QUESTIONS AND ACTUAL ANSWERS
2026 UPDATE.
The only purpose of law is to resolve disputes peacefully. - Answer False
The rule of law means that government officials must obey the law. - Answer True
Businesses often include a provision in their contracts that the contract is to be interpreted
according to the "rule of law." - Answer False
Solicitor-client privilege does not apply when the client is a corporation. - Answer False
Once a good legal risk management plan is in place, a business should not need further legal
advice. - Answer False
Lawyers are advisers, but they do not make business decisions. - Answer True
To achieve predictability, our common-law system requires courts to make decisions in
accordance with precedent. - Answer True
Precedent is codified law, passed by the legislature - Answer False
Unlike the judiciary, legislatures are the elected arms of government and are accountable to
voters. - Answer True
Provided that a legislature acts in accordance with the Constitution, it can override the common
law by using clear language in a statute. - Answer True
Like statutes, regulations must be approved and passed by the legislature. - Answer False
Canadian courts are empowered to strike down any law that violates the Charter of Rights and
Freedoms. - Answer True
The Charter ensures that the majority rules, and therefore strengthens the central principle of
democracy. - Answer False
,Provincial governments create municipalities and pass statutes that delegate specific powers to
the municipal council. - Answer True
Administrative agencies may be called tribunals, boards, or commissions. - Answer True
The law does not
a. seek to facilitate productive relationships between business.
b. remain unchanging over time.
c. seek to resolve disputes peacefully.
d. promote certainty and predictability in business. - Answer B
Nobody is above the law, including government officials, judges, and the government itself
according to
a. the rule of law.
b. the common law.
c. the Constitution.
d. the Charter. - Answer A
To achieve predictability in Canada's legal system, _________ requires courts to make decisions
in accordance with precedent.
a. regulatory law
b. common law
c. statute law
d. administrative law - Answer B
The principle of _________ requires judges to follow the decisions that judges have made in
similar cases.
a. common law
b. paramountcy
c. precedence
d. stare decisis - Answer D
Statute law is created through
a. legislation.
b. court decisions.
c. precedence.
,d. regulations. - Answer A
_________ affect businesses most commonly through licensing, permits, zoning, and taxation
requirements.
a. Statutes
b. Regulations
c. Common law
d. Municipal bylaws - Answer D
Administrative law incorporates _________ as a source of law.
a. statutes
b. common law
c. municipal bylaws
d. all of the above - Answer D
The main functions of administrative agencies do not include
a. regulatory functions.
b. judicial functions.
c. advisory functions.
d. operational functions - Answer B
In an administrative tribunal
a. the decision-maker is a judge.
b. the decision-maker is a specialist in a particular field.
c. strict rules require the tribunal to follow precedents established in previous cases.
d. the rules of evidence are as strict as those in a court. - Answer B
Judicial review is a process in which a superior court reviews
a. a decision of an administrative tribunal.
b. the provisions of a statute.
c. the procedural fairness of a court's proceedings.
d. the scope of an administrative law. - Answer A
__________ law governs agreements between businesses and between businesses and their
customers or clients.
, a. Contract
b. Tort
c. Property
d. Business organization - Answer A
__________ law imposes a duty on businesses to take care of customers, clients, and
employees, and to keep them safe from injury while they are in contact with company
personnel or company property.
a. Contract
b. Tort
c. Property
d. Criminal - Answer B
In what ways can lawyers assist a business? - Answer - Review operations to uncover and
minimize legal risks.
- Examine new ventures to ensure that new legal risks are identified and addressed.
- Help develop guidelines for policies, procedures, and interactions
- Advise regarding the likelihood of success or failure if a dispute with another party is litigated.
Identify and resolve legal problems.
What is solicitor-client privilege, and why is it important? - Answer Solicitor-client privilege is
a rule that prevents communications between clients and their lawyers from being used as
evidence in court. This is very important to promote open communication between lawyers and
clients. Without full and accurate information, lawyers are not able to effectively advise or
represent their clients.
Why is a legal risk-management plan important? - Answer A legal risk-management plan
allows business people to act on a proactive or reactive basis to prevent or reduce the
possibility of a business loss.
What are the components of a legal risk-management plan? - Answer - A policy statement
that describes the business's position on a particular subject.
- Documentation such as contracts, letters, and manuals containing information and procedures
that support policy statements.
- Training and education to communicate policies and procedures to all staff members.
- A mechanism for monitoring and evaluating compliance to policies and procedures.
- A mechanism for reviewing and revising policies and procedures to ensure they are up to date
and effective.
- Adequate insurance to protect the business against accidents and other losses.