TEST BANK
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Contemporary Canadian Business Law,
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Principles and Cases
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12th Edition By Willes Chapter 1 to 35
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,Table of contents
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1. Chapter 1: The Law and the Legal System
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2. Chapter 2: The Judicial System and Alternative Dispute Resolution
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3. Chapter 3: Business Regulation
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4. Chapter 4: Intentional Torts
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5. Chapter 5: Negligence and Unintentional Torts
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6. Chapter 6: Special Tort Liabilities of Business Professionals
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7. Chapter 7: An Introduction to Contracts
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8. Chapter 8: The Requirement of Consideration
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9. Chapter 9: Legal Capacity to Contract and the Requirement of Legality
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10. Chapter 10: The Requirements of Form and Writing
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11. Chapter 11: Failure to Create an Enforceable Contract
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12. Chapter 12: The Extent of Contractual Rights
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13. Chapter 13: Performance of Contractual Obligations
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14. Chapter 14: Breach of Contract and Remedies
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15. Chapter 15: Law of Agency
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16. Chapter 16: Law of Sole Proprietorship and Partnership
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17. Chapter 17: Corporation Law
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18. Chapter 18: Securities Regulation
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19. Chapter 19: Employment and Labour Relations
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20. Chapter 20: The Law of Bailment
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21. Chapter 21: The Sale of Goods
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22. Chapter 22: Interests in Land
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23. Chapter 23: The Law of Mortgages
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24. Chapter 24: Leasehold Interests
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25. Chapter 25: Commercial and Residential Real Estate Transactions
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26. Chapter 26: Intellectual Property, Patents, Trademarks, Copyright, and Franchising
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27. Chapter 27: Consumer Protection Legislation
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28. Chapter 28: Law of Negotiable Instruments
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29. Chapter 29: Security for Debt
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30. Chapter 30: Bankruptcy and Insolvency
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31. Chapter 31 Insurance Law
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32. Chapter 32: Restrictive Trade Practices
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33. Chapter 33: International Business Law
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34. Chapter 34: Environmental Law
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35. Chapter 35: Privacy Law
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,Chapter 1: The Law and the Legal System
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Student: fg
1. Maxine, an accountant annoyed with her employer for telling her that her work was substandard,
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created a computer virus that would erase key accounting data if Maxine's name was removed
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from the payroll. This is a crime under the Criminal Code. If Maxine is caught, she will be
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A. prosecuted by the Crown because the Code is public law. fg fg fg fg fg fg fg fg fg
B. sued by the Crown because the Code is private law.
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C. sued by her employer under the Criminal Code because it is a civil law matter.
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D. sued by her employer under the Criminal Code because it is a private law matter.
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E. prosecuted by the Crown for breach of the Civil Code. fg fg fg fg fg fg fg fg fg
2. The federal government placed new legislation before Parliament regarding the
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regulation of telecommunication companies. Which of the following statements is not
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true?
fg
A. This proposed legislation is called a "bill."
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B. This legislation must be brought before the House of Commons three times and then it will be
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law if it is passed.
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C. Once the proposed legislation has been passed by the Parliament of Canada; it must be
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given royal assent and be proclaimed.
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D. Once the proposed legislation has been passed by the Parliament of Canada it can be
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amended by another statute.
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E. All of the answers are correct.
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3. The Simpson brothers have applied to the Liquor Licence Board of the province for a wine
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and beer licence for their new restaurant. Which of the following is not true?
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A. The board is an administrative tribunal, not a court of law.
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B. The decisions of the board become part of the administrative law of the province.
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C. Agencies and boards such as this one are part of the expanding government regulation of
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private citizens and businesses.
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D. The Simpsons will deal with civil servants rather than elected representatives while applying
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for their licence.
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E The right to make its own rules and procedures is delegated to the board, but these are subject
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to the
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. approval of the provincial legislature.
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4. The government of the province has introduced a bill into the legislature to make the
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recycling of household garbage mandatory. Once it has passed third reading, the next
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step is that it must be
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A. sent to the relevant committee for clause-by-clause study.
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B. given royal assent by the Lieutenant-Governor.
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C. debated in principle by the members of the legislature. fg fg fg fg fg fg fg fg
D. sent to the Senate for approval. fg fg fg fg fg
E. amended and prepared for its final reading. fg fg fg fg fg fg
5. When judges apply the principle of stare decisis in deciding a case before them they are,
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in effect, applying the
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A. substantive law. fg
B. doctrine of precedent. fg fg
C. principles of equity. fg fg
D. rules of public administrative law. fg fg fg fg
E. doctrine of precedent and substantive law. fg fg fg fg fg
, 6. The Big Time Construction Company is erecting a large office tower for a major commercial
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property
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developer. to
developer In finance theofnext
the course stage of construction.
construction, The
a dispute arises
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to the timing fg a contract
of cash advances from fg fg fg fg fg fg fg fgfg fg fg fg fg fgfg fg fg fg fg fg fg fgfg fg fg
between
the
fg them which stated that each cash advance from the developer would be provided to
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the builder after the work on the previous stage had been completed and inspected by the
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developer. The builder now says that the developer is delaying the inspections and that it
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cannot carry on to the next stage without the cash advance. The developer says that the
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builder is deliberately delaying the progress of the construction by not beginning the next stage
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while it waits for the inspection required to release the next cash advance. The developer
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intends to take legal action against the builder.
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A. The developer must use procedural law to sue the builder.
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B. The dispute between the parties will be resolved by substantive law.
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C. The contract which the parties made will be interpreted by private law.
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D. The court will reach a decision in the case using administrative law.
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E. All types of law except administrative law will apply.
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7. If it were decided to amend the Constitution to make ownership of property a right, it would be
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necessary to have the agreement of
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i. at least two-thirds of the provinces, which together make up at least half of the population of
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Canada.
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ii. at least half of the provinces, which together make up at least two-thirds of the population of
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Canada.
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iii. more than half of the members of the federal Parliament.
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iv. at least two-thirds of the members of the federal Parliament.
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v. all ten provinces. fg fg
A. i.
B. ii.
C. i and iii. fg fg
D. ii and iv. fg fg
E. iii and v. fg fg
8. The provincial legislature is about to pass a piece of legislation that conflicts with one of the
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following rights. It had intended to do so under s. 33(1), the notwithstanding clause, but has just
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found out that s. 33 is not effective against this right. Which of the following is it?
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A. The right to life, liberty and security of the person.
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B. Freedom of speech. fg fg
C. Freedom of religion. fg fg
D. The right to vote. fg fg fg
E. Equality rights. fg
9. A small Ontario town passes a bylaw which says that shop signs must be only in English. A
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butcher's shop which caters to the local German-speaking population is charged with infringing
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the bylaw and the proprietor raises s. 2(b) of the Charter in his defence.
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A. Since only political speech is protected by the Charter, he will lose.
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B. Since the Charter does not apply to non-government bodies like a butcher's shop, he will lose.
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C.Since the Charter protects commercial expression because it helps individuals make informed
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economic choices, he will win.
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DSince the Charter protects commercial expression, regardless of any value it may have, simply
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because
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. we must all be free to say what we choose, he will win.
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E. None of the answers are correct.
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Contemporary Canadian Business Law,
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Principles and Cases
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12th Edition By Willes Chapter 1 to 35
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,Table of contents
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1. Chapter 1: The Law and the Legal System
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2. Chapter 2: The Judicial System and Alternative Dispute Resolution
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3. Chapter 3: Business Regulation
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4. Chapter 4: Intentional Torts
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5. Chapter 5: Negligence and Unintentional Torts
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6. Chapter 6: Special Tort Liabilities of Business Professionals
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7. Chapter 7: An Introduction to Contracts
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8. Chapter 8: The Requirement of Consideration
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9. Chapter 9: Legal Capacity to Contract and the Requirement of Legality
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10. Chapter 10: The Requirements of Form and Writing
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11. Chapter 11: Failure to Create an Enforceable Contract
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12. Chapter 12: The Extent of Contractual Rights
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13. Chapter 13: Performance of Contractual Obligations
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14. Chapter 14: Breach of Contract and Remedies
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15. Chapter 15: Law of Agency
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16. Chapter 16: Law of Sole Proprietorship and Partnership
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17. Chapter 17: Corporation Law
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18. Chapter 18: Securities Regulation
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19. Chapter 19: Employment and Labour Relations
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20. Chapter 20: The Law of Bailment
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21. Chapter 21: The Sale of Goods
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22. Chapter 22: Interests in Land
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23. Chapter 23: The Law of Mortgages
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24. Chapter 24: Leasehold Interests
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25. Chapter 25: Commercial and Residential Real Estate Transactions
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26. Chapter 26: Intellectual Property, Patents, Trademarks, Copyright, and Franchising
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27. Chapter 27: Consumer Protection Legislation
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28. Chapter 28: Law of Negotiable Instruments
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29. Chapter 29: Security for Debt
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30. Chapter 30: Bankruptcy and Insolvency
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31. Chapter 31 Insurance Law
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32. Chapter 32: Restrictive Trade Practices
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33. Chapter 33: International Business Law
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34. Chapter 34: Environmental Law
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35. Chapter 35: Privacy Law
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,Chapter 1: The Law and the Legal System
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Student: fg
1. Maxine, an accountant annoyed with her employer for telling her that her work was substandard,
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
created a computer virus that would erase key accounting data if Maxine's name was removed
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
from the payroll. This is a crime under the Criminal Code. If Maxine is caught, she will be
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
A. prosecuted by the Crown because the Code is public law. fg fg fg fg fg fg fg fg fg
B. sued by the Crown because the Code is private law.
fg fg fg fg fg fg fg fg fg
C. sued by her employer under the Criminal Code because it is a civil law matter.
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
D. sued by her employer under the Criminal Code because it is a private law matter.
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
E. prosecuted by the Crown for breach of the Civil Code. fg fg fg fg fg fg fg fg fg
2. The federal government placed new legislation before Parliament regarding the
fg fg fg fg fg fg fg fg fg
regulation of telecommunication companies. Which of the following statements is not
fg fg fg fg fg fg fg fg fg fg fg
true?
fg
A. This proposed legislation is called a "bill."
fg fg fg fg fg fg
B. This legislation must be brought before the House of Commons three times and then it will be
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
law if it is passed.
fg fg fg fg fg
C. Once the proposed legislation has been passed by the Parliament of Canada; it must be
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
given royal assent and be proclaimed.
fg fg fg fg fg fg
D. Once the proposed legislation has been passed by the Parliament of Canada it can be
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
amended by another statute.
fg fg fg fg
E. All of the answers are correct.
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3. The Simpson brothers have applied to the Liquor Licence Board of the province for a wine
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
and beer licence for their new restaurant. Which of the following is not true?
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
A. The board is an administrative tribunal, not a court of law.
fg fg fg fg fg fg fg fg fg fg
B. The decisions of the board become part of the administrative law of the province.
fg fg fg fg fg fg fg fg fg fg fg fg fg
C. Agencies and boards such as this one are part of the expanding government regulation of
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
private citizens and businesses.
fg fg fg fg
D. The Simpsons will deal with civil servants rather than elected representatives while applying
fg fg fg fg fg fg fg fg fg fg fg fg
for their licence.
fg fg fg
E The right to make its own rules and procedures is delegated to the board, but these are subject
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
to the
fg fg
. approval of the provincial legislature.
f g fg fg fg fg
4. The government of the province has introduced a bill into the legislature to make the
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
recycling of household garbage mandatory. Once it has passed third reading, the next
fg fg fg fg fg fg fg fg fg fg fg fg fg
step is that it must be
fg fg fg fg fg fg
A. sent to the relevant committee for clause-by-clause study.
fg fg fg fg fg fg fg
B. given royal assent by the Lieutenant-Governor.
fg fg fg fg fg
C. debated in principle by the members of the legislature. fg fg fg fg fg fg fg fg
D. sent to the Senate for approval. fg fg fg fg fg
E. amended and prepared for its final reading. fg fg fg fg fg fg
5. When judges apply the principle of stare decisis in deciding a case before them they are,
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
in effect, applying the
fg fg fg fg
A. substantive law. fg
B. doctrine of precedent. fg fg
C. principles of equity. fg fg
D. rules of public administrative law. fg fg fg fg
E. doctrine of precedent and substantive law. fg fg fg fg fg
, 6. The Big Time Construction Company is erecting a large office tower for a major commercial
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
property
fg
developer. to
developer In finance theofnext
the course stage of construction.
construction, The
a dispute arises
fgas parties had executed
to the timing fg a contract
of cash advances from fg fg fg fg fg fg fg fgfg fg fg fg fg fgfg fg fg fg fg fg fg fgfg fg fg
between
the
fg them which stated that each cash advance from the developer would be provided to
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
the builder after the work on the previous stage had been completed and inspected by the
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developer. The builder now says that the developer is delaying the inspections and that it
fg fg fg fg fg fg f g fg fg fg fg fg fg fg fg
cannot carry on to the next stage without the cash advance. The developer says that the
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
builder is deliberately delaying the progress of the construction by not beginning the next stage
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
while it waits for the inspection required to release the next cash advance. The developer
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
intends to take legal action against the builder.
fg fg fg fg fg fg fg fg
A. The developer must use procedural law to sue the builder.
fg fg fg fg fg fg fg fg fg
B. The dispute between the parties will be resolved by substantive law.
fg fg fg fg fg fg fg fg fg fg
C. The contract which the parties made will be interpreted by private law.
fg fg fg fg fg fg fg fg fg fg fg
D. The court will reach a decision in the case using administrative law.
fg fg fg fg fg fg fg fg fg fg fg
E. All types of law except administrative law will apply.
fg fg fg fg fg fg fg fg
7. If it were decided to amend the Constitution to make ownership of property a right, it would be
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
necessary to have the agreement of
fg fg fg fg fg fg
i. at least two-thirds of the provinces, which together make up at least half of the population of
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
Canada.
fg
ii. at least half of the provinces, which together make up at least two-thirds of the population of
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Canada.
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iii. more than half of the members of the federal Parliament.
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iv. at least two-thirds of the members of the federal Parliament.
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v. all ten provinces. fg fg
A. i.
B. ii.
C. i and iii. fg fg
D. ii and iv. fg fg
E. iii and v. fg fg
8. The provincial legislature is about to pass a piece of legislation that conflicts with one of the
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
following rights. It had intended to do so under s. 33(1), the notwithstanding clause, but has just
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
found out that s. 33 is not effective against this right. Which of the following is it?
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
A. The right to life, liberty and security of the person.
fg fg fg fg fg fg fg fg fg
B. Freedom of speech. fg fg
C. Freedom of religion. fg fg
D. The right to vote. fg fg fg
E. Equality rights. fg
9. A small Ontario town passes a bylaw which says that shop signs must be only in English. A
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
butcher's shop which caters to the local German-speaking population is charged with infringing
fg fg fg fg fg fg fg fg fg fg fg fg fg
the bylaw and the proprietor raises s. 2(b) of the Charter in his defence.
fg fg fg fg fg fg fg fg fg fg fg fg fg fg
A. Since only political speech is protected by the Charter, he will lose.
fg fg fg fg fg fg fg fg fg fg fg fg
B. Since the Charter does not apply to non-government bodies like a butcher's shop, he will lose.
fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg fg
C.Since the Charter protects commercial expression because it helps individuals make informed
fg fg fg fg fg fg fg fg fg fg fg
economic choices, he will win.
fg fg fg fg fg
DSince the Charter protects commercial expression, regardless of any value it may have, simply
fg fg fg fg fg fg fg fg fg fg fg fg fg
because
fg
. we must all be free to say what we choose, he will win.
f g fg fg fg fg fg fg fg fg fg fg fg fg
E. None of the answers are correct.
fg fg fg fg fg fg
