TEST BANK
LAW AND BUSINESS
ADMINISTRATION IN CANADA
, TEST ITEM FILE
Craig Allen
THE LAW AND BUSINESS
ADMINISTRATION IN
CANADA
Fifteenth Edition
J.E. Smyth
University Of Toronto
D.A. Soberman
Queen’s University
A.J. Easson
Queen’s University
S.A. Mcgill
Wilfrid Laurier University
Toronto
Copyright © 2016 Pearson Canada Inc., Toronto, Ontario. All Rights Reserved. This Work Is
Protected By Canadian Copyright Laws And Is Provided Solely For The Use Of Instructors In
Teaching Their Courses And Assessing Student Learning. Dissemination Or Sale Of Any Part Of This
Work (Including On The Internet) Will Destroy The Integrity Of The Work And Is Not Permitted. The
Copyright Holder Grants Permission To Instructors Who Have Adopted The Law And Business
Administration In Canada, Fifteenth Edition By Smyth, Soberman, Easson, Mcgill, To Post This
Material Online Only If The Use Of The Website Is Restricted By Access Codes To Students In The
Instructor’s Class That Is Using The Textbook And Provided The Reproduced Material Bears This
Copyright Notice.
, TIF For Smyth: The Law And Business Administrations, Fifteenth Edition
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
ANSWE
R: B
DIFFICU
LTY: 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
ANSWE
R: E
DIFFICU
LTY: 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.
Copyright © 2016 Pearson Canada Inc.
1-3
,e. Those Who Make The Laws Just Do Not Care.
ANSWE
R: D
DIFFICU
LTY: 3
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.
ANSWE
R: C
DIFFICU
LTY: 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
Copyright © 2016 Pearson Canada Inc.
1-4
,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
DIFFICU
LTY: 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.
ANSWE
R: B
DIFFICU
LTY: 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,
Copyright © 2016 Pearson Canada Inc.
1-5
,Regulatory, And/Or Civil Liability.
e. All Of The Above
ANSWE
R: E
DIFFICU
LTY: 2
Type: MC
Topic: Law And Business
Copyright © 2016 Pearson Canada Inc.
1-6
, TIF For Smyth: The Law And Business Administrations, Fifteenth Edition
Chapter 1: Law, Society, And Business
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.
ANSWE
R: E
DIFFICU
LTY: 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.
ANSWE
R: E
DIFFICU
LTY: 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
Copyright © 2016 Pearson Canada Inc.
1-7
, e. All Of The Above
Copyright © 2016 Pearson Canada Inc.
1-8
LAW AND BUSINESS
ADMINISTRATION IN CANADA
, TEST ITEM FILE
Craig Allen
THE LAW AND BUSINESS
ADMINISTRATION IN
CANADA
Fifteenth Edition
J.E. Smyth
University Of Toronto
D.A. Soberman
Queen’s University
A.J. Easson
Queen’s University
S.A. Mcgill
Wilfrid Laurier University
Toronto
Copyright © 2016 Pearson Canada Inc., Toronto, Ontario. All Rights Reserved. This Work Is
Protected By Canadian Copyright Laws And Is Provided Solely For The Use Of Instructors In
Teaching Their Courses And Assessing Student Learning. Dissemination Or Sale Of Any Part Of This
Work (Including On The Internet) Will Destroy The Integrity Of The Work And Is Not Permitted. The
Copyright Holder Grants Permission To Instructors Who Have Adopted The Law And Business
Administration In Canada, Fifteenth Edition By Smyth, Soberman, Easson, Mcgill, To Post This
Material Online Only If The Use Of The Website Is Restricted By Access Codes To Students In The
Instructor’s Class That Is Using The Textbook And Provided The Reproduced Material Bears This
Copyright Notice.
, TIF For Smyth: The Law And Business Administrations, Fifteenth Edition
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
ANSWE
R: B
DIFFICU
LTY: 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
ANSWE
R: E
DIFFICU
LTY: 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.
Copyright © 2016 Pearson Canada Inc.
1-3
,e. Those Who Make The Laws Just Do Not Care.
ANSWE
R: D
DIFFICU
LTY: 3
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.
ANSWE
R: C
DIFFICU
LTY: 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
Copyright © 2016 Pearson Canada Inc.
1-4
,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
DIFFICU
LTY: 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.
ANSWE
R: B
DIFFICU
LTY: 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,
Copyright © 2016 Pearson Canada Inc.
1-5
,Regulatory, And/Or Civil Liability.
e. All Of The Above
ANSWE
R: E
DIFFICU
LTY: 2
Type: MC
Topic: Law And Business
Copyright © 2016 Pearson Canada Inc.
1-6
, TIF For Smyth: The Law And Business Administrations, Fifteenth Edition
Chapter 1: Law, Society, And Business
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.
ANSWE
R: E
DIFFICU
LTY: 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.
ANSWE
R: E
DIFFICU
LTY: 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
Copyright © 2016 Pearson Canada Inc.
1-7
, e. All Of The Above
Copyright © 2016 Pearson Canada Inc.
1-8
