TEST BANK Business Law in Canada 13/CE
Richard Yates
Ch c1. cManaging cYour cLegal cAffairs
1. In cthe ccontext cof ca csophisticated cclient, c"sophisticated" ccan cbest cbe cdefined cas
a. complicated, cself-reliant, cand ccosmopolitan.
b. refined cand ccultured.
c. simple cand cnaïve.
d. confident, cknowledgeable, cand cup cto cdate.
e. aggressive, cdynamic, cand cforceful.
2. Which cof cthe cfollowing cbest cdescribes cthe clikelihood cof ca cstudent cbecoming
cinvolved cin ca csituation cnecessitating clegal cadvice?
a. A cstudent, cor csomeone cclose cto ca cstudent, csometimes cbecomes cinvolved cin csuch ca csituation.
b. A cstudent, cor csomeone cclose cto cthe cstudent, cwill calways cbecome cinvolved cin csuch ca csituation.
c. Because cstudents care cnot cbusiness cpeople, cthey cnever cbecome cinvolved cin csuch csituations.
d. Because cstudents ccannot cbe csophisticated, cthey cwill coften cbecome cinvolved cin csuch csituations.
e. Legal cadvice cis cnot cavailable cto cstudents.
3. Raman cis ca csophisticated cclient. cThis cmeans cthat cshe
a. understands chow cto cmanage ca clawyer-client crelationship.
b. has ca claw cdegree.
c. is ca csmall cbusiness cowner.
d. manages cher clegal caffairs cwithout cassistance cfrom ca clawyer.
e. will cprobably cnever cfind cherself cin ca csituation cnecessitating clegal cadvice.
4. Which cof cthe cfollowing cis cnot ca cgood creason cfor ca cbusinessperson cto cseek cadvice cfrom ca clawyer?
a. The cbusinessperson ccannot cfind cthe cnecessary clegal cinformation.
b. The cbusinessperson ccannot cunderstand cthe cnecessary clegal cinformation.
c. The cnecessary clegal cinformation cis cavailable conline.
d. It cwould ctake ctoo clong cfor cthe cbusinessperson cto cfind cthe cnecessary clegal cinformation.
e. The cbusinessperson cis cfacing ccriminal ccharges.
5. For csophisticated cclients, cthe cavailability cof can cabundance cof clegal cinformation conline cis
a. a cnegative cdevelopment, cbecause conline cinformation cis crarely caccurate cor chelpful.
b. a cpositive cdevelopment, cbecause cit cmeans cthat cthey cwill cno clonger cneed cto cretain clawyers
cas cpart cof ctheir cteam.
, c. a cnegative cdevelopment, cbecause caccessing cthis cinformation ctends cto cbe cmore ccostly cthan
cretaining ca clawyer.
d. a cpositive cdevelopment, cbecause cit cprovides cgreater caccess cto cinformation cthey ccan cuse
cas cpart cof ctheir cdecision-making cprocess.
e. a cneutral cdevelopment, cbecause clawyers care cstill cthe conly cones cable cto caccess cthis cinformation.
6. When csearching conline cfor clegal cinformation, cit cis cbest cto
a. trust cthat cif cit cis cpublished conline, cit cmust cbe caccurate.
b. never ctrust cthe cinformation cfound con ca cwebsite.
c. use cAmerican csources, cas cthey ctend cto cbe cmore ccomprehensive cthan cCanadian cones.
d. gauge cthe caccuracy cof cthe cinformation cby cthe clook cof cthe cwebsite.
e. seek cinput cfrom ca clawyer cwhen canswers ccannot cbe creadily cfound.
7. Sophisticated cclients
a. do cnot cneed cto cretain ca clawyer.
b. know cthat cit cis cbetter cto chire ca clawyer cthan cto cconduct cresearch con cone's cown.
c. are cwilling cto cpay cfor clegal cadvice cat cany ccost.
d. tend cto cbe cembarrassed cto crequest clegal cadvice.
e. have cthe cskill cand cconfidence cto cfind cbasic clegal cinformation.
,Ch c1. cManaging cYour cLegal cAffairs
8. The cprimary cpurpose cof can cinitial cconsultation cwith ca clawyer cis
a. to carrange cpayment cof cthe clawyer's cfees cup cfront.
b. to cdevelop cstrategies cfor cdealing cwith cthe clegal csituation cin cquestion.
c. for cthe cprospective cclient cto cdecide cwhether cto cretain cthe clawyer.
d. for cthe cprospective clawyer cto chelp cmediate cthe ccurrent cdispute.
e. to cdiscuss cthe cavailability cof cLegal cAid.
9. The cdecision cto center cthe clawyer-client crelationship cshould cbe
a. made cquickly cto censure cthat cno cone celse ccan cretain cyour clawyer.
b. solely cup cto cthe clawyer, cas che cor cshe cis cthe cone cwith cthe clegal ctraining.
c. made cprimarily con cthe cbasis cof ccost.
d. a cmutual cdecision cmade cprimarily con cthe cbasis cof ctrust.
e. solely cup cthe cclient, cas cthe cclient cis cthe cone cpaying cfor cthe cservices.
10. When csomeone crefers cyou cto ca cparticular clawyer, cyou cshould
a. retain cthe clawyer cregardless cof cwho cgave cyou cthe creferral.
b. gauge cthe creferral con cthe cbasis cof cthe clevel cof ctrust cyou chave cfor cthe cperson cmaking cthe
creferral.
c. retain cthe clawyer cregardless cof ctheir carea cof cpractice.
d. ensure cthe creferral cis cfrom ca cfamily cmember crather cthan ca cmere cfriend.
e. ignore cthe creferral cas cirrelevant.
11. A clawyer creferral cservice
a. will cenable ca cbusinessperson cto cretain ca clawyer cwithout cneed cfor can cinitial cconsultation.
b. is can conline cfee-based cservice cproviding cguaranteed cresults.
c. regulates cthe clegal cprofession cin cthe cinterest cof cthe cpublic.
d. provides cthe cnames cand cphone cnumbers cof clawyers cwho cpractice cin ca cparticular carea cof claw.
e. is calso cknown cas c"Legal cAid".
12. A cprovincial claw csociety
a. is ca cself-governing cbody cfor clawyers.
b. has cas cits cmandate cthe cprovision cof cfree clegal cservices cin cthe cpublic cinterest.
c. operates cprimarily cto coffer clow-cost clegal cadvice cto cmembers.
d. operates cprimarily cto cenhance cthe ccommercial cinterests cof cits cmembers.
e. is ca cself-governing cbody cfor cbusinesspeople cseeking clegal cadvice.
13. Becoming ca csophisticated cclient cwill
a. ensure cthat ca cbusiness cperson cnever cneeds ca clawyer.
b. help ca cbusiness cperson cmanage cher clegal caffairs cmore cefficiently cand ceffectively.
c. result cin ca cbusiness cperson cdeveloping ca cbias cagainst clawyers.
d. relieve ca cbusiness cperson cfrom chaving cto cconduct clegal cresearch.
e. protect ca cbusiness cperson cfrom cneeding clegal cadvice.
14. The cCanadian cBar cAssociation cis
a. the cnational csociety cfor clegal caid cservices.
b. a cprofessional corganization cthat crepresents cjudges cand clawyers.
c. focused con cenhancing cpublic csafety cin cthe cliquor cdistribution cindustry.
d. an corganization cresponsible cfor creviewing clawyers' caccounts.
e. a cdisciplinary cbody cfor cmembers cof cthe clegal cprofession.
15. When csetting cup ca csmall cbusiness, cthe cbest capproach cto cfollow cis cto cassume
cthat cafter cthe cbusiness chas cbeen cset cup cand ccommences coperating,
, Ch c1. cManaging cYour cLegal
cAffairs
a. the clawyer cyou cchose cto cassist cyou cin cthe cstart-up cof cthe cbusiness cwill ccontinue cto crepresent
cyou.
b. the clawyer cyou cchose cto cassist cyou cin cthe cstart-up cof cthe cbusiness cwill crefer cyou cto ca cdifferent
clawyer.
c. a clawyer cwill cno clonger cbe crequired.
d. you cwill cnot cneed clegal cadvice, cas clong cas cyou care ca csophisticated cclient.
e. the clawyer cyou cchose cto cassist cyou cin cthe cstart-up cof cthe cbusiness cwill cprovide cfree clegal
cservices cfor cthe cduration cof cthe cbusiness's coperation.
16. Which cof cthe cfollowing cis cnot can cadvantage cto cmaintaining can congoing crelationship cwith cyour
clawyer?
a. The clawyer cwill cknow cand cunderstand cyou cand cyour cbusiness.
b. The clawyer cwill cbe cable cto cprovide clegal cadvice cmore cefficiently, cthereby creducing cyour clegal
ccosts.
c. The clawyer cwill cbe cable cto ccustomize clegal cadvice cso cit cwill cbe ceven cmore cuseful cto cyou.
d. The clawyer cwill cautomatically ctrack cyour cbusiness cactivities cso cthat che cor cshe ccan
cprovide cconstant cadvice cand cguidance.
e. The clawyer cwill cbe cmotivated cto cdo ceven cmore cfor cthe cclient.
17. Legal cfees
a. are calways ccalculated cin ca csingle, cspecified cway.
b. should cnot cbe cdiscussed cwith ca clawyer cuntil ca cbill chas cbeen cprepared.
c. are ctypically cnegligible.
d. should cbe cdiscussed cduring cthe cinitial cconsultation cwith cthe clawyer.
e. are crarely cthe csubject cof cconfusion cor cmisunderstanding.
18. Which cof cthe cfollowing cstatements cis ccorrect?
a. It cis ca cpopular cmisconception cthat clegal cservices ccan cbe cvery ccostly.
b. Some cpeople cdon't cretain clawyers ceven cwhen cthey cneed cthem cbecause cthey care cafraid cof cthe
ccost.
c. All clegal cmatters care cbilled cto cclients con can chourly cbasis.
d. It cis cconsidered cunprofessional cto craise cthe cissue cof cfees cduring ca cconsultation cwith ca clawyer.
e. Lawyers cshould calways cbe cretained, cregardless cof cthe ccost.
19. Contingency cfee cagreements
a. are ctypically cused cfor creal cestate cpurchases, cthe cdrafting cof cwills, cand cincorporations.
b. are cnot csubject cto cany crestrictions.
c. are csynonymous cwith cretainer cagreements.
d. may cresult cin ca clawyer cnot creceiving cany clegal cfees cfor cthe cwork cdone con ca cfile.
e. must cbe cprepared cfor call clawyer-client crelationships.
20. Which cof cthe cfollowing cstatements cregarding cprovincial claw csocieties cis cfalse?
a. Provincial claw csocieties cmay crestrict cthe cuse cof ccontingency cfee cagreements.
b. Provincial claw csocieties cmay cset cmaximum ccontingency cfees cfor ccertain ctypes cof ccases.
c. Provincial claw csocieties cmay coffer ca cfee cmediation cservice.
d. Provincial claw csocieties cprovide conline cinformation con clawyers' cfees.
e. Provincial claw csocieties cprovide cfree clegal cservices cto cpeople cin cneed.
21. Typically, clawyers cbill ctheir cfees con cthe cbasis cof cwhich cof cthe cfollowing?
a. A cfixed cfee, can chourly crate, cor ca ccontingency cfee
b. A cfixed cfee, ca cpro crata cdistribution, cor ca ccontingency cfee
c. A cstipend, ca cpro crate cdistribution, cor can chourly crate
d. A cstipend, can chourly crate, cor ca ccontingency cfee
e. A cfixed cfee, ca cstipend, cor ca cpro crata cdistribution
Richard Yates
Ch c1. cManaging cYour cLegal cAffairs
1. In cthe ccontext cof ca csophisticated cclient, c"sophisticated" ccan cbest cbe cdefined cas
a. complicated, cself-reliant, cand ccosmopolitan.
b. refined cand ccultured.
c. simple cand cnaïve.
d. confident, cknowledgeable, cand cup cto cdate.
e. aggressive, cdynamic, cand cforceful.
2. Which cof cthe cfollowing cbest cdescribes cthe clikelihood cof ca cstudent cbecoming
cinvolved cin ca csituation cnecessitating clegal cadvice?
a. A cstudent, cor csomeone cclose cto ca cstudent, csometimes cbecomes cinvolved cin csuch ca csituation.
b. A cstudent, cor csomeone cclose cto cthe cstudent, cwill calways cbecome cinvolved cin csuch ca csituation.
c. Because cstudents care cnot cbusiness cpeople, cthey cnever cbecome cinvolved cin csuch csituations.
d. Because cstudents ccannot cbe csophisticated, cthey cwill coften cbecome cinvolved cin csuch csituations.
e. Legal cadvice cis cnot cavailable cto cstudents.
3. Raman cis ca csophisticated cclient. cThis cmeans cthat cshe
a. understands chow cto cmanage ca clawyer-client crelationship.
b. has ca claw cdegree.
c. is ca csmall cbusiness cowner.
d. manages cher clegal caffairs cwithout cassistance cfrom ca clawyer.
e. will cprobably cnever cfind cherself cin ca csituation cnecessitating clegal cadvice.
4. Which cof cthe cfollowing cis cnot ca cgood creason cfor ca cbusinessperson cto cseek cadvice cfrom ca clawyer?
a. The cbusinessperson ccannot cfind cthe cnecessary clegal cinformation.
b. The cbusinessperson ccannot cunderstand cthe cnecessary clegal cinformation.
c. The cnecessary clegal cinformation cis cavailable conline.
d. It cwould ctake ctoo clong cfor cthe cbusinessperson cto cfind cthe cnecessary clegal cinformation.
e. The cbusinessperson cis cfacing ccriminal ccharges.
5. For csophisticated cclients, cthe cavailability cof can cabundance cof clegal cinformation conline cis
a. a cnegative cdevelopment, cbecause conline cinformation cis crarely caccurate cor chelpful.
b. a cpositive cdevelopment, cbecause cit cmeans cthat cthey cwill cno clonger cneed cto cretain clawyers
cas cpart cof ctheir cteam.
, c. a cnegative cdevelopment, cbecause caccessing cthis cinformation ctends cto cbe cmore ccostly cthan
cretaining ca clawyer.
d. a cpositive cdevelopment, cbecause cit cprovides cgreater caccess cto cinformation cthey ccan cuse
cas cpart cof ctheir cdecision-making cprocess.
e. a cneutral cdevelopment, cbecause clawyers care cstill cthe conly cones cable cto caccess cthis cinformation.
6. When csearching conline cfor clegal cinformation, cit cis cbest cto
a. trust cthat cif cit cis cpublished conline, cit cmust cbe caccurate.
b. never ctrust cthe cinformation cfound con ca cwebsite.
c. use cAmerican csources, cas cthey ctend cto cbe cmore ccomprehensive cthan cCanadian cones.
d. gauge cthe caccuracy cof cthe cinformation cby cthe clook cof cthe cwebsite.
e. seek cinput cfrom ca clawyer cwhen canswers ccannot cbe creadily cfound.
7. Sophisticated cclients
a. do cnot cneed cto cretain ca clawyer.
b. know cthat cit cis cbetter cto chire ca clawyer cthan cto cconduct cresearch con cone's cown.
c. are cwilling cto cpay cfor clegal cadvice cat cany ccost.
d. tend cto cbe cembarrassed cto crequest clegal cadvice.
e. have cthe cskill cand cconfidence cto cfind cbasic clegal cinformation.
,Ch c1. cManaging cYour cLegal cAffairs
8. The cprimary cpurpose cof can cinitial cconsultation cwith ca clawyer cis
a. to carrange cpayment cof cthe clawyer's cfees cup cfront.
b. to cdevelop cstrategies cfor cdealing cwith cthe clegal csituation cin cquestion.
c. for cthe cprospective cclient cto cdecide cwhether cto cretain cthe clawyer.
d. for cthe cprospective clawyer cto chelp cmediate cthe ccurrent cdispute.
e. to cdiscuss cthe cavailability cof cLegal cAid.
9. The cdecision cto center cthe clawyer-client crelationship cshould cbe
a. made cquickly cto censure cthat cno cone celse ccan cretain cyour clawyer.
b. solely cup cto cthe clawyer, cas che cor cshe cis cthe cone cwith cthe clegal ctraining.
c. made cprimarily con cthe cbasis cof ccost.
d. a cmutual cdecision cmade cprimarily con cthe cbasis cof ctrust.
e. solely cup cthe cclient, cas cthe cclient cis cthe cone cpaying cfor cthe cservices.
10. When csomeone crefers cyou cto ca cparticular clawyer, cyou cshould
a. retain cthe clawyer cregardless cof cwho cgave cyou cthe creferral.
b. gauge cthe creferral con cthe cbasis cof cthe clevel cof ctrust cyou chave cfor cthe cperson cmaking cthe
creferral.
c. retain cthe clawyer cregardless cof ctheir carea cof cpractice.
d. ensure cthe creferral cis cfrom ca cfamily cmember crather cthan ca cmere cfriend.
e. ignore cthe creferral cas cirrelevant.
11. A clawyer creferral cservice
a. will cenable ca cbusinessperson cto cretain ca clawyer cwithout cneed cfor can cinitial cconsultation.
b. is can conline cfee-based cservice cproviding cguaranteed cresults.
c. regulates cthe clegal cprofession cin cthe cinterest cof cthe cpublic.
d. provides cthe cnames cand cphone cnumbers cof clawyers cwho cpractice cin ca cparticular carea cof claw.
e. is calso cknown cas c"Legal cAid".
12. A cprovincial claw csociety
a. is ca cself-governing cbody cfor clawyers.
b. has cas cits cmandate cthe cprovision cof cfree clegal cservices cin cthe cpublic cinterest.
c. operates cprimarily cto coffer clow-cost clegal cadvice cto cmembers.
d. operates cprimarily cto cenhance cthe ccommercial cinterests cof cits cmembers.
e. is ca cself-governing cbody cfor cbusinesspeople cseeking clegal cadvice.
13. Becoming ca csophisticated cclient cwill
a. ensure cthat ca cbusiness cperson cnever cneeds ca clawyer.
b. help ca cbusiness cperson cmanage cher clegal caffairs cmore cefficiently cand ceffectively.
c. result cin ca cbusiness cperson cdeveloping ca cbias cagainst clawyers.
d. relieve ca cbusiness cperson cfrom chaving cto cconduct clegal cresearch.
e. protect ca cbusiness cperson cfrom cneeding clegal cadvice.
14. The cCanadian cBar cAssociation cis
a. the cnational csociety cfor clegal caid cservices.
b. a cprofessional corganization cthat crepresents cjudges cand clawyers.
c. focused con cenhancing cpublic csafety cin cthe cliquor cdistribution cindustry.
d. an corganization cresponsible cfor creviewing clawyers' caccounts.
e. a cdisciplinary cbody cfor cmembers cof cthe clegal cprofession.
15. When csetting cup ca csmall cbusiness, cthe cbest capproach cto cfollow cis cto cassume
cthat cafter cthe cbusiness chas cbeen cset cup cand ccommences coperating,
, Ch c1. cManaging cYour cLegal
cAffairs
a. the clawyer cyou cchose cto cassist cyou cin cthe cstart-up cof cthe cbusiness cwill ccontinue cto crepresent
cyou.
b. the clawyer cyou cchose cto cassist cyou cin cthe cstart-up cof cthe cbusiness cwill crefer cyou cto ca cdifferent
clawyer.
c. a clawyer cwill cno clonger cbe crequired.
d. you cwill cnot cneed clegal cadvice, cas clong cas cyou care ca csophisticated cclient.
e. the clawyer cyou cchose cto cassist cyou cin cthe cstart-up cof cthe cbusiness cwill cprovide cfree clegal
cservices cfor cthe cduration cof cthe cbusiness's coperation.
16. Which cof cthe cfollowing cis cnot can cadvantage cto cmaintaining can congoing crelationship cwith cyour
clawyer?
a. The clawyer cwill cknow cand cunderstand cyou cand cyour cbusiness.
b. The clawyer cwill cbe cable cto cprovide clegal cadvice cmore cefficiently, cthereby creducing cyour clegal
ccosts.
c. The clawyer cwill cbe cable cto ccustomize clegal cadvice cso cit cwill cbe ceven cmore cuseful cto cyou.
d. The clawyer cwill cautomatically ctrack cyour cbusiness cactivities cso cthat che cor cshe ccan
cprovide cconstant cadvice cand cguidance.
e. The clawyer cwill cbe cmotivated cto cdo ceven cmore cfor cthe cclient.
17. Legal cfees
a. are calways ccalculated cin ca csingle, cspecified cway.
b. should cnot cbe cdiscussed cwith ca clawyer cuntil ca cbill chas cbeen cprepared.
c. are ctypically cnegligible.
d. should cbe cdiscussed cduring cthe cinitial cconsultation cwith cthe clawyer.
e. are crarely cthe csubject cof cconfusion cor cmisunderstanding.
18. Which cof cthe cfollowing cstatements cis ccorrect?
a. It cis ca cpopular cmisconception cthat clegal cservices ccan cbe cvery ccostly.
b. Some cpeople cdon't cretain clawyers ceven cwhen cthey cneed cthem cbecause cthey care cafraid cof cthe
ccost.
c. All clegal cmatters care cbilled cto cclients con can chourly cbasis.
d. It cis cconsidered cunprofessional cto craise cthe cissue cof cfees cduring ca cconsultation cwith ca clawyer.
e. Lawyers cshould calways cbe cretained, cregardless cof cthe ccost.
19. Contingency cfee cagreements
a. are ctypically cused cfor creal cestate cpurchases, cthe cdrafting cof cwills, cand cincorporations.
b. are cnot csubject cto cany crestrictions.
c. are csynonymous cwith cretainer cagreements.
d. may cresult cin ca clawyer cnot creceiving cany clegal cfees cfor cthe cwork cdone con ca cfile.
e. must cbe cprepared cfor call clawyer-client crelationships.
20. Which cof cthe cfollowing cstatements cregarding cprovincial claw csocieties cis cfalse?
a. Provincial claw csocieties cmay crestrict cthe cuse cof ccontingency cfee cagreements.
b. Provincial claw csocieties cmay cset cmaximum ccontingency cfees cfor ccertain ctypes cof ccases.
c. Provincial claw csocieties cmay coffer ca cfee cmediation cservice.
d. Provincial claw csocieties cprovide conline cinformation con clawyers' cfees.
e. Provincial claw csocieties cprovide cfree clegal cservices cto cpeople cin cneed.
21. Typically, clawyers cbill ctheir cfees con cthe cbasis cof cwhich cof cthe cfollowing?
a. A cfixed cfee, can chourly crate, cor ca ccontingency cfee
b. A cfixed cfee, ca cpro crata cdistribution, cor ca ccontingency cfee
c. A cstipend, ca cpro crate cdistribution, cor can chourly crate
d. A cstipend, can chourly crate, cor ca ccontingency cfee
e. A cfixed cfee, ca cstipend, cor ca cpro crata cdistribution
