Test Bank – Business Law in Canada, 11th Edition by Richard A. Yates

Test Bank
for Business Law In Canada 11th Edition By
Yates latest version. Reviewed A+

,1) Which of the following is an ingredient necessary to form a contract?

1. A) Exemption clauses
2. B) Assignment
3. C) Capacity
4. D) Moral
5. E) Fairness

,Answer: C
Diff: 1 Type: MC Page Ref: 185
Topic: Ch. 6 – Elements of a Contract
Skill: Recall
Objective: Chapter 6: 1. Discuss the fundamentals of the contractual
relationship.
Bloom’s Taxonomy: Knowledge


2) Berman made a documentary on the life of musicianArtie Shaw. Shaw’s
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representative was cooperative and gave her permission to use certain songs if p p p p p p p p p p p p




she received proper permission from the copyright holders. The cost of the film
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was funded by her own savings, a private investor, the Canada Council, the
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OntarioArts Council, and deferred salaries and material costs. In March of 1987,
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the film won anAcademyAward as the best feature documentary for 1986. In
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November of 1987, Shaw’s lawyer contacted Berman’s lawyer: “… This letter
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states thatArtie Shaw has a 35% profit participation in the motion picture… .”
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Which of the following accurately sets out the legal position of the parties?
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1. A) Shaw has a right to this share because the movie is about him.
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2. B) The court will imply an agreement to this effect between the parties.
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3. C) Shaw has no claim since there was no such agreement.
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4. D)Apublic celebrity has the right to prevent this kind of exploitation if
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Berman refuses this demand. p p p




5. E) The court will award Shaw a reasonable profit because it is fair.
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Answer: C p




Diff: 3 p p Type: MC p p Page Ref: 185 p p p




Topic: Ch. 6 – Elements of a Contract
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Skill: Applied p




Objective: Chapter 6: 1. Discuss the fundamentals of the contractual
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relationship.
Bloom’s Taxonomy: Knowledge p p

, 3) Which of the following is not an example of a contract?
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1. A)Awritten promise to give your husband a ring for Christmas
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2. B)Averbal agreement to work for someone starting next week
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3. C)Averbal agreement for the sale of a car where neither the money or the
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car has yet changed hands p p p p




4. D)An agreement not to sue someone for negligence in exchange for
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their promise to pay you a specified amount
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5. E)An implied promise to pay for a meal when you order it
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Answer: A p




Diff: 1
p p Type: MC p p Page Ref: 185 p p p




Topic: Ch. 6 – Elements of a Contract
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Skill: Applied
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Objective: Chapter 6: 1. Discuss the fundamentals of the contractual
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relationship.
Bloom’s Taxonomy: Knowledge
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4) Which of the following is an example of a unilateral contract?
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1. A) Joe agrees to paint Sam’s house for $500.
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2. B) Joe pays $50 for groceries at a grocery store.
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3. C) C returns a lost dog and claims the $50 reward.
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4. D) Joe promises to give Harry his old boat when he gets his new one.
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5. E) Sam orders a meal in a restaurant.
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Answer: C p




Diff: 1
p p Type: MC p p Page Ref: 185 p p p




Topic: Ch. 6 – Elements of a Contract
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Skill: Applied
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Objective: Chapter 6: 1. Discuss the fundamentals of the contractual
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relationship.
Bloom’s Taxonomy: Knowledge
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