Business Law in Canada, 11e (Yates)
Chapter 12 Employment
1) Why is the distinction between employment and an independent contract important?
A) An independent contractor cannot be sure that he will be paid.
B) An employee has the right to wages.
C) An employee can bind the employer in a contract he enters into on behalf of the employer.
D) An employer may be held responsible for torts committed by the employee.
E) Employees can withdraw their services.
Answer: D
Diff: 1 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
2) Which of the following is a true statement about the employer-employee relationship?
A) The critical factor in this relationship is control. That is, the employer tells the employee not
only what to do but also how to do it.
B) An employee for a company could not also be an agent at the same time for the company.
C) One responsibility of an employer is to provide the employee with lifetime work availability.
D) An employee does not owe a fiduciary duty to his or her employer.
E) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the
painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.
Answer: A
Diff: 2 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
3) Which of the following is true with regard to employment law?
A) The traditional test for determining whether or not a person is an employee is to assess the
degree of control. That is, an employee could be told not only what to do but how to do it.
B) Employees are allowed to strike only when the employer refuses to honour the collective
agreement (a rights dispute).
C) A lockout is action taken by employees to prevent their employer from operating as normal.
D) Constructive dismissal refers to a breach of the employment contract by the employer in
which the employer discovered the employee had committed theft.
E) If a worker is injured on the job, he can sue the employer for any injuries he may have
suffered.
Answer: A
Diff: 2 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
1
Copyright © 2017 Pearson Canada, Inc.
,4) Which of the following statements more accurately describes an employee rather than an
independent contractor?
A) The person is an essential part of an employer's organization.
B) The person provides his/her own tools.
C) The person is free to represent others in the same business.
D) The person determines his/her own work schedule
E) The person has a high level of financial risk.
Answer: A
Diff: 1 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
5) Which of the following is not one of the obligations that an employee has to the employer?
A) Competence
B) Skill
C) Be honest and courteous
D) Follow all orders no matter how unreasonable
E) Loyalty
Answer: D
Diff: 1 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Recall
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
6) Mr. Koff, a former policeman, was hired to do investigations for the stock exchange. All those
hired in this capacity were required to take and pass a course. When it was determined that Koff
had cheated on the course's examination, he was fired. Koff, who was not covered by a collective
agreement, sued for wrongful dismissal. If the court holds that the employer had cause for
dismissal, Koff will be entitled to damages equivalent to which of the following?
A) The amount that would have been paid during a reasonable notice period less any amount
received from other employment, E.I., etc.
B) The amount of pay that would have been received in one pay period (e.g., one month if paid
monthly)
C) Two weeks' pay, the statutory minimum
D) Reasonably unmitigable losses
E) Nothing
Answer: E
Diff: 1 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
2
Copyright © 2017 Pearson Canada, Inc.
,7) If former employees are sued, it is usually for breach of ________, or for disclosing
confidential information.
A) employment contract
B) notice periods
C) restrictive covenants
D) fiduciary duty
E) confidence
Answer: E
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Recall
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
8) In RBC Dominion Securities Inc. v. Merrill Lynch, virtually all of the investment advisors at
the RBC branch left without notice and went to work for a competitor, Merrill Lynch. What did
the Court determine?
A) Merrill Lynch and its manager were found jointly and severally liable, as the manager had
induced the breach of the duty not to compete unfairly.
B) RBC was found liable for inducement of breach of contract.
C) Merrill Lynch and its manager were not liable, since no notice of termination was required.
D) RBC investment advisors were not in violation of their fiduciary duty to RBC, and were not
required to provide notice of termination.
E) Fiduciary duties cannot arise in the context of a mere employment relationship.
Answer: A
Diff: 2 Type: MC Page Ref: 396
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
3
Copyright © 2017 Pearson Canada, Inc.
, 9) On Friday afternoon, Frieda was told not to return to work because her job was gone. If her
employer is in a non-unionized business and had no just cause to dismiss her, which of the
following is true?
A) The amount of notice to be given her is limited to the employment contract.
B) The amount of notice could be set out in the employment contract, and that amount would
override the amount set by the common law, unless it was less than the minimum amount set out
in the Employment Standards Act (or Code).
C) Additional notice must be given even if the employer pays her an amount of money
equivalent to the amount of money she would have earned during the notice period.
D) If the employee sues for wrongful dismissal and the court has to determine the appropriate
notice period, it would consider, among other things, her sex and religion.
E) She can elect to have a notice period or to take money in lieu of notice.
Answer: B
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
10) In which of the following situations will Smith be responsible for the tortious conduct of
Jones?
A) Jones is an independent contractor installing drywall for Smith's grocery store.
B) Jones is a computer programmer working for Ace Computer Ltd. and is installing new
software for Smith's department store.
C) Jones is a self-employed vacuum cleaner salesman and Smith manufactures one of the lines
he carries.
D) Jones is a salesperson for Watson's Warehouse visiting Smith's Grocery Store Ltd.
E) Jones is a secretary working in Smith's office.
Answer: E
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
11) Which one of the following is just cause for dismissal?
A) Absenteeism twice in the last year
B) Tardiness once in the last two years
C) Refusal to work in an unsafe work environment
D) Habitual negligence or incompetence
E) No work to do
Answer: D
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Recall
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
4
Copyright © 2017 Pearson Canada, Inc.
Chapter 12 Employment
1) Why is the distinction between employment and an independent contract important?
A) An independent contractor cannot be sure that he will be paid.
B) An employee has the right to wages.
C) An employee can bind the employer in a contract he enters into on behalf of the employer.
D) An employer may be held responsible for torts committed by the employee.
E) Employees can withdraw their services.
Answer: D
Diff: 1 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
2) Which of the following is a true statement about the employer-employee relationship?
A) The critical factor in this relationship is control. That is, the employer tells the employee not
only what to do but also how to do it.
B) An employee for a company could not also be an agent at the same time for the company.
C) One responsibility of an employer is to provide the employee with lifetime work availability.
D) An employee does not owe a fiduciary duty to his or her employer.
E) If an employer contracts to paint Mr. Shore's barn and sends the employee out to do the
painting, if the employee is not paid he can sue his employer or Mr. Shore for his wage.
Answer: A
Diff: 2 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
3) Which of the following is true with regard to employment law?
A) The traditional test for determining whether or not a person is an employee is to assess the
degree of control. That is, an employee could be told not only what to do but how to do it.
B) Employees are allowed to strike only when the employer refuses to honour the collective
agreement (a rights dispute).
C) A lockout is action taken by employees to prevent their employer from operating as normal.
D) Constructive dismissal refers to a breach of the employment contract by the employer in
which the employer discovered the employee had committed theft.
E) If a worker is injured on the job, he can sue the employer for any injuries he may have
suffered.
Answer: A
Diff: 2 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
1
Copyright © 2017 Pearson Canada, Inc.
,4) Which of the following statements more accurately describes an employee rather than an
independent contractor?
A) The person is an essential part of an employer's organization.
B) The person provides his/her own tools.
C) The person is free to represent others in the same business.
D) The person determines his/her own work schedule
E) The person has a high level of financial risk.
Answer: A
Diff: 1 Type: MC Page Ref: 381
Topic: Ch. 12 - What Is Employment?
Skill: Recall
Objective: Chapter 12: 1. Distinguish employees, agents, and independent contractors.
Bloom's Taxonomy: Knowledge
5) Which of the following is not one of the obligations that an employee has to the employer?
A) Competence
B) Skill
C) Be honest and courteous
D) Follow all orders no matter how unreasonable
E) Loyalty
Answer: D
Diff: 1 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Recall
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
6) Mr. Koff, a former policeman, was hired to do investigations for the stock exchange. All those
hired in this capacity were required to take and pass a course. When it was determined that Koff
had cheated on the course's examination, he was fired. Koff, who was not covered by a collective
agreement, sued for wrongful dismissal. If the court holds that the employer had cause for
dismissal, Koff will be entitled to damages equivalent to which of the following?
A) The amount that would have been paid during a reasonable notice period less any amount
received from other employment, E.I., etc.
B) The amount of pay that would have been received in one pay period (e.g., one month if paid
monthly)
C) Two weeks' pay, the statutory minimum
D) Reasonably unmitigable losses
E) Nothing
Answer: E
Diff: 1 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
2
Copyright © 2017 Pearson Canada, Inc.
,7) If former employees are sued, it is usually for breach of ________, or for disclosing
confidential information.
A) employment contract
B) notice periods
C) restrictive covenants
D) fiduciary duty
E) confidence
Answer: E
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Recall
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
8) In RBC Dominion Securities Inc. v. Merrill Lynch, virtually all of the investment advisors at
the RBC branch left without notice and went to work for a competitor, Merrill Lynch. What did
the Court determine?
A) Merrill Lynch and its manager were found jointly and severally liable, as the manager had
induced the breach of the duty not to compete unfairly.
B) RBC was found liable for inducement of breach of contract.
C) Merrill Lynch and its manager were not liable, since no notice of termination was required.
D) RBC investment advisors were not in violation of their fiduciary duty to RBC, and were not
required to provide notice of termination.
E) Fiduciary duties cannot arise in the context of a mere employment relationship.
Answer: A
Diff: 2 Type: MC Page Ref: 396
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
3
Copyright © 2017 Pearson Canada, Inc.
, 9) On Friday afternoon, Frieda was told not to return to work because her job was gone. If her
employer is in a non-unionized business and had no just cause to dismiss her, which of the
following is true?
A) The amount of notice to be given her is limited to the employment contract.
B) The amount of notice could be set out in the employment contract, and that amount would
override the amount set by the common law, unless it was less than the minimum amount set out
in the Employment Standards Act (or Code).
C) Additional notice must be given even if the employer pays her an amount of money
equivalent to the amount of money she would have earned during the notice period.
D) If the employee sues for wrongful dismissal and the court has to determine the appropriate
notice period, it would consider, among other things, her sex and religion.
E) She can elect to have a notice period or to take money in lieu of notice.
Answer: B
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
10) In which of the following situations will Smith be responsible for the tortious conduct of
Jones?
A) Jones is an independent contractor installing drywall for Smith's grocery store.
B) Jones is a computer programmer working for Ace Computer Ltd. and is installing new
software for Smith's department store.
C) Jones is a self-employed vacuum cleaner salesman and Smith manufactures one of the lines
he carries.
D) Jones is a salesperson for Watson's Warehouse visiting Smith's Grocery Store Ltd.
E) Jones is a secretary working in Smith's office.
Answer: E
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Applied
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
11) Which one of the following is just cause for dismissal?
A) Absenteeism twice in the last year
B) Tardiness once in the last two years
C) Refusal to work in an unsafe work environment
D) Habitual negligence or incompetence
E) No work to do
Answer: D
Diff: 2 Type: MC Page Ref: 383
Topic: Ch. 12 - The Law of Employment
Skill: Recall
Objective: Chapter 12: 2. Detail common law obligations of employers and employees.
Bloom's Taxonomy: Knowledge
4
Copyright © 2017 Pearson Canada, Inc.
