Deck 2: Litigation and Alternative Dispute Resolution

Question 1

Geeta was one of several hundred people who received tainted blood from a hospital that carelessly collected and stored blood.Although each of the victims will be able to make essentially the same arguments against the hospital, a court will, as a general rule, not certify a class action unless each of the victims also intends to claim roughly the same amount of damages.

Answer 1

False

Question 2

Longhorn Inc has served a statement of claim on Trojan Ltd for breach of contract.Given the current trends in Canadian litigation, there is approximately a one in four chance that the case will eventually be resolved by a judge at a trial.

Answer 2

False

Question 3

A contractual dispute has arisen between Jyoti and Arlen.She believes that he owes her money, but he disagrees.The parties do, however, agree that it would be desirable to resolve the dispute as quickly and as amicably as possible.For that reason they should use litigation, rather than negotiation.Negotiation tends to take much longer, and is much more likely to generate hostility, because it requires the parties to discuss the matter between themselves, rather than through their lawyers.

Answer 3

False

Question 4

A puisne judge is a judge that hears trials rather than appeals.The word "puisne" is based on a Latin word meaning "small" or "less powerful."

Question 5

Screaming Eagle Inc, a company based in Los Angeles, wants to sue Canuck Manufacturing Inc in a court in Vancouver.While the American company may be entitled to sue in Canada, it must be represented by a litigation guardian.

Question 6

Citizens are protected from dishonest lawyers who steal money or breach conditions of trust for holding client's money, by the law society's assurance fund.That fund always consists of the professional liability insurance that each lawyer is required to hold while practising.

Question 7

Morley suffered a minor injury as a result of using a toothbrush manufactured by DentPlus Inc.The evidence indicates that the type of toothbrush in question suffers from a design defect and therefore is likely to have injured every person who used it.In the circumstances, Morley wants to bring a class action against DentPlus.Class action proceedings are, however, available only if certain requirements are met.Morley must, among other matters, satisfy the court that he has developed a workable plan for notifying all of the other members of the plaintiff class of the class action.

Question 8

The doctrine of precedent

A)prevents a judge from resolving a dispute on the basis of a decision from another jurisdiction.
B)requires the Supreme Court of Canada to follow decisions of the Judicial Committee of the Privy Council in England.
C)is never relevant if the resolution of a case involves the interpretation of a statute.
D)draws a distinction between binding authorities and persuasive authorities. A judge is bound to follow a binding authority, even if the judge disagrees with the reasoning or conclusion of that authority.
E)prevents the Supreme Court of Canada from relying on a decision of a lower court.

Question 9

The Crown can be sued only if a statute allows an action to be brought against the Crown.

Question 10

Katrina has sued Bensam Inc, her former employer, for unfairly firing her from her job.The company denies that it has done anything wrong.The parties have exchanged pleadings and are now preparing to participate in a pre-trial case planning conference.The trial is less than one month away.This means that they will necessarily meet with a mediator, rather than a judge, at the pre-trial case planning conference for the purpose of discussing their case and possibly reaching a settlement.

Question 11

Wolodko Engineering Inc sued Dhaliwal Ltd for the tort of negligence.At one point during the litigation process, an examination-in-chief occurred.This means that

A)one of the parties asked the other party's witness a question during an examination for discovery.
B)the other side asked the opponent's witness questions under oath.
C)one of the parties hired an expert witness to conduct a scientific investigation on a piece of physical evidence.
D)the examination in chief occurred while the case was on Appeal.
E)questions were answered under oath at a trial by one party of its own witnesses.

Question 12

Kathy has sued her employer in a superior court.Although Kathy is the first person in her province to make such a claim, similar cases have occurred elsewhere.In Boe v Demarco, the Federal Court of Appeal dealt with the same issue, but held that the law applied in favour of the employer.Under the doctrine of precedent, the judge hearing Kathy's claim will have to apply the same rule.

Question 13

Makayla was recently served with a statement of claim that alleges that she committed a breach of contract.Makayla simply denies that allegation.She will likely present her arguments against the allegation by using a document called a counterclaim.

Question 14

Demartini Inc sued Bentley Regehr for breach of contract.Demartini argued that it was entitled to receive a payment of $50 000 from Regehr.After failing to reach a settlement, the parties took their case to court.Which of the following statements is TRUE?

A)If Regehr offered to settle the claim out of court for $30 000, and if the judge eventually decides that Demartini is entitled to receive $35 000, the judge may award an unusually large amount of costs against Regehr in order to punish him for making an inadequate settlement offer.
B)While the courts generally refuse to receive hearsay evidence, the judge in this case will probably allow expert witnesses to provide such evidence.
C)If the court finds Regehr liable for $50 000, Demartini may try to obtain payment from Regehr by garnisheeing money that Regehr is entitled to receive from his employer.
D)There are no jurisdictions in Canada where a claim for $50 000 or less can be heard in a small claims court.
E)The parties' case will almost certainly be heard by a judge of the provincial court, as the issues in this claim can only be adjudicated in the small claims court division of the provincial court of whichever province has the closest connection to the parties and their agreement.

Question 15

Scalia Inc sued Ginsberg Ltd.in tort.Scalia claimed that it was entitled to receive $15 000 in compensation.Ginsberg denied liability, but in an attempt to resolve the issue quickly and quietly, formally offered to settle the claim for $9000.Scalia rejected the offer and took the case to trial in the federal court.The trial judge has now decided the case in favour of Scalia, but damages were limited to $8000.In the circumstances, the trial judge must award party-and-party costs against Ginsberg for the period up to the day when the settlement offer was made, and double party-and-party costs against Ginsburg for the period between that day and the end of the trial.

Question 16

A court recently held Acme Corp responsible for spilling pollutants into a stream.Which of the following statements is most likely TRUE?

A)If the court required proof beyond a reasonable doubt, the claim against Acme Corp arose in private law.
B)If the court required proof beyond a reasonable doubt, Acme Corp was called the accused and was prosecuted by the state in criminal or criminal like proceedings.
C)Since Acme Corp is not a human being, the case was heard in a special court called the Commercial Court of Canada.
D)If Acme Corp is dissatisfied with that decision, it is entitled to appeal, but only if it is willing to pay for the other side to bring its witnesses back into court.
E)If the claim against Acme Corp arose in private law, it almost certainly was heard by a jury, as well as a judge.

Question 17

Kabesa Inc sued Mahuja Ltd.The court held completely in favour of the defendant and the claim of Kahesa was dismissed in its entirety.The court probably also ordered Kabesa Inc to pay Mahuja Ltd's costs.

Question 18

Although trade unions are unincorporated associations, and therefore are not legal persons, they generally can sue or be sued because of a statutory change made to the common law.

Question 19

A person generally is not entitled to act as a lawyer in Canada unless they have completed a "period of articles." That phrase refers to the fact that admission to the bar depends upon proof that a person went to law school for a certain length of time.

Question 20

Hughes Inc hired Liz to act as the chief architect for a major shopping development.After about a year, however, the parties' relationship began to deteriorate and the situation quickly became intolerable and irreparable.Each side blamed the other.Hughes Inc sued Liz for breach of contract.Liz defended that claim and started a counterclaim in which she alleged that Hughes Inc had broken their agreement.The dispute was eventually resolved through arbitration.Which of the following statements is TRUE?

A)The parties probably used arbitration, rather than litigation, because a judge decided that the issues were too complicated to be understood by jurors.
B)Even if both parties are based in Manitoba, even if the contract was signed in Manitoba, and even if the shopping development was intended to be located in Manitoba, the arbitration could have taken place in a different province, as parties who arbitrate disputes are, subject to the contractual terms, free to choose the rules and jurisdiction of the arbitration.
C)Although the arbitration would not have taken place in a court, it was probably conducted by a judge.
D)Assuming that the parties served a complete set of pleadings on each other, Hughes Inc.would have used a document called a reply in order to respond to Liz's counterclaim.
E)Some provinces require the parties in commercial disputes to participate in a mandatory arbitration program, as opposed to a mandatory mediation program, before taking a case to trial.

Question 21

Which of the following statements is TRUE with respect to representation in legal disputes?

A)Litigants are entitled to represent themselves in trials but not in appeals.
B)If a lawyer has acted improperly but has no money to pay, the client may receive compensation from a law society fund.
C)In-house counsel refers only to a situation in which a law firm that has been sued is represented by one of its own lawyers.
D)The Law Society of Canada has the responsibility of regulating lawyers across the country.
E)Communications between a paralegal and a client are always confidential and privileged.

Question 22

Rawls Inc recently sued Nozick Ltd.As Nozick has pointed out, however, Rawls' statement of claim was not filed within the limitation period.Which of the following statements is TRUE?

A)The length of the limitation period depends upon the nature of Rawls's claim.
B)If Nozick committed a tort, the limitation period must have started on the day that Nozick acted wrongfully.
C)If Rawls's claim was for breach of contract, the limitation period was probably 10 years.
D)The primary purpose of limitation periods is to save society money by reducing the number of cases that need to be heard by courts.
E)There would not be a limitation period if Rawls sued the government.

Question 23

Hobbes has sued Kant for breach of contract.The facts and issues are very complicated.Which of the following statements is TRUE?

A)A pretrial conference will require the parties to explain their arguments to a mediator, who has the power to decide the case in favour of the defendant if the plaintiff's evidence is very weak.
B)Although it would be quicker and less expensive to have the case decided by arbitration, arbitrators usually have less expertise than judges.
C)If Hobbes wins the case at trial, but is awarded less than Kant offered in a formal settlement, the court will probably award costs against Hobbes on a solicitor-and-client basis.
D)Because they occur outside of court, examinations for discovery are entirely voluntary and neither party could be compelled to answer the other's questions
E)Hobbes must prove the facts necessary to establish his cause of action to the standard of a balance of probabilities.

Question 24

Which of the following statements is TRUE?

A)A lawsuit may be brought against human beings, corporations, and any unincorporated associations.
B)A young child who is sued will be represented by an adult who acts in parens patriae.
C)In order to sue in Canadian courts, a person must either be a Canadian citizen or be represented by a lawyer who is a Canadian citizen.
D)Trade unions sometimes can sue or be sued even though they are unincorporated associations.
E)Foreign corporations, like Canadian corporations, have an absolute right to sue in Canadian courts.

Question 25

The front window of Polly's Flower Shop was recently broken when someone threw a rock through it.Which of the following statements is TRUE?

A)If the person who threw the rock is 13 years old, there will not be a lawsuit because children under the age of majority cannot be sued.
B)If the person who threw the rock is insane, Polly's Flowers will not be able to sue unless it receives permission from the Public Trustee.
C)If the person who threw the rock is a European who is visiting Canada for less than a year, the case will have to be heard in the International Court of Justice.
D)Because a lawsuit can be brought only by a human, the plaintiff named in the statement of claim cannot be the corporation that owns Polly's Flower Shop.
E)The person who threw the rock may be sued even if that person worked for the government and threw the rock while that person was on duty as a government employee.

Question 26

Which of the following statements is TRUE?

A)ADR stands for "additional decision resolution."
B)Mediation is normally binding, unless the parties agree otherwise.
C)The process of negotiation tends to correct any imbalance in bargaining power, and therefore is usually preferred if one party is a consumer and the other is a large corporation.
D)Even if the parties submit their dispute to binding arbitration, a court may become involved in the enforcement of the arbitrator's decision.
E)ADR is usually used in criminal law, particularly mediation by the police.

Question 27

At the end of a case, a court awarded costs against Craig.Which of the following statements is TRUE?

A)Craig probably won a private law case.
B)Craig probably was convicted of a serious crime.
C)Craig necessarily must reimburse the other party for all of the expenses that it incurred in connection with the case.
D)The court almost certainly awarded costs against the other party as well.
E)Craig must pay money to the other side in compensation in whole or in part for legal fees and disbursements of the other side-even if he won his case.

Question 28

Which of the following statements is TRUE?

A)The phrase "court hierarchy" refers to the fact that the courts must obey the words of a valid statute.
B)Arbitration is usually binding but it depends on the arbitration agreement of the parties and on the powers of the courts to review arbitration decisions.
C)The judges of the superior court in each province are appointed by that province's government.
D)The phrase "rule of law" refers to the fact that a law must contain a rule that either prohibits someone from doing something or allows someone to do something.
E)The phrase "court hierarchy" refers to the fact that the Supreme Court of Canada contains one chief justice and eight puisine justices.

Question 29

A trial judge in Manitoba has heard a case dealing with a particular issue.Which of the following statements is TRUE according to the doctrine of precedent?

A)If there are no binding precedents, the judge may consider cases from anywhere in the world, and decide the case based on the extension or modification of established principles of law, thus creating a new precedent.
B)If there are no precedents, the judge is not entitled to decide the case, and therefore must refer the matter to the legislature because of the doctrine of parliamentary supremacy.
C)If there are conflicting precedents from the Court of Appeal of Ontario and the Court of Appeal of Saskatchewan, the judge must follow the former, because it comes from a jurisdiction with a larger population.
D)If there are conflicting precedents from the Court of Appeal of Ontario and a trial court in the Bahamas, the judge must follow the former because it is Canadian.
E)If there are no other precedents, the judge is required to follow a decision of the Alberta Court of Appeal.

Question 30

Jinyan has been involved in a law suit for several years.She recently sought "leave" from the Supreme Court of Canada.This means that

A)she wants the Supreme Court of Canada to grant her leave to hear her appeal at the Supreme Court of Canada.
B)she wants the court to release her from jail.
C)she wants the Supreme Court of Canada to hear a trial of her case with live witnesses.
D)she wants the Supreme Court of Canada to appoint a new lawyer to work for her.
E)she wants the Supreme Court of Canada to come to her province where she lives and to have a full new trial in front of the Supreme Court of Canada in her home province.

Question 31

Which of the following statements is TRUE with respect to pleadings?
A.The party that creates a counterclaim is usually also the same party that creates the statement of claim.
B.Each pleading must be filed with the opposing party and served on the court.
C.A demand for particulars is always created by a plaintiff.
D.The party that files and serves a reply is usually the same party that files and served the statement of claim.
E.The purpose of a counterclaim is to counter, or contradict, a statement of claim by alleging facts that have the effect of denying liability.

Question 32

Fuller Inc.has sued Perdue Corp.Which of the following statements is TRUE?

A)If Perdue counterclaims, Fuller will use a reply in order to deny Perdue's allegations.
B)All of the parties' pleadings must be stamped and filed at the registry of the court.
C)The judge may draft a demand for particulars in order to receive more information regarding Fuller Inc.'s claim.
D)If the case goes to court, it will likely be heard by a jury.
E)A counterclaim usually is used if the plaintiff wants to change the details in a statement of claim.

Question 33

Class actions have become more common in Canada in recent years.This increase in popularity can be explained, at least in part, by the fact that

A)lawyers are able to aggregate many small claims of similar factual circumstances and undertake the aggregated class claims on an economical contingency fee basis as the single claims, because they are so small would be uneconomic to litigate separately on a contingency fee basis.
B)the rules governing class actions are now contained in statutes in every province.
C)lawyers conducting class actions must work on a contingency fee basis, with the result that their clients are liable for their expenses only if the case is won.
D)the Supreme Court of Canada recently said that, in contrast to the past, class actions can now be certified even if success for one claimant does not necessarily mean that all of the other claimants will also enjoy success.
E)liability in a class action can never be appealed.

Question 34

Kirndeep recently received a bachelor of business administration.She has, however, always dreamed of representing people with legal problems.She has come to you for advice and guidance regarding the various possibilities.Which of the following statements is TRUE?

A)Lawyers always make more money than paralegals.
B)Paralegals are permitted to help clients draft legal documents, but they are never entitled to appear in courts or tribunals.
C)Paralegals are allowed to represent clients in small claims courts in some jurisdictions in Canada.
D)Paralegals are more heavily regulated than lawyers.
E)Before starting a private practice, a paralegal is required to complete a period of articles with a law firm.

Question 35

Examinations for discovery

A)take place before the plaintiff drafts a statement of claim.
B)take place after a jury has decided a case.
C)are designed primarily to determine the defendant's financial situation, and therefore to help the plaintiff decide whether or not it makes sense to sue.
D)encourage settlement by allowing each party to gather information regarding the strengths and weaknesses of its side of the dispute.
E)usually discourage settlement by demonstrating the weaknesses of each party's arguments.

Question 36

Herbert & Hart Inc, an accounting firm, was legally represented in a recent dispute by Alan Munt, who is a lawyer.Herbert & Hart have now learned that Munt professionally misconducted himself by passing confidential information to the other side in the dispute.Herbert & Hart consequently lost approximately $12 million.Which of the following statements is TRUE?

A)Munt probably does not have liability insurance that will help to pay for his liabilities.
B)Munt may be investigated by the law society only if he is an articling student.
C)Munt may be sued, but his behaviour cannot be investigated by the law society.
D)Herbert & Hart very likely violated the law society's code of conduct.
E)If Herbert & Hart sue Munt they will likely recover their loss if Munt has sufficient insurance coverage, or personal assets in excess of his insurance coverage sufficient to pay for the loss.

Question 37

Justice Major dissented in the case of Dobson v Dobson.This means that

A)he was hearing the case as a trial judge and rejected the plaintiff's claim.
B)he disagreed with the result reached by the majority of his colleagues in an appeal that a panel of Justices of the Supreme Court of Canada heard.
C)he held that a statute was invalid because it violated the Charter.
D)he rejected a party's application for leave to appeal an earlier decision.
E)he was unable to decide the case because he had some personal connection to it so he recused himself from the panel that heard the case.

Question 38

Geetha has been diagnosed with skin cancer.Based on her physician's diagnosis, she believes that her condition was caused by SofSkin, a lotion that she used for many years.She wants to sue the manufacturer of SofSkin, but she realizes that a lawsuit would require a great deal of complicated evidence, and therefore would likely be long and expensive.Which of the following statements regarding class actions is TRUE in this situation?

A)Even if a court allowed a class action to proceed, it would be possible for other people in the same situation as Geetha to sue by themselves.
B)By participating in a class action, Geetha almost certainly would be able to avoid any expense if the claim failed.
C)A court would not allow a class action to proceed unless Geetha was joined by a substantial number of other people with virtually identical claims against the manufacturer of SofSkin.
D)Regardless of which province or territory the class action occurred in, it would be governed by statute.
E)A class action is possible only if Geetha's lawyer works for a contingency fee.

Question 39

A company that manufactures cigarettes has been named as the defendant in a class action.Which of the following statements is TRUE?

A)The fact that the defendant has been sued in a class action necessarily means that other companies have also been sued in the same action.
B)The company will likely place notifications in newspapers in an attempt to avoid certification.
C)The company will probably have to pay costs on a party-and-party or partial indemnity basis if it loses the case.
D)Because they have sued by way of a class action, the plaintiffs necessarily have hired lawyers on a contingency basis
E)As long as a class action is the plaintiff's preferred procedure, the court will grant certification, even if the judge believes that some other procedure would be better.

Question 40

The requirements for certification in a class action include
A.proof that the class action will be substantially less convenient than individual proceedings.
B.proof that all of the claimants are being represented by the same law firm.
C.a clearly defined class and most substantive issues are common to every claimant in that class.
D.a payment of bond money to the court, to be used to pay for the defendant's costs if the claim is unsuccessful.
E.proof that every potential member of the class has been personally notified of the proceedings.

Question 41

Which of the following statements regarding the right to sue and representation in court is TRUE?
A.Because they are legally incapable of providing consent, children and people with mental disabilities cannot be members of class actions.
B.Even though unincorporated associations are not classified as legal persons and therefore generally cannot sue or be sued, an exception exists for trade unions even though they are unincorporated associations.
C.A lawyer who acts for the plaintiffs in a class action must work on a contingency fee basis.
D.For public policy reasons, a person who wants to sue the government cannot hire a lawyer on a contingency fee basis.
E.Paralegals are always entitled to appear in a provincial court but not in a superior court.

Question 42

Which of the following statements is TRUE?

A)It is sometimes possible for the Federal Court of Appeal to hear an appeal from a decision of the Court of Appeal in your province.
B)Every court other than a provincial court is classified as a superior court.
C)Most small claims courts are part of the Federal Court system
D)Justices of the Supreme Court of Canada are required to leave the court at age 75.
E)A small claims court action always occurs in the jurisdiction where the plaintiff resides.

Question 43

Marisa successfully sued Ivan, a stockbroker who works for Blue Sky Investments, for breach of contract.The court held that Ivan's breach caused Marisa to suffer a financial loss of $50 000.The court also held that Ivan is personally liable to pay that amount to Marisa.Which of the following statements is TRUE?

A)Because Ivan acted wrongfully, the damages are properly classified as punitive damages.
B)An award of damages for breach of contract is the same as an order for specific performance.
C)Once judgment has been decided in her favour, Marisa became a judgment debtor.
D)If necessary, Marisa is entitled to have all of Ivan's assets seized and sold in order to pay for the judgment.
E)Marisa may garnish the non-exempt portion of Ivan's income if he does not otherwise pay his debt.

Question 44

Tom Servo sued Crow Robot Inc.The circumstances surrounding the company's allegedly wrongful act are highly unusual.Which of the following statements is TRUE?

A)Tom was entitled to commence the claim in the Federal Court as long as he is employed by the federal government.
B)If Tom sued in Alberta, then the judge will have to apply a decision of the Supreme Court of Canada even if the case that the Supreme Court of Canada decided was commenced in some other province.
C)If Tom sued in one of the northern territories, as opposed to a province, the judge is bound by a decision of the Federal Court.
D)If Tom's case is heard by the Supreme Court of Canada, the judges must apply an earlier decision by the same court that dealt with the same issue.
E)Because Tom's case occurs in civil law, rather than criminal law, decisions of the Federal Court are necessarily irrelevant.

Question 45

Which of the following statements is TRUE with respect to alternative dispute resolution?
A.Arbitration is often preferred to mediation when the parties want to receive a binding decision from a third party.
B.Arbitration cannot be used unless the parties previously created a contract that required all disputes to be resolved solely by arbitration.
C.Negotiation is often considered a binding process when used by large corporations.
D.Because they work outside of the regular court system, small claims courts are considered a form of binding arbitration.
E.While negotiation and mediation are confidential procedures, arbitration is not confidential because arbitrators' decisions are always reported in public documents.

Question 46

Rejean is a world class athlete, who was recently suspended by the Canadian Athletics Association.If that suspension remains in place, Rejean will not be allowed to compete in the upcoming world championships.Rejean therefore hopes to quickly and conclusively have the suspension overturned.The contract that Rejean had signed with the Canadian Athletics Association gives him the right to choose any form of dispute resolution.Which of the following alternatives is likely his best option?

A)litigation
B)mediation
C)negotiation
D)arbitration
E)small claims court

Question 47

Rachel has sued Nicholas in the superior court of same province where you live.Although the trial judge denied liability, Rachel has appealed.The appellate court

A)is bound by a decision of the Federal Court of Appeal.
B)may deliver a decision that can be appealed to the Federal Court of Appeal.
C)may refuse to follow one of its own earlier decisions.
D)must follow decisions that the House of Lords reached before 1966.
E)must not apply the decision of a non-Canadian court if it conflicts with the decision of an appellate court in Canada.

Question 48

Within the context of administrative law, which of the following statements is TRUE?
A.An administrative tribunal is said to be quasi-judicial when it makes decisions that affect people's lives.
B.Because of the division of powers, there is always a right to appeal a decision of an administrative tribunal.
C.Judicial review is one of the most popular forms of alternative dispute resolution.
D.Judicial review refers to the process that the federal government uses to ensure that the provinces do not create invalid legislation.
E.Under the Constitution, administrative tribunals must be created by the federal government.

Question 49

Which of the following statements regarding the Supreme Court of Canada is TRUE?

A)The court consists of the chief justice and eight filial justices.
B)Each member of the court was appointed by the premier of the judge's home province.
C)In addition to appeals, the court occasionally hears references for the purpose of providing advisory opinions to the governments on the constitutionality of laws.
D)Unless a member voluntarily retires, they are entitled to hold office for life as long as they are on good behaviour.
E)No court is ever required to hear an appeal unless it has granted leave.

Question 50

Josie lost a breach of contract case against Charles.She has now launched an appeal of the trial judge's decision.Which of the following statements is TRUE with respect to that appeal?

A)Although the appellate court is always entitled to apply its own view of the law, the trial judge's finding of facts can be overruled only if the members of the appellate court are unanimously agreed that the trial judge made a mistake.
B)The appellate court may accept or reject the trial judge's decision, but it cannot vary the terms of the trial judge's final order.
C)If Josie loses her first appeal, she has a right to appeal to the Supreme Court of Canada as long as her claim is worth at least $100 000.
D)Josie's first appeal will likely be heard by three judges of the appellate court.
E)Although an appellate court is entitled to award damages, it cannot order specific performance of a contract.

Question 51

Retailers Inc.hired Clean Air Services (CAS) to develop and install an air conditioning system in a large office complex.The system that CAS installed turned out to be grossly inadequate, largely because, contrary to the terms of its contract, it used inferior materials.It did so in order to save money and increase its profits.A court has found CAS liable for breach of contract.In terms of a remedy, the judge

A)will probably impose a conditional sentence, unless CAS's breach caused someone to suffer an injury, in which case the judge would probably prefer imprisonment.
B)will classify Retailers Inc as a judgment debtor.
C)may hold CAS liable for a payment of money, in which case Retailers Inc may have some of CAS's assets seized and sold under the garnishee process.
D)cannot hold CAS liable for damages unless Retailers Inc has demonstrated that CAS has sufficient assets to satisfy judgment.
E)may award nominal damages if the defendant's breach of contract did not actually cause any loss to the plaintiff.

Question 52

Which of the following statements is TRUE with respect to small claims courts?

A)Although small claims courts often hear contractual cases, they may also resolve some types of personal injury claims.
B)Assuming that the amount in dispute is under $10 000, a taxpayer has the right to recover an improperly collected tax in the federal small claims court.
C)A small claims court may hear any type of claim, and has jurisdiction to grant all the same remedies, including injunctions, as could be granted by a superior court of common law and equity.
D)If a claim exceeds the monetary limit of a small claims court, the plaintiff is entitled to use the small claims court for part of the claim and another court for the remainder of the claim.
E)Because small claims courts often hear contractual disputes, they have the ability to order specific performance.

Question 53

Which of the following statements is TRUE with respect to small claims courts?

A)Small claims courts are a type of superior court with the inherent jurisdiction of the common law courts and the courts of equity.
B)In order to minimize costs and delays, small claims court judgments cannot be appealed.
C)Cases heard in small claims courts are decided by magistrates, rather than judges.
D)Small claims courts can award damages, but equitable relief.
E)A plaintiff has the right to have a claim heard in the small claims court that is closest to their home.

Question 54

A number of commentators have referred to litigation as a "lottery." By using that word, they are suggesting that

A)jurors are selected in a random manner.
B)because the results are often unpredictable, litigation is always risky, even if the plaintiffs believe that they have a strong case.
C)there are far more losers than there are winners.
D)the government heavily regulates trials in the same way that it heavily regulates lotteries.
E)many cases involve the enforcement of gambling debts.

Question 55

Sarah acted very badly toward Max.Although Max suffered a small loss as a result of the event, he primarily wants Sarah to apologize to him.Which of the following statements is TRUE?

A)In addition to awarding monetary damages, a court that hears a claim in tort or breach of contract can order the defendant to apologize to the plaintiff.
B)Most provinces have created legislation that would encourage Sarah to apologize to Max without fear of admitting liability.
C)A court will have the power to order Sarah to apologize if Max testifies in a criminal case rather than a civil case.
D)A court will order Sarah to apologize only if Max proves that he suffered a compensable loss as a result of her wrongful act.
E)Because witnesses testify at trial but not on appeal, trial judges can order apologies, but appellate courts cannot.

Question 56

Kirndeep Khan wants to sue her employer for sexual harassment.She has therefore hired Rory McAngus to represent her.Which of the following statements is TRUE?

A)If the limitation period has lapsed, Kirndeep will be unable to obtain judgment against her employer even if she satisfies the judge that she has all of the relevant documents and that all of the witnesses still have clear memories of the events.
B)If Rory is a lawyer, then Kirndeep's conversations with him will be privileged, meaning that Rory cannot reveal what Kirndeep said to him unless a judge orders him to do so.
C)Rory is probably the employer's in-house counsel.
D)If Kirndeep hired Rory on a contingency fee basis, and if she wins her case, then the judge will increase the measure of damages to ensure that Kirndeep receives full compensation even after Rory has received payment of his fee.
E)Whether he is a lawyer or a paralegal, Rory cannot act for Kirndeep unless he has completed a period of articles.

Question 57

Which of the following statements is TRUE with respect to remedies?
A.Nominal damages are defined as damages that are awarded against a named defendant, rather than against a corporation.
B.Punitive damages are available only in criminal proceedings.
C.Even if a judgment debtor is bankrupt, the successful plaintiff may be able to fully satisfy judgment if the court finds that the debtor holds an asset in trust for the plaintiff.
D.Each law society has an assurance fund in order to provide a source of compensation for claimants who are unable to fully enforce their judgments against bankrupt judgment debtors.
E.Nominal damages are awarded if a case involves several plaintiffs and the court must decide, or nominate, which plaintiff is entitled to enforce a remedy.

Question 58

Kaelen works as a sales representative for a large book publisher.She was recently held liable in tort and ordered to pay $35 000 to Antony.Which of the following statements is TRUE?

A)If Kaelen wants to appeal the trial judge's decision, she normally must do so within one year of that decision.
B)The garnishee process will allow Antony to seize and sell some of Kaelen's assets in order to satisfy judgment.
C)Antony may be able to directly receive some of the money that Kaelen normally would receive as income from her employer, by garnisheeing Kaelen's wages.
D)The court's award can be classified as nominal damages because Antony is entitled to receive damages of a certain denomination in money.
E)If Kaelen does not have enough money to fully pay her debt to Antony, Antony will be entitled to collect the remainder either from Kaelen's lawyer or, if Kaelen's lawyer does not have sufficient funds, from the law society's assurance fund.

Question 59

Justice Veritas is hearing a case in court.Which of the following statements is TRUE?

A)If the case involves a civil matter, rather than a criminal matter, the only party entitled to conduct a cross-examination is the plaintiff.
B)If the case involves a criminal matter, rather than a civil matter, the prosecutor must prove the elements of the offence on a balance of possibilities.
C)Justice Veritas will allow an expert witness, but not an ordinary witness, to present hearsay evidence.
D)If the case involves a minor crime, Justice Veritas will require proof on a balance of probabilities.
E)The rules regarding hearsay evidence apply to statements that someone said to a witness, but not to documents that the witness personally read.

Question 60

Arvid Dunston was severely injured when a large rock tumbled off a steep cliff and crashed through his windshield as he drove.Arvid sued the company that manufactured his vehicle on the basis that it had tortiously failed to use a type of glass that might have prevented the rock from entering the vehicle.He also sued the provincial government on the basis that the government had tortiously failed to inspect the area for rocks that might fall onto the road and hurt motorists.Which of the following statements is TRUE?

A)While the common law traditionally said that "the King can do no wrong," the relevant rules have been changed so that exactly the same rules will govern both of Arvid's claims.
B)The limitation periods that are applicable to the two claims will almost certainly be the same.
C)Arvid's two claims cannot be heard together because all claims against the government must be heard in a special type of court that is not available for disputes between two private parties.
D)In order to sue both the company and the government at the same time, Arvid will be required to satisfy the rules governing class actions.
E)Even though one of the defendants is a private company and the other is a government, both claims against each defendant will require Arvid to prove his allegations on a balance of probabilities.

Question 61

In a case filed in a superior court, Alpha Inc sued Beta Ltd for breach of contract.Alpha claimed damages of $250 000.Although Beta denied liability, it formally offered to settle the claim for $100 000.Alpha rejected that offer, but in response, it formally offered to settle its claim for $200 000.Beta rejected that offer.The case has now gone to trial.Explain what order the judge will likely make with respect to costs if (a) Beta is liable for $150 000, or (b) Beta is liable for $50 000?

Question 62

There is no guarantee that things will go well merely because you hire a lawyer.There are, however, certain conditions that are required of lawyers, which provide some assurance that (a) a lawyer is competent, (b) a lawyer will act ethically, and (c) compensation will be available if you suffer a loss as a result of a lawyer's careless or wrongful behaviour.Identify and briefly describe the relevant conditions for each of those three propositions.

Question 63

Describe the relationship between the concept of hierarchy and the doctrine of precedent.How are those concepts related to the rule of law?

Question 64

Briefly explain the difference between (a) examinations-in-chief and cross-examinations, (b) direct evidence and hearsay evidence, (c) ordinary witnesses and expert witnesses, and (d) proof on balance of probabilities and proof beyond a reasonable doubt.

Question 65

Chad purchased an economics textbook online from Shady Press Inc for $40.While the information contained in the book appears to be correct and current, the book itself began to fall apart almost immediately.After he complained about the situation in an electronic chat room that had been set up by his course instructor, Chad discovered that a large number of other students had suffered through the same experience.Chad then emailed Shady Press to register his complaint and to ask for a rebate on at least part of the price.The company responded by saying that, as a matter of policy, it would not provide any sort of financial relief unless ordered to do so by a court.Although he is now even more annoyed at Shady Press than before, he assumes that he is, practically speaking, powerless to do anything.He has heard that litigation is expensive and he is unwilling to spend a lot of money in the hope of getting a refund on a book that cost only $40.Assuming that the company will not pay unless compelled by a judge to do so, what advice can you offer to Chad? Suggest, and briefly describe, several strategies that might overcome Chad's concerns about costs.(You need not go into great detail on each strategy.)

Question 66

Omicron Inc is one of several companies that manufactures widgets.For many years, almost half of its annual sales have been made to Sigma Ltd.Despite those sales, its financial position has always been somewhat precarious.A dispute recently arose with respect to financial losses that Sigma claims to have suffered as a result of a defective widget.Omicron strongly denies that it is responsible for those losses.Sigma, however, has announced that it will not purchase any more items until the matter is resolved.Omicron has asked for your advice.Analyze the situation from a risk management perspective by outlining the advantages and disadvantages associated with the various ways in which the case might be resolved.

Question 67

Panaural Inc is a long-established entertainment company.Among other things, it manufactures and sells music CDs.One of its best-selling artists is a group called Funky See Funky Do.Under the contract that exists between Panaural and Funky See Funky Do, copyright in all of the group's songs is held by the company.Panaural was therefore especially upset when it discovered that Noize Records, a small music company, has been manufacturing and selling CDs containing music by Funky See Funky Do.Panaural intends to sue Noize Records in to obtain (a) an injunction to stop Noize Record's illegal sales, and (b) $75 000 in compensation for the losses that it has suffered as a result of Noize Record's breach of copyright.In an effort to keep costs down, however, Panaural wants to bring its case in a small claims court.Is it entitled to do so? Provide several reasons for your answer.

Question 68

In the context of the ability to sue or be sued, what is the meaning and effect of the doctrine that "the King can do no wrong"?

Question 69

Until recently, Enya did all of her banking at the Bank of the Prairies (BOP).She transferred her business to a different bank when she discovered that BOP had been systematically overcharging for a number of services.Enya was, for instance, charged excessive amounts every time that she wrote a cheque or withdrew money at an ATM.She knows that friends and relatives were similarly overcharged when, for example, they paid bills by telephone or received payment by way of direct deposit.Enya suspects that she personally was overcharged about $750.While that represents a substantial amount for her, she also realizes that litigation against BOP might involve a great deal of time and expense.She consequently wonders if her case might be a suitable candidate for a class action.She would like to participate in a class action alongside all (or many) of the other people who have been overcharged by BOP.What requirements must be satisfied before a court will grant certification to a class action?

Question 70

Briefly explain the rules that determine the circumstances under which the following types of parties can sue or be sued: (i) children, (ii) adults suffering from a mental incapacity, (iii) corporations, and (iv) unincorporated associations.

Question 71

Your company has purchased a wide variety of supplies from Acme Inc over the course of many years.Much to your surprise, Acme has just served a statement of claim on your company.You are puzzled and annoyed.First, you are puzzled because while the statement of claim clearly alleges that you owe Acme $15 000, the precise basis for that allegation is unclear.Given the amount of business that your company does with Acme, that claim might be made in reference to any one of literally dozens of recent transactions.You are quite sure, however, that you have not done anything wrong under any of those transactions.Second, you are annoyed because, in the interests of goodwill, your company has often accepted from Acme goods that were defective.In the past, you said nothing to Acme about those problems because you did not want to create bad feelings.But now that Acme has sued your company, you are feeling far less lenient.You are, in particular, dissatisfied with a shipment of shelving units that you received from Acme last week.Those shelves stand only 1.8 metres high, even though Acme promised in the contract of purchase and sale that the shelves would stand 2 metres high.In the circumstances, you have decided that you should sue Acme for breach of contract.Identify and briefly explain the pleadings that you will need to serve on Acme Inc.in the near future.

Question 72

List and briefly describe the options that are available in terms of legal representation.

Question 73

In a case filed in the federal court, Gamma Inc sued Delta Ltd for breach of contract.Gamma claimed damages of $500 000.Although Delta denied liability, it formally offered to settle the claim for $200 000.Gamma rejected that offer, but in response, it formally offered to settle its claim for $400 000.Delta rejected that offer.The case has now gone to trial.Explain what order the judge will likely make with respect to costs if (a) Delta is held liable for $450 000, (b) Delta is held liable for $100 000, or (c) Delta is held not liable.

Question 74

As a result of recent events, Marshall requires legal representation.Because he has limited knowledge of the law, he has ruled out the possibility of self-representation.He realizes that he therefore must hire someone to act on his behalf.In choosing between hiring a lawyer and hiring a paralegal, what factors should he take into consideration?

Question 75

The Government of Canada is considering introducing a new law.However, the government is concerned that the law may not be constitutional.Can the Government of Canada ask for the Supreme Court of Canada to provide an advisory opinion on the constitutionality of a law or proposed law?