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Business Law1. Mr., Edwards, a former policeman, was hired to do investigations for the
stock exchange When it was found out that Edwards had cheated on the
examination required by the stock exchange. he was fired, told to leave
immediately, and paid his salary until that day. Edwards who was not covered
by a collective agreement. sued for wrongful dismissal, If the court holds that
the employer had just cause for dismissal. Edwards will be entitled to
damages equivalent to which of the following
1) The amount that would have been paid during a reasonable notice period less
any other amount received from other employment
2) The amount of pay that would have been received in one Period. e.g. one month
if paid monthly
3) Two weeks pay, the statutory minimum
4) Reasonable losses that Edwards could not mitigate
5) Nothing
2. In order to obtain a remedy for the disclosure of confidential information
or a trade what must the plaintiff show?
1) That the employee intended to harm the employer
2) That there was a non-disclosure agreement
3) That the disclosure of information has caused harm
4) That the employee profited from the disclosure
5) That the information was not personal
3. Marilyn worked for Spinners in Vancouver for twenty-five years. She had
no written employment agreement. Recently a new supervisor, Walter was
appointed to head her department. He began to make remarks about her
appearance and began asking her out on dates which she declined. Marilyn
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complained to the Human Resources Manager who did not address her
concerns. Walter’s behaviour continued. Finally Marilyn could tolerate it no
longer and she resigned leaving Spinners without giving notice, Which one bf
the following is TRUE?
1) Marilyn could submit a complaint under the B.C. Human Rights Code.
2) Marilyn could sue for wrongful dismissal and claim damages amounting to pay
she should have received in lieu of notice.
3) Marilyn could make a successful argument that her resignation amounted to
constructive dismissal
4) Although Spinners treated Marilyn poorly, she is still under a duty to look for a
job after her resignation.
5) All of the above
4. Because intellectual property rights are governed by statute. not common
law, a plaintiff who has suffered a breach of its trademark rights cannot claim
the equitable remedies of an injunction or an accounting: it can only receive
an order for damages
1) True
2) False
5) Which of the following is NOT covered by the federal Competition Act
1) Warranty of quiet possession
2) Conspiracy
3) Mergers and acquisitions
4) Bait and switch advertising
5) Pyramid selling
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6. which of the following is FALSE with regard to the law of landlord and
tenant, lesser and lessee?
1) A lease agreement is a contract that grants an estate in land; i.e., it gives the
lessee exclusive possession for a period of time
2) If a commercial lessee defaults on his rent. the lessor has the power to seize the
lessee’s property left on the premises.
3) Residential properties are governed by provincial statute and vary from
jurisdiction to jurisdiction.
4) A tenancy is primarily contractual and therefore does not “run with the land,” so
it does not bind a purchaser of the building.
5) The law of frustration applies to residential leases.
7. If an employee becomes disabled, the employer must attempt to
accommodate the employee so that her employment may continue, however
only up to the point of undue hardship.
1) True
2) False
8. Under which of the following areas of intellectual property law would the
“golden arches” of a McDonald’s Restaurant be protected:
1) Trade secret
2) Copyright
3) Trademark
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4) Industrial Design
5) Patent
9. A cheque is a bill of exchange drawn against a bank
1) True
2) False
10. When a landlord seizes property left by the tenant and holds it until the
rent is paid or sells it to pay rent owing, this is referred to as
1) relief against forfeiture.
2) tenancy at sufferance
3) distress
4) an order nisi
5) an order absolute
11. Which of the following matters are dealt with by federal or provincial
human rights laws
1) Harassment
2) Disabled workers
3) Religious discrimination
4) Gender equality
5) All of the above
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12. Which one of the following statements about bankruptcy is TRUE?
1) Bankruptcy law is different in every province.
2) Bankruptcy refers to a situation in which a debtor who cannot pay his debts
transfers his assets to the creditors directly
3) Bankruptcy law forces a debtor to pay all his debts, regardless of his financial
position.
4) All creditors of a bankrupt debtor are treated equally and will receive shares of
the assets directly in proportion to how much is owed to each of them.
5) None of the above.
13. An agreement for sale includes the right to retake possession if the person
buying the land fails to pay instalments
1) True
2) False
14. If you grant your grandma a life estate and she asks about her rights and
duties as a life tenant which of the following is TRUE?
1) The life tenant can transfer the fee simple to someone in her will.
2) The life tenant is not responsible to make repairs to keep the property in good
condition, only the fee simple owner has that responsibility.
3) The life tenant cannot rent out the property during the life tenancy.
4) If you make no indication of who the property is to go to when she dies the
property reverts back to your estate.
5) The life tenant after 20 years can establish an easement interest in the property.
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15. Your brother wants to borrow $80000 from the Bank of Victoria and has
asked if you would guarantee the loan. You have been told the following with
regard to guarantees. Which of the following statements is CORRECT?
1) As guarantor, you cannot be relieved of your obligation if the bank fails to
disclose financial information in relation to your brother in the bank’s possession.
2) A guarantor becomes liable on the debt as soon as the principal debtor defaults
on the loan granted to him.
3) You, as guarantor cannot be relieved of your obligation if the bank does
something to weaken your position-e.g., by agreeing with your brother to increase
the amount without your consent.
4) If he defaulted on his payments and you had to pay the debt to the bank you
would not be subrogated to the rights of the bank i.e., you would get the bank’s
right to sue your brother
5) A legally enforceable guarantee need not be in writing as long as it is witnessed.
16. Any substantial change in the nature of the contract between the creditor
and the debtor without the guarantor’s consent will relieve the guarantor of
any obligation
1) True
2) False
17. On Friday afternoon, Vicki was told not to return to work because her job
was gone. If her employer is a non-unionized business, and has no just cause
for dismissal, which of the following is TRUE:
1) The maximum notice her employer can give is governed by the Employment
Standards Act.
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2) If the period of notice was in the employment contract, that period would
override the common law unless that period was less than provided in the
Employment Standards Act.
3) Even if the employer pays her an amount of money equal to what she would
have earned during the notice period, the employer would still have to give her
additional notice of at least two weeks.
4) If the employee sues for wrongful dismissal and the court has to determine the
appropriate notice period, it would consider among other things her gender and
religion
5) The notice she is entitled to under common law will always override the notice
she is entitled to under her employment contract.
18. With respect to the land titles system of registering interests in land, which
one of the following is TRUE?
1) This registration system is the same throughout Canada because the procedure
has been set by the federal government to ensure a uniform method of registration.
2) All the documents concerning an interest in land must be kept in the land title
office. and to ensure the state of the title, a potential purchaser is advised to
examine the various documents that have accumulated over the years.
3) When documents concerning an interest in land are filed in the land title office,
each document is examined, and if it is in order, the state of title certificate is
amended to show the change.
4) Mortgages, restrictive covenants, building schemes, easements, and even entries
under the Builders’ Lien Act need not be registered to protect those interests
against third party claims. Registration of such interests is voluntary and won’t
affect one’s interest.
5) The system is to safeguard the documents; the government is not guaranteeing
title.
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19. Which of the following is most likely an example of an independent
contractor rather than employment:
1) Mike works full time as a college instructor
2) Dave is the sales manager a used car dealership
3) Mary is a full-time purchasing agent for a large department store
4) Bob is a commissioned sales person selling vacuum cleaners on behalf of
various manufacturers.
5) Betty is a cashier at a supermarket.
20. Which of the following is a statement of facts to which the Sale of Goods
Act would apply?
1) “Excuse me, there is a mouse in this beer bottle.
2) “I asked for a trim! You’ve cut off four inches!!
3) “1 brought in five shirts to be laundered and you are returning only four to me!”
4) “I agreed to give you a dozen old campaign buttons for that original signature of
the Prime Minister, but received the signature of the Governor General.”
21. Which of the following is FALSE in regard to obtaining a patent:
1) To obtain a patent the inventor must show that the invention was not already
known or used by another person before the inventor invented it
2) The inventor does not have to reveal how the invention is made when he applies
for the patent because that information is secret
3)A patent application is a complicated procedure that can take a long time
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4) If the patent office refuses to grant a patent the inventor may appeal the
decision.
5) patent law is governed by federal legislation.
22. Which of the following is the CORRECT definition of a chattel?
1) A chattel is a name used to describe the land registration system in place in the
Western provinces.
2) Chattel is an intangible form of personal property, such as a debt or claim.
3) Chattel refers to intellectual property such as patents and copyrights
4) Chattel is the term used to describe tangible personal property or movables.
5) The term chattel is the broad term used to describe any kind of property interest.
23. Which of the following is FALSE with regard to property?
1) Both real and personal property can be given as security to a creditor.
2) Real property consists of land and buildings
3) Personal property does not include such things as bonds.
4) Personal property includes chattels (movable property)
5) Accounts receivable can be given as security to a creditor.
24. Which of the following statements is FALSE in regard to copyright law:
1) Copyright arises when the work is created even if it is not registered
2) Copyright is goverred by federal law
3) The period of copyright protection is 25 years and can be renewed once
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4) A copyright holder can assign or licence his copyright but still retain his moral
rights.
25. Read the following statements with regard to the parties involved with
negotiable instruments and indicate which is FALSE.
1) The person who signs and issues the cheque is the drawer. The person who is
owed the money and receives the cheque is the drawee.
2) A person who signs a draft is a drawer: the party commanded to pay is the
drawee
3) An acceptor of a draft will become liable to the payee for the amount of the
draft.
4) The payee of a negotiable instrument can negotiate the instrument to a holder
who will be remote in relation to the drawer.
5) The person who signs a promissory note is the maker of the note and, unlike a
cheque the note will not include a drawee.
26. Which of the following is governed by federal law and therefore has the
same rules all across Canada:
1) Conditional sales contracts
2) Chattel Mortgages
3) Bankruptcy
4) Assignment of accounts receivable
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27. Tim is employed as a software developer for a small company. He is
assigned to head a project to develop new accounting software for an
important client. The project has a strict deadline for completion: under its
terms, the company must pay the client damages for every day it is late. After
weeks of hard work and stress, the project is falling behind and not likely to
be completed on time. One evening, while walking on the beach, Tim finds
inspiration to seek a more peaceful life. The next morning, he telephones his
manager to say that he is quitting immediately to live a life of quiet
meditation. The manager desperately starts looking for someone to finish the
project. In these circumstances, which of the following is FALSE
1) if the project is not completed on time and the client sues, the company can sue
Tim for breach of contract
2) the company is legally obligated to mitigate its damages by reasonably trying to
hire a replacement for Tim
3) Tim cannot be held liable because an employee does not have a duty to give
notice when resigning
4) even if the Employment Standards Act does not require a minimum notice
period to be given by an employee who quits, there is still a duty to give such
notice in common law
5) an employee can leave at any time without notice if the employer has breached
the employment contract by fundamentally changing its terms
28. Which of the following is FALSE if an inventor has her application for a
patent granted:
1) She has the right to renew the period of protection at the expiry of the first
period
2) She can no longer claim that the invention is a trade secret
3) She has the right to sue someone who uses the invention without her permission
4) Infringement of the patent can be a civil wrong
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5) She has the exclusive right to make. use and sell the Invention for a period of 20
years
29. A secured creditor has the right upon default to:
1) Claim its contractual remedies
2) Seize the security
3) Sell the security
4) Sue the debtor rather than seize the security
5) All of the above
30. Only employers are responsible for torts committed by their employees
during the course of the employment.
1) True
2) False
31. In regard to patent law, which of the following BEST describes an
invention that can patented?
1) A genetically modified plant
2) An original artistic work
3) An important scientific theory
4) An idea for a new movie.
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32. The Sale of Goods Act adds a number of implied terms to a sale of goods
transaction. Which of the following statements is NOT an implied term under
the Sale of Goods Act
1) The seller promises the buyer good title
2) The buyer is promised satisfaction or the right to get his money back
3) Goods sold by description must match the description
4) Where goods are sold by sample, the bulk of the goods must match the sample
5) The goods will be of free of liens and other eumbrances
33. Which of the following statements is TRUE regarding an employer’s
liability for the conduct of his employee:
1) the employer is always liable for the wrongful conduct of his employee
2) if a person is injured by the conduct of an employee in the course of the job, that
person must sue the employer, not the employee
3) an employer is only liable for the conduct of his employee that within the course
of an the employment
4) any employee can bind his employer in any contract
5) all employees are agents of the employer for all purposes
34. When Joan entered into a contract with Mr. Shultz to rent an apartment
in a converted house she noticed that the back stairs and hand railing looked
as if they were in disrepair. On the day when she took possession, she found
she couldn’t use the back stairs because the last two steps were rotten and the
handrail was not bolted down at one end. Which of the following is TRUE?
1) Unless the contract states that the landlord has an obligation to repair, the
landlord has no obligation to repair.
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2) Because Joan has taken possession, she would have the obligation to replace the
steps and bolt down the railing.
3) The landlord has an obligation to provide premises in a good state of repair only
if any defect was brought to his attention at the time of the contract.
4) The common law places no duty on the landlord to repair, and this has not been
overridden by any statute
5) The landlord has a statutory duty to provide premises in a state of repair that
complies with safety standards irrespective of the state of the premises at the time
of contract.
35. Which of the following statements is FALSE in regard to “property”:
1) Both real and personal property can be pledged as security to a creditor
2) Real property includes land but does not include the buildings on that land
3) Personal property includes intangible rights such as the right to receive payment
of a debt
4) Personal property includes chattels
5) Real property includes “fixtures”
36. A trademark can be protected for an indefinite period of time if it is
renewed every 15 years
1) True
2) False
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37. Which of the following is NOT an example of a statute that protects
intellectual property:
1) The Patent Act
2) The Trademark Act
3) The Copyright Act
4) The Industrial Designs Act
5) The Confidential Information Act
38. If a guarantor signs a continuing guarantee, he may continue to be bound
by the guarantee even though the creditor and the debtor agree to later
changes that put the guarantor at greater risk of being called upon to pay the
debt.
1) True 2) False
39.For the purpose of building a playhouse for his sons, Andy went to
Lumberlore Ltd. and bought the following items: an electric drill, lumber and
a six-foot step-ladder. He did not talk to a salesperson and he paid with his
credit card. While working on the project, Andy noticed that the drill worked,
but it was not powerful enough to drill into the posts the playhouse needed for
support. When he went toward the house to get his car keys, he found his wife
unconscious. She had climbed the ladder to take some leaves out of the roof
gutter, and it broke under her weight because of its faulty design. Which of
the following is FALSE:
1) Andy would have an action against Lumberlore Ltd. for breach of a condition of
the contract for the ladder because it was not of “merchantable quality
2) Andy would have an action against Lumberlore Ltd. for breach of a condition of
the contract for the drill because it was not fit for his purpose
3) Andy’s wife would have an action in tort against the manufacturer of the ladder
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4) The sale of the items Andy bought is covered by the Sale of Goods Act even
though he used his credit card to pay
40. Which of the following statements is FALSE regarding bankruptcy law:
1) A debtor may be insolvent without being in bankruptcy
2) A debtor who cannot pay his debts can make a voluntary assigns ent in
bankruptcy
3) a debtor does not pay his debts, his creditors can force him into bankruptcy
4) A debtor is released from bankruptcy by a court order called “discharge”
5) When a debtor is released from bankruptcy. all his unpaid debts of every kind
are cancelled
41. Which of the following is NOT just cause for dismissal of an employee:
1) Serious absenteeism
2) Consistently being late
3) Continual disobedience
4) Continual negligence or incompetence
5) The employer does not have enough work for the employee to do
42. The only person who has a better claim than the finder on goods that are
found is the original owner
1) True
2) False
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43. The effect of an Anton Piller Order is to:
1) Stop infringement of an intellectual property right before trial.
2) Seize material from the suspected infringer before trial
3) Prohibit the offender from dealing with the product.
4) Compensate the holder of a copyright.
5) Require the infringer to pay over any profits.
44. Under the Sale of Goods Act, unless the parties have agreed otherwise, the
purchaser of a finished good in deliverable condition bears the risk of loss
from the moment the sale agreement is made, even though she will not pay for
the good or take delivery until a week later.
1) True
2) False
45. When a house is built on a lot, the house is an example of
1) a profit a prendre
2) real property.
3) a chattel.
4) a house is not considered property.
5) an easement
46. If the place of employment is not unionized, and there are no provisions in
the employment contract concerning termination of employment, which of the
following would NOT be within the rights of the employer and therefore is
actionable by the employee:
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1) An employee is dismissed for serious incompetence and he is given neither
notice nor pay in lieu of notice
2) An employee is dismissed because he refused to do a job to which he had just
been demoted, and he is given reasonable pay in lieu of notice
3) An employee is dismissed because his employer doesn’t like his personality and
he is given reasonable pay in lieu of notice 4) An employee is dismissed because
he was found stealing on his employer and he is given neither notice nor pay in
lieu of notice
5) An employee is dismissed because there is no more work to do and he is given
neither notice nor pay in lieu of notice
47. After saving his money for years, Taylor was finally able to buy property
with a small house and a lake. Which of the following is FALSE?
1) His ownership extends to include fixtures
2) Taylor owns all of the area above his land and all of the land below
3) Despite the extent of his interest, the Crown can grant the ineral rights to
someone else.
4) Taylor’s interest is referred to as a fee simple
5) He can sell part of his interest and create a joint tenancy.
48. Which of the following terms or documents is NOT used to determine
when title or risk of loss pass to the buyer of goods:
1) Cost, insurance and freight
2) Free on board
3) Cash on delivery
4) Bill of lading
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49. Which of the following is NOT able to file a lien against the property
under the Builders’ Lien Act
1) Contractors
2) Sub-contractors
3) Workers
4) Suppliers of material
5) Lenders
50. To which one of the following contracts would the Sale of Goods Act NOT
apply:
1) A meal in a restaurant
2) The sale of a house
3) A sale of future goods when title will pass in the future
4) The purchase of a car
5) The sale of tangible personal property
