TEST BANK
FOR
Business Law in Canada
Twelfth Edition
Richard A. Yates
Simon Fraser University
Teresa Bereznicki-Korol
Northern Alberta Institute of Technology
Trevor Clarke
Aurora College
Dean A. Palmer
British Columbia Institute of Technology, Palmer IP
,Table of Contents
Chapter 1: Managing Your Legal Affairs
Chapter 2: Introduction to the Legal System
Chapter 3: The Resolution of Disputes: The Courts and Alternatives to Litigation
Chapter 4: Intentional Torts and Torts Impacting Business
Chapter 5: Negligence, Professional Liability, and Insurance
Chapter 6: The Elements of a Contract: Consensus and Consideration
Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
Chapter 8: Factors Affecting the Contractual Relationship
Chapter 9: The End of the Contractual Relationship
Chapter 10: Agency and Partnership
Chapter 11: Corporations
Chapter 12: Employment
Chapter 13: Intellectual Property
Chapter 14: Real and Personal Property and Protection of the Environment
Chapter 15: Priority of Creditors
Chapter 16: Sales and Consumer Protection
ii
,Business Law in Canada, 12e (Yates/Bereznicki-Korol/Clarke)
Chapter 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.
Answer: D
Diff: 1 Type: MC Page Ref: 2
Topic: Ch. 1 - Becoming a Sophisticated Client
Skill: Recall
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
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.
Answer: A
Diff: 1 Type: MC Page Ref: 3
Topic: Ch. 1 - "I Think I Need Legal Advice..."
Skill: Applied
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
3) 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.
Answer: B
Diff: 2 Type: MC Page Ref: 3
Topic: Ch. 1 - "I Think I Need Legal Advice..."
Skill: Applied
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
1
© 2020 Pearson Canada Inc.
, 4) Having a good lawyer on your team is
A) usually too expensive to be worthwhile.
B) only necessary for large companies.
C) a good alternative to becoming a sophisticated client.
D) a legal requirement prior to incorporating a business.
E) a critical component of being a sophisticated client.
Answer: E
Diff: 3 Type: MC Page Ref: 4
Topic: Ch. 1 - Becoming a Sophisticated Client
Skill: Applied
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
5) Which of the following best describes the role of the lawyer?
A) The lawyer makes the legal decisions for the client.
B) The lawyer is simply one of the experts the businessperson consults.
C) The client must follow the lawyer's instructions, as long as they are lawful.
D) The client makes decisions regarding civil matters; the lawyer makes decisions regarding
criminal matters.
E) The lawyer makes decisions regarding civil matters; the client makes decisions regarding
criminal matters.
Answer: B
Diff: 2 Type: MC Page Ref: 4
Topic: Ch. 1 - The Role of the Lawyer
Skill: Recall
Objective: Chapter 1: 2. Examine the role of the lawyer.
Bloom's Taxonomy: Knowledge
6) One reason for a lack of respect for lawyers is that
A) many people do not understand the role of the lawyer in the solicitor-client relationship.
B) lawyers are not bound by a code of professional conduct.
C) lawyers who breach their duties are generally not subject to any punishment.
D) lawyers are rarely able to provide information or advice relevant to business matters.
E) the cost of legal advice generally outweighs its benefit.
Answer: A
Diff: 2 Type: MC Page Ref: 3
Topic: Ch. 1 - The Role of the Lawyer
Skill: Recall
Objective: Chapter 1: 2. Examine the role of the lawyer.
Bloom's Taxonomy: Knowledge
2
© 2020 Pearson Canada Inc.
FOR
Business Law in Canada
Twelfth Edition
Richard A. Yates
Simon Fraser University
Teresa Bereznicki-Korol
Northern Alberta Institute of Technology
Trevor Clarke
Aurora College
Dean A. Palmer
British Columbia Institute of Technology, Palmer IP
,Table of Contents
Chapter 1: Managing Your Legal Affairs
Chapter 2: Introduction to the Legal System
Chapter 3: The Resolution of Disputes: The Courts and Alternatives to Litigation
Chapter 4: Intentional Torts and Torts Impacting Business
Chapter 5: Negligence, Professional Liability, and Insurance
Chapter 6: The Elements of a Contract: Consensus and Consideration
Chapter 7: The Elements of a Contract: Capacity, Legality, and Intention
Chapter 8: Factors Affecting the Contractual Relationship
Chapter 9: The End of the Contractual Relationship
Chapter 10: Agency and Partnership
Chapter 11: Corporations
Chapter 12: Employment
Chapter 13: Intellectual Property
Chapter 14: Real and Personal Property and Protection of the Environment
Chapter 15: Priority of Creditors
Chapter 16: Sales and Consumer Protection
ii
,Business Law in Canada, 12e (Yates/Bereznicki-Korol/Clarke)
Chapter 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.
Answer: D
Diff: 1 Type: MC Page Ref: 2
Topic: Ch. 1 - Becoming a Sophisticated Client
Skill: Recall
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
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.
Answer: A
Diff: 1 Type: MC Page Ref: 3
Topic: Ch. 1 - "I Think I Need Legal Advice..."
Skill: Applied
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
3) 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.
Answer: B
Diff: 2 Type: MC Page Ref: 3
Topic: Ch. 1 - "I Think I Need Legal Advice..."
Skill: Applied
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
1
© 2020 Pearson Canada Inc.
, 4) Having a good lawyer on your team is
A) usually too expensive to be worthwhile.
B) only necessary for large companies.
C) a good alternative to becoming a sophisticated client.
D) a legal requirement prior to incorporating a business.
E) a critical component of being a sophisticated client.
Answer: E
Diff: 3 Type: MC Page Ref: 4
Topic: Ch. 1 - Becoming a Sophisticated Client
Skill: Applied
Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."
Bloom's Taxonomy: Knowledge
5) Which of the following best describes the role of the lawyer?
A) The lawyer makes the legal decisions for the client.
B) The lawyer is simply one of the experts the businessperson consults.
C) The client must follow the lawyer's instructions, as long as they are lawful.
D) The client makes decisions regarding civil matters; the lawyer makes decisions regarding
criminal matters.
E) The lawyer makes decisions regarding civil matters; the client makes decisions regarding
criminal matters.
Answer: B
Diff: 2 Type: MC Page Ref: 4
Topic: Ch. 1 - The Role of the Lawyer
Skill: Recall
Objective: Chapter 1: 2. Examine the role of the lawyer.
Bloom's Taxonomy: Knowledge
6) One reason for a lack of respect for lawyers is that
A) many people do not understand the role of the lawyer in the solicitor-client relationship.
B) lawyers are not bound by a code of professional conduct.
C) lawyers who breach their duties are generally not subject to any punishment.
D) lawyers are rarely able to provide information or advice relevant to business matters.
E) the cost of legal advice generally outweighs its benefit.
Answer: A
Diff: 2 Type: MC Page Ref: 3
Topic: Ch. 1 - The Role of the Lawyer
Skill: Recall
Objective: Chapter 1: 2. Examine the role of the lawyer.
Bloom's Taxonomy: Knowledge
2
© 2020 Pearson Canada Inc.
