TEST BANK
Business Law in Canada 13 Edition by Richard Yates
Chapters 1-16
,TABLE OF CONTENT
1. Managing Your Legal Affairs
2. Introduction to the Legal System
3. The Resolution of Disputes: The Courts and Alternatives to Litigation
4. Intentional Torts and Torts Impacting Business
5. Negligence, Professional Liability, and Insurance
6. The Elements of a Contract: Consensus and Consideration
7. The Elements of a Contract: Capacity, Legality, and Intention
8. Factors Affecting the Contractual Relationship
9. The End of the Contractual Relationship
10.Agency and Partnership
11.Corporations
12.Employment
13.Intellectual Property
14.Real and Personal Property and Protection of the Environment
15.Priority of Creditors
16.Sales and Consumer Protection
,Ch 1. Managing Your Legal Affairs
1. In the context of a sophisticated client, "sophisticated" can best be defined as
a. complicated, self-reliant, and cosmopolitan.
b. refined and cultured.
c. simple and naïve.
d. confident, knowledgeable, and up to date.
e. aggressive, dynamic, and forceful.
2. Which of the following best describes the likelihood of a student becoming involved in a
situation necessitating legal advice?
a. A student, or someone close to a student, sometimes becomes involved in such a situation.
b. A student, or someone close to the student, will always become involved in such a situation.
c. Because students are not business people, they never become involved in such situations.
d. Because students cannot be sophisticated, they will often become involved in such situations.
e. Legal advice is not available to students.
3. Raman is a sophisticated client. This means that she
a. understands how to manage a lawyer-client relationship.
b. has a law degree.
c. is a small business owner.
d. manages her legal affairs without assistance from a lawyer.
e. will probably never find herself in a situation necessitating legal advice.
4. Which of the following is not a good reason for a businessperson to seek advice from a lawyer?
a. The businessperson cannot find the necessary legal information.
b. The businessperson cannot understand the necessary legal information.
c. The necessary legal information is available online.
d. It would take too long for the businessperson to find the necessary legal information.
e. The businessperson is facing criminal charges.
5. For sophisticated clients, the availability of an abundance of legal information online is
a. a negative development, because online information is rarely accurate or helpful.
b. a positive development, because it means that they will no longer need to retain lawyers as part of
their team.
c. a negative development, because accessing this information tends to be more costly than retaining a
lawyer.
d. a positive development, because it provides greater access to information they can use as part of
their decision-making process.
e. a neutral development, because lawyers are still the only ones able to access this information.
6. When searching online for legal information, it is best to
a. trust that if it is published online, it must be accurate.
b. never trust the information found on a website.
c. use American sources, as they tend to be more comprehensive than Canadian ones.
d. gauge the accuracy of the information by the look of the website.
e. seek input from a lawyer when answers cannot be readily found.
7. Sophisticated clients
a. do not need to retain a lawyer.
b. know that it is better to hire a lawyer than to conduct research on one's own.
c. are willing to pay for legal advice at any cost.
d. tend to be embarrassed to request legal advice.
e. have the skill and confidence to find basic legal information.
, Ch 1. Managing Your Legal Affairs
8. The primary purpose of an initial consultation with a lawyer is
a. to arrange payment of the lawyer's fees up front.
b. to develop strategies for dealing with the legal situation in question.
c. for the prospective client to decide whether to retain the lawyer.
d. for the prospective lawyer to help mediate the current dispute.
e. to discuss the availability of Legal Aid.
9. The decision to enter the lawyer-client relationship should be
a. made quickly to ensure that no one else can retain your lawyer.
b. solely up to the lawyer, as he or she is the one with the legal training.
c. made primarily on the basis of cost.
d. a mutual decision made primarily on the basis of trust.
e. solely up the client, as the client is the one paying for the services.
10. When someone refers you to a particular lawyer, you should
a. retain the lawyer regardless of who gave you the referral.
b. gauge the referral on the basis of the level of trust you have for the person making the referral.
c. retain the lawyer regardless of their area of practice.
d. ensure the referral is from a family member rather than a mere friend.
e. ignore the referral as irrelevant.
11. A lawyer referral service
a. will enable a businessperson to retain a lawyer without need for an initial consultation.
b. is an online fee-based service providing guaranteed results.
c. regulates the legal profession in the interest of the public.
d. provides the names and phone numbers of lawyers who practice in a particular area of law.
e. is also known as "Legal Aid".
12. A provincial law society
a. is a self-governing body for lawyers.
b. has as its mandate the provision of free legal services in the public interest.
c. operates primarily to offer low-cost legal advice to members.
d. operates primarily to enhance the commercial interests of its members.
e. is a self-governing body for businesspeople seeking legal advice.
13. Becoming a sophisticated client will
a. ensure that a business person never needs a lawyer.
b. help a business person manage her legal affairs more efficiently and effectively.
c. result in a business person developing a bias against lawyers.
d. relieve a business person from having to conduct legal research.
e. protect a business person from needing legal advice.
14. The Canadian Bar Association is
a. the national society for legal aid services.
b. a professional organization that represents judges and lawyers.
c. focused on enhancing public safety in the liquor distribution industry.
d. an organization responsible for reviewing lawyers' accounts.
e. a disciplinary body for members of the legal profession.
15. When setting up a small business, the best approach to follow is to assume that after the
business has been set up and commences operating,
Business Law in Canada 13 Edition by Richard Yates
Chapters 1-16
,TABLE OF CONTENT
1. Managing Your Legal Affairs
2. Introduction to the Legal System
3. The Resolution of Disputes: The Courts and Alternatives to Litigation
4. Intentional Torts and Torts Impacting Business
5. Negligence, Professional Liability, and Insurance
6. The Elements of a Contract: Consensus and Consideration
7. The Elements of a Contract: Capacity, Legality, and Intention
8. Factors Affecting the Contractual Relationship
9. The End of the Contractual Relationship
10.Agency and Partnership
11.Corporations
12.Employment
13.Intellectual Property
14.Real and Personal Property and Protection of the Environment
15.Priority of Creditors
16.Sales and Consumer Protection
,Ch 1. Managing Your Legal Affairs
1. In the context of a sophisticated client, "sophisticated" can best be defined as
a. complicated, self-reliant, and cosmopolitan.
b. refined and cultured.
c. simple and naïve.
d. confident, knowledgeable, and up to date.
e. aggressive, dynamic, and forceful.
2. Which of the following best describes the likelihood of a student becoming involved in a
situation necessitating legal advice?
a. A student, or someone close to a student, sometimes becomes involved in such a situation.
b. A student, or someone close to the student, will always become involved in such a situation.
c. Because students are not business people, they never become involved in such situations.
d. Because students cannot be sophisticated, they will often become involved in such situations.
e. Legal advice is not available to students.
3. Raman is a sophisticated client. This means that she
a. understands how to manage a lawyer-client relationship.
b. has a law degree.
c. is a small business owner.
d. manages her legal affairs without assistance from a lawyer.
e. will probably never find herself in a situation necessitating legal advice.
4. Which of the following is not a good reason for a businessperson to seek advice from a lawyer?
a. The businessperson cannot find the necessary legal information.
b. The businessperson cannot understand the necessary legal information.
c. The necessary legal information is available online.
d. It would take too long for the businessperson to find the necessary legal information.
e. The businessperson is facing criminal charges.
5. For sophisticated clients, the availability of an abundance of legal information online is
a. a negative development, because online information is rarely accurate or helpful.
b. a positive development, because it means that they will no longer need to retain lawyers as part of
their team.
c. a negative development, because accessing this information tends to be more costly than retaining a
lawyer.
d. a positive development, because it provides greater access to information they can use as part of
their decision-making process.
e. a neutral development, because lawyers are still the only ones able to access this information.
6. When searching online for legal information, it is best to
a. trust that if it is published online, it must be accurate.
b. never trust the information found on a website.
c. use American sources, as they tend to be more comprehensive than Canadian ones.
d. gauge the accuracy of the information by the look of the website.
e. seek input from a lawyer when answers cannot be readily found.
7. Sophisticated clients
a. do not need to retain a lawyer.
b. know that it is better to hire a lawyer than to conduct research on one's own.
c. are willing to pay for legal advice at any cost.
d. tend to be embarrassed to request legal advice.
e. have the skill and confidence to find basic legal information.
, Ch 1. Managing Your Legal Affairs
8. The primary purpose of an initial consultation with a lawyer is
a. to arrange payment of the lawyer's fees up front.
b. to develop strategies for dealing with the legal situation in question.
c. for the prospective client to decide whether to retain the lawyer.
d. for the prospective lawyer to help mediate the current dispute.
e. to discuss the availability of Legal Aid.
9. The decision to enter the lawyer-client relationship should be
a. made quickly to ensure that no one else can retain your lawyer.
b. solely up to the lawyer, as he or she is the one with the legal training.
c. made primarily on the basis of cost.
d. a mutual decision made primarily on the basis of trust.
e. solely up the client, as the client is the one paying for the services.
10. When someone refers you to a particular lawyer, you should
a. retain the lawyer regardless of who gave you the referral.
b. gauge the referral on the basis of the level of trust you have for the person making the referral.
c. retain the lawyer regardless of their area of practice.
d. ensure the referral is from a family member rather than a mere friend.
e. ignore the referral as irrelevant.
11. A lawyer referral service
a. will enable a businessperson to retain a lawyer without need for an initial consultation.
b. is an online fee-based service providing guaranteed results.
c. regulates the legal profession in the interest of the public.
d. provides the names and phone numbers of lawyers who practice in a particular area of law.
e. is also known as "Legal Aid".
12. A provincial law society
a. is a self-governing body for lawyers.
b. has as its mandate the provision of free legal services in the public interest.
c. operates primarily to offer low-cost legal advice to members.
d. operates primarily to enhance the commercial interests of its members.
e. is a self-governing body for businesspeople seeking legal advice.
13. Becoming a sophisticated client will
a. ensure that a business person never needs a lawyer.
b. help a business person manage her legal affairs more efficiently and effectively.
c. result in a business person developing a bias against lawyers.
d. relieve a business person from having to conduct legal research.
e. protect a business person from needing legal advice.
14. The Canadian Bar Association is
a. the national society for legal aid services.
b. a professional organization that represents judges and lawyers.
c. focused on enhancing public safety in the liquor distribution industry.
d. an organization responsible for reviewing lawyers' accounts.
e. a disciplinary body for members of the legal profession.
15. When setting up a small business, the best approach to follow is to assume that after the
business has been set up and commences operating,
