TEST BANK The Law and Business Administration in Canada 15E Smyth
Chapter 1: Law, Society, and Business
1) A simple definition of law would be misleading because law is so
a. bound up with the rule of law.
b. diverse and complex.
c. difficult to define.
d. none of the above
e. all of the above
Answer: b
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
2) We need to have law because it
a. regulates individuals’ interactions with one another.
b. gives the government the power to act for the benefit of society in general.
c. provides an element of certainty in determining contractual and property rights.
d. protects persons, property, and society, and prohibits conduct that society believes is
harmful.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
3) The fact that laws that appear to be unjust must still be obeyed suggests that
a. justice is merely the result of the influence of ethics.
b. justice is merely a product of social morals.
c. there is a difference between good laws and bad ones.
d. in reality, we must think of justice as nothing more than the result of our legal system.
e. those who make the laws just do not care.
Answer: d
Diff: 3
1-1
,Type: MC
Topic: The Role of Law
Skill: Applied
4) The Canadian legal profession is organized on a provincial basis with each province
having its own “bar” society. However, a member of any provincial bar may appear
before
a. the House of Lords in England.
b. the International War Crimes Tribunal.
c. the Supreme Court of Canada.
d. any Human Rights Tribunal in any province.
e. any Landlord and Tenant Board Tribunal in any province.
Answer: c
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Recall
5) Joe hired Julie, a lawyer, to defend him on assault charges. At their first meeting he
told her the details concerning his involvement in the assault. After a dispute between
Joe and Julie in relation to legal fees, Joe decided to retain a new lawyer. The police
attended at Julie’s office to ask her questions concerning what Joe told her about the
assault. In these circumstances
a. the solicitor/client privilege does not allow Julie to reveal any communications she had
with Joe without his approval.
b. given that the solicitor/client relationship has ended, Julie is at liberty to disclose the
information.
c. the solicitor/client privilege does not extend to admissions by clients of wrongdoing so
communications must be disclosed.
d. Julie is at liberty to disclose any information in relation to the dispute with Joe over
fees but not in relation to communications about the assault.
e. the Canada Evidence Act permits Julie to disclose any information once the retainer
has ended.
Answer: a
1-2
,Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
6) A compliance officer employed by a business for purposes of monitoring legislative
requirements applicable to the business ensures
a. that outside counsel are hired by the business on a general retainer basis to respond to
urgent matters.
b. that the business complies with all regulatory and legislative requirements to avoid
claims, fines and other possible penalties or sanctions.
c. that probationary employees are screened and monitored appropriately by the business
in the 90 day period.
d. that the business pays outstanding fines.
e. that someone attends on all Small Claims Court matters where outside counsel are not
required.
Answer: b
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
7) When we say that the law is part of every facet of business, we mean that
a. it is central to business interaction with customers, suppliers, competitors, and
government.
b. business cannot succeed without understanding the law.
c. it outlines what we do, how to do it, and what not to do.
d. the failure of businesses to comply with the law may result in criminal, regulatory,
and/or civil liability.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
1-3
, Skill: Recall
8) Effective operation of a business requires that business managers
a. rely on lawyers to form the right questions and answers for legal issues.
b. do not have to become experts in the activities of their businesses.
c. simply rely on the decisions made by those in authority above them.
d. do not have to familiarize themselves with the law.
e. must know the law and must understand the legal risks associated with the everyday
choices that they make.
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
Skill: Recall
9) A risk management plan
a. does not require regular revision.
b. does nothing to promote the better conduct of a business.
c. is only necessary in sophisticated businesses.
d. does not necessarily involve a lawyer in every part of the overall plan.
e. helps a business to identify and anticipate potential legal liability.
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
Skill: Applied
10) Which of the following will a business use to reduce its liability?
a. risk reduction
b. risk absorption
c. risk avoidance
d. risk transfer
e. all of the above
1-4
Chapter 1: Law, Society, and Business
1) A simple definition of law would be misleading because law is so
a. bound up with the rule of law.
b. diverse and complex.
c. difficult to define.
d. none of the above
e. all of the above
Answer: b
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
2) We need to have law because it
a. regulates individuals’ interactions with one another.
b. gives the government the power to act for the benefit of society in general.
c. provides an element of certainty in determining contractual and property rights.
d. protects persons, property, and society, and prohibits conduct that society believes is
harmful.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
3) The fact that laws that appear to be unjust must still be obeyed suggests that
a. justice is merely the result of the influence of ethics.
b. justice is merely a product of social morals.
c. there is a difference between good laws and bad ones.
d. in reality, we must think of justice as nothing more than the result of our legal system.
e. those who make the laws just do not care.
Answer: d
Diff: 3
1-1
,Type: MC
Topic: The Role of Law
Skill: Applied
4) The Canadian legal profession is organized on a provincial basis with each province
having its own “bar” society. However, a member of any provincial bar may appear
before
a. the House of Lords in England.
b. the International War Crimes Tribunal.
c. the Supreme Court of Canada.
d. any Human Rights Tribunal in any province.
e. any Landlord and Tenant Board Tribunal in any province.
Answer: c
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Recall
5) Joe hired Julie, a lawyer, to defend him on assault charges. At their first meeting he
told her the details concerning his involvement in the assault. After a dispute between
Joe and Julie in relation to legal fees, Joe decided to retain a new lawyer. The police
attended at Julie’s office to ask her questions concerning what Joe told her about the
assault. In these circumstances
a. the solicitor/client privilege does not allow Julie to reveal any communications she had
with Joe without his approval.
b. given that the solicitor/client relationship has ended, Julie is at liberty to disclose the
information.
c. the solicitor/client privilege does not extend to admissions by clients of wrongdoing so
communications must be disclosed.
d. Julie is at liberty to disclose any information in relation to the dispute with Joe over
fees but not in relation to communications about the assault.
e. the Canada Evidence Act permits Julie to disclose any information once the retainer
has ended.
Answer: a
1-2
,Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
6) A compliance officer employed by a business for purposes of monitoring legislative
requirements applicable to the business ensures
a. that outside counsel are hired by the business on a general retainer basis to respond to
urgent matters.
b. that the business complies with all regulatory and legislative requirements to avoid
claims, fines and other possible penalties or sanctions.
c. that probationary employees are screened and monitored appropriately by the business
in the 90 day period.
d. that the business pays outstanding fines.
e. that someone attends on all Small Claims Court matters where outside counsel are not
required.
Answer: b
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
7) When we say that the law is part of every facet of business, we mean that
a. it is central to business interaction with customers, suppliers, competitors, and
government.
b. business cannot succeed without understanding the law.
c. it outlines what we do, how to do it, and what not to do.
d. the failure of businesses to comply with the law may result in criminal, regulatory,
and/or civil liability.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
1-3
, Skill: Recall
8) Effective operation of a business requires that business managers
a. rely on lawyers to form the right questions and answers for legal issues.
b. do not have to become experts in the activities of their businesses.
c. simply rely on the decisions made by those in authority above them.
d. do not have to familiarize themselves with the law.
e. must know the law and must understand the legal risks associated with the everyday
choices that they make.
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
Skill: Recall
9) A risk management plan
a. does not require regular revision.
b. does nothing to promote the better conduct of a business.
c. is only necessary in sophisticated businesses.
d. does not necessarily involve a lawyer in every part of the overall plan.
e. helps a business to identify and anticipate potential legal liability.
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
Skill: Applied
10) Which of the following will a business use to reduce its liability?
a. risk reduction
b. risk absorption
c. risk avoidance
d. risk transfer
e. all of the above
1-4
