Risk Management and Sources of Law

The category of public law contains

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?

Because of the need to ensure that the fundamental rules for governing the country are kept up to date, the Constitution (unlike most statutes) is quite easily amended.

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

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?

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

Which of the following statements is TRUE with respect to administrative law?

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

What are the main differences between a tort and a crime? Can the same event ever give rise to both a tort and a crime? Explain your answer.

The law can affect a business both positively and negatively.It often prohibits actions that otherwise would be possible.However, it sometimes permits parties to do something that they could not otherwise do.

Sigma Corp manufactures widgets.It has discovered a design defect that creates a risk that one or more widgets may cause property damage.Briefly explain how the company could manage that risk by shifting it.Identify a potential cost of shifting the risk.

Which of the following statements is TRUE with respect to indirect taxation?

Jahume Ltd operates as an Internet service provider.It has retained Alison to work as in-house counsel.Following an increasingly common trend, this means that she will work for the company from her own home, rather than from a traditional law firm office.

A town called Malice has undertaken a risk management study in an effort to minimize its exposure to legal liability.Since it is a form of government, and therefore a public body, it wants to know if it ever needs to worry about private law.Provide an answer to that question.

Glimmer Co recently received a tax assessment with which it disagrees.It does not believe that it should be required to pay the full amount of the demand.If it challenges the assessment, the case will fall into the category of "public law" even though the company is a private corporation.

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

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

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

Online: Special Contracts: Negotiable Instruments

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